[Federal Register Volume 68, Number 44 (Thursday, March 6, 2003)]
[Notices]
[Pages 10776-10777]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-5153]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Docket No. MC-F-20997]


Coach USA, Inc., et al.--Purchase and Sale of Assets--Academy 
Bus, LLC, et al.

AGENCY: Surface Transportation Board, DOT.

ACTION: Notice tentatively approving finance transaction.

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SUMMARY: Coach USA, Inc. (Coach), a noncarrier, and Suburban Transit 
Corp. (Suburban) and Red & Tan Tours, Inc. (RTT), two motor passenger 
carriers, filed an application under 49 U.S.C. 14303 jointly with 
Academy Bus, LLC (Academy Bus), a noncarrier, and Academy Express, LLC 
(Academy Express) and Academy Lines, LLC (Academy Lines),\1\ two motor 
passenger carriers, to acquire from each other certain operating rights 
in New York and New Jersey, and other assets. 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.
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    \1\ On January 27, 2003, New Jersey Transit Bus Operations, 
Inc., and Academy Lines, jointly filed an application for approval 
of a pooling agreement with respect to Route 9 Corridor service from 
points in New Jersey to New York City, NY. In New Jersey Transit Bus 
Operations, Inc.--Pooling--Academy Lines, L.L.C., STB Docket No. MC-
F-20994 (STB served Feb. 12, 2003), the Board, under 49 U.S.C. 
13541, authorized an exemption from the requirements of 49 U.S.C. 
14302 to permit applicants to conduct interim pooling operations 
pending Board action on the pooling application.

DATES: Comments must be filed by April 21, 2003. Applicant may file a 
reply by May 5, 2003. If no comments are filed by April 21, 2003, this 
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notice is effective on that date.

ADDRESSES: Send an original and 10 copies of any comments referring to 
STB Docket No. MC-F-20997 to: Surface Transportation Board, 1925 K 
Street, NW., Washington, DC 20423-0001. In addition, send one copy of 
comments to applicants' representative: David H. Coburn, Steptoe & 
Johnson, LLP, 1330 Connecticut Avenue, NW., Washington, DC 20036.

FOR FURTHER INFORMATION CONTACT: Beryl Gordon, (202) 565-1600. [Federal 
Information Relay Service (FIRS) for the hearing impaired: 1-800-877-
8339.]

SUPPLEMENTARY INFORMATION: Coach, a Delaware corporation, currently 
controls numerous motor passenger carriers,\2\ including Suburban and 
RTT,\3\ both of which are based in New Jersey and operate in the New 
Jersey/New York area. Academy Bus, a noncarrier, currently controls 
certain motor passenger carriers,\4\ including Academy Express and 
Academy Lines; both of these carriers are based in New Jersey with 
operations in that state and New York.\5\ In this transaction, these 
carriers will exchange certain routes and other assets with one 
another.
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    \2\ Coach is wholly owned by Stagecoach Group plc, a noncarrier 
which indirectly controls the carriers controlled by Coach.
    \3\ Suburban and RTT hold federally issued operating authority 
in Docket Nos. MC-115116 and MC-162174, respectively, and New Jersey 
intrastate authority.
    \4\ Academy Bus and its motor carrier affiliates are indirectly 
controlled by Tedesco Family ESB Trust. See Tedesco Family ESB 
Trust--Continuance in Control and Acquisition of Properties--Academy 
Bus, L.L.C., et al., STB Docket No. MC-F-20983 (STB served Aug. 2, 
2001).
    \5\ Academy Express and Academy Lines hold federally issued 
operating authority in Docket Nos. MC-228481 and MC-414016, 
respectively, and New Jersey intrastate authority.
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    Specifically, under an Asset Purchase and Exchange Agreement 
(Agreement), Academy Express and related entities have agreed to 
transfer to Coach or to an affiliate of Coach to be designated by it, 
certain bus routes between points in New York City and Westchester 
County, NY, on the one hand, and Atlantic City, NJ, on the other, as 
well as certain assets including relevant agent lists, customer lists, 
sales records, accounting records, and the trade name ``Funaway Tours'' 
in which this bus service is provided.
    Further, Suburban has agreed to transfer to Academy Lines certain 
commuter routes along the Route 9 Corridor in New Jersey to and from 
New York City, and to Academy Express certain routes between points in 
Northern New Jersey, on the one hand, and Atlantic City, on the other. 
In addition, RTT has agreed to transfer to Academy Express certain 
routes between points in Staten Island and northern New Jersey, on the 
one hand, and Atlantic City, on the other. The Agreement also provides 
that each of these transfers will also embrace the transfer of relevant 
agent lists, customer lists, as well as certain records and other 
instruments related to the operation of the specific routes.
    Finally, the Agreement provides that the carriers will not engage 
in the operation of scheduled bus service on each other's transferred 
routes during a 5-year period.
    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.
    Applicants have submitted the information required by 49 CFR 
1182.2, including information to demonstrate that the proposed 
transaction is consistent with the public interest under 49 U.S.C. 
14303(b). Applicants submit that they have suffered economically 
following the events of September 11, 2001. They maintain that these 
route and related asset exchanges will allow them to improve the 
efficiency of their operations and reduce costs because the routes they 
will attain will blend efficiently into other operations that they 
conduct. They also claim that passengers on the various routes being 
exchanged will retain substantial intermodal and intramodal competitive 
alternatives, and therefore that the transaction will not adversely 
impact the adequacy of service to the public. Applicants also state 
that the proposed transaction will not adversely affect the employees 
of the carriers and will not increase fixed charges. See 49 CFR 
1182.2(a)(7).
    On the basis of the application, we find that the proposed 
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 http://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:

[[Page 10777]]

    1. The proposed purchase and sale of assets 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 vacated.
    3. This decision will be effective on April 21, 2003, 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: February 27, 2003.

    By the Board, Chairman Nober, Vice Chairman Burkes, and 
Commissioner Morgan.
Vernon A. Williams,
Secretary.
[FR Doc. 03-5153 Filed 3-5-03; 8:45 am]
BILLING CODE 4915-00-P