Federal Register, Volume 63 Issue 141 (Thursday, July 23, 1998)

[Federal Register Volume 63, Number 141 (Thursday, July 23, 1998)]
[Notices]
[Pages 39634-39635]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-19680]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Docket No. MC-F-20923]


Coach USA, Inc.--Control--Kansas City Executive Coach, Inc. and 
Le Bus, 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 Kansas City Executive 
Coach, Inc. (Executive) and Le Bus, Inc. (Le Bus) (collectively, the 
Acquired Carriers), both motor carriers of passengers. 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 are due by September 8, 1998. Applicant may reply by 
September 22, 1998. If no comments are received by September 8, 1998, 
this notice is effective on that date.

ADDRESSES: Send an original and 10 copies of any comments referring to 
STB No. MC-F-20923 to: Surface Transportation Board, Office of the 
Secretary, Case Control Unit, 1925 K Street, N.W., Washington, DC 
20423-

[[Page 39635]]

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

SUPPLEMENTARY INFORMATION: Coach currently controls 45 motor passenger 
carriers.¹ In this transaction, Coach seeks to acquire 
direct control of Executive ² and Le Bus ³ by 
acquiring all of the outstanding stock of each of these carriers.
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    \1\ In addition to the instant application, Coach has one other 
pending control application: Coach USA, Inc.--Control--Blue Bird 
Coach Lines, Inc.; Butler Motor Transit, Inc.; Gad-About Tours, 
Inc.; P&S Transportation, Inc.; Pittsburgh Transportation Charter 
Services, Inc.; Syracuse and Oswego Coach Lines, Inc.; Tippett 
Travel, Inc., d/b/a Marie's Charter Bus Lines; Tucker Transportation 
Co., Inc.; and Utica-Rome Bus Co., Inc., STB Docket No. MC-F-20921 
(STB served June 19, 1998), where Coach seeks to acquire control of 
nine additional motor passenger carriers.
    \2\ Executive is a Missouri corporation. It holds federally-
issued operating authority in Docket MC-203805, as well as 
intrastate authority issued by the Missouri Department of 
Transportation. The carrier operates a fleet of 15 motorcoaches; 
employs approximately 35 drivers; and, together with affiliated 
companies, earned gross annual revenues in fiscal 1997 of 
approximately $12 million. Prior to the transfer of its stock into a 
voting trust, it had been owned by Mr. William J. George and William 
M. George.
    \3\ Le Bus is a Florida corporation. It holds federally-issued 
operating authority in Docket MC-210900. The carrier operates a 
fleet of approximately 40 motorcoaches; employs approximately 50 
persons; and in fiscal 1997 earned gross revenues of $5.2 million.
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    Applicant submits that there will be no transfer of federal or 
state operating authorities held by the Acquired Carriers. Following 
consummation of the control transactions, these carriers will continue 
operating in the same manner as before, and, according to applicant, 
granting the application will not reduce competitive options available 
to the traveling public. Applicant asserts that the Acquired Carriers 
do not compete with one another or, to any meaningful degree, with any 
other Coach-owned carrier. Applicant submits that each of the Acquired 
Carriers is relatively small and each faces substantial competition 
from other bus companies and from other 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 each 
carrier will benefit from the lower insurance premiums negotiated by 
Coach and from volume discounts for equipment and fuel. Applicant 
indicates that Coach will provide each carrier with centralized legal 
and accounting functions and coordinated purchasing services. In 
addition, applicant states that vehicle sharing arrangements will be 
facilitated through Coach to ensure maximum use and efficient operating 
of equipment and that, with Coach's assistance, coordinated driver 
training services will be provided, enabling each carrier to allocate 
driver resources in the most efficient manner possible. Applicant also 
states that the proposed transaction will benefit the employees of each 
carrier and that all collective bargaining agreements will be honored 
by Coach. Over the long term, Coach states that it will provide 
centralized marketing and reservation services for the bus firms that 
it controls, thereby further enhancing the benefits resulting from 
these control transactions.
    Applicant certifies that: (1) neither carrier holds an 
unsatisfactory safety rating from the U.S. Department of 
Transportation; (2) each carrier has sufficient liability insurance; 
(3) neither carrier is 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.

Board decisions and notices are available on our website at 
``WWW.STB.DOT.GOV.''

    This action 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 September 8, 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, DC 20530.

    Decided: July 16, 1998.

    By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 98-19680 Filed 7-22-98; 8:45 am]
BILLING CODE 4915-00-P 1