SeaFrance Future Depends on Brussels Decision

The fate of loss-making Dover Strait ferry operator SeaFrance has been placed in the hands of the European Commission following the decision by its parent company, French rail operator SNCF, to grant it €170m ($227m) in fresh financing. SNCF is to grant the struggling company €100m in fresh capital and a further €70m as a loan for which SeaFrance has pledged two ships as security. The total €170m package was approved by SNCF on Wednesday and by SeaFrance’s employee consultative committee on Thursday but cannot be implemented until it has received the commission’s approval.

Last year SeaFrance ran up an operating loss of €36m and a net loss of €52m after its turnover fell 20% to €177m. In the meantime, the company is proceeding with plans to lay off 482 of its 1,580 employees in accordance with the agreement reached with the unions representing its personnel before Christmas.

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