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Last Updated: Thursday, 24 February, 2005, 19:39 GMT
P&O launch cross-channel fare war
P&O ferry
Passengers can now travel for as little as �60 per car
A cross-channel ferry operator has slashed ticket prices after admitting it needs to compete more fiercely with budget airlines.

It is part of a fundamental review by P&O Ferries which has already resulted in 839 job losses.

P&O will now take a car and passengers for �60 return when booked in advance, which is more than �30 cheaper than SeaFrance and Eurotunnel.

Chief executive Russ Peters said it had taken the industry time to catch up.

He added: "Low cost airlines introduced a whole new concept of low cost travel.

"It has taken us some time but we are now going head to head with them."

Mr Peters said the company's price was better value because customers were paying per car rather than per person.

Aviation expert Alan Mash said shipping companies had been forced to compete and in the future they may have to branch out into other areas.

"I am surprised they haven't invested in a budget airline so if they can't get passengers on the ships then at least they can get them on the planes," he said.




SEE ALSO:
P&O to slash workforce by 1,200
28 Sep 04 |  Business


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