Government gives the green light to major Channel ferry shake-up
The number of cross-Channel ferry crossings is likely to be slashed and price promotions axed, following a decision by Ian Lang, President of the Board of Trade, to remove curbs on how ferry companies may collaborate.
P&O European Ferries, Stena Line and Hoverspeed have been lobbying the Government to remove restrictions which prevent them from fixing fares or pooling arrangements in order to compete with the Channel Tunnel (MW March 8).
Lang says: “I consider that competition in the cross-Channel ferry market has changed sufficiently… that it is no longer appropriate to hold the companies to the undertaking.”
All three welcomed the news but say it is too early to discuss how they may co-operate in future. A spokesman for Stena says: “We are not sure what the decision will do in practical terms. Our preferred strategy remains to establish a strong, standalone business on the Dover-Calais route, but we have always said we will listen to suggestions from competitors.”
A P&O spokesman adds: “There are no set plans but it is time to start some very serious discussions.”
The number of ferry crossings to France stands at 80 a day and since the Tunnel opened, ferry operators have been engaged in a fierce price war. P&O concedes “maybe now there will not be so many price promotions”, but denies the number of crossings will be drastically cut. Industry sources have previously suggested lesser-used Channel routes may also be axed.
Meanwhile, Eurotunnel says it welcomes the move. A spokesman says: “We hope the decision will pave the way for the removal of excess capacity.”
Hoverspeed is launching a customer loyalty scheme, called ScoreCard, which will reward frequent travellers with vouchers.
