[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