Problems caused by Islander introduction ‘trigger’ for change at Condor
Condor Ferries’ new interim chief executive has admitted that the purchase of its newest vessel, the Islander, has not been a success so far.
Christophe Mathieu revealed that problems caused by the introduction of the conventional passenger and freight ro-ro vessel were the final straw which prompted Condor’s minority shareholder, Brittany Ferries, to take a more active role running the company.
The Islander was purchased last year in a joint venture with the States, which put in £3m. and provided a £26m. loan, and started operating in October.
‘The intention was good behind bringing in another ship and there was a good plan, on Excel, but through nobody’s fault it didn’t materialise,’ said Mr Mathieu.
‘The fact of the matter is the traffic since the Islander has been introduced has not been anywhere near what was expected.
‘That is what triggered a moment where we [Brittany Ferries] had to adjust.’
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Just before Christmas, Condor’s then chief executive, John Napton, said the company faced a ‘temporary but challenging time’, but refused to release further details.
Mr Mathieu said yesterday that Condor was ‘absolutely’ keeping up with loan repayments for the Islander and that they ‘had never been an issue’.
Until recently, Condor owed the States a substantial sum in unpaid ports fees. Mr Mathieu did not refute suggestions that the sum was in seven figures.
‘That has all been settled. There is no denying that there was a moment before Christmas when we had to push back a little. Now it is sorted and back in order,’ he said.
He also confirmed that Condor’s shareholders had recently injected additional cash into the company to improve its financial position.
‘I think that demonstrates the commitment of the shareholders,’ said Mr Mathieu, who is also the Brittany Ferries’ chief executive.
‘And the fact I have taken responsibility to be the chief executive of Condor for a while shows how we want to integrate with Brittany Ferries.
‘We want to make sure we tell people we are there. As Brittany Ferries is here for ever, it’s about time that we show it and start acting as the guys who will be here for ever.’
He acknowledged that his appointment at Condor was also an indication that ‘on one hand, the situation was not that great’ previously and that the company needed to do more to reassure the island of its commitment to its lifeline ferry services.
Asked whether Brittany Ferries could become the majority or sole owner of Condor in the future, Mr Mathieu said ‘maybe, but not definitely’. What mattered more was the French company recognising that now was ‘really the time to change and have a different approach to the relationship with the islands’.
