[Federal Register Volume 68, Number 41 (Monday, March 3, 2003)]
[Notices]
[Pages 10067-10068]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-4888]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Docket No. MC-F-20994]


New Jersey Transit Bus Operations, Inc.--Pooling--Academy Lines, 
L.L.C.

AGENCY: Surface Transportation Board.

ACTION: Notice of proposed pooling application.

-----------------------------------------------------------------------

SUMMARY: By application filed on January 27, 2003,\1\ New Jersey 
Transit Bus Operations, Inc. (NJT Bus), and Academy Lines, L.L.C. 
(Academy), jointly request approval of a service pooling agreement 
under 49 U.S.C. 14302 and 49 CFR 1184.1, et seq. to pool portions of 
their commuter operations that extend over U.S. Highway 9 between 
Lakewood, NJ, and New York, NY (the Route 9 Corridor).
---------------------------------------------------------------------------

    \1\ Applicants concurrently filed a petition under 49 U.S.C. 
13541(a) requesting exemption from 49 U.S.C. 14302 so as to enable 
them to conduct interim operations under their service pooling 
agreement for a period of not more than 50 days, or such other time 
as the Board may direct, pending Board action on the pooling 
application. Applicants' request was granted by decision served 
February 12, 2003 in New Jersey Transit Bus Operations, Inc.--
Pooling--Academy Lines, L.L.C., Exemption Pursuant to 49 U.S.C. 
13541 From the Provisions of 49 U.S.C. 14302, STB Docket No. MC-F-
20994 (STB served Feb. 12, 2003).

DATES: Comments on the proposed service pooling agreement may be filed 
with the Board in the form of verified statements on or before April 2, 
2003. If comments are filed, applicants' rebuttal statement is due on 
or before April 22, 2003. The Board will issue a decision on the merits 
---------------------------------------------------------------------------
after consideration of any comments and rebuttal that are submitted.

ADDRESSES: Send an original and 10 copies of any comments referring to 
STB Docket No. MC-F-20994 to: Surface Transportation Board, 1925 K 
Street, NW., Washington, DC 20423-0001. In addition, send one copy of 
any comments to each of applicants' representatives: (1) E. Philip 
Isaac, Deputy Attorney General, One Penn Plaza East, Newark, NJ 07105-
2246; and (2) Joseph J. Ferrara, 111 Paterson Avenue, Hoboken, NJ 
07030.

FOR FURTHER INFORMATION CONTACT: Joseph H. Dettmar, (202) 565-1600. 
[Assistance for the hearing impaired is available through the Federal 
Information Relay Service (FIRS) at 1-800-877-8339.]

SUPPLEMENTARY INFORMATION: Under the proposed pooling agreement, the 
carriers will coordinate their schedules and fares over the involved 
routes for their regularly scheduled passenger bus operations. The 
carriers do not intend to pool revenues or share expenses (except for 
the costs associated with preparing and printing public timetables 
showing their combined coordinated services and Port Authority Bus 
Terminal (PABT) gate and platform fees), but will cross-honor their 
independently sold commutation tickets and reimburse each other 
accordingly.
    In 1991, NJ Transit was authorized to perform these same pooling 
operations with another regulated passenger carrier, Suburban Trails, 
Inc. (Suburban). See NJ Transit Bus Operations, Inc.--Pooling--Suburban 
Trails, Inc., No. MC-F-19737 (ICC served Mar. 19, 1991). Effective 
January 3, 2003, however, Suburban ceased serving the Route 9 Corridor, 
withdrew from the pooling agreement, and exited the market. By the 
filing of this application, approval is being sought to allow Academy 
to assume Suburban's place in the pooling operation.\2\
---------------------------------------------------------------------------

