[Federal Register Volume 63, Number 186 (Friday, September 25, 1998)]
[Notices]
[Pages 51397-51398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-25599]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Docket No. MC-F-20930]


Coach USA, Inc.--Control--Clinton Avenue Bus Company; Orange, 
Newark, Elizabeth Bus, Inc.; and Wisconsin Coach Lines, Inc.

AGENCY: Surface Transportation Board, DOT.

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 Clinton Avenue Bus Company 
(Clinton); Orange, Newark, Elizabeth Bus, Inc. (ONE Bus); and Wisconsin 
Coach Lines, Inc. (Wisconsin), all motor carriers of passengers. 
Persons wishing to oppose the application must follow the rules under 
49 CFR part 1182. 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 November 9, 1998. Applicant may file a 
reply by November 24, 1998. If no comments are filed by November 9, 
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-20930 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 56 motor passenger 
carriers.\1\ In this transaction, it seeks to acquire control of 
Clinton,\2\ ONE Bus,\3\ and Wisconsin,\4\ by acquiring all of the stock 
of each of these carriers.
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    \1\ In addition to the instant application, Coach has three 
other pending control applications: 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 Aug. 14, 1998), in which it seeks 
to acquire control of five additional motor passenger carriers; 
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 (STB served Aug. 28, 1998), in which it seeks 
to acquire control of eight additional motor passenger carriers; and 
Coach USA, Inc.--Continuance in Control--Salt Lake Coaches, Inc., 
STB Docket No. MC-F-20928 (STB served Sept. 4, 1998), in which it 
seeks to continue in control of a new motor passenger carrier.
    \2\ Clinton is a New Jersey corporation. It holds federally 
issued operating authority in Docket No. MC-223062, which authorizes 
it to provide charter and special operations between points in the 
United States (except Alaska and Hawaii). It operates a fleet of 
approximately 30 buses, primarily in transit-type services in 
northern New Jersey. Clinton does not employ any persons, but uses 
employees of ONE Bus, with which it shares common owners. Together 
with ONE Bus, Clinton earned gross annual revenues in fiscal 1997 of 
approximately $8.4 million. Prior to the transfer of its stock into 
a voting trust, it was owned by Kenneth C. White, Joyce F. Revere, 
William S. Revere, Norman E. Revere, Richard D. Revere, Frank P. 
Gallagher, Brenda J. Gallagher, John A. Gallagher, Jr., Stephen A. 
Gallagher, Alice M. Gallagher, Frank P. Gallagher as Trustee of the 
Lisa A. Gallagher 1998 Trust, and Frank P. Gallagher as Trustee of 
the Kathryn A. Gallagher 1998 Trust.
    \3\ ONE Bus is a New Jersey corporation. It holds federally 
issued operating authority in Docket No. MC-206227, which authorizes 
it to provide charter and special operations between points in the 
United States (except Alaska and Hawaii). It also holds authority 
from the State of New Jersey to conduct intrastate operations. It 
operates a fleet of approximately 18 motorcoaches primarily in 
transit-type service in northern New Jersey, employs approximately 
120 persons, and, together with Clinton, earned gross revenues in 
fiscal 1997 of $8.4 million. Prior to the transfer of its stock into 
a voting trust, it was owned by Kenneth C. White, Joyce F. Revere, 
William S. Revere, Norman E. Revere, Richard D. Revere, Frank P. 
Gallagher, Brenda J. Gallagher, John A. Gallagher, Jr., Stephen A. 
Gallagher, Alice M. Gallagher, Frank P. Gallagher as Trustee of the 
Lisa A. Gallagher 1998 Trust, and Frank P. Gallagher as Trustee of 
the Kathryn A. Gallagher 1998 Trust.
    \4\ Wisconsin is a Wisconsin corporation. It holds federally 
issued operating authority in Docket No. MC-123432, which authorizes 
it to provide charter and special operations between points in the 
United States (except Alaska and Hawaii). It operates a fleet of 
approximately 33 motorcoaches, 2 minibuses, and 4 vans, in charter 
services in Wisconsin and other Midwestern states and intrastate 
regular route services in Wisconsin; employs approximately 90 full 
and part time employees; and earned gross revenues in fiscal 1997 of 
$5.0 million. Prior to the transfer of its stock into a voting 
trust, it was owned by Michael L. Hansen, Thomas D. Czanecki, and 
John H. Osborne.
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    Coach submits that there will be no transfer of any federal or 
state operating authorities held by any of the acquired carriers. 
Following the consummation of the control transactions, these carriers 
will continue operating in the same manner as before and, according to 
Coach, although Clinton and ONE Bus already share common owners, 
granting the application will not reduce competitive options available 
to the traveling public. Coach submits that each of the acquired 
carriers is relatively small and that each faces substantial 
competition from other bus companies and transportation modes.
    Coach also submits that granting the application will produce 
substantial

[[Page 51398]]

benefits, including interest cost savings from the restructuring of 
debt and reduced operating costs from Coach's enhanced volume 
purchasing power. Specifically, Coach 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. Coach indicates 
that it will provide each carrier to be acquired 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 coordinated driver training services will be 
provided. Coach also states that the proposed transaction will benefit 
the employees of each carrier and that all collective bargaining 
agreements will be honored.
    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.
    Coach certifies that none of the carriers to be acquired holds an 
unsatisfactory safety rating from the U.S. Department of 
Transportation,\5\ that each has sufficient liability insurance; that 
none is domiciled in Mexico or owned or controlled by persons of that 
country; and that 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.
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    \5\ Clinton and ONE Bus have no safety rating; Wisconsin holds a 
satisfactory safety rating.
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    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, unless a final decision can be made 
on the record as developed, a procedural schedule will be adopted to 
reconsider the application.\6\ 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.
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    \6\ Under revised 49 CFR part 1182, scheduled to become 
effective October 1, 1998, as adopted in Revisions to Regulations 
Governing Finance Applications Involving Motor Passenger Carriers, 
STB Ex Parte No. 559 (STB served Sept. 1, 1998), there will be minor 
changes to the procedures involved in motor passenger finance 
applications. As pertinent, a procedural schedule will not be issued 
if the Board is able to dispose of opposition to the application on 
the basis of the comment and applicant's reply.
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    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 November 9, 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, SW, Suite 600, Washington, DC 20024; and (2) the U.S. 
Department of Justice, Antitrust Division, 10th Street & Pennsylvania 
Avenue, NW, Washington, DC 20530.

    Decided: September 18, 1998.

    By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 98-25599 Filed 9-24-98; 8:45 am]
BILLING CODE 4915-00-M