[Federal Register Volume 63, Number 166 (Thursday, August 27, 1998)]
[Notices]
[Pages 45898-45899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-23094]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Docket No. MC-F-20925]


Greyhound Lines, Inc., et al.--Acquisition of Assets--
Southeastern Trailways, Inc., and Peoria--Rockford Bus Co

AGENCY: Surface Transportation Board.

ACTION: Notice tentatively approving finance application.

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SUMMARY: Greyhound Lines, Inc. (Greyhound), a motor carrier of 
passengers, and its wholly owned noncarrier subsidiary, GLI Holding Co. 
(GLIH) (applicants), seek approval under 49 U.S.C. 14303 to acquire 
certain assets of Southeastern Trailways, Inc. (SET) and Peoria--
Rockford Bus Co. (PRB), including their operating authorities, to 
engage in scheduled, regular-route, intercity service as motor common 
carriers of passengers and express, pursuant to certificates of public 
convenience and necessity issued by the former Interstate Commerce 
Commission in Docket Nos. MC-54591 and MC-66810, respectively. 
1 Persons wishing to oppose the transaction must follow the 
rules at 49 CFR 1182, subpart B. The Board has tentatively approved the 
transaction, and, if no opposing comments are timely filed, this notice 
will be the final Board action. If opposing comments are timely filed, 
this tentative grant of authority will be deemed vacated, and the Board 
will consider the comments and any replies, and will issue a further 
decision on the application.

    \1\  The properties of SET and PRB will be acquired by newly 
created noncarrier subsidiaries, SET Acquisition Corp. and PRB 
Acquisition LLC, respectively. SET Acquisition Corp. will be merged 
into Greyhound upon receiving regulatory approval and PRB 
Acquisition will become a subsidiary of Greyhound through its wholly 
owned, noncarrier subsidiary, GLIH.
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DATES: Comments are due by October 12, 1998. Applicants may reply by 
November 2, 1998. If no comments are received by October 12, 1998, this 
notice is effective on that date.

ADDRESSES: Send an original and 10 copies of comments referring to STB 
Docket No. MC-F-20925 to: Surface Transportation Board, Office of the 
Secretary, Case Control Unit, 1925 K Street, N.W., Washington, DC 
20423-0001. Also, send one copy of comments to applicants' 
representative: Fritz R. Kahn, Suite 750 West, 1100 New York Avenue, 
N.W., Washington, DC 20005-3934.

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

SUPPLEMENTARY INFORMATION: Greyhound holds nationwide operating 
authority in Docket No. MC-1515 and sub-numbered proceedings. It also 
controls directly or indirectly 8 other regional motor carriers of 
passengers. Greyhound directly controls (1) Continental Panhandle 
Lines, Inc. (MC-8742), operating in Oklahoma and Texas; (2) GLI Holding 
Co., and indirectly (a) Valley Transit Company, Inc. (MC-74), operating 
in Texas; (b) Carolina Coach Company, Inc. (MC-13300), operating in 
Delaware, Virginia and North Carolina; (c) Texas, New Mexico & Oklahoma 
Coaches, Inc. (MC-61120), operating in Texas, New Mexico, Colorado, 
Kansas and Oklahoma; and (d) Vermont Transit Co., Inc. (MC-45626), 
operating in Maine, Vermont, Massachusetts and New York; and (3) 
Sistema Internacional de Transporte de Autobuses, Inc. (SITA), a non-
carrier subsidiary which controls 3 carriers: Los Rapidos, Inc. (MC-
293638), operating in Arizona and California; Americanos, U.S.A., 
L.L.C. (MC-309813), operating nationwide; and Gonzalez, Inc., d/b/a 
Golden State Transportation (MC-173837), operating in the Southwest. 
2
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    \2\  An application for Greyhound, through its subsidiary SITA, 
to continue in control of Autobuses Amigos, L.L.C., upon its 
becoming a motor carrier of passengers, was tentatively approved, 
subject to comments by September 8, 1998, in Greyhound Lines, Inc.--
Continuance in Control--Autobuses Amigos, L.L.C., STB Docket No. MC-
F-20922 (STB served July 22, 1998).
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    SET holds operating authority issued in MC-54591 and sub-numbered 
proceedings to conduct operations as a motor common carrier of 
passengers and express in scheduled, regular-route, intercity service 
between Chicago, IL and St. Louis, MO; Chicago, IL and Indianapolis, 
IN; Indianapolis, IN and Cincinnati, OH; Cincinnati, OH and Knoxville, 
TN; Indianapolis, IN and Louisville, KY; Detroit, MI and Cincinnati, 
OH; and Cincinnati, OH and Louisville, KY. SET will retain its 
authority to handle charter operations.
    PRB holds operating authority, issued in MC-66810 and sub-numbered 
proceedings, to conduct operations as a motor carrier of passengers and 
express in scheduled, regular-route, and intercity service between 
O'Hare Airport and Rockford, IL.
    SET and PRB have been commonly-controlled, family owned and 
operated businesses. For the past 10 years, all of SET's scheduled, 
regular-route, intercity operations have been the subject of a revenue 
pooling agreement with Greyhound that was approved by the former 
Interstate Commerce Commission in Southeastern Trailways, Inc., et 
al.--Pooling--Greyhound Lines, Inc., Docket No. MC-F-18939 (ICC served 
Nov. 28, 1988). SET has occupied Greyhound's terminals and has been a 
participant in Greyhound's tariffs. When the owners of SET and PRB 
decided to sell parts of their businesses, they approached Greyhound. 
Greyhound's new subsidiary, SET Acquisition Corp. (Acquisition), 
purchased SET's assets on July 1, 1998. Applicants state that the stock 
of Acquisition has been placed in a voting trust 3 pending 
disposition of

