B. Discussion

Transferor holds a certificate of public convenience and necessity to operate as a PSC, as defined in Pub. Util. Code § 226. The certificate authorizes Transferor to transport passengers and their baggage on an on-call, door-to-door, basis between Los Angeles International Airport (LAX), Burbank Airport (BUR), Long Beach Airport (LGB), Ontario Airport (ONT), Los Angeles Amtrak Station (Amtrak), Los Angeles/Long Beach Harbors (Harbors) and points in Los Angeles, Orange, Riverside, San Bernardino and Ventura counties. We granted this authority in Decision (D.) 94-10-010, as described in Appendix PSC-9025, attached to that decision.

Transferor filed this Application to seek Commission approval of the transfer of control of Transferor's passenger stage authority (PSC-9025) to Transferee. The Asset Purchase Agreement (Agreement), Exhibit E to the Application, indicates a closing date of November 9, 2000, for the purchase of the assets, two months before this Application was filed. Transferor agreed to sell its trade name, telephone numbers, and equipment. The total purchase price is $29,000. Transferee will also assume all obligations under the leases for three vehicles operated by Transferor. Transferee seeks control of PSC-9025 to create a more attractive and viable business structure, increase operational flexibility, and promote affordable and safe transportation services for the public.

On April 9, 2001, Commission staff notified Transferor's representative that the Agreement did not include Transferor's passenger stage certificate. In an April 25, 2001 Addendum to the Purchase Agreement, Transferor included the PSC certificate in that Agreement.

On June 27, 2001, the assigned administrative law judge issued a ruling directing Transferor to file a response explaining why Transferor failed to seek Commission approval before transferring PSC-9025 and why a penalty should not be imposed. On July 12, 2001, Transferor filed a Response to Administrative Law Judge's Ruling and explained that Transferor intended to get out of the PSC business after LAX created a concessionaire operated transportation system that drove approximately thirty companies out of business. Transferor intended to sell its equipment and materials to pay creditors, but Transferor's employees decided to buy and stay in the business primarily to serve airports other than LAX. If Transferor had not transferred the certificate to Transferee when it did, Transferor would have abandoned that certificate.

Transferee also requests authority to establish a ZORF of $20 above and below the authorized tariff fares and charges filed with the Commission. The minimum fare is $5.

Exhibit F is Transferee's unaudited Balance Sheet as of December 31, 2000 that discloses assets of $131,149 and liabilities of $41,259.

Notice of filing of the application appeared in the Commission's Daily Calendar on January 22, 2001. No protest or response has been received.