Federal Register / Vol. 63, No. 129 /Tuesday, July 7, 1998 / Notices 36697

III. The Proposed Complaint and

Consent Order

The Commission has entered into an

agreement containing a Proposed

Consent Order with Proposed

Respondents in settlement of a proposed

complaint alleging that the acquisition

as originally proposed violates Section 5

of the Federal Trade Commission Act,

15 U.S.C. 45, and that consummation of

the acquisition as originally proposed

would violate Section 7 of the Clayton

Act, 15 U.S.C. 18, and Section 5 of the

Federal Trade Commission Act. The

complaint alleges that the acquisition

will lessen competition in the delivery

of catering services to airlines at

McCarran International Airport in Las

Vegas, Nevada.

To remedy the alleged

anticompetitive effects of proposed

acquisition, the Proposed Consent Order

prohibits Proposed Respondents, for ten

(10) years after the consent order

becomes final, from acquiring any

concern that controls Ogden’s Las Vegas

catering operations without prior

approval from the Commission. It also

requires that, for ten (10) years,

Proposed Respondents provide prior

notice to the Commission before

acquiring their only in-flight catering

competitor at any airport in the United

States.

Proposed Respondents are required to

file annual compliance reports with the

Commission for the next ten (10) years,

with the first report due one year after

the proposed order becomes final.

IV. Resolution of Antitrust Concerns

The Proposed Consent Order

alleviates the alleged antitrust concerns

arising from the acquisition in the

delivery of catering services to airlines

at McCarran International Airport in Las

Vegas, Nevada.

In-flight caterers provide meals and

beverages for consumption during

aircraft flights. Catering services include

the purchasing of food in accordance

with airline specifications, preparation

of meals, stocking of beverage carts,

delivery of meals and carts to the

aircraft, loading the galley, unloading of

in-coming carts, utensils and trash, and

cleaning and storage of carts and

utensils.

Both Sky Chefs and Ogden provide inflight catering services at McCarran

International Airport in Las Vegas

through their flight kitchens located at

or near that airport. McCarran

International Airport is a relevant

antitrust geographic market because

caterers at that airport could profitably

raise prices by a small but significant

and nontransitory amount without

losing enough sales to flight kitchens in

other areas to make such an increase

unprofitable. Airlines cannot

economically turn to other areas to

obtain their Las Vegas catering services

because of additional costs and quality

problems associated with flying food in

from more distant sources.

Sky Chefs and Ogden are the only

companies that sell catering services to

airlines at McCarran International

Airport. The acquisition as originally

proposed would eliminate Sky Chefs

and Ogden as independent competitors

in the provision of in-flight catering

services at McCarran International

Airport. The acquisition also would

increase the ability of the combined Sky

Chefs/Ogden business unilaterally to

raise prices and reduce the quality of

catering services at McCarran

International Airport. New entry would

not be timely, likely or sufficient to

defeat an anticompetitive price increase

or quality reduction. An entrant would

need to capture a large share of the

catering business at McCarran

International Airport in order to reach a

viable scale of operation. Such new

entry would entail substantial sunk

costs.

To remedy the potential

anticompetitive effects of the

transaction as originally proposed,

Proposed Respondents and Ogden

amended their stock purchase

agreement to exclude Ogden’s in-flight

catering assets serving the Las Vegas

airport. Subsequently, Ogden sold its

Las Vegas in-flight catering assets to

Dobbs International Services. The

Proposed Consent Order prohibits

Proposed Respondents, for ten (10)

years, from acquiring an interest in

those assets.

V. Opportunity for Public Comments

The Proposed Consent Order has been

placed on the public record for sixty

(60) days for receipt of comments by

interested persons. Comments received

during this period will become part of

the public record. After sixty (60) days,

the Commission will again review the

Proposed Consent Order and the

comments received and will decide

whether it should withdraw from the

Proposed Consent Order or make the

order final.

The purpose of this analysis is to

invite public comment on the Proposed

Consent Order to aid the Commission in

its determination of whether to make

final the Proposed Consent Order. This

analysis does not constitute an official

interpretation of the Proposed Consent

Order, nor is it intended to modify the

terms of the Proposed Consent Order in

any way.

Benjamin I. Berman,

Acting Secretary.

[FR Doc. 98–17936 Filed 7–6–98; 8:45 am]

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DEPARTMENT OF HEALTH AND

HUMAN SERVICES

Agency for Health Care Policy and

Research

Notice of Meeting

In accordance with section 10 (d) of

the Federal Advisory Committee Act (5

U.S.C., Appendix 2) announcement is

made of the following special emphasis

panel scheduled to meet during the

month of July 1998:

Name: Health Care Policy and Research

Special Emphasis Panel.

Date and Time: July 10, 1998 8:30 a.m.

Place: Doubletree Hotel, 1750 Rockville

Pike, Montrose Room, Rockville, Maryland

20852.

Open July 10, 8:30 a.m. to 9:00 a.m. Closed

for remainder of meeting.

Purpose: This Panel is charged with

conducting the initial review of grant

applications requesting support for small

research projects focused on the quality,

appropriateness, and effectiveness of health

care services and access to those services.

Agenda: The open session of the meeting

on July 10, from 8:30 a.m. to 9:00 a.m. will

be devoted to a business meeting covering

administrative matters. During the closed

session, the Panel will be reviewing and

discussing grant applications. In accordance

with the Federal Advisory Committee Act,

section 10(d) of 5 U.S.C., Appendix 2 and 5

U.S.C., 552b (c)(6), the Administrator,

Agency for Health Care Policy and Research,

has made a formal determination that this

latter session will be closed because the

discussions are likely to reveal personal

information concerning individuals

associated with the grant applications. This

information is exempt from mandatory

disclosure.

Anyone wishing to obtain a roster of

members, minutes of the meeting, or other

relevant information should contact Jenny

Griffith, Committee Management Officer,

Agency for Health Care Policy and Research,

Suite 400, 2101 East Jefferson Street,

Rockville, Maryland 20852, Telephone (301)

594–1455 × 1036.

Agenda items for this meeting are subject

to change as priorities dictate.

Dated: June 23, 1998.

John M. Eisenberg,

Admistrator.

[FR Doc. 98–17924 Filed 7–6–98; 8:45 am]

BILLING CODE 4160–90–M