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25/01/2005
Eurotunnel figures reveal 'strong' competition
Channel Tunnel operator, Eurotunnel, has said that it is facing strong competition in its latest trading figures.
The latest figures show a drop in of 8% in the number of cars using the tunnel and a drop of 4% in coach travel.
Eurotunnel have attributed the figures to "strong competitive pressure" from traditional ferry operators, new entrants and 'no frills' low-cost airlines.
Eurostar, who operate the high-speed passenger-only services through the tunnel, from London to Paris and Brussels, reported an increase of 15% in the number of passengers in 2004. However, Eurostar is not managed by Eurotunnel.
Eurotunnel did report a return to growth in the truck market. The tunnel carried 1,281,207 trucks in 2004, a figure which Eurotunnel said was similar to that achieved in 2003. However, the company said that it did not benefit from the market growth, which they said was stimulated largely by increased trade from the former Eastern Bloc countries, following their accession to the European Union in May 2004, because of a shift in the use of trucks to containerised units, which, they said, benefited the northern part of the overall UK-Continental market.
Commenting on the figures, Chief Executive, Jean-Louis Raymond, said: "The cross channel market has remained difficult for all operators, as it has for Eurotunnel. The improvement in Eurostar traffic over the last year has certainly been encouraging, but competitive pressure remains strong and the impact on the market of the development of "no-frills" airlines is being felt ever more strongly."
Mr Raymond said that "a radical change in commercial policy" was needed to ensure that Eurotunnel remained competitive. He said: "This is why a new commercial strategy has been in place in the truck business since January 1. It reinforces the Eurotunnel shuttles' specific strengths to the market: speed, frequency and reliability. The new passenger strategy will be launched in time for the summer. At the same time, the policy of controlling costs continues to bear fruit. By combining these initiatives, Eurotunnel has given itself the means to stabilise revenues and to restore margins."
(KMcA/SP)
The latest figures show a drop in of 8% in the number of cars using the tunnel and a drop of 4% in coach travel.
Eurotunnel have attributed the figures to "strong competitive pressure" from traditional ferry operators, new entrants and 'no frills' low-cost airlines.
Eurostar, who operate the high-speed passenger-only services through the tunnel, from London to Paris and Brussels, reported an increase of 15% in the number of passengers in 2004. However, Eurostar is not managed by Eurotunnel.
Eurotunnel did report a return to growth in the truck market. The tunnel carried 1,281,207 trucks in 2004, a figure which Eurotunnel said was similar to that achieved in 2003. However, the company said that it did not benefit from the market growth, which they said was stimulated largely by increased trade from the former Eastern Bloc countries, following their accession to the European Union in May 2004, because of a shift in the use of trucks to containerised units, which, they said, benefited the northern part of the overall UK-Continental market.
Commenting on the figures, Chief Executive, Jean-Louis Raymond, said: "The cross channel market has remained difficult for all operators, as it has for Eurotunnel. The improvement in Eurostar traffic over the last year has certainly been encouraging, but competitive pressure remains strong and the impact on the market of the development of "no-frills" airlines is being felt ever more strongly."
Mr Raymond said that "a radical change in commercial policy" was needed to ensure that Eurotunnel remained competitive. He said: "This is why a new commercial strategy has been in place in the truck business since January 1. It reinforces the Eurotunnel shuttles' specific strengths to the market: speed, frequency and reliability. The new passenger strategy will be launched in time for the summer. At the same time, the policy of controlling costs continues to bear fruit. By combining these initiatives, Eurotunnel has given itself the means to stabilise revenues and to restore margins."
(KMcA/SP)
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