Clarkkent Posted September 27, 2004 Share Posted September 27, 2004 I once heard a statement that the nature of capitalist economics is that in any market with room for x companies, there will always be x + 1 and the companies will fight among themselves (usually with price) to remain in the market. Occasionally, one of the companies will call it a day and pull out.It seems that P&O ferries are about to make a statement about their continued presence on the Dover - Calais route. If they pull out, this will reduce competition and hence the need for other operators to charge low fares.Warning. Link to comment Share on other sites More sharing options...
Will Posted September 27, 2004 Share Posted September 27, 2004 I take a more optimistic view. When Speedferries arrived, there was x+2 companies in that market - normally the established players would try to ensure that the new boy like Speedferries should not last, but it looks as if P&O rather than SF may be the one to pull out. P&O's Portsmouth services are also included in the review; losing an operator there would be a bit more worrying under that principle, but I'd be very surprsied if the company pulled out there - most likely seems to be that they will change from Le Havre to Ouistreham and maybe drop one of both of the fast craft. We shall see. Link to comment Share on other sites More sharing options...
Iceni Posted September 27, 2004 Share Posted September 27, 2004 Surely the prob is over supply. Even if P&O only cut back on number of sailings rather than pull out totally this action would go a bit towards balancing things. At that point SF will face the issue of how much to put up fares as, having established a position during 2004, they will be on hand for people booking trips from Easter 2005. If P&O withdraw fully from the game perhaps they will sell their place in the cartel to SF ?John Link to comment Share on other sites More sharing options...
BJSLIV Posted September 27, 2004 Share Posted September 27, 2004 They could even pull out of Cherbourg and Le Havre then centre everything on Caen, two ferries supported by the fast-craft, perhaps just the two ferries. The presence at Cherbourg must be quite costly in terms of fixed costs for a pretty patchy service since it dropped to one ferry operation. The leaked stories in the press talk of 1000 job losses, how many ferries would that represent? Link to comment Share on other sites More sharing options...
Clarkkent Posted September 28, 2004 Author Share Posted September 28, 2004 So now we know.P&O are withdrawing from the Western Channel and leaving Brittany Ferries in a monopoly situation. BF will now be free to charge pretty much what they like.Not that we had a very good deal before, but we, the customers are the losers. Link to comment Share on other sites More sharing options...
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