Eurotunnel, operator of the Channel Tunnel, posted a 2003 net loss of US$2.4bn with the chief executive telling press that the cross-channel rail industry was working on a “failed business model”. A US$316M operating profit was made, but this was offset by interest payments of US$591M. The company’s debts are estimated at US$11bn and it wants to cut the freight rates being paid by rail firms to try to boost traffic. Traffic been much lower (some 66%) than originally predicted.
