Greyhound Canada is to end its Greyhound Air low-cost airline operation on 21 September, leaving Kelowna Flightcraft, which flies seven Boeing 727-200s for Greyhound, considering its options.

Greyhound Air had lost C$28 million ($19 million) since beginning operations in July 1996, despite achieving good load factors, but is being discontinued as a precondition of the take-over of inter-city bus operator Greyhound by Canadian company Laidlaw.

Calgary, Alberta-based Grey-hound says that, although its peak summer season has produced satisfactory results for Greyhound Air, the likely operating losses in the slower winter season ahead led the company to accept Laidlaw's C$61 million take-over offer.

Kelowna, British Columbia-based Kelowna Flightcraft is considering various options, including selling the 727s, converting them to freighters, using them on charters, or seeking another marketing partner with which to continue.

Source: Flight International