Thursday, 3 September 2009

Greyhound may drop Yukon & NWT service

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From: CNW Portfolio System <>
Date: 2009/9/3
Subject: Greyhound to Cease Operations in Manitoba and Northwestern
Ontario wit...
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CNW Group Portfolio E-Mail


Transmitted by CNW Group on : September 3, 2009 10:59

Greyhound to Cease Operations in Manitoba and Northwestern Ontario with
Other Provinces to Follow Shortly

Federal and Provincial Governments Continue to Ignore the Issues Facing
the Intercity Bus Industry

BURLINGTON, ON, Sept. 3 /CNW/ - After ongoing discussions with
the federal and provincial governments, Greyhound Canada made
the very difficult decision to provide the notice to the
operating authorities in Ontario and Manitoba that they will be
ceasing operations. In Manitoba, the Company will cease all
operations in the province and in Ontario the Company will
cease operations in Northwestern Ontario. In addition, the
Company is reviewing its operations in Alberta, Saskatchewan,
British Columbia, Yukon, and the Northwest Territories.
"The decision to cease our operations in Northwestern Ontario and
Manitoba was a very difficult one. We have repeatedly asked the federal
and provincial governments to change the existing legislative and
regimes that govern inter-city bus operations," said Stuart Kendrick, Senior
Vice President Greyhound Canada. "Our financial situation is dire and we
are no longer in a position to absorb losses that are almost solely
attributable to government policies."
In the next 30 and 90 days Greyhound Canada will continue to
work with the federal and provincial governments to try and
find a solution to this
emergency. Greyhound has asked for assistance to cover its losses while
the federal and provincial governments develop a solution in order to
maintain this essential service to rural Canadians.
The Government of Canada has constitutional jurisdiction over the
intercity bus industry with their regulatory powers being delegated to the
provinces. All of the provinces in which Greyhound operates exercise some
of regulatory oversight over scheduled intercity bus operations. Bus
operators are being forced to financially support unprofitable route
services to small-town Canada through an intricate web of cross-subsidies
from their
profitable passenger routes, from bus parcel operations and from ancillary
profit sources.
"Despite numerous attempts over the years to adjust this
business model in order to gain a profitable footing, Greyhound
Canada has now run out of options," said Kendrick. "We need the
provincial and federal governments to work with us on finding a
solution to the problems that they have created for our company
and our industry."
In Ontario, the notice to the Ontario Highway Transport Board
is 90 days, meaning Greyhound service in Northwestern Ontario
will cease as of December 2, 2009. In Manitoba, the Company is
providing 30 days notice to the Manitoba Highway Traffic Board
(MHTB). The MHTB requires no notice on the ceasing of
operations, however in order to honour all passenger tickets
sold to date the Company is providing a 30 day notice period.

About Greyhound Canada

Greyhound Canada is the largest provider of intercity bus
transportation in Canada, serving nearly 700 communities and
offering 1,000 daily departures across the country. The company
also provides Greyhound Courier Express, QuickLink commuter
service and tour, sightseeing and transit services. For fare
and schedule information call 1-800661-8747 or visit


/For further information: Karen Gordon, Squeaky Wheel Communications
Inc., (416) 699-1624,


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