CalMac confirms Fares levels 2007-8

Ferry operator Caledonian MacBrayne has confirmed that its fares levels, effective from April 2007, will see an increase of 2.2% across the network, apart from the Gourock-Dunoon route. This route will be subject to different arrangements, which will apply to the operator of that route after the current tendering process.

The increase is below the current levels of CPI and RPI (2.5% and 3.4%). The increase applies to all traffic and tickets, including freight operators.

CalMac believes that having absorbed significant increases in costs through escalating fuel charges throughout the previous year with no additional charges or levies passed on to customers, the increase represents a reasonable outcome in the circumstances.

CalMac Chairman Peter Timms said: "Once again, the annual increase has been held to as reasonable a level as we can possibly achieve. Our fuel costs, which will be fully detailed in our Annual Report and Accounts to be published soon, have almost doubled in the last 12 months but we have been able to help meet these costs due to the excellent hedging arrangement we had in place to protect our customers' interests."

Managing Director Lawrie Sinclair also confirmed that CalMac has a current fuel hedging arrangement in place, which should help protect the Company going forward. He said: "The Company has consistently been growing the business through innovative marketing and application of enhanced technology which has given our customers better access to booking facilities.

Our ongoing development has opened up key markets and with internal changes which have sharpened up our business practices, I believe that we have proven we can manage the business in a cost-effective way, enabling us to meet challenges over which we have no control."

The new prices will take effect from March 30, 2007.