Federal Register, Volume 63 Issue 223 (Thursday, November 19, 1998)

[Federal Register Volume 63, Number 223 (Thursday, November 19, 1998)]
[Notices]
[Pages 64312-64314]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30982]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Docket No. MC-F-20931, et. al.] ¹


Coach USA, Inc., and Coach USA North Central, Inc.--Control--Nine 
Motor Passenger Carriers; Notice Tentatively Approving Finance 
Transactions

AGENCY: Surface Transportation Board.

ACTION: Notice tentatively approving finance transactions.

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SUMMARY: Coach USA, Inc. (Coach), a noncarrier, and its wholly owned 
noncarrier subsidiaries, Coach USA North Central, Inc. (North Central), 
Coach USA Northeast, Inc. (Northeast), Coach USA South Central, Inc. 
(South Central), Coach USA Southeast, Inc. (Southeast), Coach USA West, 
Inc. (West), and Yellow Cab Service Corporation (Yellow Cab Service) 
(collectively, the subsidiaries), filed applications under 49 U.S.C. 
14303 for the subsidiaries to acquire direct control of motor passenger 
carriers that are currently controlled by Coach or are subject to 
pending applications for control. The control applications that are the 
subject of this notice are in furtherance of an internal corporate 
reorganization plan by Coach. Persons wishing to oppose the 
applications must follow the rules under 49 CFR 1182.5 and 
1182.8.² The Board has tentatively approved the 
transactions, and, if no opposing comments are timely filed, this 
notice will be the final Board action.
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    \1\ These proceedings are not consolidated. A single decision is 
being issued for administrative convenience.
    \2\ Revised procedures governing finance applications filed 
under 49 U.S.C. 14303 were adopted in Revisions to Regulations 
Governing Finance Applications Involving Motor Passenger Carriers, 
STB Ex Parte No. 559 (STB served Sept. 1, 1998).

DATES: Comments must be filed by January 4, 1999. Applicants may file a 
reply by January 19, 1999. If no comments are filed by January 4, 1999, 
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this notice is effective on that date.

ADDRESSES: Send an original and 10 copies of any comments referring to 
STB Docket No. MC-F-20931, et al. to: Surface Transportation Board, 
Office of the Secretary, Case Control Unit, 1925 K Street, N.W., 
Washington, DC 20423-0001. In addition, send one copy of comments to 
applicants' representatives: Betty Jo Christian and David H. Coburn, 
Steptoe & Johnson LLP, 1330 Connecticut Avenue, N.W., Washington, DC 
20036.

FOR FURTHER INFORMATION CONTACT: Beryl Gordon, (202) 565-1600. [TDD for 
the hearing impaired: (202) 565-1695).]

SUPPLEMENTARY INFORMATION: With the growth in the number of Coach-
controlled carriers, Coach has determined that it can best maintain and 
improve the management of its controlled operating carriers, and 
promote the future growth of Coach, by establishing noncarrier 
subsidiaries, organized primarily on a regional basis,³

[[Page 64313]]

