[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