Manila, Philippines (CNN) -- Police in the Philippines stormed a bus full of Hong Kong tourists on Monday to end a 10-hour hostage crisis that unfolded live on global television, leaving seven people and the gunman dead.
The gunman, a former police officer who was allegedly demanding his job back after being dismissed for misconduct, had earlier sprayed machine gun fire at the hostages, a police spokesman told CNN.
Another two of the passengers were critically wounded and six were hospitalized with non-life-threatening injuries after the 10-hour standoff erupted into gunfire, Hong Kong Chief Executive Donald Tsang told reporters.
The hostage-taker, former police officer Rolando Mendoza, died of a gunshot wound to the head, police said.
The incident began at 10 a.m. Monday (10 p.m. ET Sunday), when Mendoza -- wearing a uniform and carrying a rifle -- flagged down the tourist bus and asked for a ride, police spokesman Erwin Margarejo told reporters.
A tour guide for Hong Thai Travel tried to stop him from boarding the bus, the company's general manager told reporters.
"The gunman said he wanted to have a free lift. Then the tour guide stopped him," General Manager Susanna Lau said. "Eventually, the gunman got on the coach and then asked the driver to lock the door."
Lau said the gunman did not threaten people on the bus.
Twenty-five people, including 22 foreigners, were on the bus when Mendoza boarded it, Manila District Police Chief Rodolfo Magtibay said.
Mendoza wrote his demand that he get his job back on a board and displayed it in the bus windshield.
Inside, the hostages appeared calm but confused, Margarejo said.
Police cordoned off the area around the bus as they tried to negotiate, and sharpshooters were stationed nearby. Food was delivered to the hostages on board.
Manila police official Leocadio Santiago told CNN that Mendoza's family members spoke with him early in the standoff and that he appeared "very reasonable and very psychologically stable."
The gunman released nine of the hostages, including a mother and her three children, a man with diabetes, and two photographers. The bus driver also escaped.
Around 2 p.m., the Philippine news channel ANC showed images of signs posted on the bus windshield saying, "Big deal will start after 3 p.m. today" and "3 p.m. today dead lock."
But two hours later, there were no signs that the situation had changed.
ANC showed passengers peeking out from behind curtains of the parked bus and a sign posted on the bus door saying, "Big mistake to correct a big wrong decision."
Mendoza was dismissed a year ago, Margarejo said.
Manila Vice Mayor Ikso Moreno told CNNI that Mendoza's dismissal was for extortion and that he wanted his motion for reconsideration to be heard.
"He felt that it was being neglected," Moreno said. "So he went on hostaging a bus full of foreign individuals. So when we talked to him this afternoon, that's what he wanted."
Moreno said he traveled to the eastern edge of metropolitan Manila "and I got what he want," referring to a letter from the ombudsman.
But when he arrived near the site of the standoff in the company of Mendoza's brother and the chief hostage negotiator, "All of a sudden, he kept on shouting, 'Don't let go until they give my gun back! Don't let go! Don't let go!' He just shout, one moment -- Captain Mendoza just fired his gun."
Mendoza sprayed machine gun fire at the hostages, a police spokesman told CNN.
At 8 p.m. Monday, police stormed the bus, which held 15 hostages, killing Mendoza.
Moreno told CNN that Mendoza's brother was arrested because he was "guilty of conspiring with his brother" and allegedly helped instigate the shooting.
"This is a tragedy," Tsang said. "The outcome is very disappointing."
Tsang said the bodies of the dead would be repatriated as soon as possible.
Relatives of some of the bus passengers were to depart on a plane at midnight (noon ET) for Manila, Tsang said. Also planning to travel were a number of government officials, psychologists and doctors, he said. A second flight for family members will depart at 8 a.m. Tuesday.
In addition, he said, Hong Kong has issued a warning urging its tourists to leave the Philippines right away.
Tsang said he had tried to contact Philippine President Benigno S. Aquino III but had been unable to reach him.
In Manila, Aquino told reporters that he had asked his secretary of foreign affairs to speak with Tsang.
Aquino said he had ordered an investigation, and would wait until it is completed before deciding whether anyone should lose his or her job. "As the president, my opinion might already sway the investigative panel, which might hamper them in ferreting out the truth, so I will not do that at this time," he said.
Aquino said the news media may have worsened the situation by giving the shooter "a bird's-eye view of the entire situation," but said he had little choice but to let it play out the way it did. "If we ordered a news blackout, you would tell us we were guilty of censoring news a priori," he said. "We did vow transparency."
