Eurotunnel Future

JSReeves86 · Post by **JSReeves86** » Wed Apr 12, 2006 5:42 pm

Eurotunnel (They own and run the actual tunnel and run Le Shuttle) may not survie in 2007.

http://news.bbc.co.uk/1/hi/business/4901966.stm

JR

calvert · Post by **calvert** » Wed Apr 12, 2006 6:48 pm

Just like British Rail!

Do the government ever learn?

Get rid of those debtss, or freeze the intrest payments, and it would be a very profitable company!

arabiandisco · Post by **arabiandisco** » Wed Apr 12, 2006 6:49 pm

They'll be bailed out no doubt.

The alternative would be to close the tunnel and that's not going to happen.

barrybryce01475 · Post by **barrybryce01475** » Wed Apr 12, 2006 7:37 pm

The alternative isn't closing down the tunnel; without all the debt attached to it it's a valuable asset.

The alternative is Eurotunnel goes into administration, gets sold for whatever someone will pay for it, the original investors get 0.005p in the Â£, and Yourotunnel carries on as if nothing happened.

southcoasttrains · Post by **southcoasttrains** » Wed Apr 12, 2006 9:14 pm

barrybryce01475 wrote:The alternative is Eurotunnel goes into administration, gets sold for whatever someone will pay for it, the original investors get 0.005p in the Â£, and Yourotunnel carries on as if nothing happened.

Network Rail?

mattvince · Post by **mattvince** » Wed Apr 12, 2006 10:10 pm

I doubt that Network Rail would be willing to take over Eurotunnel, equally I doubt that it will close. Any solution will have to be Anglo-French. The problem with Eurotunnel is it cannot pay the interest on the interest it owes - I seem to recall hearing that the actual construction costs have been paid off, but it's held down by unpaid interest, which the banks are charging interest on.

The way for the two Governments to deal with this is complex. Firstly, the Treasury (and its French equivalent) need to tell the banks that unless they ease off on the interest, things may not be so rosy for them in future - however Gordy and his equivalent may be wary of using such influence - it may be that they have to put some money the banks way. Secondly, bilateral regulation on cross-channel ferries (it'll make the free-marketeers go ape, but it's the only way) to ensure Eurotunnel has absolute dominance - financially it won't hit the ferry companies badly, they already have shares in Eurotunnel and the cross-channel business is not exactly profitable. Third, implied messages to the airlines that withdrawing from London-Paris/Brussels market is advisable, matched with a ramping up of Eurostar services, possibly including more destinations. Fourth: in the UK a W12-gauge route between Wembley and Dollands Moor, in France a wholly-liberalised corridor between Frethun and the Belgian border - possibly extending as far as Aachen, for freight services. These should put Eurotunnel into a financially strong position - albeit one artificially created.

RichPayne · Post by **RichPayne** » Wed Apr 12, 2006 11:28 pm

The airlines will not like being leaned on though; especially Ryanair and EasyJet. Furthermore, only the Belgian government can tell Sabena what to do, as I believe they are still at least semi-nationalised. And I cant see them being to fussed about EuroStar, as they probably make more out of the traffic the airlines bring into Brussels.

southcoasttrains · Post by **southcoasttrains** » Wed Apr 12, 2006 11:36 pm

I thought Sabena went out of business?

RichPayne · Post by **RichPayne** » Wed Apr 12, 2006 11:43 pm

AFAIK they made a comeback...I might be completely wrong though, so feel free to correct me

Post by **martinhodgson** » Thu Apr 13, 2006 7:36 am

RichPayne wrote:AFAIK they made a comeback...I might be completely wrong though, so feel free to correct me

A privately run airline, SN Brussels Airlines (using a similar logo; SN was the Sabena flight code) replaced them when they shut down post 9-11. I think they are actually profitable now, as the fleet has been reduced and the route network simplified.

jamestcc · Post by **jamestcc** » Thu Apr 13, 2006 7:46 am

One solution to Eurotunnel woes is to open the tunnel to the franchise operators in the UK/France and Belguim.

This will allow for the likes of the TGV (France) ICE (Germany) and Virgin to run their trains through the tunnel.

This at first could lead to a short term loss at first as the companies will have to adapt thier current fleet to run through the tunnel and onto other countries lines but a profit will come round once the routes are established

Also for Virgin to take over the Eurostars through thr tunnel "This is the 15.00 Virgin Eurostar service to Berlin, calling at Calias, Brussels and Berlin"???

Also it will allow more passengers from across Europe to get to and from the UK without changing trains or flying.

For one thing, they can't really close down the tunnel, who's wants to be responsiable for a big hole in the ground under the Channel with nothing going through it!!

I'm sure that although they are in debt by billions (who's want to be saddled with that debt!) that something will come around!

Also if they re-start thinking about getting the Eurostars upto Manchester again (that sign at Longsight saying "the Eurostar is here" (in French) has gone but surly it can't take long to re-start that process, us folk up in the North West need a high speed train service to the European mainland!

James

allypally · Post by **allypally** » Thu Apr 13, 2006 8:03 am

James: the feeder service was a HST, the passenger levels were more suited to a 153

jamestcc · Post by **jamestcc** » Thu Apr 13, 2006 8:46 am

Ah right, that's a bit of a problem, lol! Get 153's through the tunnel from Manchester!!

Thinking about it, there are airlines companies who fly from Manchester Airport that do deals to Mainland Europe for about Â£20 +, I guess that all the folk go that way!

Post by **martinhodgson** » Thu Apr 13, 2006 8:54 am

Yep - Eurotunnel was scuppered by low cost airlines, making travel to France much cheaper. While from London, the Eurostar is a viable alternative (and is actually taking away passengers from airlines), from Manchester, Leeds, the North and Scotland, the advantage of cheap airlines fares, plus the time saving (2-3 hours from Manchester to London, in addition to London-Continent) make the airlines a much more practical alternative.

jamestcc · Post by **jamestcc** » Thu Apr 13, 2006 9:16 am

Couldn't Eurostar instead of thinking about going north but to the South West and take their trains to the likes of Southampton and Portsmouth??

Their a few airports in that region but not as big as Manchester and the London's airports and with some of the UK/French residents who work in France but live on the Southcoast and need to get a train into London before changing, this will be a viable way to keep them on the same train as it'll go direct from Southampton for example direct to Calias or Paris.