CALGARY, Alberta -- Greyhound Canada may drastically reduce its service unless is gets government assistance.

The initial cuts would be in Manitoba and northern Ontario, but could spread all across Western Canada, the company has warned provincial and federal government officials.

Greyhound Canada is blaming federal and provincial regulations for the cuts, saying it is being forced to operate routes in rural areas at a loss. The company said its financial situation is "dire," and it could no longer afford to use its profitable runs between larger cities and freight business to subsidize the money-losing service to small communities.

The intercity operator said it told federal transportation officials in May it would have to take action at the end of the summer if no help was forthcoming.

"It was a tough decision, but it was a business decision we had to make," said Stuart Kendrick, Greyhound Canada's senior vice president.

Canadian Transportation Minister John Baird did not welcome the Greyhound announcement.

He said the threatened cutbacks were an attempt by a multinational company to bully Manitoba and Ontario into giving it a subsidy. Bus service is regulated by Canada's provinces, not the federal government.

"I think it is very heavy-handed," Baird said, adding the federal government would support the provinces in any fight with the company.

Manitoba officials said they were very concerned about the potential impact of lost service, and Ontario officials said they hoped another carrier would take over the routes Greyhound was giving up.

Greyhound has filed a 90-day notice with Ontario regulators, bringing its service in the northwestern area of the province to an end Dec. 2. It will end service in Manitoba in 30 days, allowing existing tickets to be honored.

Greyhound was barred by provincial law from dropping individual routes in Manitoba, so it had to end all service in the province.

The decision means Canadians no long will be able to cross the country by Greyhound.

The company also is reviewing its operations in Alberta, Saskatchewan, British Columbia, Yukon and the Northwest Territories, and said it will be talking with federal and provincial officials about assistance.

It is seeking government subsidies for the rural routes and a long-term national plan for maintaining service to small communities.