[Federal Register Volume 64, Number 195 (Friday, October 8, 1999)]
[Notices]
[Pages 54955-54956]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-26204]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Docket No. MC-F-20953]
Gonzalez, Inc., d/b/a Golden State Transportation Company--
Merger--Los Rapidos, Inc., d/b/a Crucero
AGENCY: Surface Transportation Board.
ACTION: Notice tentatively approving finance transaction.
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SUMMARY: Gonzalez, Inc., d/b/a Golden State Transportation Company
(Golden State or applicant), a motor carrier of passengers, has filed
an application under 49 U.S.C. 14303 for the acquisition by merger of
its affiliate, Los Rapidos, Inc., d/b/a Crucero (Los Rapidos), also a
motor carrier of passengers. Persons wishing to oppose the application
must follow the rules at 49 CFR 1182.5 and 1182.8. 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 22, 1999. Applicant may file
a reply by December 7, 1999. If no comments are filed by November 22,
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-20953 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 any comments to applicant's
representative: Fritz R. Kahn, Suite 750 West, 1100 New York Avenue,
NW, Washington, DC 20005-3934.
FOR FURTHER INFORMATION CONTACT: Beryl Gordon, (202) 565-1600. [TDD for
the hearing impaired: (202) 565-1695.]
SUPPLEMENTARY INFORMATION: Golden State is a regular-route regional
passenger carrier operating principally in the Southwest pursuant to
authority granted in Docket No. MC-173837.1 Los Rapidos is a
regular-route regional passenger carrier operating in the Southwest
pursuant to authority granted in Docket No. MC-293638.2
According to applicant, the operations of the two bus lines to some
extent have duplicated but in larger measure have complemented each
other, with Golden State's operations directed at the domestic market
and Los Rapidos specializing in the international cross-border market
with Mexico.
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\1\ Golden State is authorized to operate in Arizona,
California, Colorado, Nevada, New Mexico, Oregon, Texas, and
Washington.
\2\ Los Rapidos is authorized to operate in Arizona and
California.
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Pursuant to a merger agreement, Los Rapidos will be merged into
Golden State, with Golden State being the surviving corporation. Golden
State will continue to be managed by its president, Mr. Antonio
Gonzalez. By application thereafter to be filed with the Federal
Highway Administration, the operating authority held by Los Rapidos is
expected to be transferred to, and be
[[Page 54956]]
integrated into the operating authority of, Golden State.
Golden State and Los Rapidos are controlled by Sistema
Internacional de Transporte de Autobuses, Inc. (SITA), a noncarrier
which is a wholly owned subsidiary of Greyhound Lines, Inc.
(Greyhound).3 Greyhound holds nationwide, motor passenger
carrier operating authority under Docket No. MC-1515, and controls
eight other motor passenger carriers, one directly 4 and the
others indirectly through its noncarrier subsidiaries.5
Greyhound is controlled by Laidlaw Inc., of Burlington, Ontario, Canada
(Laidlaw), a noncarrier 6 that also controls 13 other motor
passenger carriers, whose U.S. operations are mostly limited to charter
and special operations.7
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\3\ Greyhound's acquisition of indirect control of Golden State
was approved by the Board in Greyhound Lines, Inc.--Control--
Gonzalez, Inc., d/b/a Golden State Transportation Company, STB
Docket No. MC-F-20914 (STB served Dec. 19, 1997). Greyhound's
acquisition of indirect control of Los Rapidos was approved by the
Board in Greyhound Lines, Inc.--Acquisition of Control--Los Rapidos,
Inc., STB Docket No. MC-F-20903 (STB served Jan. 15, 1997).
\4\ Greyhound directly controls Continental Panhandle Lines,
Inc. (MC-8742), which operates in Kansas, Oklahoma, and Texas.
\5\ Greyhound indirectly controls five motor passenger carriers
through its wholly owned noncarrier subsidiary, GLI Holding Company.
