"All of a sudden, we all heard this scream, this bloodcurdling scream," passenger Garnet Caton told CBC television.
"The attacker was standing up right over the top of the guy with a large hunting knife - a survival, Rambo knife - holding the guy and continually stabbing him... in the chest area," Mr Caton added.
"When we came back on the bus... he was cutting the guy's head off and pretty much gutting him up," Mr Caton said.
The attacker ran at them, Mr Caton said, and they ran out of the bus, holding the door shut to prevent him getting out.
"He calmly walks up to the front [of the bus] with the head in his hand and the knife and just calmly stares at us and drops the head right in front of us," Mr Caton said.
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