National coach company Greyhound Australia has struck a deal with the state government over the continuation of its Western Australian operations.
The company had threatened to pull its revenue-declining Perth to Broome route unless it received assistance from the government.
Revenue for the service has been falling over the past two years, forcing Greyhound to reduce the service twice during that time to only four times a week.
Greyhound management has this morning resolved to keep running a minimum of three services per week on the Perth to Broome route until September, when another review and talks with the government will take place.
Greyhound chief executive Robert Thomas said the state government advised that the newly reduced service would satisfy residents along the route and make it more financially viable.
"Greyhound Australia has agreed to run three services per week as part of a trial to see if the State Government's numbers are correct and the route will become more viable," Mr Thomas said.
"Greyhound's preferred option would be a seven day a week service but this would only be possible with subsidies and the Government has told us it would not provide any contribution as it does not believe a service more than three times per week is necessary."
WA Business News understands that Greyhound was looking for a $650,000 a year subsidy from the state government.
Mr Thomas said under the deal struck with the government should Greyhound find the route continues to be unviable it reserves the right to terminate all services or only run seasonal services.
"We have agreed to give the Government a week's notice should this be necessary and will also provide the Public Transport Authority with monthly updates of passenger pickup and set down numbers to show how the new timetable is performing," he said.
Under the new agreement, Greyhound said the feeder service from Kalbarri and Monkey Mia will not be reactivated.
