[Federal Register Volume 63, Number 39 (Friday, February 27, 1998)]
[Notices]
[Pages 10072-10073]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4831]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Docket No. MC-F-20915]


Suburban Transit Corp., et al.--Pooling--American Limousine 
Service, Inc.

AGENCY: Surface Transportation Board.

ACTION: Notice of proposed coordinated service and revenue pooling 
application.

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SUMMARY: Suburban Transit Corp. (Suburban Transit) and Suburban Trails, 
Inc. (Suburban Trails) (collectively Suburban), both of New Brunswick, 
NJ, and American Limousine Service, Inc. (American), of Hamilton 
Township, NJ, jointly seek approval of a coordinated service and 
revenue pooling agreement under 49 U.S.C. 14302, with respect to their 
motor passenger transportation services between a park and ride 
facility near Exit 8A of the New Jersey Turnpike and routes feeding 
that facility, and New York, NY (the ``8A Area Service'').

DATES: Comments on the proposed agreement may be filed with the Board 
in the form of verified statements on or before March 30, 1998. If 
comments are filed, applicants' rebuttal statement is due on or before 
April 20, 1998.

ADDRESSES: Send an original and 10 copies of any comments referring to 
STB Docket No. MC-F-20915 to: Surface Transportation Board, Office of 
the Secretary, Case Control Unit, 1925 K Street, N.W., Washington, DC 
20423-0001. In addition, send one copy of any comments to each of 
applicants' representatives: (1) Betty Jo Christian, Steptoe & Johnson 
LLP, 1330 Connecticut Avenue, N.W., Washington, DC 20036; and (2) 
Joseph J. Ferrara, Ferrara & Associates, 921 Bergen Avenue, #806, 
Jersey City, NJ 07306.

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

SUPPLEMENTARY INFORMATION: Under the proposed pooling agreement, 
applicants seek approval to pool a portion of their services over 
routes which they both operate and to share the revenues derived from 
their operations over those routes.
    Suburban Transit, a commuter bus carrier, holds operating authority 
in No. MC-115116 and operates from Middlesex, Somerset and Mercer 
counties in central New Jersey to New York City along numerous routes.
    Suburban Trails holds operating authority in No. MC-149081 and 
operates two regular routes: the Route 9 corridor service, in 
coordination with New Jersey Transit, and the Hightstown ``8A Area 
Service,'' the route involved in the instant pooling application. 
Suburban Trails also operates domestic and international charter 
service.
    American holds operating authority in No. MC-186879 and operates, 
in addition to the routes involved here, two intrastate routes between 
points in Middlesex and Mercer Counties and Atlantic City, NJ, as well 
as interstate and intrastate charter service.
    Applicants are competitors on the ``8A Area Service'' route. 
Because their competing services are performed at nearly the same 
scheduled times, which causes both carriers to operate only partially 
loaded buses, applicants claim that their operations are inefficient 
and costly. As a consequence, they state that they are unable to 
compete effectively with Amtrak, New Jersey Transit, van pools, and 
private automobiles.
    Applicants assert that there is substantial intermodal competition 
on the pooled route to protect the public and that the pooling 
agreement does not threaten to produce an unreasonable restraint on 
competition. They note keen competition from other modes of passenger 
travel in the area, including 4 commuter hour trains operated by 
Amtrak, 12 commuter hour trains operated by New Jersey Transit, 
vanpools, and private automobiles.
    Pooled services, according to applicants, will enable them to 
increase their passenger load per bus, thereby reducing their overall 
cost of operations, and, in turn, make their services more competitive. 
In addition, applicants point out that pooling their operations will 
benefit passengers by: (1) Providing a greater choice of departure 
times; (2) allowing applicants to honor each other's tickets; (3) 
arranging for PM departures from the same departure area; (4) utilizing 
a common dispatcher where feasible; and (5) accepting passengers from 
disabled buses in the event of a breakdown. By pooling their revenues, 
applicants expect to enhance their financial stability in a manner that 
neither could achieve alone through individual operations in the 8A 
Area Service. This, in turn, will improve service to the public by 
allowing applicants to better manage their pricing structures and 
capital improvements, including the replacement of vehicles.
    Applicants state that they are not domiciled in Mexico and are not 
owned or controlled by persons of that country. Moreover, they assert 
that approval of the application will not significantly affect either 
the quality of the human environment or the conservation of energy 
resources. Rather, they claim that

[[Page 10073]]

the transaction will result in the conservation of fuel and the 
reduction of emissions.
    Copies of the pooling application may be obtained free of charge by 
contacting applicants' representatives. Alternatively, the pooling 
application may be inspected at the offices of the Surface 
Transportation Board, Room 755, during normal business hours. A copy of 
the notice will be served on the U.S. Department of Justice, Antitrust 
Division, 10th Street & Pennsylvania Avenue, N.W., Washington, DC 
20530.

    Decided: February 18, 1998.

    By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 98-4831 Filed 2-26-98; 8:45 am]
BILLING CODE 4915-00-P