Greyhound Back On Track After Flirting With Extinction, The Bus Line Is Enjoying Renewed Growth

Less than two years ago, Greyhound Lines Inc., the country’s only intercity bus company, was bankrupt and hurting for passengers. Today, its rolling merrily along.

“The turnaround is completed. We’ll be profitable this year. What we’re now beginning is the new era of growth for Greyhound,” said Craig Lentzsch, who became president and chief executive of the line of 2,100 buses in 1994.

The Dallas-based bus business has wooed back passengers through coordinated service with other lines and new ticket price options.

“We think if you have more places for customers to go, you get more customers,” Lentzsch said.

It’s been a long and winding road for Greyhound.

Intercity bus ridership fell steeply in the 1960s as air travel grew more popular. The company was sold by Dial Corp. in 1987 and ultimately filed for bankruptcy protection. It emerged in 1991, but due to dwindling passenger traffic, heavy debt and mounting losses, Greyhound continued to struggle with creditors until 1994, when it opted to control the damage by cutting back on some operations.

The company is now emerging strong and, Lentzsch believes, ready for expansion.

“All the numbers have been looking better,” said Christopher Kane, an analyst with Salomon Brothers. “Now, the challenge will be going forward.”

The company has made numerous expansion moves already this year, most recently buying a North Carolina bus line for $20.3 million in cash and stock.

Carolina Trailways Inc. will join Vermont Transit and Texas, New Mexico & Oklahoma Coaches as a wholly owned subsidiary.

Also this year, Greyhound, which has annual revenue of more than $700 million, financed 109 new buses.

In addition, the company announced joint operations with several bus companies to improve operating efficiencies and increase the available routes.

“If the pie is bigger it’s easier to split up the pie. We don’t see any reason to fight the other bus companies for customers,” Lentzch said.

Passengers are responding. Greyhound’s ticket sales increased 14.5 percent in January over the same month in 1996 and 10.5 percent in February.

“We think we’re off to the best start for a calendar year since 1989,” Lentzsch said.

To attract customers, the company added to the schedule in 1995 and 1996, and plans to add more times and routes this year to its current 2,400 destinations.

“We’ve taken over some routes in the Wisconsin area and we’re also trying to create some casino markets,” Lentzsch said. “We have a good product, a good reliable product. We let people travel where they want to travel, when they want to travel, at an affordable price.”