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 IndustryBURLINGTON, 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 regulatory
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 form
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 www.greyhound.ca.




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