nowtelse2do Posted November 23, 2014 Share Posted November 23, 2014 Any thoughts on the outcome 24/25th next week. MyFerry have already lost two appeals. Dave BY KATRINE GRØNVALD RAUN Published 21.11.14 at 12:15 Next week will likely bring the final round in the match between DFDS and French competitor Eurotunnel, which entered the English Channel two years ago in a move that has led to million-dollar losses for DFDS. Since Eurotunnel launched operations on the Channel in 2012 through ferry operator MyFerryLink, DFDS and British P&O have been trying to stop the European transport giant, and several competition authorities have upheld the two carriers' claim that Eurotunnel should not be allowed to operate ferries on the Channel. The carriers' argument has been that Eurotunnel, as tunnel operator, would have a market share of more than 50 percent on the English Channel. However, the French competition authority has a different opinion. Now it is time for the final round: On Monday and Tuesday next week, Eurotunnel and its ferry operator MyFerryLink will be heard by the British Competition Appeal Tribunal, DFDS CEO Niels Smedegaard tells ShippingWatch in relation to the carrier's 3rd quarter interim report, which shows significant improvements Link to comment Share on other sites More sharing options...
John J Thompson Posted November 24, 2014 Share Posted November 24, 2014 I do not see the difference between a cooperative of French employees leasing a vessel from another company to operate a service and other operators borrowing from banks to fund their vessels. In this day and age it matters not who owns the vessel or vehicle. Most coaches and buses are leased from hire companies backed by the big banks. Train companies lease their vehicles. When Seafrance ceased operation I travelled with P&O and was frankly disgusted at the state of the vessel and its passenger accommodation. It was far from the standard of the French company. As soon as MyFerryLink began we booked with them as they were using the old Sea France vessels. It is not in my opinion unfair competition for anyone to set up in competition with another. The vessels are leased from, not subsidised by Euro Tunnel. There is no reason why DFDS could not set up in competition as Sea France had 4 vessels on that run now MyFerryLink has only 2. P&O charged much more after Sea France ceased operation but lowered its fares again when competition from MyFerryLink arrived. The market will prevail. The French competition authorities have made the right decision. Link to comment Share on other sites More sharing options...
lennyhb Posted November 24, 2014 Share Posted November 24, 2014 I'm keeping my fingers crossed sailed with them twice last year, the boats are nice and clean and as they appear to take take mostly freight traffic very few people on board, also food was good value compared to P&O. Link to comment Share on other sites More sharing options...
nowtelse2do Posted November 24, 2014 Author Share Posted November 24, 2014 John, It's my understanding that MyFerry is a company set up by Eurotunnel. It may have ex SeaFrance as shareholders. If that is so then Eurotunnel would have a too large a monopoly on the Dover/Folkestone - Calais route which is why P & O and DFDS objected. If MyFerry win this appeal then it would be DFDS who would be the most likely one to pull out. Dave Link to comment Share on other sites More sharing options...
Brians dad Posted November 25, 2014 Share Posted November 25, 2014 I have little sympathy with Myferrylink / Eurotunnel, who are not making money and are clearly out to see off the competition, thus leaving Eurotunnel with a virtual monopoly on the short sea route. The British competition authorities have come to the correct conclusion here, but naturally the French will disagree and I suspect the next pronouncement will not be the end of it, as m'learned friends will have a very profitable time taking the whole matter through the courts. Although it may cost £10-20 more via P&O / DFDS, it will ensure a more healthy market in the longer term. Link to comment Share on other sites More sharing options...
