Under-pressure Brittany Ferries is asking the French government for a tax break to keep it afloat as it predicts a 100million-euro loss this year.
The Plymouth-headquartered firm says it wants French ministers to provide it with a 鈥渓evel playing field鈥 by cutting a tax which is paid for its French seafaring employees.
Some media are reporting a 鈥渞escue package鈥 is being hammered out in Paris, but Brittany Ferries refers to it not as a bailout but seeks instead to be put on parity with other EU states, particularly Italy and Denmark.
The firm, which has been hit hard by the 海角视频-imposed 14-day quarantine on travellers arriving from France and Spain, said rules relating to payroll contributions, termed social charges and levied on the company, are more relaxed in those countries.
It said this benefits large shipping companies such as Italy鈥檚 Grimaldi and DFDS, in Denmark, and wants the French government to treat it in the same way instead of hitting it with a higher levy.
The firm stressed that securing a cut in these charges is one of the cost-cutting measures it had identified and was striving for in its five-year recovery plan, which coincides with a repayment term on a 117million-euro, French government-backed, loan.
A spokesman stressed: 鈥淲e are not seeking a bailout. We are simply asking the French government to apply rules relating to payroll contributions that are applied in Italy and Denmark.
鈥淭hese provisions are called 鈥渘et wage鈥 and already benefit large shipping companies like Grimaldi and DFDS, that employ large numbers of sailors from Italy and Denmark.
鈥淪o we are just seeking a level playing field for Brittany Ferries, because we are France鈥檚 largest employer of French seafarers.鈥
He added: 鈥淲e want these charges to be reduced to levels that other EU member states charge.鈥
The call for a change to the levy comes as the company, which has said it is facing the worst crisis in its 47-year existence, is losing cash at a greater rate than following the 2008 financial crisis.
The firm lost 70million euros over four years during that time, and is now looking at a bigger deficit in just a single year, with the expected 800,000 annual passengers reduced to 200,000.
Brittany Ferries in the news
Passengers provide 75% of the company鈥檚 income, with freight only accounting for 25%, and the firm has already announced it will be laying up a third vessel and cutting more services as passenger numbers continue to be affected.
The spokesman said: 鈥淚t鈥檚 all part of our five year recovery plan. We have to do all we can to reduce costs, this (the levy) is one of them.鈥
He said the firm has taken 鈥渉arsh decisions鈥 about route closures to prepare for the long-term, but wants to protect employees.
It also has to replay the 117million-euro loan, secured a couple of months ago, and provided by a number of French banks, but 90% guaranteed by the French state.
鈥淭he repayment terms are tough,鈥 the spokesman said. 鈥淲e have to pay it back over the next five years. So unless we can cut costs, and ensure our ships are full next year, we鈥檒l have trouble paying it back. This is what makes the 鈥渘et wage鈥 issues so important.鈥.
The company has just made further drastic changes to schedules to cope with plummeting passenger numbers.
These will see the Connemara vessel, currently serving Portsmouth to Cherbourg and Le Havre, taken out of service entirely from September 7. This means the closure of these routes until further notice.
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The company has already closed the St-Malo to Portsmouth route, with services terminating from September 7.
Cherbourg to Poole will also remain closed for the remainder of the year, having ceased operations at the end of March and not having resumed in June.
The company鈥檚 busiest route Caen to Portsmouth remains unaffected for the next two months. The ships Normandie and Mont St Michel will continue three daily departures as normal, with Armorique covering each ship鈥檚 technical lay-over in November and December respectively, running in freight-only mode.
In July, Brittany Ferries said it would put the Armorique into dock and will only use the Pont-Aven to make trips between Plymouth and France and Spain. The ferry Bretagne, which sails out of Portsmouth, will also be laid up.
The company said the 海角视频 Government鈥檚 decision to impose quarantine restrictions on those arriving from Spain, and more recently France, led to an immediate run of cancellations. About 65,000 passengers cancelled reservations since quarantine measures were announced. Furthermore, the company reports significantly weakened demand for services this autumn.
