Greyhound Air was a short-lived Canadian discount airline. Launched by Greyhound Canada, the airline ceased 14 months later in September 1997, when Laidlaw acquired the Canadian bus line.
Proposal
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.
Operations
Kelowna Flightcraft, a cargo operator at the time based out of Kelowna, provided jet passenger aircraft and crew. However, because KF held the domestic airline licence, Greyhound could not legally display its name on the aircraft. 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.