In this paper we describe a novel approach for the solution of inviscid flow problems for subsonic compressible flows. The approach is based on canonical forms of the equations, in which subsystems governed by hyperbolic operators are separated from those governed by elliptic ones. The discretizations used as well as the iterative techniques for the different subsystems, are inherently different. Hyperbolic parts, which describe, in general, propagation phenomena, are discretized using upwind schemes and are solved by marching techniques. Elliptic parts, which are directionally unbiased, are discretized using h-elliptic central discretizations, and are solved by pointwise relaxations together with coarse grid acceleration. The resulting discretization schemes introduce artificial viscosity only for the hyperbolic parts of the system; thus a smaller total artificial viscosity is used, while the multigrid solvers used are much more efficient. Solutions of the subsonic compressible Euler equations are achieved at the same efficiency as the full potential equation.