They are: PRB Acquisition, LLC., d/b/a Peoria Rockford Bus Co. (MC-
66810), operating in Illinois; Valley Transit Company, Inc. (MC-74),
operating in Texas; Carolina Coach Company, Inc. (MC-13300),
operating in Delaware, Pennsylvania, Maryland, Virginia, and North
Carolina; Texas, New Mexico & Oklahoma Coaches, Inc. (MC-61120),
operating in Texas, New Mexico, Colorado, Kansas, and Oklahoma; and
Vermont Transit Co., Inc. (MC-45626), operating in Maine, Vermont,
Massachusetts, New Hampshire, and New York. The remaining two motor
passenger carriers are indirectly controlled by Greyhound through
SITA. They are: Americanos U.S.A., L.L.C. (MC-309813), operating
between the Mexican border crossing points at El Paso, Laredo, and
McAllen, TX, to the cities of Albuquerque, NM, Denver, CO, Dallas
and Houston, TX, and Chicago, IL; and Autobus Amigos, L.L.C. (MC-
340462), operating to and from the Mexican border crossing point at
Brownsville, TX, and Houston, TX, and points in Florida.
\6\ See Laidlaw Inc. and Laidlaw Transit Acquisition Corp.--
Merger--Greyhound Lines, Inc., STB Docket No. MC-F-20940 (STB served
Dec. 17, 1998).
\7\ The carriers are: D-A-R Transit Systems, Inc., d/b/a Galaxy
Charters (MC-311766); Greyhound Canada Transportation Corp. (MC-
304126); Laidlaw Transit, Inc. (MC-161299); Laidlaw Transit Services
(Two), Inc. (MC-163344); Roesch Lines, Inc. (MC-119843); Safe Ride
Services, Inc. (MC-246193); Vancom Transportation--Illinois, L.P.
(MC-167816); Willett Motor Coach Co. (MC-16073); 1327172 Ontario
Limited, Transferee of Gisele Rockey d/b/a Northern Escape Tours
(MC-231298); Grey Line of Vancouver Holdings Limited (MC-357855);
Voyageur Corp. (MC-360339); Laidlaw Transit Ltd. (MC-102189); and
Dave Transportation Services (MC-144040).
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The merger is expected to produce significant benefits for the
passengers of the two bus lines, which specialize in accommodating the
needs of travelers to and from Mexico. Through integration of the
schedules, passengers will have the choice of more frequent departures,
at more opportune times, and with improved cross-border through or
interline bus service. The merger will also permit the consolidation of
terminals and, where appropriate, their enlargement, thereby making
them more convenient and comfortable for the passengers.
It is anticipated that the merger will result in more efficient and
cost-effective operations. Golden State plans to consolidate the
management of the two companies, thereby eliminating duplicative
overhead costs and improving management oversight and control. The
merger is also expected to allow more efficient use of the buses and
more effective deployment of personnel.
Applicant states that it will incur no debt in its merger of Los
Rapidos; therefore, there will be no increase in fixed charges.
Applicant also states that there is no need to attach conditions
for the protection of affected employees pursuant to 49 U.S.C. 14303(b)
because the employees of Los Rapidos who meet the Golden State
employment criteria and needs will be offered employment. Applicant
notes that Golden State experienced significant growth before the
merger and, thus, will be required to increase its employee base.
Applicant certifies that: (1) The aggregate gross operating
revenues for Golden State, Los Rapidos, and the motor passenger
carriers that they are affiliated with (subject carriers) exceeded $2
million during the 12-month period ending December 31, 1998; (2) Each
of the subject carriers holds a satisfactory safety fitness rating from
the U.S. Department of Transportation (except for affiliates of Laidlaw
that are not rated); (3) Each of the subject carriers has sufficient
liability insurance; (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. Additional information may be obtained from the applicant's
representative.
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,\8\ we find that the proposed
merger 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. 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 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 merger 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 22, 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, NW,
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: October 1, 1999.
By the Board, Chairman Morgan, Vice Chairman Clyburn and
Commissioner Burkes.
Vernon A. Williams,
Secretary.
[FR Doc. 99-26204 Filed 10-7-99; 8:45 am]
BILLING CODE 4915-00-P