Greyhound Bus Company Essay

3619 Words Feb 9th, 2006 15 Pages
Introduction
Greyhound Lines, Inc., headquartered in Dallas, Texas is the only nationwide provider of scheduled intercity transportation in the United States. As seen on Greyhound's web site in 2001 they had more then twenty five million passengers aboard their bus lines and consolidated revenue was $1,022.4 million. Greyhound's fleet consists of more then 2,300 buses which arrive and depart from one hundred and twelve company-operated terminals and approximately one thousand seven hundred agency-operated terminals. In 2001, the number of employees nationwide on payroll was twelve thousand and of that amount, approximately thirty six percent are drivers. Greyhound bus lines operate a vigorous schedule of twenty-four hours a day,
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His leadership has brought the company out of a tight spot, and Greyhound began to show a turn-around in 1998, even though the company was in debt prior to that year. Moreover, Craig Lentzch's "back-to-basics" approach has pointed the company in new areas and has capitalized on previously untapped revenues such as package delivery, an idea the previous management team thought was not worth the effort. Through the merger with Laidlaw Inc. the company now has some financial strength. Lentzch's leadership has done well for the company by limiting costs, reducing the age of the fleet, adding new stations, decreasing high employee turnover and producing a profit.
Finance
Greyhound initially was not a financially sound company but since 1998, and under good leadership, it is capable of turning a profit and being successful. After five years of negative earnings the company had its first full-year profit realized in 1998, unfortunately the company ended 1999 with a -$16.3 million and increased long-term debts (David, 2001, p.180). When Greyhound made plans to merge with Laidlaw Inc. some people thought it was a bad move for the company. However, strategically the merger with Laidlaw Inc. holds many advantages for Greyhound, primarily because it now has access to financial markets and Laidlaw's financial strengths gives the company a needed boost. The company has also taken a few initiatives to cut costs and

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