[[Page 45899]]

this proceeding. Greyhound's new subsidiary, PRB Acquisition, LLC, will 
purchase certain assets of PRB after regulatory approval of the 
transaction.
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    \3\ A voting trust agreement was informally approved by the 
Board's Secretary in his letter dated July 1, 1998.
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    Applicants state that the aggregate gross operating revenues from 
interstate operations of Greyhound and its affiliates exceeded $2 
million during the 12 months preceding this application. Applicants 
also state that the proposed transaction will have little effect on 
competition; that the total fixed charges associated with the proposed 
transaction are well within Greyhound's financial means; and that there 
will be no change in the status of any PRB employee, and that those 
employees who elect not to remain with SET will be offered employment 
with Greyhound or a Greyhound affiliate. Any affected SET, PRB, or 
Greyhound employee will be accommodated pursuant to the collective 
bargaining agreements with the unions representing them. Therefore, 
because no employees will be adversely affected, applicants assert that 
no conditions need be attached for their protection.
    We conclude that this transaction will advance the goals of the 
national transportation policy by promoting safe, adequate, economical 
and efficient transportation; by meeting the needs of passengers; and 
by providing and maintaining service to small communities. As to SET, 
passenger travel will be improved: (1) by eliminating the confusion 
sometimes associated with pooled operations; (2) by making it more 
convenient to transfer to connecting Greyhound bus routes; (3) by 
assuring passengers of equipment that is up-to-date and operated by 
well trained, experienced drivers; and (4) by freeing Greyhound to 
adjust schedules and routes in response to market conditions to assure 
its passengers of excellent service at attractive fares. As to PRB, 
airport passengers and crews traveling between the community of 
Rockford and O'Hare Airport will benefit from Greyhound's experience in 
providing airport operations throughout the country.
    Greyhound's acquisition of SET assets will improve its financial 
condition, while freeing Greyhound from the restraints of revenue 
pooling, by allowing Greyhound to revise schedules, adjust fares, and 
improve utilization of equipment and drivers for more efficient and 
economical operations. As to PRB, although this is a new market for 
Greyhound, overhead costs will not significantly increase because 
Chicago is already a major service point for Greyhound. The envisioned 
improvement in efficiency and economy will inure to the benefit of the 
traveling public.
    Applicants assert that competition will not be impaired as a result 
of Greyhound's proposed acquisition of the SET and PRB assets. 
Competition between SET and Greyhound over the pooled routes has been 
limited, because SET and Greyhound's schedules of operation were based 
on the terms of the revenue pooling agreement and SET had elected to 
participate in Greyhound's tariffs for the most part. Moreover, there 
appears to be substantial intermodal competition and the acquisitions 
do not threaten to produce an unreasonable restraint on competition. 
Applicants note that there is keen competition from other modes of 
passenger travel in the area, including private automobiles and other 
bus companies. On the other hand, PRB will continue its operations 
between O'Hare Airport and Rockford that are under contract with United 
Airlines. Thus Greyhound's acquisition of PRB's regular-route, 
intercity service will result in no reduction of competition between 
the two carriers.
    Applicants certify that: (1) Greyhound and each of its affiliates 
(except Americanos, which is not yet rated) hold satisfactory safety 
ratings; (2) Greyhound and its affiliates have appointed agents in each 
of the states in which they operate in accordance with 49 U.S.C. 13303 
and 13304 and 49 CFR 1944.1, et seq., and have procured liability 
insurance or obtained self insurance authorization in accordance with 
49 U.S.C. 13906 and 49 CFR 1043.1, et seq. (Greyhound and its 
affiliates are in compliance with these provisions); (3) Greyhound and 
its affiliates are not domiciled in Mexico and are not owned or 
controlled by a person 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.
    Under 49 U.S.C. 14303(b), we must approve and authorize a 
transaction that we find consistent with the public interest, taking 
into consideration at least: (1) the effect of the proposed transaction 
on the adequacy of transportation to the public; (2) the total fixed 
charges that result from the proposed transaction; and (3) the interest 
of carrier employees affected by the proposed transaction. We find, 
based on the application, that the proposed transaction is consistent 
with the public interest and should be authorized.
    This action will not significantly affect either the quality of the 
human environment or the conservation of energy resources.
    It is ordered:
    1. The acquisition by Greyhound and GLIH of certain assets and 
operating authorities issued in MC-54591 and MC-66810 to SET and PRB, 
respectively, 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 October 12, 1998, unless 
timely opposing comments are filed.
    4. A copy of this notice will be served on: (1) the U.S. Department 
of Transportation, Office of Motor Carriers-HIA 30, 400 Virginia 
Avenue, S.W., Suite 600, Washington, DC 20024; and (2) the U.S. 
Department of Justice, Antitrust Division, 10th Street & Pennsylvania 
Avenue, N.W., Washington, DC 20530.

    Decided: August 21, 1998.

    By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 98-23094 Filed 8-26-98; 8:45 am]
BILLING CODE 4915-00-P