National Express Transit Corporation--Acquisition of Control--Aristocrat Limousine and Bus, Inc.

Topics:  National Express, Aristocrat Limousine and Bus

Jeffrey Herzig
Surface Transportation Board
6 March 2018

[Federal Register Volume 83, Number 44 (Tuesday, March 6, 2018)]
[Notices]
[Pages 9571-9573]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-04537]


=======================================================================
-----------------------------------------------------------------------

SURFACE TRANSPORTATION BOARD

[Docket No. MCF 21080]


National Express Transit Corporation--Acquisition of Control--
Aristocrat Limousine and Bus, Inc.

AGENCY: Surface Transportation Board.

ACTION: Notice Tentatively Approving and Authorizing Finance 
Transaction.

-----------------------------------------------------------------------

SUMMARY: On February 5, 2018, National Express Transit Corporation 
(National Express), an intrastate passenger motor carrier, and Brenda 
Baxter, Richard Wright, and Ralph Wright (collectively, Sellers) 
(National Express and Sellers collectively, Applicants), jointly filed 
an application for National Express to acquire from Sellers control of 
Aristocrat Limousine and Bus, Inc. (Aristocrat), an interstate and 
intrastate passenger motor carrier. 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.

DATES: Comments must be filed by April 20, 2018. Applicants may file a 
reply by May 7, 2018. If no opposing comments are filed by April 20, 
2018, this notice shall be effective on April 21, 2018.

ADDRESSES: Send an original and 10 copies of any comments referring to 
Docket No. MCF 21080 to: Surface Transportation Board, 395 E Street SW, 
Washington, DC 20423-0001. In addition, send one copy of comments to: 
Andrew K. Light, Scopelitis, Garvin, Light, Hanson & Feary, P.C., 10 W. 
Market Street, Suite 1400, Indianapolis, IN 46204.

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

SUPPLEMENTARY INFORMATION: National Express is a motor carrier 
incorporated under the laws of Delaware that provides intrastate 
passenger transportation service and utilizes approximately 774 
passenger-carrying vehicles and 855 drivers. Additionally, National 
Express, which does not have interstate authority from the Federal 
Motor Carrier Safety Administration (FMCSA), owns and controls two 
passenger motor carriers that do hold FMCSA interstate carrier 
authority: Rainbow Management Service Inc. (Rainbow) (MC-490015), which 
provides interstate and intrastate charter and special party passenger 
services in New York, and Trans Express, Inc. (Trans Express) (MC-
187819), which provides interstate and intrastate passenger 
transportation services in New York. National Express is indirectly 
controlled by a British corporation, National Express Group, PLC 
(Express Group). Express Group also indirectly controls the following 
interstate and intrastate motor carriers of passengers (collectively, 
National Express Affiliated Carriers):
     Beck Bus Transportation Corp., which holds interstate 
carrier authority (MC-143528), is primarily engaged in providing 
student school bus transportation services in Illinois;
     Durham School Services, L.P., which holds interstate 
carrier authority (MC-163066), is primarily engaged in

[[Page 9572]]

