Second ferry company under investigation by OFT
Ferry Online Travel News 09/03/2009
Another ferry operator owned by Macquarie is being investigated by the Office of Fair Trading.
Last month, the Office of Fair Trading (OFT) on the Isle of Man announced that it was launching an investigation into the fares and profits of Steam Packet, a ferry company owned by Macquarie, and would also investigate the company’s fuel surcharges.
In the UK, the OFT will investigate both fares and competitive practices of ferry operators serving the Isle of Wight.
The UK investigation involves a second Macquarie-owned company, Wightlink, and rival operators Red Funnel and Hovertravel.
As a result of the OFT inquiry, the companies could be referred to the Competition Commission.
The OFT investigation has come about as a result of a long-fought campaign by Isle of Wight MP Andrew Turner. He collected 8,000 signatures in support of his claims that the ferry companies charged high prices, were unclear about their charges and provided declining standards of service.
The UK OFT inquiry will look at competition on the route, the fares and service quality. It if finds that competition is insufficient, it may recommend allowing other operators access to landing facilities and may review fares as well.
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