04/09/2001

P&O consider cut backs in ferry services

Britain’s largest ferry operator, P&O, are believed to be considering cut backs at its ferry operations, due to the foot-and-mouth crisis.

Ferry division losses more than doubled to £18.1 million between January and June and contributed to a 6.5 per cent decline in P&O’s pre-tax profits.

P&O are carrying out a review of the business units that do not perform as well as others within the company.

Sources have said that the P&O Stena Line unit had achieved a good result, given the impact of the foot-and-mouth crisis on UK visitor figures, but operations on the UK-to-Ireland and Portsmouth-to-the-Continent routes, have been hit badly.

P&O has an estimated loss of £6 million due to foot-and-mouth and have said that this remains unacceptable.

The company also said that the effects of the epidemic is continuing to harm tourist traffic to the UK and has noticed a severe slump in Continental passengers. (CD)

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