    \2\ In an application filed on February 4, 2003 in STB Docket 
No. MC-F-20997, Coach USA, Inc., et al.--Purchase and Sale of 
Assets--Academy Bus, L.L.C., et al., Coach USA, Inc. and two of its 
subsidiaries, Suburban Transit Corp., and Red & Tan Tours, Inc. (the 
Coach applicants), and Academy Bus, L.L.C. and two of its 
subsidiaries, Academy Express, L.L.C., and Academy (the Academy 
applicants) state that they have entered into a transaction to 
``swap'' certain interstate and intrastate motor passenger carrier 
operating authorities in order to enhance the efficiency of their 
respective operations. The Academy applicants will transfer to the 
Coach applicants the ``Academy Routes,'' while the Coach applicants 
will transfer to the Academy applicants the ``Route 9 Corridor 
route,'' the ``Suburban Atlantic City Routes,'' and the ``Red & Tan 
Routes.'' This proceeding is presently pending before the Board. 
Reference is made to it here because Academy and Suburban (another 
Coach subsidiary) are involved in the instant proceeding.
---------------------------------------------------------------------------

    NJT Bus is a wholly owned subsidiary of the New Jersey Transit 
Corporation,

[[Page 10068]]

an instrumentality of the State of New Jersey. NJT Bus holds operating 
authority in No. MC-3647 and subnumbers thereunder. It operates a fleet 
of about 2,025 buses and conducts interstate operations over 
approximately 238 bus routes, including commuter operations to and from 
the PABT in New York City. NJT Bus currently operates approximately 123 
daily weekday peak period trips in the Route 9 Corridor to and from 
midtown Manhattan, NY. NJT Bus will provide some service on Saturdays 
and Sundays, but on a substantially reduced basis compared with weekday 
schedules.
    Academy is a privately held New Jersey limited liability company, 
holding operating authority in No. MC-414016 and subnumbers thereunder. 
Applicant operates a fleet of over 600 buses rendering scheduled, 
regular-route intercity operations primarily in commuter services from 
specified origins in New Jersey to various points in New York City, 
including the PABT. Academy presently is a competitor in the Route 9 
Corridor, serving the Wall Street area of lower Manhattan, rather than 
the PABT in midtown Manhattan. Under the negotiated pooling agreement, 
Academy anticipates operating approximately 74 daily weekday peak 
period trips between New Jersey points and the PABT. Academy will 
operate from the gates in the PABT that are used by NJT Bus, and 
passengers will board and alight from buses at the same locations both 
in New York City and in the communities along the Route 9 Corridor.
    Applicants assert that there is substantial competition on the 
pooled route to protect the public and that the pooling agreement does 
not threaten to produce an unreasonable restraint on competition. 
According to applicants, private automobiles provide ample competition 
for the pooled operations on the Route 9 Corridor. Moreover, the New 
Jersey Coast Line and the Northeast Corridor Line are not too distant 
from the Route 9 Corridor, and the frequent weekday rail service which 
the rail arm of NJ Transit and the National Railroad Passenger 
Corporation (Amtrak) offer is another alternative available to 
applicants' passengers.
    Applicants state that the proposed pooling of the bus lines' 
schedules will result in better service to the public, will render 
operations more economical and efficient, and will not unreasonably 
restrain competition. In addition, they assert that approval of the 
transaction will not significantly affect either the quality of the 
human environment or the conservation of energy resources.
    Copies of the pooling application may be obtained free of charge by 
contacting applicants' representatives. Alternatively, the application 
may be inspected at the offices of the Surface Transportation Board, 
Room 755, during normal business hours, or a copy of the application 
may be obtained from the Board's Web site at ``http://www.stb.dot.gov.''
    A copy of this notice will be served on the U.S. Department of 
Justice, Antitrust Division, 10th Street & Pennsylvania Avenue, NW., 
Washington, DC 20530; the New York Department of Transportation, Truck 
and Bus Safety Section, Room 501-A, Building 7A, 1220 Washington 
Avenue, Albany, NY 12232; and the New Jersey Department of 
Transportation/Office of Regulatory Affairs (Commercial Bus 
Inspection), 225 E. State Street, P.O. Box 611, Trenton, NJ 08666-0611.

    Decided: February 25, 2003.

    By the Board, Chairman Nober, Vice Chairman Burkes, and 
Commissioner Morgan.
Vernon A. Williams,
Secretary.
[FR Doc. 03-4888 Filed 2-28-03; 8:45 am]
BILLING CODE 4915-00-P