[Federal Register Volume 65, Number 204 (Friday, October 20, 2000)]
[Notices]
[Pages 63115-63116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-27070]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Docket No. MC-F-20974]


Stagecoach Holdings PLC and Coach USA, Inc., et al.--Control--
Royal West Tours & Cruises, Inc.

AGENCY: Surface Transportation Board, 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 
(collectively, applicants), filed an application under 49 U.S.C. 14303 
to acquire control of Royal West Tours & Cruises, Inc. (Royal), 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 December 4, 2000. Applicants may file 
a reply by December 19, 2000. If no comments are filed by December 4, 
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-20974 to: Surface Transportation Board, Office of 
the Secretary, Case Control Unit, 1925 K Street, N.W., Washington, DC 
20423-0001. In addition, send one copy of any comments to applicants' 
representatives: Betty Jo Christian and David H. Coburn, Steptoe & 
Johnson LLP, 1330 Connecticut Avenue, N.W., Washington, DC 20036-1795.

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 of 
$3.29 billion for the fiscal year ending April 30, 2000. 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 West, 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 Nevada, 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 July 25, 2000, Coach purchased all of the 
stock of Royal, a motor passenger carrier holding federally authorized 
operating authority. Simultaneously with that acquisition, Coach placed 
the stock of Royal 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 Royal 
and will not entail any change in its operations.\4\ Royal will also be 
jointly controlled by Coach USA West, Inc.
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    \4\ Royal is a Florida corporation, based in San Diego, CA. It 
holds federally-issued operating authority in Docket No. MC-239135, 
authorizing it to provide charter and special services between 
points in the United States, as well as regular route service 
between specified points in California and other southwestern 
states. Royal also holds intrastate operating authority issued by 
the California Public Service Commission. Royal operates a fleet of 
29 buses and one van and employs approximately 56 employees. Its 
operations are composed primarily of charter services provided in 
California and between California and other states. For the 12-month 
period ended June 30, 2000, Royal earned operating revenues of 
approximately $3.6 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 Royal. Applicants assert that 
granting the application will allow Royal to take advantage of 
economies of scale and substantial benefits offered by applicants, 
including interest cost savings and reduced operating costs. 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' representatives.
    Under 49 U.S.C. 14303(b), we must approve and authorize a 
transaction we

[[Page 63116]]

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 December 4, 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--MC-RI, 
400 Virginia Avenue, S.W., Suite 600, Washington, DC 20024; (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: October 13, 2000.

    By the Board, Chairman Morgan, Vice Chairman Burkes, and 
Commissioner Clyburn.
Vernon A. Williams,
Secretary.
[FR Doc. 00-27070 Filed 10-19-00; 8:45 am]
BILLING CODE 4195-00-P