that will directly control the existing and future operating carriers 
of Coach.⁴ The transfer of control of each of the motor 
passenger carriers to one of the subsidiaries will be by a transfer of 
the ownership interest in each operating carrier (either the stock of 
the carrier or the stock of the carrier's parent) to the respective 
subsidiary. Coach will remain the sole owner of all of the stock of the 
subsidiaries and will indirectly control the operating carriers, 
providing certain management, corporate and administrative services and 
benefits to the subsidiaries. Coach submits that there will be no 
transfer of any federal or state operating authorities held by any of 
the carriers to be acquired by the subsidiaries and that they will 
continue operating in the same manner as before the acquisitions of 
control. Accordingly, Coach asserts that granting the application will 
not reduce competitive options available to the traveling public.
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    \3\ Yellow Cab Service is the exception. It will control those 
operating carriers that focus their services on premium, taxicab, 
and other specialized transportation services, rather than carriers 
in a specific region of the country.
    \4\ In addition to the instant applications, Coach states that 
it plans to file another application jointly with Coach Canada, 
Inc., pursuant to which that subsidiary will seek approval to 
acquire control of Coach-controlled motor passenger carriers based 
in Canada.
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    Coach submits that granting the application will allow the 
subsidiaries to maintain and improve the high quality of services that 
are now offered by Coach to each of the operating carriers it controls. 
According to Coach, by further decentralizing certain management 
functions, Coach and its subsidiaries will be better able to plan 
equipment utilization, develop financial plans and coordinate other 
short-and long-term operational strategies best designed to meet the 
specific and unique needs of the carriers assigned to each subsidiary, 
and their customers. Specifically, each subsidiary will maintain a 
database of assets, including the vehicles operated by each of the 
operating carriers, which will allow management to more effectively 
deploy vehicles, resulting in more timely and efficient service to the 
traveling public. Further, each of the subsidiaries will coordinate the 
safety and compliance programs of the carriers it controls, with the 
object of maintaining and raising safety performance levels for each of 
the operating carriers.
    In STB Docket No. MC-F-20931, North Central will be responsible for 
Coach-controlled carriers that are based in the following states or 
areas: Illinios, Indiana, Iowa, Kentucky, Michigan, Minnesota, 
Nebraska, North Dakota, Ohio, South Dakota, western New York, western 
Pennsylvania, West Virginia, and Wisconsin. North Central seeks control 
of the following nine \5\ motor passenger carriers: Airlines 
Acquisition Company, Inc., d/b/a Airlines Transportation Company (MC-
223575); Blue Bird Coach Lines, Inc. (MC-108531); Butler Motor Transit, 
Inc. (MC-126876); Gad-About Tours, Inc. (MC-198451); Keeshin 
Transportation, L.P. (MC-263222); Keeshin Charter Services, Inc. (MC-
118044); Lenzner Transportation Management Services d/b/a Lenzner Coach 
Lines (MC-237433); Niagara Scenic Bus Lines, Inc. (MC-30787); and 
Wisconsin Coach Lines, Inc. (MC-123432).\6\
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    \5\ On October 21, 1998, Coach and North Central filed a 
separate application for the control of two additional carriers in 
Coach USA, Inc., and Coach USA North Central, Inc.--Control--Central 
Cab Company and Mountaineer Coach, Inc., STB Docket No. MC-F-20939.
    \6\ In Coach USA, Inc.--Control--Clinton Avenue Bus Company; 
Orange, Newark, Elizabeth Bus, Inc.; and Wisconsin Coach Lines, 
Inc., STB Docket No. MC-F-20930, Coach seeks an exemption to acquire 
control over Clinton Avenue Bus Company, Orange, Newark, Elizabeth 
Bus, Inc., and Wisconsin Coach Lines, Inc. A notice was served and 
published in the Federal Register (63 FR 51397) on September 25, 
1998, instituting an exemption proceeding. Comments were due by 
November 9, 1998.
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    In STB Docket No. MC-F-20932, Northeast will be responsible for 
Coach-controlled carriers that are based in the following states or 
areas: Connecticut, Delaware, eastern New York, eastern Pennsylvania, 
Maine, Maryland, Massachusetts, New Hampshire, New Jersey, Rhode 
Island, Vermont, and Washington, DC. Northeast seeks control of the 
following 30 ⁷ motor passenger carriers: Brunswick 
Transportation Company, d/b/a The Maine Line (MC-109495); Cape Transit 
Corp. (MC-161678); Chenango Valley Bus Lines, Inc. (MC-141324); Clinton 
Avenue Bus Company (MC-223062),⁸ Colonial Coach Corp. (MC-
39491); Community Coach, Inc. (MC-76022); Community Transit Lines, Inc. 
(MC-145548); GL Bus Lines, Inc. (MC-180074); Gray Line Air Shuttle, 
Inc. (MC-218255); Gray Line New York Tours, Inc. (MC-180229); H.A.M.L. 
Corp. (MC-194792); Hudson Transit Corp. (MC-133403); Hudson Transit 
Lines, Inc. (MC-228); International Bus Services, Inc. (MC-155937); 
Leisure Time Tours (MC-142011); Mini Coach of Boston (MC-231090); 
Olympia Trails Bus Co., Inc. (MC-138146); Orange, Newark, Elizabeth 
Bus, Inc. (MC-206227); ⁹ Pawtuxet Valley Bus Lines (MC-
115432); Progressive Transportation Services, Inc. (MC-247074); Red & 
Tan Tours, Inc. (MC-162174); Red & Tan Charter, Inc. (MC-204842); 
Rockland Coaches, Inc. (MC-29890); Suburban Trails, Inc. (MC-149081); 
Suburban Transit Corp. (MC-115116); Suburban Management Corp. (MC-
264527); Syracuse & Oswego Coach Lines, Inc. (MC-117805); The Arrow 
Line, Inc. (MC-1934); Utica-Rome Bus Co., Inc. (MC-7914); and Van 
Nortwick Bros., Inc. (MC-149025).
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    \7\ On October 21, 1998, Coach and Northeast filed a separate 
application for the control of one additional carrier in Coach USA, 
Inc., and Coach USA Northeast, Inc.--Control--Bonanza Bus Lines, 
Inc., STB Docket No. MC-F-20937.
    \8\ See supra note 6.
    \9\ See supra note 6.
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    In STB Docket No. MC-F-20933, South Central will be responsible for 
Coach-controlled carriers that are based in the following states or 
areas: Arkansas, Kansas, Louisiana, Mississippi, Missouri, New Mexico, 
Oklahoma, Tennessee, and Texas. South Central seeks control of the 
following eight motor passenger carriers: Americoach Tours, Limited 
(MC-212649); Bayou City Coaches, Inc. (MC-245246); Browder Tours, Inc. 
(MC-236290); El Expreso, Inc. (MC-244195); Gulf Coast Transportation, 
Inc. (MC-201397); Kerrville Bus Company, Inc. (MC-27530); Stardust 
Tours, Inc., d/b/a Gray Line Tours of Memphis (MC-318341); and Texas 
Bus Lines, Inc. (MC-37640).
    In STB Docket No. MC-F-20934, Southeast will be responsible for 
Coach-controlled carriers that are based in the following states or 
areas: Alabama, Florida, Georgia, North Carolina, South Carolina, and 
Virginia. Southeast seeks controls of the following seven motor 
passenger carriers: Air Travel Transportation, Inc., d/b/a Atlanta 
Airport Shuttle and Atlanta Airport Shuttle, Inc. (MC-166420); America 
Charters, Ltd. (MC-153814); American Sightseeing Tours, Inc. (MC-
252353); Le Bus, Inc. (MC-210900); P&S Transportation, Inc. (MC-
255382); Tippett Travel, Inc., d/b/a Marie's Charter Bus Lines (MC-
174043); and Tucker Transportation Company, Inc. (MC-223424).
    In STB Docket No. MC-F-20935, West will be responsible for Coach-
controlled carriers that are based in the following states or areas: 
Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, 
Utah, Washington, and Wyoming. West seeks control of the following 14 
motor passenger carriers: Airport Bus of Bakersfield (MC-163191); 
Antelope Valley Bus, Inc. (MC-125057); Arrow Stage Lines, Inc. (MC-
29592); Black Hawk-Central City Ace Express, Inc. (MC-273611); 
California Charters, Inc. (MC-241211); Desert Stage Lines, Inc. (MC-
140919); Grosvenor Bus Lines, Inc. (MC-157317); K-T Contract Services, 
Inc. (MC-218583); Gray Line Tours of Southern Nevada, Inc. (MC-127564); 
PCSTC, Inc. (MC-184852); Powder

