Red Funnel

What was the outcome of the Office of Fair Trading Enquiries?

There have been 3 investigations since 1991 into whether there was excessive pricing on the cross-Solent ferry routes. All 3 enquiries concluded that pricing was not excessive and the public interest was best served by:

1) Increases in competition
Red Funnel market share has increased from 15% to over 30% since 1991
 
2) Increases in capacity
Red Funnel increased its vehicle capacity by 200% since 1991 and Hi-Speed capacity by 300%
   
3) Improvements in services
Red Funnel's vehicle ferry service now operates 24/7. The Hi-Speed service operates 18 hours per day - there were a record number of sailings in 2007
 
4) Cheap promotional fares
Red Funnel lead-in fares have largely remained unchanged in over 10 years. There is an expanded range of discounted fares for students, senior citizens, clubs and societies.

Island Club Travel Cards provide discounted travel to frequent travellers and Hi-Speed season tickets are heavily discounted. Internet efficiencies have been passed onto customers. Friends & Family and Christmas shopping type promotions provide additional value to Island residents.
 
Red Funnel's business strategy has focussed on meeting all four public interest objectives set out by the Competition Authorities.