[Federal Register Volume 64, Number 178 (Wednesday, September 15, 1999)]
[Notices]
[Pages 50133-50134]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-24078]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Docket No. MC-F-20951]; [STB Docket No. MC-F-20952] 1
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    \1\ These proceedings are not consolidated. A single decision is 
being issued for administrative convenience.
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Coach USA, Inc., and Coach USA South Central, Inc.--Control--Fun 
Time Tours, Inc.; Coach USA, Inc., and Coach USA North Central, Inc.--
Control--G.W. Transportation, Inc., and Sam Van Galder, Inc.

AGENCY: Surface Transportation Board.

ACTION: Notice tentatively approving finance transactions.

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SUMMARY: Coach USA, Inc. (Coach), a noncarrier, and its wholly owned 
noncarrier management subsidiaries, Coach USA South Central, Inc. 
(South Central), and Coach USA North Central, Inc. (North Central) 
(collectively, applicants), filed an application under 49 U.S.C. 14303 
for Coach and South Central to acquire control of Fun Time Tours, Inc. 
(Fun Time), and for Coach and North Central to acquire control of G.W. 
Transportation, Inc., d/b/a Greatway Transportation (Greatway) and Sam 
Van Galder, Inc. (Van Galder). In addition, Stagecoach Holdings plc 
(Stagecoach) and its subsidiaries, SUS 1 Limited, SUS 2 Limited, 
Stagecoach General Partnership and SCH US Holdings Corp., noncarriers 
that control Coach and Coach's various regional management subsidiaries 
and operating motor passenger carriers, seek authority to control Fun 
Time, Greatway and Van Galder.2 The Board has tentatively 
approved the transactions, and, if no opposing comments are timely 
filed, this notice will be the final Board action.

    \2\ When applicants filed their application on August 16, 1999, 
Stagecoach and its subsidiaries were not yet in control of Coach, 
the regional management subsidiaries and the operating motor 
passenger carriers. The tentative control authority granted in 
Stagecoach Holdings plc--Control--Coach USA, Inc., et al., STB 
Docket No. MC-F-20948 (STB served July 22, 1999) became final on 
September 7, 1999, when no comments were filed in response to the 
notice of the tentative grant. Thus, Stagecoach and its subsidiaries 
are now applicants seeking control of Fun Time, Greatway and Van 
Galder.

DATES: Comments must be filed by November 1, 1999. Applicants may file 
a reply by November 15, 1999. If no comments are filed by November 1, 
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1999, this notice is effective on that date.

ADDRESSES: Send an original and 10 copies of any comments referring to 
STB Docket No. MC-F-20951 et al. 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 
applicants' representatives: Betty Jo Christian, Steptoe & Johnson LLP, 
1330 Connecticut Avenue, N.W., Washington, DC 20036 and William C. 
Sippel, Oppenheimer, Wolff & Donnelly, Two Prudential Plaza, 45th 
Floor, 180 North Stetson Avenue, Chicago, IL 60601-6710.

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

SUPPLEMENTARY INFORMATION: Coach is a noncarrier that currently 
controls 79 motor carriers of passengers. In previous Board decisions, 
Coach management subsidiaries, including South Central and North 
Central, have obtained authority to control motor passenger carriers 
jointly with Coach, with the latter retaining indirect control through 
its ownership of those management subsidiaries.3 In STB 
Docket No. MC-F-20951, Coach and South Central seek control of Fun 
Time.4 In STB Docket No. MC-F-20952, Coach and North Central 
seek control of Greatway 5 and Van

[[Page 50134]]

