[Federal Register Volume 79, Number 185 (Wednesday, September 24, 2014)]
[Notices]
[Pages 57180-57181]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-22707]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[Docket No. MCF 21059]
Academy Express, L.L.C.--Acquisition of the Properties of Go Bus
LLC and Its Affiliate, MCIZ Corp.
AGENCY: Surface Transportation Board.
ACTION: Notice Tentatively Authorizing Finance Transaction.
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SUMMARY: Academy Express, L.L.C. (Academy Express), a motor carrier of
passengers, has filed an application under 49 U.S.C. 14303 to acquire
properties of Go Bus LLC (Go Bus) and its affiliate, MCIZ Corp. (MCIZ),
both motor carriers of passengers.\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. Persons
wishing to oppose the application must follow the rules under 49 CFR
1182.5 and 1182.8.
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\1\ Academy Express filed its application for acquisition of the
properties of Go Bus and MCIZ on July 23, 2014. However, the Board
determined that the information provided was not sufficiently
complete to provide the required notice to the Board and to the
public as to the nature and effect of the proposed transaction. In a
Board decision served on August 21, 2014, Academy Express was
directed to supplement its application, which it did on August 26,
2014.
DATES: Comments must be filed by November 10, 2014. Applicants may file
a reply by November 24, 2014. If no comments are filed by November 10,
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2014, this notice shall be effective on November 11, 2014
ADDRESSES: Send an original and 10 copies of any comments referring to
Docket No. MCF 21059 to: Surface Transportation Board, 395 E Street
SW., Washington, DC 20423-0001. In addition, send one copy of comments
to Academy Express's representative: Fritz R. Kahn, Fritz R. Kahn,
P.C., 1919 M Street NW., 7th Floor, Washington, DC 20036.
FOR FURTHER INFORMATION CONTACT: Valerie Quinn, (202) 245-0382. Federal
Information Relay Service (FIRS) for the hearing impaired: (800) 877-
8339.
SUPPLEMENTARY INFORMATION: The Tedesco Family ESB Trust directly
controls the following noncarriers: Academy Bus, L.L.C. (Academy Bus);
\2\ Franmar Leasing, Inc.; Franmar Logistics, Inc.; Academy Services,
Inc.; and Log Re, Inc. Academy Bus directly controls the following
carriers: Academy Express, Academy Lines, L.L.C., and Number 22
Hillside, L.L.C. The applicant, Academy Express, holds authority from
the Federal Motor Carrier Safety Administration (FMCSA) as a motor
carrier primarily engaged in interstate special and charter operations
(MC-413682). Go Bus and MCIZ are motor carriers licensed by FMCSA (MC-
801906 and MC-161381, respectively). According to the corporate
organization chart provided by Academy Express in its August 26 filing,
Zev Marmurstein, an individual, Renee Marmurstein, an individual, and
the ZRM Family Trust control 62-R LLC, a noncarrier, which controls Go
Bus. Zev Marmurstein directly controls MCIZ.
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\2\ According to the corporate charts included in the
applicant's petition, the Academy Bus entity that is controlled by
the Tedesco Family ESB Trust is a New York limited liability
company. But another entity with the name Academy Bus, L.L.C., is
owned by the Francis Tedesco Revocable Trust and the Mark Tedesco
Revocable Trust as a Florida limited liability company. The
applicant states that the Florida Academy Bus, L.L.C., was formerly
Cabana Coaches, LLC, but changed its name to Academy Bus, L.L.C., on
January 10, 2014. The Francis Tedesco Revocable Trust and the Mark
Tedesco Revocable Trust obtained authority to acquire Cabana
Coaches, LLC, in Tedesco Family ESB Trust--Purchase of Certain
Assets & Membership Interests--Evergreen Trails, Inc., MCF 21056
(STB served Nov. 21, 2013).
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Academy Express primarily provides charter bus and contract carrier
services for associations or other groups in interstate commerce in the
states of New York and New Jersey, and to a lesser extent in the
District of Columbia, Virginia, Maryland, Pennsylvania, Connecticut,
Rhode Island, and Massachusetts, and commuter line service between New
Jersey and New York. Go Bus and MCIZ are primarily engaged in providing
special and charter operations to and from places in the state of New
York. Go Bus also provides regular-route service between New York, NY
(New York City), and Cambridge and Newton, Mass., and commuter line
service between Glen Cove, NY, and New York City. MCIZ, pursuant to a
contract with the New York City Board of Education, provides
transportation to students and teachers on day trips from and to places
in New York for sports or other events.
[[Page 57181]]
Academy Express also states that MCIZ has a bus stop in New York City
and licenses for two park-and-ride facilities in Nassau and Suffolk
Counties, NY.
According to Academy Express, Go Bus and MCIZ have decided to cease
acting as motor carriers. Under the proposed transaction, Academy
Express seeks to acquire the interstate and intrastate operating
authorities of Go Bus, its customer lists, telephone numbers, Web
sites, and trade name, as well as MCIZ's contract with the New York
City Board of Education, its bus stop in New York City and its licenses
for the two park-and-ride facilities in Nassau and Suffolk Counties,
NY.\3\ Academy Express states that, if the transaction is approved, it
would provide most, if not all, of the operations currently provided by
Go Bus and MCIZ.
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\3\ According to the application, Academy Express would not
acquire Go Bus and MCIZ's buses. Instead, those buses would be
conveyed to a company called ABC Companies, a noncarrier.
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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. Academy Express has 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 pursuant to 49 U.S.C. 14303(g) that the 12-
month aggregate gross operating revenues of Academy Express exceeded $2
million.
With respect to the effect of the transaction on the adequacy of
transportation to the public, Academy Express states that the proposed
acquisition would benefit the patrons of Go Bus and MCIZ. According to
Academy Express, passengers would be able to travel in newer, more
comfortable, and better maintained buses, and would have more frequent
service at a lower cost than was offered by Go Bus or MCIZ. Academy
Express states that the proposed transaction would have little or no
effect on competitive conditions in the special and charter bus
markets. Academy Express states that it would compete with Greyhound
Lines, Inc., Peter Pan Bus Lines, Inc., Martz Trailways, Magic Carpet
Tours, and Majestic Tours, Inc., in providing service between New York
City and Cambridge and Newton. Academy Express also states that it
would compete with various services of the Metropolitan Transportation
Authority in rendering service between Glen Cove and New York City, as
well as in competing for the contract with the New York City Board of
Education. Academy Express states that the proposed transaction would
have no effect on total fixed charges. Further, Academy Express states
that the transaction would have little or no effect upon Go Bus and
MCIZ's employees, as the substantial majority of these employees would
continue to be employed by the affiliate or other related entities of
Go Bus, or may be offered employment with Academy Express.
On the basis of the application, the Board finds that the proposed
acquisition of control 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.
Academy Express's application and supplemental filing, as well as
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 as having been vacated.
3. This notice will be effective November 11, 2014, 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.
Decided: September 18, 2014.
By the Board, Chairman Elliott, Vice Chairman Miller, and
Commissioner Begeman.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2014-22707 Filed 9-23-14; 8:45 am]
BILLING CODE 4915-01-P