By Allan Dowd
VANCOUVER, British Columbia, Sept 3 (Reuters) - Greyhound Canada will pull out of Manitoba and northern Ontario starting next month and warned on Thursday it may end bus service across Western Canada unless it receives government assistance.
Canada's largest intercity bus line, which is a unit of Britain's FirstGroup, blamed federal and provincial government regulations for the cuts, saying it is forced to operate routes in rural areas at a loss.
Greyhound Canada said its financial situation is 'dire' and could no longer afford to use its profitable runs between larger cities and parcel business to subsidize the money-losing routes serving small communities.
The carrier said it told federal transportation officials in May that would have to take action at the end of the summer if no help was forthcoming.
'It was a tough decision, but it was a business decision we had to make,' said Stuart Kendrick, Greyhound Canada's senior vice president.
Bus service is the only transportation alternative to cars in many small western Canadian communities. Via Rail Canada has very little passenger train service west of Ontario.
NO SYMPATHY FROM OTTAWA
Canadian Transportation Minister John Baird said the announcement was an attempt by a multinational company to 'bully' Manitoba and Ontario into giving it a subsidy. Bus service is regulated by Canada's provinces, not the federal government.
'I think it is very heavy-handed,' Baird said, adding that the federal government would support the provinces in any fight with the company.
Manitoba officials said they want to talk to Greyhound about the decision, and were very concerned about the potential impact of lost service. Ontario said it hoped another carrier would take over the routes Greyhound was giving up.
Greyhound has filed 90-day notice with Ontario regulators, bringing its service in the northwestern area of the province to an end on Dec. 2. It will end service in Manitoba in 30 days, to allow existing tickets to be honored.
Greyhound was barred by provincial law from dropping individual routes in Manitoba, so it had to end all service in the province. The decision also means that passengers will no long be able to cross Canada by Greyhound bus.
The company is reviewing its operations in Alberta, Saskatchewan, British Columbia, Yukon, and the Northwest Territories, and said it will be talking with federal and provincial officials about assistance over the next 30 to 90 days.
The company said it wants government subsidies for the rural routes and a long-term national plan to be worked out to maintain bus service to small communities.
Up to 160 jobs in Manitoba and 45 in Ontario could be eliminated when service ends.
Canada's airlines, rail and public transit systems all receive either direct or indirect government subsidies, which has allowed them to take passengers away from Greyhound, Kendrick said.
Greyhound Canada does not operate east of Montreal.
The company suffered a major public relations problem last year when a man beheaded a fellow passenger on a bus as traveled across Manitoba.
(Reporting by Allan Dowd, Editing by Peter Galloway) Keywords: GREYHOUND CANADA/ (allan.dowd@thomsonreuters.com; 1+604 664 7314; Messaging: allan.dowd.reuters.com@reuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
VANCOUVER, British Columbia, Sept 3 (Reuters) - Greyhound Canada will pull out of Manitoba and northern Ontario starting next month and warned on Thursday it may end bus service across Western Canada unless it receives government assistance.
Canada's largest intercity bus line, which is a unit of Britain's FirstGroup, blamed federal and provincial government regulations for the cuts, saying it is forced to operate routes in rural areas at a loss.
Greyhound Canada said its financial situation is 'dire' and could no longer afford to use its profitable runs between larger cities and parcel business to subsidize the money-losing routes serving small communities.
The carrier said it told federal transportation officials in May that would have to take action at the end of the summer if no help was forthcoming.
'It was a tough decision, but it was a business decision we had to make,' said Stuart Kendrick, Greyhound Canada's senior vice president.
Bus service is the only transportation alternative to cars in many small western Canadian communities. Via Rail Canada has very little passenger train service west of Ontario.
NO SYMPATHY FROM OTTAWA
Canadian Transportation Minister John Baird said the announcement was an attempt by a multinational company to 'bully' Manitoba and Ontario into giving it a subsidy. Bus service is regulated by Canada's provinces, not the federal government.
'I think it is very heavy-handed,' Baird said, adding that the federal government would support the provinces in any fight with the company.
Manitoba officials said they want to talk to Greyhound about the decision, and were very concerned about the potential impact of lost service. Ontario said it hoped another carrier would take over the routes Greyhound was giving up.
Greyhound has filed 90-day notice with Ontario regulators, bringing its service in the northwestern area of the province to an end on Dec. 2. It will end service in Manitoba in 30 days, to allow existing tickets to be honored.
Greyhound was barred by provincial law from dropping individual routes in Manitoba, so it had to end all service in the province. The decision also means that passengers will no long be able to cross Canada by Greyhound bus.
The company is reviewing its operations in Alberta, Saskatchewan, British Columbia, Yukon, and the Northwest Territories, and said it will be talking with federal and provincial officials about assistance over the next 30 to 90 days.
The company said it wants government subsidies for the rural routes and a long-term national plan to be worked out to maintain bus service to small communities.
Up to 160 jobs in Manitoba and 45 in Ontario could be eliminated when service ends.
Canada's airlines, rail and public transit systems all receive either direct or indirect government subsidies, which has allowed them to take passengers away from Greyhound, Kendrick said.
Greyhound Canada does not operate east of Montreal.
The company suffered a major public relations problem last year when a man beheaded a fellow passenger on a bus as traveled across Manitoba.
(Reporting by Allan Dowd, Editing by Peter Galloway) Keywords: GREYHOUND CANADA/ (allan.dowd@thomsonreuters.com; 1+604 664 7314; Messaging: allan.dowd.reuters.com@reuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.