[Federal Register Volume 63, Number 172 (Friday, September 4, 1998)]
[Notices]
[Pages 47345-47346]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-23793]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Docket No. MC-F-20928]


Coach USA, Inc.--Continuance in Control--Salt Lake Coaches, Inc.

AGENCY: Surface Transportation Board.

ACTION: Notice tentatively approving finance application.

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SUMMARY: Coach USA, Inc. (Coach), a noncarrier that controls motor 
passenger carriers, has filed an application under 49 U.S.C. 14303 to 
continue in control of Salt Lake Coaches, Inc. (SLC), upon SLC becoming 
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. 
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.

DATES: Comments must be filed by October 19, 1998. Applicants may file 
a reply by November 3, 1998. If no comments are filed by October 19, 
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-20928 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, NW., 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 and owns all of the stock of SLC, a noncarrier 
that intends to apply to the Federal Highway Administration (FHWA) to 
register as an interstate motor passenger carrier, upon approval of 
this continuance in control application. Following registration with 
FHWA, SLC intends to commence charter and special operations in 
interstate commerce from a Salt Lake City, Utah base of operations. SLC 
also intends to provide intrastate services within Utah, including 
airport shuttle services. SLC will use for its interstate and 
intrastate services buses that it leases from another non-carrier Coach 
affiliate, Coach Leasing, Inc.
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    \1\ In addition to the instant application, Coach has three 
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; Coach USA, 
Inc.--Control--Brunswick Transportation Company d/b/a The Maine 
Line; Mini Coach of Boston; Olympia Trails Bus Co., Inc.; Stardust 
Tours, Inc. d/b/a Gray Line Tours of Memphis; and Valen 
Transportation, Inc., STB Docket No. MC-F-20926 (STB served August 
14, 1998), in which it seeks to acquire control of five 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.
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    Coach states that its proposed continuance in control of SLC, once 
that entity becomes a carrier, will not materially reduce competitive 
options available to the traveling public. According to Coach, SLC will 
be a relatively small carrier and will face substantial competition 
from other bus companies and modes of transportation.2
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    \2\ Coach states that many of the services that SLC will provide 
are currently being offered by another company controlled by Coach, 
K-T-Contract Services, Inc. (KT), and if the proposed transaction is 
granted and SLC is successfully registered by FHWA, SLC will assume 
control of those operations from KT, which will terminate its role 
in providing these particular services.
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    Coach also states that granting the application will produce 
substantial benefits, including interest cost savings from the 
restructuring of debt and relatively low operating costs deriving from 
Coach's enhanced volume purchasing power. Specifically, Coach claims 
that SLC will benefit from the lower insurance premiums negotiated by 
Coach and from volume discounts for equipment and fuel. Coach indicates 
that it will provide SLC with centralized legal and accounting 
functions and coordinated purchasing services. In addition, Coach 
states that vehicle sharing arrangements will be facilitated through 
Coach to ensure maximum use and efficient operation of equipment and 
that, with Coach's assistance, coordinated driver training services 
will be provided, enabling SLC to allocate driver resources in the most 
efficient manner possible. Coach also states that the proposed 
transaction will benefit the employees of SLC.
    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.
    SLC is not currently a carrier and therefore is not at present 
rated by the U.S. Department of Transportation. Applicant certifies 
that: (1) It will maintain sufficient liability insurance; (2) SLC is 
not domiciled in Mexico or owned or controlled by persons of that 
country; and (3) 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. We 
find, based on the application, that the proposed transaction is 
consistent with the public interest and should be authorized.
    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 continuance in 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.

[[Page 47346]]

    3. This decision will be effective on October 19, 1998, unless 
timely opposing comments are filed.
    4. A copy of notice will be served on: (1) The U.S. Department of 
Transportation, Office of Motor Carriers-HIA 30, 400 Virginia Avenue, 
SW., Suite 600, Washington, DC 20024; and (2) the Department of 
Justice, Antitrust Division, 10th Street & Pennsylvania Avenue, NW., 
Washington, DC 20530.

    Decided: August 24, 1998.

    By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 98-23793 Filed 9-3-98; 8:45 am]
BILLING CODE 4915-00-p