The province announced that it is deregulating bus service to give carriers the flexibility they need to grow their businesses and respond to customers needs.
The regulated system has been in place since the 1960's and according to Alberta Transportation is no longer economically viable.
"This is about putting in place the tools necessary for a flexible and responsive bussing system for all Albertans," said Luke Ouellette, Minister of Transportation. "An open market for bus service supports free enterprise, removes barriers for service providers, fosters competition, and gives service providers the flexibility to respond to their customers' needs."
The old system required carriers to maintain minimum service levels and provide service to rural and remote communities in exchange for limiting competition on the carrier's routes.
Under the new system, there will be no required minimum service levels and carriers will not have protected rights to any route.
Alberta Transportation says the new system will give carriers the freedom to make decisions in the best interests of their business and their customers and it will also allow more opportunities for new carriers to provide new services.
Greyhound has been petitioning the province for years to reduce the frequency of some routes and eliminate others completely.
The company says it has been losing more than $7 million per year as demand continues to drop for their passenger service in rural Alberta.
While service is expected to be reduced in some areas, competition will likely heat up in others.
Red Arrow confirmed that they will be expanding now that the province has removed the regulations.
The new deregulated system takes effect on October 1, 2011.
For more information visit the Alberta Transportation website.
