WINNIPEG - Greyhound has backed off its threat to end service in Manitoba thanks to a promise of government subsidies.
The company issued a statement Wednesday saying it is working on a deal with the province that will allow bus service to continue.
Greyhound had threatened to stop service across Manitoba as of next week, saying it was losing money because of reduced ridership.
Transportation Minister Ron Lemieux says bus service is simply too important to rural and northern communities to lose.
He says the province has agreed to provide annual subsidies to Greyhound, but also warns that some service will be reduced.
Lemieux says the exact amount of taxpayer subsidies is still being ironed out, but adds it will be less than the $4 million a year that Greyhound says it is losing every year in Manitoba.