Winnipeg Free Press

Winnipeg Free Press (Newspaper) - September 3, 1997, Winnipeg, Manitoba Winnipeg tree press business september 1997 Steve email b5 poor profits spell an end to airline greyhound air earned just during the Busy months of summer by Bill Redekop staff reporter the news was greeted with nearly As much Surprise As the announcement that greyhound air was shutting greyhound air earned just in this years third the Busy summer months when air lines have to make their that not a whole Bunch of conceded greyhound air services director Richard who speculate As to Why earn Ings were so that with planes 90 per cent full in Webb and that after losing Over million in its first 13 months the poor profits this summer spelled the with the company expecting More operating losses in the fall and greyhound has had just 5060 per cent capacity in the no summer what went wrong the concept behind greyhound air was to link air and bus transport a passenger could Fly to a destination like British bus Back through the Rocky mountains to and then return by air to All with the same they wanted to really try to Cap Ture the Leisure said Barry University of Manitoba transportation greyhound also offered citrates by offering a no frills service like scramble seating that enticed Many firs time air Prentice frequently travelled Grey hound and several times met Pas sengers on their first Ever lured to air travel by greyhounds citrate Low prices do stimulate he passenger traffic jumped per cent for the first six months this year at Winnipeg International to greyhound also made Winnipeg a Hub where flights stopped Over and passengers caught we had fabulous service and great rates because the Hub operated from said greyhound air proved Winnipeg can be a Hub for interconnecting try to take on big airlines a1 flights with seven other Canadian he that increased Desti nations for Winni Eggers by a Large it want that the Hub didst he the general Rule is that a air line Hub has to generate at least 40 per cent of its traffic and greyhound generated 4050 per but Prentice said the company May have needed to reconsider some such As the size of its planes and the level of discounts it were they flying the right plane did they have something too big Prentice added he was surprised greyhound didst test the Market with slightly higher would they have lost that much traffic As greyhound Only began to use travel agents it meant paying agent but it also generated More Prentice also believes the cheap fees May have been cutting into bus the company started off in the a Startup delay Cost it Mil lion when Canadian forced greyhound to change an investor to increase its Canadian that delayed its Start from the scheduled May 22 until july but it still had to pay staff and plane leasing during that Prentice was surprised no one tried to pick up the greyhound air the company gained notoriety across the country As the upstart airline Tak ing on the big its shocking to the Brand name greyhound is Worth a huge you would have had to have dropped out of a Cave not to have heard of he officials with Laidlaw which purchased greyhound said it studied buying the air service but in the end declined because it didst fit with its Grey Goose bus the closure will Cost the Winnipeg Airport authority about in Landing said Murray air port president and the loss hurts but Airport officials knew there was a risk even the Airport will still Post a record profit of about million this up photo greyhound had 5060 per cent capacity in no summer Marc free press airlines Corry Cuthbertson explains situation to a greyhound airs history is Brief the Brief history of greyhound air creation conceived to complement greyhounds network of bus routes and link major airports with smaller comm complication Spring 1996 launch delayed because of foreign ownership in Parent greyhound Unes of correction greyhound bought out Parent dial and formed a Canadian greyhound Canada transportation first flight july performance satisfaction rates As High As 92 per Cash crunch fighting a As a result of the Startup greyhound limped to a loss in its first year but vowed to end Laidlaw takeover bid was contingent upon greyhound closing its air final flight 21 Grey Goose now Canadas biggest bus line by Bill Redekop and Murrey Mcneill staff reporter a firm started by Abram Thiessen of Southern Manitoba with just a single bus is now the biggest intercity bus company in Grey Goose bus bought from Thiessen by Laidlaw in becomes Canadas biggest bus ser vice with the Purchase of greyhound Canada the Deal is expected to be ratified by greyhound shareholders this Laid Laws offer of for each of greyhounds outstanding shares will be mailed to shareholders by the bid pushed greyhound Stock up to close at and Laid Law up 25 cents to Thiessen founded Grey Goose bus lines in Winnipeg in the com Pany began with one bus that oper ated under the name of Thiessen bus in Thiessen bought Grey Goose lines and that became the operating name of the eleven years Thiessen sold per cent control of Grey Goose to Hamilto based Laidlaw transportation for a reported the company remained a Winnipeg based operation until when moved its executive offices to the move coincided with Abra Thiessens retirement As the company top operating and reflected the fact that by that Alberta was accounting for 55 per cent of the firms net Grey Goose will have nearly a monopoly in Manitoba but that should it mean a Cut in service or increased fees because the Industry is heavily regulated by the Manitoba motor transport although deregulation is occurring in some greyhound has about 150 employees in with revenues of about million across its head office is in where the Purchase will mean the heaviest Job up to 200 reservation Grey Goose has about 100 employees with Grey Goose in with revenues last year of about billion on its Canadian Stock prices sent soaring by Sandra Gordon Canadian press Toronto relaxed after summer holidays and buoyed by a positive economic North american investors returned to business yester Day in a buying mood and sent Stock prices rising Confidence in the