'Chunnel' firm plans to cut operator rates

The Channel Tunnel company Eurotunnel is planning to significantly cut rates for train operators as part of a drive to combat…

The Channel Tunnel company Eurotunnel is planning to significantly cut rates for train operators as part of a drive to combat financial losses.

The group, which unveiled a 5 per cent fall in operating revenues, said the move would allow it to increase traffic to destinations and introduce new routes such as Amsterdam.

Lower rates would also increase the size of its economically viable cross-Channel rail freight market.

Eurotunnel's creditors would have to agree to a financial restructuring, which would involve a reduction in the amount of its debt and interest payments, for the radical changes to go ahead.

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The announcement came as the Folkestone-based group said 2003 was a "tough year" with intense price competition.