HD Ferries announces it will not resume services in 2009

Jersey, Monday 16th January 2009.

HD Ferries today announces that it will not operate services between the Channel Islands and France in 2009.

Why has the company chosen not to resume services?

Although customers have been overwhelmingly supportive of our service, and our low fares have succeeded in expanding the market for travel between the Channel Islands and France after years of stagnation, the simple truth is that not enough people are able to travel as often as would be necessary to make the service viable. HD Ferries is privately funded and does not enjoy any special privileges such as those from which our competitor benefits and so, with little prospect of generating a reasonable return on investment in the foreseeable future, we have taken the difficult decision not to resume services.

What prospects are there for resuming services in the future?
The only realistic prospect of creating a genuine alternative to the current monopoly situation will be for:
 The government to take a proactive role in creating a climate that will encourage investment in new services - this will require substantially more than to simply advocate competition.
 For local investors to provide the investment capital that would allow sufficient time to allow new competition to become fully established - genuine competition can only emerge from within, and with the full support of, the markets that the services will benefit.

What has happened to HD1?

HD1 remains moored in Newhaven from where it is expected to be sold or chartered to a new operator in the near future.

Commenting on this announcement, James Howe-Davies, CEO of HD Ferries, said:

"We very much regret not being able to resume services this year but we hope our valued customers will appreciate that we could only continue operating if there was a genuine prospect of our services becoming viable within a reasonable period of time. In taking this decision we would like to place on record our thanks to our staff, our business partners and most of all our customers for their unwavering support during the time we have had the privilege of operating in the markets we have served."

HD Ferries