Eurotunnel denied permission for cross-channel ferry

Transport group Eurotunnel has been banned from launching cross-channel ferry service.

Travel Insurance News - 06/06/2013

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Transport group Eurotunnel has been banned from launching cross-channel ferry service.

The Guardian reported on Thursday that the UK Competition Commission has ruled that the firm would gain too much control over cross-channel transport should it enter the ferry business in the region.

Eurotunnel officials have since spoken out against the ruling, saying that the company would appeal the decision and going so far as to call it "incomprehensible and seriously disproportionate".

The decision puts nearly 100 Dover-based jobs at risk, in addition to 500 Calais-based posts, according to the report.

Eurotunnel currently oversees about 46 per cent of cross-channel traffic via its current business of shuttling vehicles below channel. And last year the firm purchased three ferry vessels following the collapse of SeaFrance, prompting efforts to launch its new Myferrylink business for the this year’s busy summer travel season. The move drew fire from industry competitors, prompting a regulatory review via authorities in the UK and France.

Alasdair Smith said on behalf of the Commission that the panel believes that Eurotunnel opted to purchase the vessels to prevent competitors from buying them. However, the company has since responded by saying the allegations are simply not based on facts.

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