[Federal Register Volume 67, Number 56 (Friday, March 22, 2002)]
[Notices]
[Pages 13404-13405]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-6980]



[[Page 13404]]

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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Docket No. MC-F-20989]


Stagecoach Group PLC and Coach USA, Inc., et al.--Control--Coach 
USA Indiana, Inc., and California Acquisition, Inc.

AGENCY: Surface Transportation Board.

ACTION: Notice tentatively approving finance transaction.

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SUMMARY: Stagecoach Group 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 control Coach USA Indiana, Inc. (Coach USA Indiana), and California 
Acquisition, Inc. (California Acquisition). Persons wishing to oppose 
this application must follow the rules under 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 are due by May 6, 2002. Applicants may file a reply by 
May 21, 2002. If no comments are filed by May 6, 2002, this notice is 
effective on that date.

ADDRESSES: Send an original and 10 copies of any comments referring to 
STB Docket No. MC-F-20989 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.\1\ With operations in several 
countries, Stagecoach is one of the world's largest providers of 
passenger transportation services. It had total revenues of $2.7 
billion for the fiscal year ending April 30, 2001. Coach is a Delaware 
corporation that currently controls over 100 motor passenger carriers.
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    \1\ Stagecoach was formerly known as Stagecoach Holdings PLC. It 
recently changed its name to Stagecoach Group PLC.
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    Stagecoach and its subsidiaries currently control Coach,\2\ its 
noncarrier regional management subsidiaries,\3\ and the motor passenger 
carriers jointly controlled by Coach and the management 
subsidiaries.\4\ In previous Board decisions, Coach management 
subsidiaries have obtained authority to control motor passenger 
carriers jointly with Coach.\5\
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    \2\ Stagecoach controls Coach through various subsidiaries, 
namely, SCUSI Limited (formerly known as SUS 1 Limited); SCOTO 
Limited (formerly known as SUS 2 Limited); Stagecoach General 
Partnership; and SCH US Holdings Corp.
    \3\ These subsidiaries are Coach USA North Central, Inc. (Coach 
USA North Central) and Coach USA West, Inc. (Coach USA West).
    \4\ See Stagecoach Holdings PLC--Control--USA, Inc., et al., STB 
Docket No. MC-F-20948 (STB served July 22, 1999).
    \5\ 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). The same approach is being 
followed here. Under this proposal, Coach USA Indiana would also be 
jointly controlled by co-applicant Coach USA North Central, and 
California Acquisition would also be jointly controlled by co-
applicant Coach USA West.
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    Applicants state that Coach formed Coach USA Indiana and California 
Acquisition in January 2002 and that these entities, together with 
Coach, are party to an asset purchase transaction that contemplates 
that they will acquire motorcoaches and other assets from carriers 
currently controlled by VecTour Inc. (VecTour).\6\ VecTour is presently 
in Chapter 11 status and the asset acquisition is therefore subject to 
the approval of the U.S. Bankruptcy Court for the District of Delaware.
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    \6\ The Board has previously approved common control of the 
three carriers whose assets are being acquired. See Global Passenger 
Services, L.C.C., et al.--Control--Bortner Bus Company, et al., STB 
Docket No. MC-F-20924 (STB served July 17, 1998); (authorizing 
control of Franciscan Lines, Inc., a carrier whose name was 
eventually changed to VecTour of California); and Global Passenger 
Services, L.L.C., et al.--Control--Gongaware Tours, et al., STB 
Docket No. MC-F-20954 (STB served Sept. 16, 1999) (authorizing 
control of Tri-State Coach Lines, Inc., and United Limo, Inc.).
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    According to applicants, Coach USA Indiana will operate assets 
being acquired from two motor passenger carriers controlled by VecTour: 
United Limo, Inc. (United Limo), and Tri-State Coach Lines, Inc. (Tri-
State Coach Lines). Coach USA Indiana will initially operate 
approximately 39 motorcoaches and 8 minivans. Coach USA Indiana will 
also employ approximately 160 full-time and 40 part-time personnel. It 
intends to initiate carrier operations following the closing of its 
asset acquisition transaction, and it plans to change its corporate 
name to, and conduct operations as, United Limo, and also utilize the 
trade name Tri-State Coach Lines.\7\ At the time of the filing of the 
application in this proceeding, Coach USA Indiana had no operating 
revenues.
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    \7\ Coach USA Indiana's name appears on its operating authority 
as ``Coach USA Indiana, Inc D/B/A Tri-State Coach Lines.''
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    California Acquisition will operate assets being acquired, through 
the same transaction to which Coach USA Indiana is a party, from 
VecTour of California. California Acquisition will employ approximately 
100 personnel, using a fleet of approximately 70 motorcoaches. It 
intends to initiate carrier operations following the projected March 
14, 2002 closing of its asset acquisition transaction, and it plans to 
change its corporate name to, and conduct operations as, Franciscan 
Lines, Inc.\8\ At the time of the filing of the application in this 
proceeding, it had no operating revenues.
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    \8\ California Acquisition's name appears on its operating 
authority as ``California Acquisition, Inc D/B/A Franciscan Lines.''
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    Coach USA Indiana and California Acquisition recently obtained 
federally issued operating authority from the Federal Motor Carrier 
Safety Administration.\9\ Before these entities obtained operating 
authority, Coach placed the stock of each entity into a separate 
independent voting trust. The control transaction here will not involve 
any transfer of the federal operating authority held by either entity.
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    \9\ On February 27, 2002, Coach USA Indiana obtained operating 
authority in Docket No. MC-425233, authorizing it to provide charter 
and special operations between points in the United States, and 
regular-route operations over specified routes in Indiana, Illinois, 
and Wisconsin. On that same date, California Acquisition obtained 
operating authority in Docket No. MC-425205, authorizing it to 
provide charter and special operations between points in the United 
States.
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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 acquisition of control will not 
reduce competitive options or adversely impact fixed charges or the 
interests of the employees of either entity. They assert that granting 
the application will allow both prospective carriers 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 applicants' 
representative.

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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 application, we find that the proposed control 
transaction 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 Web site at 
www.stb.dot.gov.
    This action will not significantly affect either the quality of the 
human environment or the conservation of energy resources.
    It is ordered:
    1. The proposed control transaction 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 May 6, 2002, 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, 400 7th 
Street, SW, Room 8214, Washington, DC 20590; (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: March 18, 2002.

    By the Board, Chairman Morgan and Vice Chairman Burkes.
Vernon A. Williams,
Secretary.
[FR Doc. 02-6980 Filed 3-21-02; 8:45 am]
BILLING CODE 4915-00-P