[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