THE head of Condor’s parent company has sought to allay concerns over the operator’s finances as the Island inches closer to a decision on the future of its freight and passenger ferry services.
Brittany Ferries chief executive Christophe Mathieu spoke to the JEP for the first time since the launch of the Jersey-only tender, which is expected to reach its conclusion in a matter of days.
Ministers were forced to abandon the initial pan-island selection process after Guernsey revealed it had decided to appoint Brittany Ferries as its preferred bidder.
The winner of the subsequently launched Jersey-only tender is expected to be announced next week, with Danish shipping giant DFDS also in the running to secure the 15-year contract.
Earlier this month, Economic Development Minister Kirsten Morel told a panel of politicians scrutinising the process that he had “significant concerns” about Condor’s finances.
But Mr Mathieu yesterday told the JEP that the tender process contained “clear” financial criteria and that the operator had been able to “tick the box”.
“We restructured the debt, we almost halved the debt of Condor. The bankers didn’t give us the money but they agreed to convert the debt into equity and therefore we know that we were qualifying,” he continued.
“Whether some people think that it’s not quite sufficient, that’s not what was asked in the RFP [Request for Proposal] – that’s a qualitative judgment.”
In addition to the debt restructuring, which Mr Mathieu explained was “subject to getting this contract”, he also highlighted that Brittany Ferries was the “mother company” of Condor after taking a 51% stake in the operator earlier this year.
“Therefore Brittany Ferries is committed to support its subsidiaries, like any other business,” he added.
He also defended the parent company’s financial position, and said the firm had paid off assistance it received from the French government during the pandemic.
“We’ve just repaid, over the last few weeks, our Covid debt to both Brittany and Normandy,” he said.
“Besides that, Brittany Ferries has very little debt.”
Mr Mathieu continued: “Going forward, we are very comfortable with our debt structure – including Condor.”
Referring to the current tender process, he said: “We believe we’ve got the right offer: we’ve got the fleet, we’ve got the Guernsey contract, we’ve got the financial structure, but also it’s obvious to everybody in both islands that one service is better than two services.”
However, he maintained that Brittany Ferries would “run the Guernsey-only service if we have to”.
“It’s a bit of a lose-lose [scenario] but we are very committed and, because Guernsey has given us the contract, we will honour that.
“If Jersey decides to do otherwise, then do otherwise, but we will honour what we’ve been asked to do by Guernsey.”
But he said it would be “a shame” to have two operators serving the islands, as it would be “less efficient” and potentially lead to higher prices.
In a statement issued on Friday afternoon, Deputy Morel said: “We are on track to sign contracts with a new ferry operator before Christmas and to name a preferred bidder in the coming week.
“Bids from Brittany Ferries and DFDS have been received and these bids are now being independently evaluated.
“Ministers will review the independent evaluator’s recommendation before making a final decision next week, as previously indicated to Scrutiny and in the States Assembly.
“Islanders can begin planning their travel arrangements for beyond March 2025 by completing expressions of interest that are available from both bidding companies.”
