Eurotunnel in new price war
THE prospects of a cross-Channel price war loomed large today after Eurotunnel said it will offer open return tickets during July and August for £100 per car.
Holidaymakers who want the cheap fares have to travel to France after 2pm to qualify and return before 2pm on another day – but there no limits on the length of stay.
The cut-price fares follow plans by Danish entrepreneur Curt Stavis to offer £50 returns on his giant catamaran between Dover and Boulogne for those who book well in advance.
The Eurotunnel tickets can be booked a day ahead of travel and should go some way to addressing consumer complaints last year that cross-Channel fares between rival ferry operators and the tunnel were too similar.
P&O Ferries, meanwhile, said it was monitoring the market before deciding on any special cut-price last minute fares.
P&O's cheapest fare for a car and any number of passengers on a service between Dover and Calais is currently £224 – and that requires travel between 9pm-9am on its 'light nights' service.
Spokesman Brian Rees said the summer market was uncertain because Euro 2004 meant that many people have yet to book their holiday dates.
'The longer England stay in the tournament, the longer it will be before people start to book their holidays for the summer,' he said.
Eurotunnel, meanwhile, said that the outcome of its strategic review will be unveiled on 7 July. The company is analysing all aspects of its business in the wake of a stormy annual meeting in April when its entire board was overthrown by rebel shareholders.
The company, still struggling under the weight of an estimated £6.4bn debt mountain, is hoping to stave off its creditors, mostly banks, who are owed the money.
Eurotunnel's annual meeting saw the board outvoted after a campaign by small shareholders.
It is not known how much of the strategic review will build on the plan being developed by the former management team to rescue the business. Eurotunnel last year recorded a £1.3bn loss and is struggling to pay interest payments on its outstanding debt.
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