WASHINGTON, D.C. - The Surface Transportation Board has turned aside a complaint aimed at blocking Peter Pan Bus Lines' purchase of five New England affiliates of Coach USA.
On May 9, the board voted to reject a complaint filed by Entertainment Tours Inc., of Braintree, Mass., and Franklin, Conn. Entertainment Tours, which operates under the name Coach New England, is a competitor of Peter Pan and Coach USA.
In its terse notice announcing approval of the deal, the Surface Transportation Board provided no comment on Entertainment Tours' request that the purchase be denied. The board vote was 2-0 and there was no indication why the third member of the three-member board did not participate in the voting.
Under federal law, the Surface Transportation Board must approve coach industry mergers and acquisitions unless it deems the transactions are not in the public interest.
The decision appears to clear the way for Peter Pan to buy The Arrow Line of East Hartford, Milford and Waterford, Conn.; Bonanza Bus Lines of Providence, R.I.; The Maine Line in Portland; Pawtuxet Valley Lines of West Warwick, R.I., and Coach USA Boston.
The Surface Transportation Board had given tentative approval to the deal back in December with an effective date of mid-February, but it was held up three months pending a decision on the Entertainment Tours' challenge.
In a telephone interview, Robert Schwarz, executive vice president of Springfield, Mass.-based Peter Pan, expressed pleasure with the Surface Transportation Board decision but said he could not say when Peter Pan would complete the take over of the five companies.
"As soon as the board sends its findings in writing, we'll have a better idea," said Schwarz.
Peter Pan, already the largest motorcoach operator in New England, will nearly double its size with the addition of the five Coach USA companies. The purchase expands both the line-run and charter businesses of Peter Pan.
Bonanza's Boston-Providence-New York service and its service between Cape Cod and New York will be added to Peter Pan's intercity operation, while Arrow Lines' charter service, including its contract with Foxwoods Casino, extends Peter Pan's charter business.
Peter Pan, which is marking its 70th anniversary this year, provides service extending from Massachusetts to Philadelphia and Washington, D.C. It operates maintenance centers in Massachusetts, Maryland and New Jersey.
The sale of the five subsidiaries by Coach USA is part of its strategy to trim back its nationwide tour and charter business. The sale to Peter Pan was announced one day after Coach USA revealed its strategic intent.
The Surface Transportation Board was established seven years ago following elimination of the old Interstate Commerce Commission. It performs a handful of the functions that previously were the purview of the ICC. Among other things, it oversees certain intercity passenger bus company structure, financial and operational matters, plus railroad, trucking, moving van, ocean shipping and pipeline matters.
Its decisions are available on its Web Site at www.stb.dot.gov.