Greyhound announced Thursday that it was reducing service to some communities in British Columbia, but said that, unlike the cuts to Manitoba and north Ontario, service would still continue.
Tourists and residents like to use Greyhound to get around in British Columbia, but this will be harder now. Greyhound has been
snipping at its service offerings in British Columbia since 2005, with the latest cuts having just taken effect on August 31st. Now the company is applying to the B.C. Passenger Transportation Board to further reduce bus service. Greyhound is looking at the routes with low numbers of riders. The Board has not yet made its decision on the latest Greyhound application.
Alberta is negotiating with Greyhound in a bid to prevent threatened cuts to service in that province after Greyhound indicated it was looking at trimming its services in that province. Greyhound Canada had asked the federal government for $15 million to help enable the company to continue its bus service to Manitoba and northern Ontario. The request was refused and federal Transport Minister, John Baird, had said the company was throwing its weight around in an attempt at intimidation and extortion. Greyhound's senior vice-president
expressed disappointment with Baird's comments.
"It's a little disappointing with respect to being categorized as bullying, heavy-handed and (engaged) in a shakedown. It was disappointing because we met with the federal government (and) Minister (John) Baird several months ago. We were quite up front and open about our situation, about the regulatory structure - that it's broken and needs to be fixed. And we had some short-term solutions."
Baird may be correct in his assessment of the request for funds, as
Greyhound Canada is a subsidiary of
Greyhound Lines Inc., which was purchased recently by
First Group. First Group posted its
AGM Statement and Interim Management Report on July 16th. The report states
"... Greyhound, which represents less than 10% of Group EBIT, has been impacted by the weak economic environment and increased unemployment in North America. As we anticipated, during the period Greyhound continued to be affected. Like for like revenues were reduced by 20% however, by utilising the highly flexible operating model we have successfully reduced services to match demand and protect revenue per mile. We have taken swift action to
reduce overheads and are pleased with the significant progress made in delivering the management actions and have identified further opportunity for cost reduction. Despite the pressure that the current economic climate presents, Greyhound remains a profitable and cash generative business."
However, in spite of having had meetings with Greyhound Canada, Baird seems ignorant of the fact that Greyhound Canada is now owned by FirstGroup, based in the United Kingdom. Baird has told the
press"Greyhound is a Texas-based multinational. Their actions are heavy-handed and clearly an attempt to bully the provinces of Manitoba and Ontario. The real priority that shouldn't be lost is the people who rely on these bus services."
The company was originally
founded in 1913 and spread to provide service across North America. Decreasing ridership in the 1980s led the company to the brink of bankruptcy in the early 1990s. Ironically, some of the actions that helped to revitalize the company included reinstating service to long-distance routes, providing more buses and more travel options. Greyhound Lines Inc. was sold to Laidlaw Inc., a Canadian bus service that provided intercity service for Canada's west and the Yukon.
While some people have commented to a
CBC request for feedback on the story that the bus service is "not essential," and there is an upwelling of sentiment against a government subsidy to keep the service going, it has been predicted that the cuts to the bus service will become an election issue.
Baird told the
Globe & Mail that the federal government is engaged in negotiations with provincial representatives and Greyhound, but has not promised anything.
