Greyhound Air

Greyhound USA had suffered the incursion of the low-cost air offensive. In Canada, WestJet appeared increasingly threatening. Growth prospects depended upon luring more car users onto Greyhound buses and airplanes. The target market was leisure and cost-conscious travellers, who would typically drive between medium-sized Canadian cities. Theoretically, the existing Greyhound bus routes could seamlessly connect into air travel, providing a comprehensive yet affordable travel network.[1] In late 1995, Greyhound announced its intention to launch a discount airline to complement its coach network.[2]

Kelowna Flightcraft (KF), a cargo operator based out of British Columbia, provided aircraft and crew. However, because KF held the domestic airline licence, Greyhound could not legally display its name on the aircraft.[1] The airline ran a notable ad campaign which featured a Greyhound dog lifting its leg to urinate against the wheel of an airplane.[3] During September 1996, a price war erupted with competitors. Although Greyhound experienced load factors exceeding 80 per cent, it sustained a loss of $10M during the first five months of operation.[2]

Based at the Winnipeg (YWG) hub, scheduled flight destinations were:[2]

• Calgary (YYC)
• Edmonton (YEG)
• Hamilton (YHM)
• Kelowna (YLW)
• Ottawa (YOW)
• Toronto (YYZ)
• Vancouver (YVR)

The fleet comprised seven 727-200s.[2] The archaic 727s experienced high operating costs, requiring a third crew member in the cockpit and were also less fuel efficient than WestJet’s 737s.[1]

Evidencing weak business strategy, the airline failed to understand its passengers and competitors, and created a high-cost ineffective company. In this regard, the carrier never defined a true competitive advantage. Bypassing travel agents[1] until April 1997, which sold 80 per cent of airline tickets at the time,[2] automatically excluded a large passenger base. Logistically, weaving air service into the existing bus network was not only complex but impractical. The hub-and-spoke model through Winnipeg increased passenger travel time, offering a less appealing experience than a point-to-point system. Foreign ownership issues hampered obtaining a domestic airline licence, delaying the launch by several months and missing out on the lucrative early-summer traffic. The employee culture was ill-equipped for the intensity of an airline startup, which needed to attract candidates focused upon positivity and drive, and to offer employees motivational rewards.[1]

• List of defunct airlines of Canada