Burlington, Ontario – Greyhound Canada will end all service in Manitoba and in northwestern Ontario, and will review its operations in Alberta, Saskatchewan, British Columbia, Yukon, and the Northwest Territories due to financial concerns.
“The decision to cease our operations in northwestern Ontario and Manitoba was a very difficult one,” said Stuart Kendrick, senior vice-president. “We have repeatedly asked the federal and provincial governments to change the existing legislative and regulatory regimes that govern inter-city bus operations. Our financial situation is dire and we are no longer in a position to absorb losses that are almost solely attributable to government policies.”
Greyhound said it will continue to work with the federal and provincial governments to try to find a solution, and has asked for assistance to cover its losses while the governments develop a solution to maintain service to rural Canadians.
Greyhound said that 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, bus parcel operations, and ancillary profit sources. The federal government has constitutional jurisdiction over the inter-city bus industry, with its regulatory powers delegated to the provinces.
In Ontario, notice to the Ontario Highway Transport Board is 90 days, meaning that service in northwestern Ontario will cease as of December 2, 2009. The Manitoba Highway Traffic Board requires no notice on the ceasing of operations, but to honour all passenger tickets sold to date, Greyhound is providing 30 days’ notice.