providing student school bus transportation services in several states, 
and charter passenger services to the public;
     MV Student Transportation Inc., which holds interstate 
carrier authority (MC-148934), is primarily engaged in providing 
student school bus transportation services, and charter passenger 
services to the public;
     National Express Transit--Yuma (NETY), which holds 
interstate carrier authority (MC-960629), is primarily engaged in 
providing paratransit services in the area of Yuma, Ariz.;
     Petermann Ltd., which holds interstate carrier authority 
(MC-364668), is primarily engaged in providing non-regulated school bus 
transportation services in Ohio, and charter passenger services to the 
public;
     Petermann Northeast LLC, which holds interstate carrier 
authority (MC-723926), is primarily engaged in providing student school 
bus transportation services, primarily in Ohio and Pennsylvania, and 
also provides charter passenger services to the public;
     Petermann Southwest LLC, which holds interstate carrier 
authority (MC-644996), is primarily engaged in providing non-regulated 
school bus transportation services in Texas, and also provides charter 
passenger services to the public;
     Petermann STSA, LLC, which holds interstate carrier 
authority (MC-749360), is primarily engaged in providing non-regulated 
school bus transportation services, primarily in Kansas, and also 
provides charter passenger services to the public;
     The Provider Enterprises, Inc. d/b/a Provider Bus, which 
holds interstate carrier authority (MC-986909), is primarily engaged in 
providing non-regulated school bus transportation services in New 
Hampshire;
     Queen City Transportation, LLC, which holds interstate 
carrier authority (MC-163846), is primarily engaged in providing non-
regulated school bus transportation in Ohio, and charter passenger 
services to the public;
     Trinity, Inc., which holds interstate carrier authority 
(MC-364003), provides non-regulated school bus transportation services 
in southeastern Michigan, and charter service to the public;
     Trinity Student Delivery LLC, which holds interstate 
carrier authority (MC-836335), primarily provides non-regulated school 
bus transportation services in areas of northern Ohio, and passenger 
charter services to the public; and
     White Plains Bus Company, Inc., d/b/a Suburban Charters, 
which holds interstate carrier authority (MC-160624), primarily 
provides non-regulated school bus transportation services in New York, 
and charter service to the public.
    Aristocrat, a motor carrier of passengers, is a New Jersey 
corporation that holds interstate carrier authority (MC-173839). It 
provides intrastate and interstate passenger charter services in New 
Jersey, as well as interstate passenger charter services in New York 
and Pennsylvania. In providing its services, Aristocrat utilizes 33 
passenger vehicles and 28 drivers. Sellers hold all the issued and 
outstanding equity stock of Aristocrat.
    Applicants state that the proposed transaction would place 
Aristocrat under the control of National Express. The proposed 
transaction contemplates that National Express would assume 100% 
control of Aristocrat through stock ownership. According to Applicants, 
after the transaction, Aristocrat would continue to provide services 
under the same name but would be operated within the National Express 
corporate family. Applicants assert that Aristocrat is experienced in 
the passenger service markets already served by National Express and 
some of its affiliated carriers.
    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. Applicants have submitted the 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, pursuant to 49 U.S.C. 14303(g), that Rainbow, 
Trans Express, the National Express Affiliated Carriers, and Aristocrat 
exceeded $2 million in gross operating revenues for the preceding 12-
month period.\1\
---------------------------------------------------------------------------

    \1\ Parties must certify that its transaction involves carriers 
whose aggregate gross operating revenues exceed $2 million, as 
required under 49 CFR 1182.2(a)(5).
---------------------------------------------------------------------------

    Applicants submit that the proposed transaction would not have a 
material, detrimental impact on the adequacy of transportation services 
to the public but rather would improve services to the public. 
According to Applicants, National Express does not intend to change the 
operations of Aristocrat but would operate it within the National 
Express corporate family, which, National Express states, would enhance 
the overall viability of the carriers within the corporate family. 
National Express anticipates that the proposed transaction would result 
in operating efficiencies and cost savings derived from economies of 
scale, which would help ensure adequate service to the public.
    Applicants state that there are no significant fixed charges 
associated with the proposed transaction.
    Applicants also assert that because National Express intends to 
continue Aristocrat's existing operations, the proposed transaction 
would not have a substantial impact on employees or labor conditions, 
although staffing redundancies could potentially result in limited 
downsizing of back-office and/or managerial-level personnel.
    Applicants further assert that the proposed transaction would not 
adversely affect competition or the public interest. Applicants claim 
that Aristocrat is a relatively small carrier in the overall markets in 
which it competes--interstate motor coach passenger charter services in 
the New York City metropolitan area, northern New York, northern New 
Jersey, and northern Pennsylvania (the Service Area). Applicants assert 
that Aristocrat directly competes with many other passenger charter 
services in the Service Area, and that there is a competitive market 
within the Service Area due to a large number of charter service 
providers. Additionally, Applicants state that the charter operations 
offered by Aristocrat are geographically dispersed from most of the 
affiliated carriers of National Express and that there is little 
overlap in service areas among National Express, its affiliates, and 
Aristocrat.
    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, 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.
    This action is categorically excluded from environmental review 
under 49 CFR 1105.6(c).
    Board decisions and notices are available on our website at 
WWW.STB.GOV.
    It is ordered:

[[Page 9573]]

    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 vacated.
    3. This notice will be effective April 21, 2018, unless opposing 
comments are filed by April 20, 2018.
    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: February 28, 2018.

    By the Board, Board Members Begeman and Miller.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2018-04537 Filed 3-5-18; 8:45 am]
 BILLING CODE 4915-01-P