Greyhound delays plans to halt some Canada routes

Thu Sep 17, 2009 2:04pm EDT
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WINNIPEG, Manitoba (Reuters) - Greyhound Canada has put plans on hold to halt bus service in the western province of Manitoba and parts of Ontario after a meeting with the Manitoba government, a company spokesman said on Thursday.

Canada's largest intercity bus line, a unit of Britain's FirstGroup, has said it needs a C$15-million ($14.2 million) government subsidy to continue running money-losing routes between small communities.

"The outcome of the meeting is that we're going to work toward finding a solution," the spokesman said. "Greyhound is satisfied that there's enough determination on the part of the provincial government to work with colleagues in the federal government to try to find a solution."

The Manitoba government offered no financial commitment on Wednesday.

Greyhound is the only public transportation link among hundreds of rural and northern communities in Manitoba and northwestern Ontario.

Greyhound will hold off on a decision until after an October 22 meeting of provincial and federal transport ministers and will also not lay off 200 Manitoba workers as planned, pending the meeting, the spokesman said.

($1=$1.06 Canadian)

(Reporting by Rod Nickel; editing by Janet Guttsman)