[Federal Register Volume 65, Number 169 (Wednesday, August 30, 2000)]
[Notices]
[Pages 52807-52808]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-21922]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Docket No. MC-F-20973]


Stagecoach Holdings PLC and Coach USA, Inc., et al.--Control--
Midnight Sun Tours, Inc.

AGENCY: Surface Transportation Board, Department of Transportation.

ACTION: Notice tentatively approving finance transaction.

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SUMMARY: Stagecoach Holdings PLC (Stagecoach) and its subsidiary, Coach 
USA, Inc. (Coach), noncarriers, and various subsidiaries of each

[[Page 52808]]

(collectively, applicants), filed an application under 49 U.S.C. 14303 
to acquire control of Midnight Sun Tours, Inc. (Midnight Sun), a motor 
passenger carrier. Persons wishing to oppose this application must 
follow the rules under 49 CFR part 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 October 16, 2000. Applicants may file 
a reply by October 30, 2000. If no comments are filed by October 16, 
2000, this notice is effective on that date.

ADDRESSES: Send an original and 10 copies of any comments referring to 
STB Docket No. MC-F-20973 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 applicants' 
representative: Betty Jo Christian, Steptoe & Johnson LLP, 1330 
Connecticut Avenue, NW., Washington, DC 20036.

FOR FURTHER INFORMATION CONTACT: Joseph H. Dettmar (202) 565-1600. [TDD 
for the hearing impaired: 1-800-877-8339.]

SUPPLEMENTARY INFORMATION: Stagecoach is a public limited corporation 
organized under the laws of Scotland. With operations in several 
countries, Stagecoach is one of the world's largest providers of 
passenger transportation services. Stagecoach had annual revenues for 
the fiscal year ending April 30, 2000, of $3.29 billion. Coach is a 
Delaware corporation that currently controls over 80 motor passenger 
carriers.
    Stagecoach and its subsidiaries currently control Coach,\1\ its 
noncarrier regional management subsidiaries, and the motor passenger 
carriers jointly controlled by Coach and the management 
subsidiaries.\2\ In previous Board decisions, Coach management 
subsidiaries, including Coach USA Southeast, Inc., have obtained 
authority to control motor passenger carriers jointly with Coach.\3\
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    \1\ Stagecoach controls Coach through various subsidiaries, 
namely, SUS 1 Limited, SUS 2 Limited, Stagecoach General 
Partnership, and SCH US Holdings Corp.
    \2\ See Stagecoach Holdings PLC--Control--Coach USA, Inc., et 
al., STB Docket No. MC-F-20948 (STB served July 22, 1999).
    \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).
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    Applicants state that, on May 2, 2000, Coach purchased all of the 
stock of Tour USA International, Inc. (Tour USA), then a noncarrier. In 
a transaction approved by the Federal Motor Carrier Safety 
Administration, Tour USA simultaneously acquired federally-issued 
interstate motor passenger carrier operating authority held by an 
individual, Raimo Nikunen d/b/a Midnight Sun. Simultaneous with that 
acquisition, Coach placed the stock of Tour USA, the name of which 
corporation was subsequently changed to Midnight Sun, into an 
independent voting trust. The control transaction that is the subject 
of this application will not involve any further transfer of the 
federal operating authority held by Midnight Sun and will not entail 
any change in its operations. \4\ Midnight Sun will also be jointly 
controlled by Coach USA Southeast, Inc.
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    \4\ Midnight Sun is a Florida corporation. It holds federally-
issued operating authority in Docket No. MC-213275, authorizing it 
to provide charter and special services between points in the United 
States. Midnight Sun operates a fleet of 28 buses and employs 
approximately 40 full-time employees. Its operations are composed 
primarily of charter services in Florida and between Florida and 
other states. For the 12-month period ending March 31, 2000, 
Midnight Sun and its predecessor owner earned operating revenues of 
approximately $2.8 million.
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    Applicants have submitted information, as required by 49 CFR 
1182.2(a)(7), to demonstrate that the proposed acquisition of control 
is consistent with the public interest under 49 U.S.C. 14303(b). 
Applicants state that the proposed transaction will not reduce 
competitive options, adversely impact fixed charges, or adversely 
impact the interests of the employees of Midnight Sun. In addition, 
applicants have submitted all of the other statements and 
certifications required by 49 CFR 1182.2. Additional information, 
including a copy of the application, may be obtained from the 
applicants' 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, 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. See 49 CFR 1182.6(c). 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.
    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 October 16, 2000, unless 
timely opposing comments are filed.
    4. A copy of this notice will be served on: (1) The U.S. Department 
of Transportation, Federal Motor Carrier Safety Administration--HMCE-
20, 400 Virginia Avenue, SW., Suite 600, Washington, DC 20024; (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, SW., Washington, DC 20590.

    Decided: August 22, 2000.

    By the Board, Chairman Morgan, Vice Chairman Burkes, and 
Commissioner Clyburn.
Vernon A. Williams,
Secretary.
[FR Doc. 00-21922 Filed 8-29-00; 8:45 am]
BILLING CODE 4915-00-P