[Federal Register Volume 63, Number 157 (Friday, August 14, 1998)]
[Notices]
[Pages 43743-43744]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21935]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Docket No. MC-F-20926]


Coach USA, Inc.--Control--Brunswick Transportation Company d/b/a 
The Maine Line, et al.

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 Brunswick 
Transportation Company d/b/a The Maine Line (Maine Line); Mini Coach of 
Boston (Mini Coach); Olympia Trails Bus Co., Inc. (Olympia); Stardust 
Tours, Inc. d/b/a Gray Line Tours of Memphis (Gray Line); and Valen 
Transportation, Inc. (Valen), all 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 must be filed by September 28, 1998. Applicant may file 
a reply by October 13, 1998. If no comments are filed by September 28, 
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-20926 to: Surface Transportation Board, Office of 
the Secretary, Case Control Unit, 1925 K Street, NW., 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 54 motor passenger 
carriers.1 In this transaction, it seeks to acquire direct 
control of Maine Line, 2 Mini Coach,3 
Olympia,4 Gray Line,5 and

[[Page 43744]]

Valen 6 through the acquisition all of their outstanding 
stock.
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    \1\ In addition to the instant application, Coach has two other 
pending control applications: Coach USA, Inc.--Control--Kansas City 
Executive Coach, Inc. and Le Bus, Inc., STB Docket No. MC-F-20923 
(STB served July 24, 1998), in which it seeks to acquire control of 
two additional motor passenger carriers; and Coach USA, Inc.--
Control--Chenango Valley Bus Lines, Inc.; Colonial Coach Corp.; GL 
Bus Lines, Inc.; Gray Line Air Shuttle, Inc.; Gray Line New York 
Tours, Inc.; Hudson Transit Corporation; Hudson Transit Lines, Inc.; 
and International Bus Services, Inc., STB Docket No. MC-F-20927 
(filed July 31, 1998), in which it seeks to acquire control of eight 
additional motor passenger carriers.
    \2\ Maine Line is a Maine corporation. It holds federally issued 
operating authority in Docket No. MC-109495 under which it provides 
charter and special operations between points in the United States 
and regular route operations in New England. It also holds authority 
from the State of Maine to conduct intrastate operations in that 
state. It operates a fleet of approximately 49 vehicles and employs 
approximately 85 people. Maine Line's gross revenue for fiscal year 
(FY) 1997 was approximately $8.2 million. Prior to the transfer of 
its stock into a voting trust, it was owned by Robert J. Ouellette, 
Albert Z. Ouellette, Giles J. Ouellette, Joel D. Ouellette, Michael 
D. Ouellette, Dennis R. Ouellette, and Catherine Ouellette-Carlton.
    \3\ Mini Coach is a Massachusetts corporation. It holds 
federally issued operating authority in Docket No. MC-231090 under 
which it provides charter and special operations beginning and 
ending at Medford, MA, and extending to points in the United States 
(except Alaska and Hawaii). It operates a fleet of 12 motorcoaches 
and 19 minibuses and vans and employs 70 people. Mini Coach's gross 
revenue for FY 1997 was approximately $3.8 million. Prior to the 
transfer of its stock into voting trust, it was owned by Steven and 
Lori Bauld.
    \4\ Olympia is a New Jersey corporation. It holds federally 
issued operating authority in Docket No. MC-138146 under which it 
provides charter and special operations between points in the United 
States and regular-route service between points in New York and New 
Jersey. It also holds authority from the State of New York and the 
State of New Jersey to conduct intrastate operations in those 
states. It operates a fleet of 56 buses and 4 vans and employs 130 
people on a full time basis and 30 people part time. Olympia's gross 
revenue for FY 1997 was approximately $16.5 million. Prior to the 
transfer of its stock into voting trust, it was owned by Nikolas 
Agathis, Sophia Agathis, William T. Agathis, Michael E. Agathis, and 
Nicholas C. Agathis.
    \5\ Gray Line is a Tennessee corporation. It holds federally 
issued operating authority in Docket No. MC-318341 under which it 
provides charter and special operations, as well as authority from 
the Tennessee Department of Safety to conduct intrastate operations 
in that state. It operates a fleet of 6 minibuses and 1 van and 
employs 12 people. Gray Line's gross revenue for FY 1997 was 
approximately $580,000. Prior to the transfer of its stock into 
voting trust, it was owned by John N. Fain, Jr.
    \6\ Valen is a California corporation. It holds federally issued 
operating authority in Docket No. MC-212398 which includes regular-
route authority between points in California, Nevada and Arizona, as 
well as authority from the California Public Utilities Commission to 
conduct intrastate operations in that state. It operates a fleet of 
approximately 5 motorcoaches and other vehicles. Valen's gross 
revenue for FY 1997 was approximately $2.5 million. Prior to the 
transfer of its stock into voting trust, it was owned by Michael L. 
Valen, Michaeleen Valen, Bipinchandra M. Ramaiya, and Marguerite L. 
Skinner.
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    Applicant submits that there will be no transfer of any federal or 
state operating authorities held by the acquired carriers. Following 
the consummation of the control transaction, 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, to any meaningful degree. 
Applicant submits that each of the acquired carriers is relatively 
small and that each 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 each 
carrier to be acquired 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 to be acquired 
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 operation of equipment, and that coordinated driver 
training services will be provided. Applicant also states 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 further enhancing the benefits resulting from 
these control transactions.
    Applicant certifies that: (1) Maine Line, Olympia, and Valen hold 
satisfactory safety ratings from the U.S. Department of Transportation, 
while Mini Coach holds a conditional safety rating and Gray Line has 
not been rated; (2) each of the acquired carriers maintains sufficient 
liability insurance; (3) none of the acquired carriers 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 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 as having been vacated.
    3. This decision will be effective on September 28, 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, NW., 
Washington, DC 20530.

    Decided: August 7, 1998.

    By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 98-21935 Filed 8-13-98; 8:45 am]
BILLING CODE 4915-00-P