[Federal Register Volume 63, Number 69 (Friday, April 10, 1998)]
[Notices]
[Pages 17924-17925]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-9577]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Docket No. MC-F-20918]
Coach USA, Inc.--Control--Metro Cars, Inc.
AGENCY: Surface Transportation Board.
ACTION: Notice Tentatively Approving Finance Transaction.
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SUMMARY: Coach USA, Inc. (Coach), a noncarrier, filed an application
under 49 U.S.C. 14303 to acquire control of Metro Cars, Inc. (Metro), a
motor passenger carrier. Persons wishing to oppose the application must
follow the rules under 49 CFR part 1182, subparts B and C. 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 May 25, 1998. Applicant may file a
reply by June 9, 1998. If no comments are filed by May 25, 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-20918 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 comments to applicant's
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 37 motor passenger
carriers. 1 In this transaction, it seeks to
[[Page 17925]]
acquire control of Metro 2 through the acquisition of all of
its stock.
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\1\ In addition to the instant proceeding in which it seeks to
acquire control of an additional motor passenger carrier, Coach has
two pending proceedings: 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; and Coach USA,
Inc.--Control--Airport Limousine Service, Inc. and Black Hawk-
Central City Ace Express, Inc., STB Docket No. MC-F-20917 (STB
served Mar. 13, 1998), in which it seeks to acquire control of two
additional motor passenger carriers.
\2\ Metro is a Michigan Corporation. It holds federally issued
operating authority in MC-276823 and intrastate operating authority
issued by the Michigan Department of Transportation. The majority of
its revenues are derived from its services between the Detroit
Airport and points in Michigan and Ohio, and its gross revenue for
fiscal year 1996 was approximately $6.6 million. It operates 75
sedans, 14 vans, 8 limousines, and 5 buses and other passenger
vehicles. Prior to the transfer of its stock into a voting trust, it
had been owned by Cullen F. Meathe and A. Gregory Eaton.
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Applicant submits that there will be no transfer of any federal or
state operating authorities held by Metro. It asserts that Metro will
continue operating in the same manner as before, and that the
acquisition of control will not reduce competition in the bus industry
or competitive options available to the traveling public. It states
that Metro does not compete with any Coach-owned carrier. Applicant
submits that Metro is relatively small and faces substantial
competition from other bus companies and transportation modes.
Applicant also submits 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, applicant claims that Metro will
benefit from the lower insurance premiums negotiated by Coach and from
volume discounts for equipment and fuel. Applicant indicates that Coach
will provide Metro with centralized legal and accounting functions and
coordinated purchasing services. In addition, it states 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. Applicant also states that
the proposed transaction will benefit the employees of Metro 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.
Applicant certifies that: (1) Metro has not been rated for safety
by the U.S. Department of Transportation; (2) Metro maintains
sufficient liability insurance; (3) Metro is neither domiciled in
Mexico nor owned or controlled by persons of that country; and (4)
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 applicant's
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 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 May 25, 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 and Pennsylvania Avenue, N.W.,
Washington, DC 20530.
Decided: April 6, 1998.
By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 98-9577 Filed 4-9-98; 8:45 am]
BILLING CODE 4910-00-P