[[Page 64314]]

River Transportation Services, Inc. (MC-161531), Salt Lake Coaches, 
Inc. (SLC); ¹⁰ Valen Transportation, Inc. (MC-212398); and 
Worthen Van Service, Inc. (MC-142573).
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    \10\ Coach states that SLC does not yet hold federally issued 
operating authority but has filed an application with the Federal 
Highway Administration. In Coach USA, Inc.--Continuance in Control--
Salt Lake Coaches, Inc., STB Docket No. MC-F-20928 (STB served Sept. 
4, 1998), Coach's continuance in control of SLC was approved upon 
SLC's becoming a motor passenger carrier.
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    In STB Docket No. MC-F-20936, Yellow Cab Service will be 
responsible for those Coach-controlled carriers that focus on 
specialized transportation services. Yellow Cab Service seeks control 
of the following four motor passenger carriers: Airport Limousine 
Service, Inc. (MC-315702); Pittsburgh Transportation Charter Services, 
Inc. (MC-319195); Metro Cars, Inc. (MC-276823); and Kansas City 
Executive Coach, Inc. (MC-203805).
    Coach and the subsidiaries plan to acquire control of additional 
motor passenger carriers in the coming months. Coach anticipates that 
the subsidiaries will be well-positioned to aid in the assessment of 
possible future acquisitions of motor passenger carriers in the 
particular area in which each subsidiary functions. According to Coach, 
the subsidiaries will be able to make those assessments in view of the 
operations of the carriers under their control and with a view toward 
developing and carrying out a strategic growth plan best suited to 
their particular area. Coach asserts that, as a result of the transfer 
of control to the subsidiaries, the operating carriers will become 
stronger and more responsive competitors in the areas in which each 
operates. Thus, the traveling public will have a higher level of 
assurance of access to passenger services due to the ability of the 
management of each subsidiary to coordinate the movement of vehicles 
between and among the operating carriers. In addition, the traveling 
public will benefit from the strategic planning and coordination by 
each subsidiary, as well as the ability of management to be responsive 
to the concerns, complaints and issues raised by the traveling public.
    Coach certifies that none of the carriers to be acquired by the 
subsidiaries holds an unsatisfactory safety rating from the U.S. 
Department of Transportation; that each has sufficient liability 
insurance; and none is domiciled in Mexico or owned or controlled by 
persons of that country; and that approval of the transactions will not 
significantly affect either the quality of the human environment or the 
conservation of energy resources. Additional information may be 
obtained from the applicants' representatives.
    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.
    On the basis of the applications, we find that the proposed 
acquisitions of control are 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 applications.¹¹ 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.
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    \11\ Under revised 49 CFR 1182.6(c), a procedural schedule will 
not be issued if we are able to dispose of opposition to the 
application on the basis of comments and the reply.
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    Board decisions and notices are available on our website 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 acquisitions of control are 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 as having been vacated.
    3. This decision will be effective on January 4, 1999, unless 
timely opposing comments are filed.
    4. A copy of this notice will be served on: (1) the U.S. Department 
of Transportation, Office of Motor Carriers-HIA 30, 400 Virginia 
Avenue, S.W., Suite 600, Washington, DC 20024; and (2) the U.S. 
Department of Justice, Antitrust Division, 10th Street & Pennsylvania 
Avenue, N.W., Washington, DC 20530.

    Decided: November 12, 1998.

    By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 98-30982 Filed 11-18-98; 8:45 am]
BILLING CODE 4915-00-P