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2012 - Archive

May 2012 (34 Articles)
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January 2012 (64 Articles)

Corsica Ferries `salutes' rival but warns on subsidies cuts

Mediterranean ferry operator Corsica Ferries has warned the Corsican authorities against reducing subsidies on routes between the French mainland and the island in response to the imminent arrival on the market of Italy's Moby Lines. The Italian operator is planning to launch a service between Nice and Bastia in April, taking it into direct competition with market leader Corsica Ferries and its French rival SNCM. Corsica Ferries has made no attempt to block its rival's plans. Rather, it has "saluted" its arrival, claiming that it would be beneficial for the market, as was its own debut in the trade 13 years earlier as a rival to the then state-owned SNCM. "History shows that increased capacity and price competition create more traffic," said chief executive Pierre Mattei. "We still believe it." But it also warned the Corsican authorities against reacting to the arrival of Mobylines by reducing the per capita subsidies provided on routes between Nice and Toulon and Corsica. The company said it would oppose any such move, arguing that the subsidy system applied on the Nice and Toulon routes was less expensive and more efficient than the one available on services operated between Marseilles and Corsica by SNCM and its partner, Compagnie Méridionale de Navigation, under a public service concession. It said the subsidy on routes out of Marseilles amounted to ?100 ($132) per passenger, compared with ?10 per passenger on the Nice and Toulon routes. "The figures and good sense speak for themselves," said Mr Mattei. Mobylines already competes with Corsica Ferries on lines between Italy and the French island but, according to Corsica Ferries, has only a 10.3% of the total Corsican ferry market, compared with 60.8% for Corsica Ferries and 22% for SNCM. Last year, the French company increased passenger carryings on its Corsican services by 5.7% to 2.5m. Carryings on French routes alone rose 4.5% to 1.7m, however, while carryings on Italian routes increased 8.3% to 782,534.