[Federal Register Volume 78, Number 128 (Wednesday, July 3, 2013)]
[Notices]
[Pages 40268-40269]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-15973]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. MCF 21053]


Conway's Bus Service, Inc.--Sale Of Certain Assets--Academy 
Express, L.L.C.

AGENCY: Surface Transportation Board, DOT.

ACTION: Notice Tentatively Approving and Authorizing Finance 
Transaction.

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SUMMARY: On June 4, 2013, Conway's Bus Service, Inc. (CBS), and Academy 
Express, L.L.C. (Academy) (collectively, Applicants), motor carriers of 
passengers, filed an application under 49 U.S.C. 14303 for approval of 
the purchase of certain assets of CBS's Charter Division by Academy.\1\ 
The Board is tentatively approving and authorizing the transaction, 
and, if no opposing comments are timely filed, this notice will be the 
final Board action.\2\ Persons wishing to oppose the

[[Page 40269]]

application must follow the rules set forth at 49 CFR 1182.5 and 
1182.8.
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    \1\ Although the application was filed by CBS, it is being 
accepted as jointly filed because Academy's manager, Francis 
Tedesco, filed a supporting verification with the application. Under 
49 U.S.C. 14303(a)(2), Board approval is required for transactions 
that involve ``[a] purchase, lease, or contract to operate property 
of another carrier by any number of carriers.''
    \2\ Applicants simultaneously filed a motion to dismiss the 
application contending that, because of its size and nature, the 
transaction does not fall under the Board's jurisdiction. That 
motion is being denied in a separate decision being served 
simultaneously with this notice.

DATES: Comments must be filed by August 19, 2013. Applicants may file a 
reply by September 3, 2013. If no comments are filed by August 19, 
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2013, the notice shall be effective on that date.

ADDRESSES: Send an original and 10 copies of any comments referring to 
Docket No. MCF 21053 to: Surface Transportation Board, 395 E Street 
SW., Washington, DC 20423-0001. In addition, send one copy of comments 
to Applicants' representative: Stephen Brusini, 144 Wayland Avenue, 
Providence, RI 02906.

FOR FURTHER INFORMATION CONTACT: Marc Lerner, (202) 245-0390. [Federal 
Information Relay Service (FIRS) for the hearing impaired: 1-800-877-
8339.]

SUPPLEMENTARY INFORMATION: Academy, a limited liability company 
established under the laws of New Jersey, holds authority from the 
Federal Motor Carrier Safety Administration (FMCSA) as a motor carrier 
providing interstate charter passenger services to the public (MC-
413682).\3\ Academy is indirectly controlled by the Tedesco Family ESB 
Trust, which also indirectly controls Academy Lines, L.L.C., a motor 
carrier of passengers principally rendering commuter operations, and 
No. 22 Hillside, L.L.C., a motor carrier of passengers rendering a 
variety of services. CBS, a corporation established under Rhode Island 
law, also holds a FMCSA license (MC-115676).\4\
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    \3\ Academy operates in the District of Columbia, and the states 
of Maryland, Virginia, New Jersey, New York, Connecticut, 
Pennsylvania, New Hampshire, Rhode Island, and Massachusetts.
    \4\ CBS's Charter Division operates in the state of Rhode Island 
and in Northern Connecticut and Southeastern Massachusetts.
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    Academy proposes to purchase the assets of CBS's Charter Division, 
which handles the transportation of passengers for hire between two or 
more geographic locations in intrastate and interstate commerce. 
Specifically, Academy would purchase the Charter Division's: (1) Logos, 
trademarks, and patents; (2) transferable permits, licenses, 
franchises, approvals, certificates, consents, waivers, concessions, 
exemptions, orders, registrations, notices, or other authorizations of 
any government authority; (3) pending customer contracts and associated 
deposits; (4) customer lists; and (5) the trade name, ``Conway's Bus 
Service.''
    According to Applicants, CBS has two other separate and distinct 
operating divisions: a motor coach equipment division that owns motor 
coaches and related equipment, and a tour and travel service division 
that provides multi-day packaging of hotel accommodations, meals, and 
transport by private tour groups. The transaction, however, does not 
involve the transfer of CBS's assets, facilities, or customers outside 
of the Charter Division and does not involve the transfer of CBS's 
FMSCA certificate of operating authority. CBS intends to cease 
operating its Charter Division and will, if the application is 
approved: (1) Voluntarily surrender its certificates of authority to 
operate as an interstate and intrastate motor carrier; (2) sell its 
Charter Division assets to Academy; (3) continue to operate its Tour 
Division; and (4) liquidate the assets of its motor coach equipment 
division.
    Under 49 U.S.C. 14303(b), the Board must approve and authorize a 
transaction that it finds consistent with the public interest, taking 
into consideration at least: (1) The effect of the proposed 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 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) and a statement that the combined 12-month aggregate gross 
operating revenues of CBS's Charter Division and of Academy exceeded $2 
million. See 49 U.S.C. 14303(g).
    Applicants assert that the proposed transaction would: (1) Promote 
safe and efficient transportation because Academy's motor coaches are 
newer and more modern than those being used by CBS's Charter Division; 
(2) promote the efficient use of natural resources and energy because 
Academy's newer motor coaches are more fuel and energy efficient; (3) 
promote and encourage other motor carrier providers to establish 
competitive rates because of Academy's far-reaching presence in the 
motor carrier industry; and (4) enhance service and price options for 
customers. Applicants further state that the proposed transaction would 
have no effect on total fixed charges. Finally, Applicants state that 
the transaction would have no adverse effect on the Charter Division's 
employees as Academy will be offering similar employment opportunities 
to those current employees and does not anticipate any reduction in the 
work force or in compensation levels and benefits.
    On the basis of the application, the Board finds that the proposed 
purchase is consistent with the public interest and should be 
tentatively approved and 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.
    The application and Board decisions and notices are available on 
our Web site 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 transaction is approved and authorized, subject to 
the filing of opposing comments.
    2. If opposing comments are timely filed, the findings made in this 
notice will be deemed vacated.
    3. This notice will be effective on August 19, 2013, unless 
opposing comments are timely filed.
    4. A copy of this decision will be served on: (1) The U.S. 
Department of Transportation, Federal Motor Carrier Safety 
Administration, 1200 New Jersey Avenue SE., 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, 1200 New 
Jersey Avenue SE., Washington, DC 20590.

    By the Board, Chairman Elliott, Vice Chairman Begeman, and 
Commissioner Mulvey.
Derrick A. Gardner,
Clearance Clerk.
[FR Doc. 2013-15973 Filed 7-2-13; 8:45 am]
BILLING CODE 4915-01-P