Academy Express, L.L.C.--Acquisition of the Properties of Go Bus LLC and Its Affiliate, MCIZ Corp.

Jeffrey Herzig
U.S. Department of Transportation
September 24, 2014

[Federal Register Volume 79, Number 185 (Wednesday, September 24, 2014)]
[Notices]
[Pages 57180-57181]
From the Federal Register Online via the Government Printing 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