Academy Bus, LLC, and Corporate Coaches, Inc.--Purchase of Certain Assets of Corporate Coaches, Inc.

Academy Bus, LLC, and Corporate Coaches, Inc.--Purchase of Certain Assets of Corporate Coaches, Inc.
Topics: Academy Bus, Corporate Coaches
Academy Bus, LLC, and Corporate Coaches, Inc.--Purchase of Certain Assets of Corporate Coaches, Inc.
Tia Delano
U.S. Department of Transportation
22 July 2016
[Federal Register Volume 81, Number 141 (Friday, July 22, 2016)]
[Notices]
[Pages 47849-47850]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-17352]


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SURFACE TRANSPORTATION BOARD

[Docket No. MCF 21069]


Academy Bus, LLC, and Corporate Coaches, Inc.--Purchase of 
Certain Assets of Corporate Coaches, Inc.

AGENCY: Surface Transportation Board.

ACTION: Notice Tentatively Approving and Authorizing Finance 
Transaction.

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SUMMARY: On June 23, 2016, Academy Bus, LLC (Florida) (Academy), a 
motor carrier of passengers, and Corporate Coaches, Inc. (Corporate 
Coaches), also a motor carrier of passengers, jointly filed an 
application under 49 U.S.C. 14303 for Academy to acquire certain 
properties of Corporate Coaches. 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 at 49 CFR 1182.5 and 
1182.8.

DATES: Comments must be filed by September 6, 2016. The applicants may 
file a reply by September 20, 2016. If no opposing comments are filed 
by September 6, 2016, this notice shall be effective on September 7, 
2016.

ADDRESSES: Send an original and 10 copies of any comments referring to 
Docket No. MCF 21069 to: Surface Transportation Board, 395 E Street 
SW., Washington, DC 20423-0001. In addition, send one copy of comments 
to Academy's representatives: Peter A. Pfohl and Bradford J. Kelley, 
Slover and Loftus, LLP, 1224 Seventeenth Street NW., Washington, DC 
20036.

FOR FURTHER INFORMATION CONTACT: Nathaniel Bawcombe (202) 245-0376. 
Federal Information Relay Service (FIRS) for the hearing impaired: 1-
800-877-8339.

SUPPLEMENTARY INFORMATION: Academy is a motor carrier licensed by the 
Federal Motor Carrier Safety Administration (MC-646780) and provides 
charter bus operations in Florida. The applicants state that Academy is 
owned by Academy Bus (Florida) EST Trust (Academy Trust), a non-carrier 
controlled by Francis Tedesco, sole trustee. According to the 
applicants, Franmar Leasing, LLC (Franmar) is a non-carrier controlled 
by the Tedesco Family ESB Trust (Tedesco Trust), also a non-carrier, 
exclusively engaged in the ownership and leasing of passenger motor 
coaches.\1\ The applicants state that Corporate Coaches, a licensed 
motor carrier of passengers (MC-539370), presently operates charter 
motor coach transportation services and black car sedan and limo 
services primarily in the state of Florida. The

[[Page 47850]]

applicants further state that Andy Bardar is the shareholder, 
President, and Chief Executive Officer of Corporate Coaches.
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    \1\ The applicants state that Francis Tedesco and Mark Tedesco 
are lifetime beneficiaries of the Tedesco Trust, which controls 
Academy Bus, LLC (New Jersey), a non-carrier and the sole member of 
three limited liability company passenger motor carriers: Academy 
Express, LLC, Academy Lines, and Number 22 Hillside, LLC (Academy 
Companies). However, according to the applicants, none of the 
Academy Companies are parties to the agreement with Corporate 
Coaches that is the subject of this application.
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    Corporate Coaches proposes to sell all the assets used in its motor 
coach passenger transportation business pursuant to an Asset Purchase 
Agreement (APA), dated May 16, 2016. According to the applicants, this 
transaction is a result of the business determination made by the 
owners of Corporate Coaches to permanently withdraw from the motor 
coach transportation business and direct all of its future efforts and 
activities to the company's black car sedan and limo services. Under 
the terms of the APA, the applicants state, Franmar will acquire the 
motor coach assets of Corporate Coaches, and Academy will acquire 
Corporate Coaches' motor coach customer lists, charter contracts, 
telephone numbers, Web site, charter contract deposits, and related 
assets and intangibles.\2\
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    \2\ The applicants also state that ABC Bus Inc. (ABC), a non-
carrier motor coach dealer, shall purchase the remaining motor 
coaches owned by Corporate Coaches that are not purchased by 
Franmar. The applicants state that ABC is unaffiliated with the 
Academy Trust or the Tedesco Trust.
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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 has submitted information required by 49 CFR 1182.2, 
including information to demonstrate that the proposed transaction is 
consistent with the public interest under 49 U.S.C. 14303(b) and a 
statement that Academy and its motor carrier affiliated companies 
exceeded $2 million in gross operating revenues for the preceding 12-
month period. See 49 U.S.C. 14303(g).\3\
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    \3\ Applicants with gross operating revenues exceeding $2 
million are required to meet the requirements of 49 CFR 1182.
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    Academy and Corporate Coaches assert that this acquisition is in 
the public interest because the transaction will not have a materially 
detrimental impact on the adequacy of transportation services available 
to the public. The applicants also assert that the transaction would 
promote more efficiencies and greater economic use of existing 
transportation capital resources, and offer the general public 
continued service options to the customers of Corporate Coaches in need 
of such service. They also state that the proposed transaction would 
not result in an increase to fixed charges as the proposed transaction 
by the carriers is expected to be for cash. In addition, according to 
the applicants, the proposed transaction would also have no adverse 
effect on qualified Corporate Coaches employees at the locations from 
which Corporate Coaches operates because Academy will interview and 
offer employment opportunities to those employees, a necessity to 
permit Academy to continue to operate the acquired motor coach assets. 
Finally, the applicants state that the proposed transaction is unlikely 
to exert any anticompetitive impact because none of the operable motor 
vehicles will be scrapped by the seller, and no new buses will need to 
be purchased by Franmar at this time. Thus, the applicants state that 
the public would not lose service because the same number of buses 
would continue to operate.
    On the basis of the application, the Board finds that the proposed 
acquisition is consistent with the public interest and should be 
tentatively approved and authorized. If any opposing comments are 
timely filed, these findings 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.
    Board decisions and notices are available on our Web site at 
WWW.STB.DOT.GOV.
    This action is categorically excluded from environmental review 
under 49 CFR 1105.6(c).
    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 September 7, 2016, unless opposing 
comments are filed by September 6, 2016.
    4. A copy of this notice 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: July 15, 2016.

    By the Board, Chairman Elliott, Vice Chairman Miller, and 
Commissioner Begeman.

Tia Delano,
Clearance Clerk.
[FR Doc. 2016-17352 Filed 7-21-16; 8:45 am]
 BILLING CODE 4915-01-P