Galder.6 The acquisition of control of Fun Time, Greatway 
and Van Galder would be accomplished by a transfer of ownership of all 
of the outstanding stock of Fun Time to South Central and the 
outstanding stock of Greatway and Van Galder to North Central. 
According to applicants, the stock of these three carriers is presently 
being held in separate, independent voting trusts pending such 
transfer. Upon completion of the transfer, Coach, Stagecoach and its 
subsidiaries would obtain indirect control of the three carriers 
through their ownership of South Central and North Central.
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    \3\ See Coach USA, Inc. and Coach USA North Central, Inc.--
Control--Nine Motor Carriers of Passengers, STB Docket No. MC-F-
20931 et al. (STB served July 14, 1999).
    \4\ Fun Time is a Texas corporation. It holds federally issued 
operating authority in Docket No. MC-176329, which authorizes it to 
provide charter and special operations beginning and ending at 
points in Texas, and extending to points in the United States 
(except Hawaii). It specializes in operations in the Corpus Christi, 
TX area, where it provides charter and tour services. Fun Time 
operates a fleet of 3 buses, employs 11 persons, and earned annual 
revenues for the 12-month period ending May 31, 1999, of 
approximately $500,000.
    \5\ Greatway is an Illinois corporation. It holds federally 
issued operating authority in Docket No. MC-243414, which authorizes 
it to engage in charter and special operations between points in the 
United States (except Alaska and Hawaii) and to operate as a motor 
contract carrier under continuing contracts with persons requiring 
passenger service. It also holds authority issued by the Illinois 
Commerce Commission to conduct intrastate operations. Greatway's 
federal operating authority was obtained in a transaction, recently 
approved by the Federal Highway Administration, with a carrier known 
as Contemporary Shuttle, Inc. Greatway operates a fleet of 
approximately 25 buses, employs approximately 50 persons, and earned 
annual revenues for the 12-month period ending February 28, 1999, of 
approximately $3.9 million.
    \6\ Van Galder, which operates the Gray Line trade name with 
respect to certain of its services, focuses its operations on 
providing service between points in Wisconsin and O'Hare 
International Airport as well as providing charter, tour and school 
bus services in Wisconsin and nearby states. It holds federally 
issued operating authority in Docket No. MC-112422, which authorizes 
it to provide regular route passenger service between specified 
points in Wisconsin and Illinois and to provide charter and special 
services passenger transportation between points in the United 
States (except Hawaii). Van Galder focuses its operations on 
providing service between points in Wisconsin and O'Hare 
International Airport as well as providing charter, tour and school 
bus services in Wisconsin and nearby states and operates under the 
Gray Line trade name with respect to certain of its services. It 
operates a fleet of approximately 110 vehicles, employs 
approximately 185 persons, and earned annual revenues for the 12-
month period ending May 31, 1999, of approximately $11.3 million.
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    Applicants submit that the three carriers to be acquired will 
continue to operate in the same general manner as they are operated 
presently. They will continue to provide bus services pursuant to the 
federal operating authorities held by each. No certificates or other 
operating permits will be transferred from one entity to another in 
consequence of the proposed control transaction.
    Applicants also submit that the proposed acquisition of control 
will not materially reduce competitive transportation options available 
to the traveling public. Each of the carriers faces substantial 
competition from other bus companies and transportation modes.
    According to applicants, the transactions will produce, or continue 
to produce, substantial benefits, including interest cost savings from 
the restructuring of debt and reduced operating costs from Coach's 
enhanced volume purchasing power. As a specific example, the Coach 
companies benefit from the lower insurance premiums that Coach has been 
able to negotiate as well as from Coach's ability to achieve volume 
discounts on the purchase of equipment and fuel. The advantages that 
have accrued to the motor passenger carriers as a consequence of their 
control by Coach are allegedly further enhanced by Stagecoach's 
acquisition of Coach, due to Stagecoach's greater financial resources 
and its significant management expertise. Applicants also indicate that 
the management subsidiaries will provide each of the carriers with 
services such as centralized legal and accounting functions and 
coordinated purchasing services. In addition, applicants state that 
vehicle sharing arrangements will be facilitated through Coach and its 
regional subsidiaries to ensure maximum utilization and operational 
efficiency of equipment. South Central and North Central each plan to 
maintain a database of the assets, including the motorcoach vehicles 
operated by the carriers. Access to the database will allow the 
carriers to deploy vehicles more effectively, resulting in more timely 
and efficient service to the traveling public. Coach's management 
subsidiaries will also coordinate the safety and compliance programs of 
the carriers, including driver training, to maintain and improve safety 
performance levels. Finally, Coach's management subsidiaries will 
develop financial plans and coordinate operational strategies.
    Applicants assert that the proposed transactions will have no 
adverse impacts on the employees of Fun Time, Greatway and Van Galder 
and that their collective bargaining agreements will be honored.
    Applicants certify that: (1) The jurisdictional threshold has been 
met with respect to the transactions that are the subject of the 
applications; 7 (2) none of the subject carriers holds an 
unsatisfactory rating from the U.S. Department of Transportation; (3) 
each of the subject carriers has sufficient insurance coverage for the 
motor passenger service it provides and that evidence of such insurance 
has been, or by the time of any action on this application will be, 
filed with the Federal Highway Administration; (4) none of the subject 
carriers is domiciled in Mexico nor owned or controlled by persons of 
that country; and (5) approval of the transactions will not 
significantly affect either the quality of the human environment or the 
conservation of energy resources, and that environmental regulation 
pursuant to 49 CFR 1105.7 is unnecessary. Additional information may be 
obtained from the applicants' representatives.
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    \7\  See 49 CFR 1182.2(a)(5).
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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 applications, we find that the proposed 
acquisitions of control are 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 applications. 8 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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    \8\  Under revised 49 CFR 1182.6(c), a procedural schedule will 
not be issued if we are able to dispose of opposition to the 
application on the basis of comments and the 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 acquisitions of control are 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 1, 1999, 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 20004; (2) the U.S. Department 
of Justice, Antitrust Division, 10th Street & Pennsylvania Avenue, 
N.W., Washington, DC 20530; and (3) the U.S. Department of 
Transportation, Office of the General Counsel, 400 7th Street, S.W., 
Washington, DC 20590.

    Decided: September 9, 1999.

    By the Board, Chairman Morgan, Vice Chairman Clyburn and 
Commissioner Burkes.
Vernon A. Williams,
Secretary.
[FR Doc. 99-24078 Filed 9-14-99; 8:45 am]
BILLING CODE 4915-00-P