[Federal Register Volume 63, Number 49 (Friday, March 13, 1998)]
[Notices]
[Pages 12575-12576]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-6558]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Docket No. MC-F-20917]


Coach USA, Inc.--Control--Airport Limousine Service, Inc. and 
Black Hawk-Central City Ace Express, Inc.

AGENCY: Surface Transportation Board.

ACTION: Notice tentatively approving finance transaction.

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SUMMARY: Coach USA, Inc. (Coach or applicant), a noncarrier, filed an 
application under 49 U.S.C. 14303 to acquire control of Airport 
Limousine Service, Inc. (Airport) and Black Hawk-Central City Ace 
Express, Inc. (Black Hawk), both motor passenger carriers. Persons 
wishing to oppose the application must follow the rules under 49 CFR 
part 1182, subpart B. The Board has tentatively approved the 
transaction, and, if no opposing comments are timely filed, this notice 
will be the final Board action.

DATES: Comments must be filed by April 27, 1998. Applicants may file a 
reply by May 2, 1998. If no comments are filed by April 27, 1998, this 
notice is effective on that date.

ADDRESSES: Send an original and 10 copies of any comments referring to 
STB Docket No. MC-F-20917 to: Surface Transportation Board, Office of 
the Secretary, Case Control Unit, 1925 K Street, N. W., Washington, D. 
C. 20423-0001. In addition, send one copy of comments to applicants' 
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 currently controls 35 motor passenger 
carriers.1 In this transaction, it seeks to acquire direct 
control of Airport 2 and Black Hawk 3 through the 
acquisition of all of their outstanding stock.
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    \1\ In addition to the instant proceeding in which it seeks to 
acquire control of two additional motor passenger carriers, Coach 
has two pending proceedings: Coach USA, Inc.--Control Exemption--
Browder Tours, Inc. and El Expreso, Inc., STB Finance Docket No. 
33506 (STB filed Oct. 31, 1997), in which it seeks to acquire 
control of two additional motor passenger carriers; and Coach USA, 
Inc. and Coach XXIII Acquisition, Inc.--Control--Americoach Tours, 
Ltd.; Keeshin Charter Services, Inc.; Keeshin Transportation, L.P.; 
Niagara Scenic Bus Lines, Inc.; and Pawtuxet Valley Bus Lines, STB 
Docket No. MC-F-20916 (STB served Feb. 27, 1998), in which it seeks 
to acquire control of five additional motor passenger carriers.
    \2\ Airport is a Delaware Corporation. It holds federally issued 
operating authority in MC-315702 and intrastate operating authority 
issued by the Pennsylvania Public Utilities Commission. In addition, 
Airport holds authority from the Port Authority of Allegheny County, 
PA, for paratransit-airport transportation. The majority of its 
revenues stem from its services to and from the Pittsburgh Airport, 
and its gross revenue for fiscal year 1996 was approximately 
$900,000. Prior to the transfer of its stock into a voting trust, it 
had been owned by Herbert Bennett Conner, Linda G. Conner, and 
Kelley C. Gresh.
    \3\ Black Hawk is a Colorado Corporation. It holds federally 
issued operating authority in MC-273611 and intrastate operating 
authority issued by the Colorado Public Utilities Commission. It 
operates approximately 21 buses and had gross revenues for fiscal 
year 1996 of approximately $5 million (derived mostly from commuter 
operations). Prior to the transfer of its stock into a voting trust, 
it had been owned by Anthony D. Sosebee, Jason D. Sosebee, Marko and 
Joanne Lah, William and Frances Mattedi, Nancy Searle, Jack Searle, 
and Linda Talley.
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    Applicants submit that there will be no transfer of any federal or 
state operating authorities held by the acquiring carriers. They assert 
that the acquisition will not reduce competition in the bus industry or 
competitive options available to the traveling public. They state that 
the acquired carriers do not compete with one another or with any 
Coach-owned carrier. Applicants submit that each of the acquired 
carriers is relatively small and that each faces substantial 
competition from other bus companies and transportation modes.
    Applicants also submit that granting the application will produce 
substantial benefits, including interest cost savings from the 
restructuring of debt and reduced operating costs from Coach's enhanced 
volume purchasing power. Specifically, applicants claim that the 
carriers to be acquired will benefit from the lower insurance premiums 
negotiated by Coach and from volume discounts for equipment and fuel. 
Applicants also aver that Coach will provide each of the carriers to be 
acquired with centralized legal and accounting functions and 
coordinated purchasing services. In addition, they state that vehicle 
sharing arrangements will be facilitated through Coach to ensure 
maximum use and efficient operation of equipment, and that coordinated 
driver training services will be provided. Applicants also state that 
the proposed transaction will benefit the employees of the acquired 
carriers and that all collective bargaining agreements will be honored 
by Coach.
    Coach plans to acquire control of additional motor passenger 
carriers in the coming months. It asserts that the financial benefits 
and operating efficiencies will be enhanced further by these subsequent 
transactions. Over the long term, Coach states that it will provide 
centralized marketing and reservation services for the bus firms that 
it controls, thereby enhancing the benefits resulting from these 
control transactions.
    Applicants certifies that: (1) Black Hawk has a satisfactory safety 
fitness rating from the U.S. Department of Transportation; (2) Airport 
has not been rated; (3) both carriers maintain sufficient liability 
insurance; (4) both carriers are neither domiciled in Mexico nor owned 
or controlled by persons of that country; and (5) approval of the 
transaction will not significantly affect either the quality of the 
human environment or the conservation of energy resources. Additional 
information may be obtained from applicants' representatives.
    Under 49 U.S.C. 14303(b), we must approve and authorize a 
transaction we find consistent with the public interest, taking into 
consideration at least: (1) the

[[Page 12576]]

effect of the transaction on the adequacy of transportation to the 
public; (2) the total fixed charges that result; and (3) the interest 
of affected carrier employees.
    On the basis of the application, we find that the proposed 
acquisition of control is consistent with the public interest and 
should be authorized. If any opposing comments are timely filed, this 
finding will be deemed vacated and a procedural schedule will be 
adopted to reconsider the application. If no opposing comments are 
filed by the expiration of the comment period, this decision will take 
effect automatically and will be the final Board action.
    This decision will not significantly affect either the quality of 
the human environment or the conservation of energy resources.
    It is ordered:
    1. The proposed acquisition of control is approved and authorized, 
subject to the filing of opposing comments.
    2. If timely opposing comments are filed, the findings made in this 
decision will be deemed vacated.
    3. This decision will be effective on April 27, 1998, unless timely 
opposing comments are filed.
    4. A copy of this notice will be served on the U.S. Department of 
Justice, Antitrust Division, 10th Street & Pennsylvania Avenue, N. W., 
Washington, D. C. 20530.

    Decided: March 9, 1998.

    By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 98-6558 Filed 3-12-98; 8:45 am]
BILLING CODE 4915-00-P