John J Thompson Posted November 25, 2014 Share Posted November 25, 2014 nowtelse2do - 2014-11-24 6:36 PM John, It's my understanding that MyFerry is a company set up by Eurotunnel. It may have ex SeaFrance as shareholders. If that is so then Eurotunnel would have a too large a monopoly on the Dover/Folkestone - Calais route which is why P & O and DFDS objected. If MyFerry win this appeal then it would be DFDS who would be the most likely one to pull out. Dave From the MyFerryLink Website The staff on board our cross-Channel ferry fleet are all members of a workers’ co-operative - a société coopérative et participative, or SCOP, in French - which operates the company’s sailings between Britain and France. Because our crew have a stake in the business, they have all the more reason to go the extra mile for our customers. Now, you may have heard talk about MyFerryLink and the competition authorities in the UK. Our workers’ co-operative leases the MyFerryLink ships from Eurotunnel and this relationship has been called into question by the Competition Commission, who have barred Eurotunnel from running ferries out of Dover. We have opposed and appealed this ruling and can assure customers that it is business as usual for our sailings between Dover and Calais. ________________________________________________________________________________ I think this makes the position clear. The vessels are leased as are most other transport (Buses, Trains, Waggons) these days. The operators are an independent cooperative of workers. Who actually owns the vessels is not important. All of National Express vehicles are leased from other operators. ARRIVA supply coaches to National Express. Does this mean that ARIVA has too great a monopoly? ARRIVA is a Deutsche Bahn (German State Owned Company) which runs trains and bus services in the UK. Does this mean that Deutsche Bahn has too great a monopoly? Most of our essential services are now run by foreign state owned companies. It seems like we will let any state run our essential services as long as it isn't the British state. Why pick on a small French cooperative as has been done in this case. -------------------------------------------------------------------------------------------------------------------------------------- Full details below MyFerryLink is the newest ferry operator on the popular Dover to Calais route and began its operations on the English Channel in August 2012. Our fleet consists of two modern superferries - sister ships the Rodin and the Berlioz - which carry passengers and freight, and one dedicated freight ship, Nord Pas-de-Calais. MyFerryLink offers passengers up to 16 sailings between Dover and Calais every day, and additional services for freight. Both the Rodin and the Berlioz are spacious and well-equipped ferries that offer our customers a relaxed and enjoyable journey across the Channel. On board you will find great places to eat, bars for a relaxing drink and snack, and a well-stocked shop for picking up a bargain. It is not just value that MyFerryLink stands for. We are proud to say that our company is owned and run by the very people who make your journey with us so special - our dedicated and welcoming crew. The staff on board our cross-Channel ferry fleet are all members of a workers’ co-operative - a société coopérative et participative, or SCOP, in French - which operates the company’s sailings between Britain and France. Because our crew have a stake in the business, they have all the more reason to go the extra mile for our customers. And this dedication to providing great value and a first class service is being welcomed by our ever-growing number of customers who are making MyFerryLink their first choice on the Channel. Customer reviews posted on the online site Trustpilot give MyFerryLink an 8.5 out of 10 rating and praise the service on board our ships. We want you to know how other people like you have found the MyFerryLink experience, and this is why we display these reviews prominently at the top of our website. Now, you may have heard talk about MyFerryLink and the competition authorities in the UK. Our workers’ co-operative leases the MyFerryLink ships from Eurotunnel and this relationship has been called into question by the Competition Commission, who have barred Eurotunnel from running ferries out of Dover. We have opposed and appealed this ruling and can assure customers that it is business as usual for our sailings between Dover and Calais. You can book with us in complete confidence that your booking is safe, that the price you pay is unbeaten, and that our service is second to none. From everyone at MyFerryLink, we look forward to welcoming you on board. Link to comment Share on other sites More sharing options...
nowtelse2do Posted November 25, 2014 Author Share Posted November 25, 2014 John, Why is MyFerry part off The Eurotunnel Group's 2013 end of year accounts. See below. Sorry, couldn't make this shorter. Dave. Investors Media Fixed Link Suppliers . Contact Us . Shareholders and Investors 2013 Summary . Pursuant to EC Regulation 1606/2002 of 19 July 2002 on the application of internation accounting standards, the consolidated financial statements of GET SA for the financial year ended 31 December 2013 have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union at 31 December 2013. For a full understanding of the financial data and activities, figures given below are extracts from the consolidated financial statements of Groupe Eurotunnel SA. So please refer to the 2013 Registration Document available on the Group's website. Comparison of financial years ended 31 December 2012 and 31 December 2013 In € million 2013 Fixed Link Europorte MyFerryLink 779 239 74 763 206 7 +2% +16% - 777 209 7 Revenue Other income 1,092 - 976 30 +12% - 993 30 Total turnover Fixed Link Europorte MyFerryLink 1,092 (327) (220) (96) 1,006 (333) (204) (20) +9% -2% +8% - 1,023 (338) (206) (20) Operating costs (643) (557) +15% (564) Operating margin (EBITDA) Depreciation 449 (166) 449 (161) = +3% 459 (161) Trading profit Other net operating income/(charges) 283 2 288 (4) -2% - 298 (4) Operating profit (EBIT) Share of result of equity-accounted companies Net finance costs Net other financial income 285 (1) (269) 5 284 - (265) 8 0% - +2% - 294 - (269) 7 Pre-tax profit 20 27 - 32 Income tax expense 81 Profit for the year 101 27 - 32 Summary of the 2013 annual results for the Eurotunnel Group Revenues increase by 12%1to €1.092Bn EBITDA up by 7%3 to €449M Operating profit (EBIT) improved by €31M3 to €285M Pre-tax profit: €20M Net tax credit: €81M Result after tax: €101M Free cash flow: €129M First scheduled repayments on the Term Loan: €46M Group's revenues In 2013, the Group's consolidated revenues exceeded €1 billion at €1.092Bn for the first time, increasing by €116M, i.e. +12% compared to 2012. The revenue generated by the Fixed Link Concession segment, the Eurotunnel Group's core business, represents 71% of the Group's total revenue, amounted to €779M in 2013, an increase of 2% compared to 2012. The increase of €33M in Europorte's revenues, up by 16% to €239M, has been generated by new contracts started in the 2nd half of 2012 and in 2013, as well as by an increase in volumes on some existing contracts. The maritime segment of MyFerryLink generated revenues of €74M in 2013 compared to €7M for the four and a half months of operations in 2012. Dave Link to comment Share on other sites More sharing options...
