MMC blocks ferry giants
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1 Plans by Sealink and P&O, he two biggest cross-Channel ?.rry operators, to operate a int service to compete with he Channel rail tunnel have een blocked by the Monopolies nd Mergers Commission. The companies wanted to lerge their fleets on the Dover, olkestone and Ramsgate outes to France which would ave fixed prices at one level nd operate on a single ime-table.
They proposed to launch the )int service in 1991, two years ,efore the tunnel is scheduled to pen, but despite undertakings ot to reduce services or inrease fares above inflation, the '
MMC said such a service would operate against the public interest by increasing fares and reducing the quality of service.
However, Trade and Industry Secretary Nicholas Ridley says that they could submit a further application to the Office of Fair Trading when traffic starts running through the tunnel.
Sealink says it is "dis appointed" by the MMC's decision, and does not believe that reduced choice, higher fares or poorer quality services would have resulted from the deal. "The quality of service is being dramatically increased to compete with the tunnel," it says. "Sealink is introducing two jumbo ferries in 1990, offering the finest on-board facilities."