As part of his continuing campaign for better ferry services, Bob Seely has produced evidence which shows that, over the last 26 years, Red Funnel services have become less frequent, slower and more expensive.
Mr Seely, who is standing for election as the MP for the new Isle of Wight West constituency, has submitted his evidence to Red Funnel and has asked its CEO to explain what the company is doing to improve services.
The letter comes after a weekend of chaos on Red Funnel services.
Through his written evidence, he highlighted the company’s reductions in speed and service. He said figures showed that since 1998, Red Funnel had:
- Reduced its passenger fleet to two vessels.
- Reduced its Red Jet sailings by around 30 per cent on weekdays and from 38 per cent to 50 per cent on Sundays.
- Retained the same vehicle ferry fleet – with the addition of a new freight vessel costing £10m, just over one year’s operating profit.
- Increased the time it takes for Red Jet services to cross the Solent from 22 minutes to around 28 minutes.
- Added five minutes to vehicle ferry crossing times.
On the disruption of services, Mr Seely’s findings showed that between 26 August 2022 and 7 May 2024:
- Red Jet services were affected by preventable issues on one in six days (98 of 620 days).
- Vehicle ferry services were affected by faults, maintenance and staff shortages on one in eight days (78 of 620 days).
- Combined, Red Funnel either cancelled or delayed services due to preventable issues on 1 in 4 days (150 of 620 days).
On ticket pricing, Mr Seely’s research found:
- The biggest price increases were in period returns. In 1998 the most expensive period return was £121.91 in 2024 prices, compared to the average July ‘saver’ period return today costing £199.25 (plus an extra £23.95 if travelling between 9am-5pm). The average ‘flexi’ July fare sits at £296.97.
- Average fares had increased by 10 per cent in real terms in July and by four per cent in real terms in November.
Mr Seely said Red Funnel had undergone four leveraged buyouts since 1989. In the year ending 2022, it had operating profits of £7,009,000 and fixed tangible assets of £44,034,000.
He said in the year ending 2020, Red Funnel’s parent company, Red Funnel Holdings Limited, recorded £130,955,000 of secured bank loans and £288,319,000 of loans and borrowings in total (41 times its operating profits in 2022).
Mr Seely said: “I continue to gather evidence to prove that both Wightlink and Red Funnel are letting us down. I have already evidenced Wightlink’s failings, and now I am looking more closely at Red Funnel.
“I can prove that today, Red Funnel services are fewer, slower and more expensive – ludicrously so.
“Whilst Red Funnel has used its market power to raise debts and pay out exorbitant profits to shareholders and lenders, none of this has translated into expansion or improvement of services.
“Without intervention, the problems are likely to get worse which is why I’m building a fact-based case for regulation and I’m encouraging new ferry services to enter the market.
“I want an end to the ferry firms charging unprecedented fares for poor quality services.”
