[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