P&O fights back against low-cost airlines

After its fundamental business review, P&O Ferries is now "where we think we need to be", says spokesman Brian Rees.

"We have been very particular about the ships we chose and the ships we let go," he says. "We are now running about 30 round trips a day, 25 multipurpose and the rest dedicated freight trips. "Freight is now 50% of our business and we are regularly carrying 4,500 trucks on a midweek night between mid-afternoon and the early hours of the morning." The market is growing at an annual rate of 7%-8% for freight, and P&O is also reporting a good year for tourists, says Mr Rees.

In August tourist figures on its Dover-Calais services were up 6% and he believes a key part of this has been the fightback against the low- cost airlines. "We have been much more aggressive in the way we have positioned ourselves against the low-cost airlines," he says. "There was a time where perhaps we thought we were quite a distinctly different market to the airlines and that people understood the merits of loading up at home, getting in their own car and setting off on their journey."

The perception is that low-cost airlines are cheap despite the fact that many passengers then pay to hire a car at the other end, he says. "We have to get our message across that our fares include four or five people and all their luggage in the car. We set out this year to be very aggressive and direct, one slogan being: 'P&O likes people with a lot of baggage'." The big challenge in terms of freight is now the capacity of the port of Dover and the issue of congestion, says Mr Rees.

"If you get any hitch in the chain, whether in Dover or Calais, the point comes where it is more and more difficult to keep a good flow, particularly of freight, through the port," he says.

"We are pushing for the buffer zone plan - an area where you could push through freight in an orderly way. "As freight continues to grow, much smarter traffic management is going to be needed." Freight makes up 50% of P&O Ferries' business, growing at 7%-8% annually. Tourist figures for its Dover-Calais service have increased by 6%.