[Federal Register Volume 62, Number 163 (Friday, August 22, 1997)]
[Notices]
[Page 44748]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-22473]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33431]


Coach USA, Inc. and K-T Contract Services, Inc.--Control and 
Merger Exemption--Gray Line Tours of Southern Nevada

AGENCY: Surface Transportation Board, DOT.

ACTION: Notice of Filing of Petition for Exemption.

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SUMMARY: Coach USA, Inc. (Coach), a noncarrier that controls 27 motor 
passenger carriers, and K-T Contract Services, Inc. (K-T), a motor 
carrier of passengers wholly owned by Coach, seek to be exempted, under 
49 U.S.C. 13541, from the prior approval requirements of 49 U.S.C. 
14303, to acquire control of Gray Line Tours of Southern Nevada (Gray 
Line) and to merge Gray Line into K-T.

DATES: Comments must be filed by October 6, 1997. Petitioners may file 
a reply by October 21, 1997.

ADDRESSES: Send an original and 10 copies of comments referring to STB 
Finance Docket No. 33431 to: Surface Transportation Board, Office of 
the Secretary, Case Control Unit, 1925 K Street, NW., Washington DC 
20423-0001. In addition, send one copy of comments to Petitioners' 
representatives: Betty Jo Christian and David H. Coburn, Steptoe & 
Johnson LLP, 1330 Connecticut Avenue, NW., Washington, DC 20036.

FOR FURTHER INFORMATION CONTACT: Joseph H. Dettmar, (202) 565-1600. 
(TDD for the hearing impaired: (202) 565-1695.)

SUPPLEMENTARY INFORMATION: Coach, a noncarrier, and its wholly owned 
subsidiary K-T, a motor carrier of passengers (MC 218583), seek an 
exemption to acquire control of Gray Line (MC-127564), a Nevada-based 
motor carrier that operates in interstate and intrastate commerce, and 
to merge Gray Line into K-T.<SUP>1</SUP>
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    \1\ The stock of Gray Line has been placed in an independent 
voting trust to avoid any unlawful control pending disposition of 
this proceeding.
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    By virtue of exemptions issued to it in STB Finance Docket Nos. 
32876 (Sub-No. 1), 33073, 33343, and 33377,<SUP>2</SUP> Coach currently 
controls 27 motor carriers of passengers, including co-petitioner K-
T.<SUP>3</SUP> Coach and K-T state that their acquisition of control of 
Gray Line through the acquisition of Gray Line's stock by K-T will not 
inhibit competition or reduce transportation options available to the 
public.
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    \2\ See Notre Capital Ventures II, LLC and Coach USA, Inc.--
Control Exemption--Arrow Stage Lines, Inc.; Cape Transit Corp.; 
Community Coach, Inc.; Community Transit Lines, Inc.; Grosvenor Bus 
Lines, Inc.; H.A.M.L. Corp.; Leisure Time Tours; Suburban Management 
Corp.; Suburban Trails, Inc.; and Suburban Transit Corp., STB 
Finance Docket No. 32876 (Sub-No. 1) (STB served May 3, 1996); Coach 
USA, Inc.--Control Exemption--American Sightseeing Tours, Inc.; 
California Charters, Inc.; Texas Bus Lines, Inc.; Gulf Coast 
Transportation, Inc.; and K-T Contract Services, Inc., STB Finance 
Docket No. 33073 (STB served Nov. 8, 1996); Coach USA, Inc.--Control 
Exemption--Progressive Transportation, Inc.; Powder River 
Transportation Services, Inc.; Worthen Van Service, Inc.; and PCSTC, 
Inc., STB Finance Docket No. 33343 (STB served May 15, 1997); and 
Coach USA, Inc.--Control Exemption--Airport Bus of Bakersfield; 
Antelope Valley Bus, Inc.; Desert Stage Lines, Inc.; Bayou City 
Coaches, Inc.; Kerrville Bus Company, Inc.; Red & Tan Charter, Inc.; 
Red & Tan Tours; and Rockland Coaches, Inc., STB Finance Docket No. 
33377 (STB served May 15, 1997).
    \3\ They include: Airport Bus of Bakersfield (MC-163191), 
American Sightseeing Tours, Inc., d/b/a ASTI (MC-252353), Antelope 
Valley Bus, Inc. (MC-125057), Arrow Stage Lines, Inc. (MC-29592), 
Bayou City Coaches, Inc. (MC-245246), California Charters, Inc. (MC-
241211), Cape Transit Corp. (MC-161678), Community Coach, Inc. (MC-
76022), Community Transit Lines, Inc. (MC-145548), Desert Stage 
Lines, Inc. (MC-140919), Grosvenor Bus Lines, Inc. (MC-157317), Gulf 
Coast Transportation, Inc., d/b/a Gray Line Tours of Houston (MC-
201397), H.A.M.L. Corp. (MC-194792), K-T Contract Services, Inc. 
(MC-218583), Kerrville Bus Company, Inc. (MC-27530), Leisure Time 
Tours (Leisure Time) (MC-142011), PCSTC, Inc., d/b/a Pacific Coast 
Sightseeing/Gray Line of Anaheim-Los Angeles (MC-184852), Powder 
River Transportation Services, Inc. (MC-161531), Progressive 
Transportation Services, Inc. (MC-247074), Red & Tan Charter, Inc. 
(MC-204842), Red & Tan Tours, Inc. (MC-162174), Rockland Coaches, 
Inc. (MC-29890), Suburban Management Corp. (MC-264527), Suburban 
Trails, Inc. (MC-149081), Suburban Transit Corp. (MC-115116), Texas 
Bus Lines, Inc. (MC-37640), and Worthen Van Service, Inc. (MC-
142573).
    In Coach USA, Inc.--Control Exemption--American Charters, Ltd., 
STB Finance Docket No. 33393, Coach seeks an exemption to acquire 
control over American Charters, Ltd. (MC-153814). The Board served 
and published a notice in the Federal Register (62 FR 28531) on May 
23, 1997, instituting an exemption proceeding. Comments were due by 
June 23, 1997; none was filed. A final decision is currently pending 
with the Board.
    In Coach USA, Inc., and Leisure Time Tours--Control and Merger 
Exemption--Van Nortwick Bros., Inc., The Arrow Line, Inc., and 
Trentway-Wagar, Inc., STB Finance Docket No. 33428, Coach and 
Leisure Time seek an exemption to acquire control of Van Nortwick 
Bros. and merge Van Nortwick into Leisure Time, which will remain as 
the surviving entity. Coach also seeks an exemption to acquire 
control of two additional motor passenger carriers, The Arrow Line, 
Inc., and Trentway-Wagar, Inc.
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    Petitioners also claim that the acquisition of control of Gray Line 
will allow that carrier to offer improved service at lower costs made 
possible by the coordination of functions, centralized management, 
financial support, rationalization of resources, and economies of scale 
that are anticipated from the common control. Coach also states that 
all collective bargaining agreements will be honored, that employee 
benefits will improve, and that no change in management personnel is 
planned. Coach and K-T submit that a merger of K-T and Gray Line would 
result in the more efficient use of transportation resources and 
improved service to the public.
    Additional information may be obtained from Petitioners' 
representatives.
    A copy of this notice will be served on the Department of Justice, 
Antitrust Division, 10th Street & Pennsylvania Avenue, N.W., 
Washington, DC 20530.

    Decided: August 18, 1997.

    By the Board, Chairman Morgan, Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 97-22473 Filed 8-21-97; 8:45 am]
BILLING CODE 4915-00-P