AlanS Posted November 25, 2014 Share Posted November 25, 2014 From a UK point of view the UK Competitions Commission did not see Eurotunnel as acquiring just the assets of Sea France and saw it as acquiring an enterprise and the new My FerryLink company were not being subjected to the normal risks that a company just starting up would have to be open to. In effect Eurotunnel are not just leasing the ships to My FerryLink. Alan Link to comment Share on other sites More sharing options...
nowtelse2do Posted November 25, 2014 Author Share Posted November 25, 2014 John, This is part of a letter to Groupe Eurotunnel SA Shareholders. Dave Finally, a word about MyFerryLink. With revenue of €74m, our maritime segment remains modest but relevant. Operations are efficient and it is keeping to its business plan. The Competition Commission, however, still has the ability to stop this success in its tracks. The consumer would bear the brunt of such a decision. After almost two years now, it is obvious that MyFerryLink has had no impact on the maritime dominance of P&O and DFDS in the Short Straits market, when together they have more than a 50% share of the truck market. If anyone should be protected from eviction then clearly it should be MyFerryLink. The new MARPOL environmental standards will automatically lead to an increase in prices for ferry crossings and, with fewer ferry operators, prices can only go up. Groupe Eurotunnel will hold to its strategy, whatever happens: the customer comes first. 2014 marks the 20th Anniversary of the inauguration of the cross-Channel Fixed Link. It is an opportunity to remind ourselves that Le Shuttle was the first rolling motorway in the world and that more passengers travel on board our shuttles than by Eurostar. We are looking forward to 2014 with great enthusiasm. We hope that you do too and wish you a Happy New Year! Yours faithfully,, signed by Jaques Gounon, Chairman and Executive Officer. Link to comment Share on other sites More sharing options...
nowtelse2do Posted February 1, 2015 Author Share Posted February 1, 2015 Anyone want to guess what happens now? Dave The outcome of the Competition and Markets Authority. Competition – news story CMA welcomes judgment in Eurotunnel case From:Competition and Markets AuthorityFirst published: 9 January 2015Part of: Mergers, Competition, Preventing and reducing anti-competitive activities and Business and enterprise . .. The CMA has welcomed today’s judgment by the Competition Appeal Tribunal (CAT) to uphold the CMA’s decision to bar Eurotunnel from running its MyFerryLink service out of Dover, to safeguard competition. The CAT’s judgment dismissed an appeal by Eurotunnel and Société Coopérative de Production de SeaFrance S.A. (the SCOP) against the CMA’s remittal decision made in June last year. That decision found that the CMA did have jurisdiction to review the acquisition of the former SeaFrance assets by Eurotunnel and there had been no change of circumstances or special reason leading it to change the original decision made in June 2013 . The CMA imposed an order on Eurotunnel on 18 September 2014 but suspended some of its provisions while the Eurotunnel case was under way. The order specified that in 6 months’ time Eurotunnel should: •cease operating ferry services at the port of Dover with the Berlioz and the Rodin vessels for a period of 10 years, and •cease operating ferry services at the Port of Dover with any vessel for a period of 2 years. Alternatively, Eurotunnel would be permitted to sell MyFerryLink to a suitable purchaser. Alasdair Smith, Chair of the Eurotunnel Inquiry Group, said: “Our first priority remains to protect the interests of passengers and freight customers. With 2 of the operators on the Dover-Calais route making substantial losses, it remains our view that the current level of competition on the route is unsustainable and likely to lead to the exit of a competitor. “ Having one of only 2 ferry operators owned by the competing rail link would be bad for customers. It would be much better for passengers and freight customers to have 3 competing cross-Channel operators - with Eurotunnel running the rail link and 2 independent operators on the ferry route. “ The order would stop MyFerryLink running services out of Dover while it is owned by Eurotunnel but we would not prevent Eurotunnel from finding a suitable purchaser that was completely independent of Eurotunnel to operate the ferry service. “ We are conscious of the potential effect of our decision on the jobs of the MyFerryLink workers. However, there will also be job losses if MyFerryLink remains on the route and another operator leaves.” More information about this case can be found on the case page. Link to comment Share on other sites More sharing options...
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