[Federal Register Volume 62, Number 155 (Tuesday, August 12, 1997)]
[Notices]
[Pages 43195-43196]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21261]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33428]


Coach USA, Inc., and Leisure Time Tours--Control and Merger 
Exemption--Van Nortwick Bros., Inc., The Arrow Line, Inc., and 
Trentway-Wagar, Inc.

AGENCY: Surface Transportation Board, DOT.

ACTION: Notice of Filing of Petition for Exemption.

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SUMMARY: Coach USA, Inc. (Coach), a noncarrier that controls 27 motor 
passenger carriers, and Leisure Time Tours, d/b/a Leisure Lines 
(Leisure Time), a motor passenger carrier wholly owned by Coach 
(collectively, petitioners), seek an exemption, under 49 U.S.C. 13541, 
from the prior approval requirements of 49 U.S.C. 14303(a)(5), to 
acquire control of Van Nortwick Bros., Inc. (Van Nortwick), a motor 
passenger carrier, and to merge Van Nortwick into Leisure Time, which 
will be the surviving entity. Coach also seeks an exemption, under 49 
U.S.C. 13541, from the prior approval requirements of 49 U.S.C. 
14303(a)(5), to acquire control of The Arrow Line, Inc. (Arrow), and 
Trentway-Wagar, Inc. (Trentway), motor carriers of passengers.

DATES: Comments must be filed by September 11, 1997. Petitioners may 
file a reply by September 22, 1997.

ADDRESSES: Send an original and 10 copies of comments referring to STB 
Finance Docket No. 33428 to: Surface Transportation Board, Office of 
the Secretary, Case Control Unit, 1925 K Street, N.W., Washington, DC 
20423-0001. Also, send one copy of comments to petitioners' 
representatives: Betty Jo Christian and David H. Coburn, Steptoe & 
Johnson LLP, 1330 Connecticut Avenue, N.W., Washington, DC 20036.

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

SUPPLEMENTARY INFORMATION: Coach and Leisure Time (MC-142011) seek an 
exemption for Leisure Time to acquire direct stock control and Coach to 
acquire indirect stock control of Van Nortwick (MC-149025), a motor 
passenger carrier that operates in interstate and intrastate 
commerce.1 Following the acquisition of control and 
negotiation of a further agreement between the parties, petitioners 
also seek an exemption to merge Van

[[Page 43196]]

Nortwick into Leisure Time, with Leisure Time remaining as the 
surviving entity. In addition, Coach seeks an exemption to acquire 
direct stock control over Arrow (MC-1193 and MC-1194), a motor 
passenger carrier that operates in interstate and intrastate 
commerce,2 and Trentway (MC-126430), a motor passenger 
carrier that operates in interstate and foreign commerce.3 
Coach currently controls 27 passenger carriers.4 Petitioners 
state that acquisition of control of the three additional carriers will 
have no significant impact on competition. Petitioners indicate that 
the stock of each of the acquired carriers--Van Nortwick, Arrow, and 
Trentway--has been placed in an independent voting trust to avoid any 
unlawful control pending disposition of this proceeding. Van Nortwick 
competes to a limited degree with certain Coach-controlled bus carriers 
based in New Jersey, including Leisure Time. Neither Arrow nor Trentway 
competes to any meaningful degree with the other or with any other 
Coach-controlled carriers. Petitioners state that each of the three 
carriers conducts business in a highly competitive environment, 
characterized by low entry barriers and strong intermodal competition, 
and each accounts for a relatively small market share of the 
transportation services available to its potential passengers.
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    \1\ Van Nortwick provides charter and tour operations primarily 
in New Jersey and nearby states.
    \2\ Arrow's operations consist primarily of charter and tour 
services throughout Connecticut and nearby New England states and 
New York. Arrow also conducts certain regular-route services between 
points in Connecticut.
    \3\ Trentway operates regular-route service between points in 
Ontario, Canada, and points in the United States and also operates 
charter and special services within the United States, particularly 
with respect to charter trips originating in Ontario.
    \4\ They include: Airport Bus of Bakersfield (MC-163191), 
American Sightseeing Tours, Inc., d/b/a ASTI (MC-252353), Antelope 
Valley Bus, Inc. (MC-125057), Arrow Stage Lines, Inc. (MC-29592), 
Bayou City Coaches, Inc. (MC-245246), California Charters, Inc. (MC-
241211), Cape Transit Corp. (MC-161678), Community Coach, Inc. (MC-
76022), Community Transit Lines, Inc. (MC-145548), Desert Stage 
Lines, Inc. (MC-140919), Grosvenor Bus Lines, Inc. (MC-157317), Gulf 
Coast Transportation, Inc., d/b/a Gray Line Tours of Houston (MC-
201397), H.A.M.L. Corp. (MC-194792), K-T Contract Services, Inc. 
(MC-218583), Kerrville Bus Company, Inc. (MC-27530), Leisure Time 
Tours (MC-142011), PCSTC, Inc., d/b/a Pacific Coast Sightseeing/Gray 
Line of Anaheim-Los Angeles (MC-184852), Powder River Transportation 
Services, Inc. (MC-161531), Progressive Transportation Services, 
Inc. (MC-247074), Red & Tan Charter, Inc. (MC-204842), Red & Tan 
Tours, Inc. (MC-162174), Rockland Coaches, Inc. (MC-29890), Suburban 
Management Corp. (MC-264527), Suburban Trails, Inc. (MC-149081), 
Suburban Transit Corp. (MC-115116), Texas Bus Lines, Inc. (MC-
37640), and Worthen Van Service, Inc. (MC-142573).
    In Coach USA, Inc.--Control Exemption--American Charters, Ltd., 
STB Finance Docket No. 33393, Coach seeks an exemption to acquire 
control over American Charters, Ltd. (MC-153814). The Board served 
and published a notice in the Federal Register (62 FR 28531) on May 
23, 1997, instituting an exemption proceeding. Comments were due by 
June 23, 1997; none was filed. A final decision is currently pending 
with the Board.
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    According to petitioners, the acquisition of control of Van 
Nortwick's stock by Leisure Time will not inhibit competition or reduce 
transportation options available to the public. Similarly, Coach states 
that its acquisition of stock control of Arrow and Trentway will have 
no meaningful effect on the continued availability of competitive 
passenger transportation.
    Petitioners claim that the acquisition of control of Van Nortwick, 
Arrow, and Trentway will allow each carrier to offer improved service 
at lower costs made possible by the coordination of functions, 
centralized management, financial support, rationalization of 
resources, and economies of scale that are anticipated from the common 
control. Coach anticipates that the annual efficiency savings that will 
be generated by the proposed acquisitions will total several hundreds 
of thousands of dollars annually, representing primarily interest, 
insurance and vehicle equipment cost savings. Coach 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 petitioners' 
representatives.
    A copy of this notice will be served on the Department of Justice, 
Antitrust Division, 10th Street & Pennsylvania Avenue, N.W., 
Washington, DC 20530.

    Decided: August 5, 1997.

    By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 97-21261 Filed 8-11-97; 8:45 am]
BILLING CODE 4915-00-P