[Federal Register Volume 62, Number 70 (Friday, April 11, 1997)]
[Notices]
[Page 17904]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-9363]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33377]


Coach USA, Inc.--Control Exemption--Airport Bus of Bakersfield; 
Antelope Valley Bus, Inc., Desert Stage Lines, Inc.; Bayou City 
Coaches, Inc.; Kerrville Bus Company, Inc.; Red & Tan Charter, Inc.; 
Red & Tan Tours, Inc.; and Rockland Coaches, Inc.

AGENCY: Surface Transportation Board.

ACTION: Notice of filing of petition for exemption.

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SUMMARY: Coach USA, Inc. (Coach), a noncarrier that controls 15 motor 
passenger carriers, seeks to be exempted, under 49 U.S.C. 13541, from 
the prior approval requirements of 49 U.S.C. 14303(a)(5), to acquire 
control of eight other motor passenger carriers.

DATES: Comments must be filed by May 1, 1997. Petitioner may file a 
reply by May 5, 1997.

ADDRESSES: Send an original and 10 copies of comments referring to STB 
Finance Docket No. 33377 to: Office of the Secretary, Case Control 
Unit, Surface Transportation Board, 1925 K Street, N.W., Washington, 
D.C. 20423-0001. Also send one copy of comments to petitioner's 
representatives: Betty Jo Christian and David H. Coburn, Steptoe & 
Johnson LLP, 1330 Connecticut Avenue, N.W., Washington, D.C. 20036.

FOR FURTHER INFORMATION CONTACT: Joseph H. Dettmar, (202) 565-1600 [TDD 
for the hearing impaired: (202) 565-1695.]

SUPPLEMENTARY INFORMATION: Coach seeks an exemption to acquire stock 
control over eight motor passenger carriers that operate in interstate 
and intrastate commerce: Airport Bus of Bakersfield (MC-163191) 
(primarily charter operations and regular-route service in California 
and Nevada); Antelope Valley Bus, Inc. (MC-125057) (primarily charter 
operations and regular-route service in California and Nevada); Desert 
Stage Lines, Inc. (MC-140919) (primarily charter operations in 
California); Bayou City Coaches, Inc. (MC-245246) (primarily charter 
operations in Texas and New Mexico); Kerrville Bus Company, Inc. (MC-
27530) (primarily charter operations and regular-route service in 
Texas, Louisiana, and Arkansas); Red & Tan Charter, Inc. (MC-204842) 
(holds authority to operate charter and special services, but does not 
presently conduct any bus operations); Red & Tan Tours, Inc. (MC-
162174) (primarily charter operations and regular-route service in New 
York and New Jersey); and Rockland Coaches, Inc. (MC-29890) (primarily 
charter operations and regular-route service in New York and New 
Jersey).1 Antelope Valley Bus, Inc. operates Airport Bus of 
Bakersfield as a division and wholly owns Desert Stage Lines, Inc. Red 
& Tan Tours, Inc., Red & Tan Charter, Inc., and Rockland Coaches, Inc. 
are also under common control. Bayou City Coaches, Inc. and Kerrville 
Bus Company, Inc. are controlled by different members of the same 
family. Coach states that each of the eight carriers accounts for a 
relatively small market share and operates regionally in diverse 
markets across the United States.
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    \1\ The stock of these eight motor passenger carriers was placed 
in separate, independent voting trusts with different trustees to 
avoid any unlawful control.
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    Coach indicates that it currently controls the nation's second 
largest group of motor passenger carriers, having acquired 10 carriers 
in May 1996,2 and five more in November 1996.3 In 
STB Finance Docket No. 33343, which is pending before the Board, 
petitioner is seeking to acquire control of four other motor passenger 
carriers.4
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    \2\ See Notre Capital Ventures II, LLC and Coach USA, Inc.--
Control Exemption--Arrow Stage Lines, Inc.; Cape Transit Corp.; 
Community Coach, Inc.; Community Transit Lines, Inc.; Grosvenor Bus 
Lines, Inc.; H.A.M.L. Corp.; Leisure Time Tours; Suburban Management 
Corp.; Suburban Trails, Inc.; and Suburban Transit Corp., STB 
Finance Docket No. 32876 (Sub-No. 1) (STB served May 3, 1996).
    3 See Coach USA, Inc.--Control Exemption--American 
Sightseeing Tours, Inc.; California Charters, Inc.; Texas Bus Lines, 
Inc.; Gulf Coast Transportation, Inc.; and K-T Contract Services, 
Inc., STB Finance Docket No. 33073 (STB served Nov. 8, 1996).
    4 Coach USA, Inc.--Control Exemption--Progressive 
Transportation, Inc.; Powder River Transportation Services, Inc.; 
Worthen Van Service, Inc.; and PCSTC, Inc., STB Finance Docket No. 
33343 (STB served and published Mar. 12, 1997) (62 FR 11518).
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    Petitioner asserts that there is little competition, and no 
significant overlap in operations, among the 15 carriers it now 
controls and the carriers it seeks to control in this proceeding and in 
STB Finance Docket No. 33343. Coach acknowledges that there is some 
overlap in service but states that the proposed acquisitions will have 
no meaningful effect on the continued availability of competitive 
transportation.
    Following the acquisition of control by Coach, the eight carriers 
will continue to operate in their respective markets, each under its 
own name and each in the same basic manner as before. Coach claims that 
improved service at lower costs will result because of the coordination 
of functions, centralized management, financial support, 
rationalization of resources, and economies of scale that are 
anticipated from the common control. Coach also states that all 
collective bargaining agreements will be honored, that employee 
benefits will improve, and that no change in management personnel is 
planned. Additional information may be obtained from petitioner's 
representatives.
    Coach also requests expedited action by the Board on its petition 
for exemption filed in this proceeding and in STB Finance Docket No. 
33343. Coach explains that there will be a stock, and possibly a debt, 
offering in May 1997 and asks that the Board issue a decision in both 
proceedings by May 15, 1997.
    A copy of this notice will be served on the Department of Justice, 
Antitrust Division, 10th Street & Pennsylvania Avenue, N.W., 
Washington, D.C. 20530.

    Decided: April 4, 1997.

    By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 97-9363 Filed 4-10-97; 8:45 am]
BILLING CODE 4915-00-P