supported by the release of yester Days Survey of purchasing Man led to surge in Stock prices on both Wall Street and in investors were pleased by an Indus try report that showed manufacturing growth in the United states slowed last allaying fears of rising inflation and interest the National association of Pur chasing managements manufacturing Index indicates that the Economy grew in but at a slower Pace than in August Marks the 15th consecutive month of the which tumbled 265 Points last recovered almost All of that lost ground with a record Point gain of Points to trading was slower in Toronto trading on the tse 300 was up Points to Anthony chief economist at Bane one investment advisors in said investors were mostly reacting to a percent age Point Rise in the groups Price the Price Index is closely watched for hints of the Market was completely set up for a firm number in this Over All and possibly a 3or even a 5 Point jump in the Price Chan when the Price change came in much the Market was very investors Are ready to grab hold of any Good news and have been taking Comfort in a stable us Dollar that emerged in recent said Nereo Peticco of Toronto based pc investment counsel investors came through the labor Day weekend and just decided that things didst look All that Piti co said at the margin you eliminate some concerns about where interest rates Are going there probably not going to be going up and you reestablish some but dont think volatility has burned itself out of the wild ride jittery american investors have taken the Wall Street Market on a wild ride through acting on fears that the Federal Reserve Board would hike interest rates to fight inflation and Cool Down a surging econ volatility reigns warned until you get a much clearer Pic youll continue to get these wild swings in Terras of the and it shows investors Are not quite ready to accept this Brand new world of sustained were kind of living Day to Day Here on but i think the wealth of the evidence that has been built up so far in the is that youve got no inflationary sustain Able growth going firms using internet to move their message businesses want a Cost effective advertising method that reaches Large numbers of potential customers at the least pos sible they also want this method to reach these potential customers when they Are ready to make a Pur because it is at this time that Consumers Are most open to Adver timings companies Are increasingly turn ing to the internet because of its Abil Ity to accomplish these How successful is the internet last while speaking at the Parkland pea making forum in i mentioned the internet As an excellent advertising Choice for specially businesses in Rural Manito i mentioned it because the inter net offers Rural based companies the Chance to expand their marketing reach to the entire world at a very Low Cost since can locate and read the the local operator of a Fly fishing Camp raised his hand and said he agreed with this he told the audience about the Over whim managing for 2000 ing response he received with his using this he managed to Book one months Worth of business and he did it with customers from the United Australia and these markets would have been impossible for his business reach using conventional internet marketing sounds like the perfect advertising but it is it has several drawbacks that a business must recognize before it jumps into it research shows internet Advertis ing works Best for products requiring careful consumer thought this explains Why firms advertising such products As bicycles and computers have experienced the greatest some we two wow Peg Busi Nesses illustrate this Manitoba liquor control commission offers a Large Section on wines As part of its web it includes information on the products available along with tips and commen tary on a local Book seller specializing in computer offers a site where Consumers can browse available titles or place an a Myropia Cycle and skis web site includes information on available products and ordering its site Alao offers a connection to the various manufacturers Sites for con Sumers looking for More detailed local computer manufacturer and retailer mind computer products offers a virtual showroom that describes its products and services and allows Consumers to place an of line order some of the other drawbacks of internet advertising come from the Public perception and the characteristics of current web for some Consumers believe the internet is difficult to understand and this perception will change As More Consumers use the internet and learn How easy it is to locate a by entering its or product other drawbacks include the Lack of female users most users Are younger Consumers who do not have a lot of disposable income and the Large number of commercial inter net site Industry experts estimate there Are commercial Sites on the making it difficult to find the Correct site if a poor search method is even with these the internet has experienced tremendous growth As an advertising Poppe a new Yor based advertising Agency specializing in internet or online estimates 1997 expenditures for internet advertising at million us versus million us in internet advertising offers four major advantages Over traditional methods it is an Active form of Consumers must search it out and become involved with it by either Reading the and or requesting a video or sound clip internet ads Are easy to modify in reaction to changing Market conditions or the availability of new prod the new Martha Stewart web designed by Industry Pioneer us will be changed daily to incorporate the information provided on her radio and to programs the internet also allows companies to develop comprehensive databases of their companies can develop detailed profiles of their customers by having them answer a series of questions As they move through the site companies can use this information to customize the site to the needs of a specific consumer or con Sumer group or to develop a sales Effort aimed at a specific group Robert Umea is director of to Aspee Centre for at the University of he m be Rea ebed is w8422 ;