[Federal Register Volume 71, Number 113 (Tuesday, June 13, 2006)]
[Notices]
[Pages 34189-34190]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-9204]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Docket No. MC-F-21016]


Stagecoach Group PLC & Coach USA, Inc., et al.--Control--Megabus 
USA LLC

AGENCY: Surface Transportation Board, DoT.

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), have filed an application under 49 U.S.C. 
14303 to acquire control of the newly created Megabus USA LLC (Megabus 
USA), which is currently owned by co-applicant Independent Bus Company, 
Inc. (Independent), a wholly owned subsidiary of Coach. Applicants 
state that currently Megabus USA does not hold federally issued 
authority. This application is filed on the premise that Megabus USA 
actually obtains the authority it seeks. Persons wishing to oppose this 
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.

DATES: Comments must be filed by July 28, 2006. Applicants may file a 
reply by August 14, 2006. If no comments are filed by July 28, 2006, 
this notice is effective on that date.

ADDRESSES: Send an original and 10 copies of any comments referring to 
STB Docket No. MC-F-21016 to: Surface Transportation Board, 1925 K 
Street, NW., Washington, DC 20423-0001. In addition, send one copy of 
comments to the applicants' representatives: Betty Jo Christian and 
David H. Coburn, STEPTOE & JOHNSON LLP, 1330 Connecticut Avenue, NW., 
Washington, DC 20036.

FOR FURTHER INFORMATION CONTACT: Eric S. Davis, (202) 565-1608 [Federal 
Information Relay Service (FIRS) for the hearing impaired: 1-800-877-
8339].

SUPPLEMENTARY INFORMATION: Stagecoach is a public limited company 
organized under the laws of Scotland. It is one of the world's largest 
providers of passenger transportation services and had annual revenues 
for the fiscal year ending April 30, 2005, of over $3.3 billion. 
Stagecoach, and certain intermediate subsidiaries, acquired control of 
Coach in September 1999.\1\ Coach, a Delaware corporation, controls 
numerous federally regulated motor carriers. The motor carriers 
controlled by Coach had gross operating revenues for the 12-month 
period ending with the date of this application greater than the $2 
million threshold required for Board jurisdiction.
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    \1\ See Stagecoach Holdings PLC--Control--Coach USA, Inc., et 
al., STB Docket No. MC-F-20948 (STB served July 22, 1999).
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    Megabus USA is currently a noncarrier, but plans to seek 
authorization from the Federal Motor Carrier Safety Administration to 
operate as a motor common carrier of passengers. Once authorization is 
granted, Megabus USA will utilize a fleet of approximately 18 
motorcoaches to provide scheduled express bus service over regular 
routes between Chicago and several Midwestern cities. These routes, and 
the motorcoaches and drivers, are currently used by Independent under 
the name ``Megabus.com,'' which holds federally issued authority under 
MC-168548.

[[Page 34190]]

Once Megabus USA obtains authority, Independent will surrender that 
trade name and cease operations performed under its name.
    Under 49 U.S.C. 14303(b), the Board must approve and authorize a 
transaction found to be 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.
    Stagecoach and Coach have submitted information, as required by 49 
CFR 1182.2, including the information to demonstrate that the proposed 
transaction is consistent with the public interest under 49 U.S.C. 
14303(b). Applicants state that the proposed transaction will have no 
impact on the adequacy of transportation services available to the 
public, that the proposed transaction will not have an adverse effect 
on total fixed charges, and that the interests of employees of Megabus 
USA will not be adversely impacted. Additional information, including a 
copy of the application, may be obtained from the applicants' 
representatives.
    On the basis of the application, and if Megabus USA does in fact 
obtain only the authority as described herein, 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 notice 
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:
    1. The proposed finance transaction is approved and authorized, 
subject to the filing of opposing comments.
    2. If timely opposing comments are filed, the findings made in this 
notice will be deemed as having been vacated.
    3. This notice will be effective July 28, 2006, 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: June 7, 2006.

    By the Board, Chairman Buttrey and Vice Chairman Mulvey.
Vernon A. Williams,
Secretary.
 [FR Doc. E6-9204 Filed 6-12-06; 8:45 am]
BILLING CODE 4915-01-P