GREYHOUND SET TO FLY
By Adnews Staff
Calgary-based Greyhound Lines of Canada hopes to launch a discount airline service by the second quarter of next year, as a complement to its highway bus service. Advertising for the airline will be done by Greyhound's agency, Palmer Jarvis Advertising of Vancouver. Greyhound plans to contract flight operations out to another company. The bus company will handle sales and marketing for the airline and will transport passengers to and from airports. Greyhound's inter-city bus business is to be separated from its hotel, sightseeing and tourism arm, Brewster Transport Co. Ltd. Brewster is to become a subsidiary of Phoenix-based Dial Corp which currently owns 69% of Greyhound Canada. Dial intends to sell off 76% of the bus business in a public share offering. The restructuring will begin in late January if shareholders approve. Greyhound has been searching for a way to launch an air service but this has not been possible with Dial controlling the company. Under federal law a foreign-owned firm cannot hold more than 25% of an airline's voting stock.