[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