Hoverlloyd operated a cross-Channel hovercraft service between Ramsgate, England, and Calais, France.
Originally registered as Cross-Channel Hover Services Ltd in 1965, the company was renamed Hoverlloyd the following year. It was initially owned by a partnership between the Swedish Lloyd and the Swedish American Line shipping companies. On 6 April 1966, Hoverlloyd commenced operations from Ramsgate Harbour to Calais Harbour, operated the SR.N6 hovercraft while awaiting the completion of the considerably larger SR.N4 ferries. In addition to competing with traditional ferries, it had a fierce rivalry with hovercraft operator Seaspeed, which also operated SR.N4s on the cross-Channel route. In 1969, in conjunction with the arrival of the first SR.N4s, Hoverlloyd re-positioned its services to run between purpose-built hoverports.
The 1970s were years of optimism and growth for Hoverlloyd. Following initial difficulties, the company's fleet achieved a very high reliability record, having consistently operated more than 98 per cent of scheduled crossings while maintaining an unblemished safety record throughout the firm's existence. Hoverlloyd possessed excellent operational bases, a hovercraft-friendly route, a fleet capable of generating returns on investment, and good quality staff. By 1980, it was operating a fleet of four SR.N4s. In 1981, in response to increasing operating costs and intensifying competition, Hoverlloyd opted to merge with its long-term rival Seaspeed to form Hoverspeed.
Background and formation During the late 1950s and early 1960s, British inventor Sir Christopher Cockerell had, in cooperation with British aerospace manufacturer Saunders-Roe, developed a pioneering new form of transportation, embodied in the form of the experimental SR.N1 vehicle, which became widely known as the hovercraft.Paine and Syms 2012, p. 82. British manufacturer Saunders-Roe proceeded with work on various hovercraft designs, successfully developing multiple commercially viable vehicles in the mid-1960s. These included the SR.N4, a large cross-Channel ferry capable of seating up to 418 passengers along with 60 cars, and the SR.N5, the first commercially active hovercraft.Paine and Syms 2012, pp. 238, 595.
The origins of Hoverlloyd can be traced back to a decision made by Swedish Lloyd shipping company in 1964 to investigate the possibility of operating a hovercraft service, which was then a pioneering and untried concept to any business. The company soon formed a partnership with Swedish American Line, owned by Broströms Rederi AB; both companies were keen to take the lead in what they viewed as an emerging and potentially lucrative market, having identified the heavily trafficked ferry services between the ports of Dover, UK, and Calais, France, as being ripe for disruption by the new hovercraft technology.Paine and Syms 2012, p. 478.
Accordingly, the two firms jointly formed a new venture to address this market; this entity was originally named the Cross-Channel Hover Services Ltd, which was registered as a British company in 1965. The company was renamed to Hoverlloyd Ltd during the following year. Despite being largely regarded as being a single company, Hoverlloyd was in fact structured as two separate companies, one being based in France and the other in the UK.Paine and Syms 2012, p. 467.
Airline Industry Culture Unlike its rival, Seaspeed, Hoverlloyd recruited its sales and traffic personnel from the airline industry. The company was fortunate to hire the majority of its staff following the collapse of British Eagle in 1968. As such, the company operated more like an airline than a shipping company. Crew uniforms were sourced from the British Airways depot at London Gatwick. The traffic manual was based on the defunct airline's standard operating procedures. Moreover, tickets and boarding passes were documents based on airline industry format.The key exception for flight crew was Hoverlloyd, and then Hoverspeed, Captain Graham Wallin, who had both a Commercial Aircraft Licence and a Foreign Going Master Mariners Licence.
Early operations
Ramsgate to Calais Route
Prior to commencing operations, the company exercised great attention in the selection of the most advantageous route, as well as the optimal sites to establish bases at. It decided to focus its attention on the Ramsgate to Calais route, having identified this as possessing the perfect set of circumstances for a successful hovercraft route. Favourable factors at Pegwell Bay included a 10 miles out shelter from prevailing weather conditions when near the Goodwin Sands, while day-to-day timings could be adjusted to take advantage of both tides and winds. There was no need to negotiate the stone-walled entrances which would have been the case with Dover Harbour either.Least to say, the company was severely restricted as to its course of action. Folkestone was naturally out of the question because the harbour was run by British Rail. Moreover, there was no welcome from Dover to secure a hold lease at the Eastern Docks with British Rail members on the harbour board exercising their vetoes. This left Ramsgate as the only viable option. Hoverlloyd commenced operations from Ramsgate Harbour to Calais Harbour on 6 April 1966.
Initially, the company operated an interim fleet of SR.N6 hovercraft; services with these craft were passenger-only. Upon the launch of these services, it was publicly acknowledged that the SR.N6 was unable to compete with conventional ferries in terms of ticket price alone. Despite this, hovercraft services held a competitive advantage in that they were significantly faster than these ferries, being able to rapidly traverse the English Channel with 'flight times' reportedly as low as 22 minutes.
In addition to the provision of an initial revenue stream, SR.N6 operations provided valuable operating experience, guiding future routing decisions via knowledge of dominant weather conditions and such factors. These experiences were transferable to the company's larger hovercraft, however their vast difference in size and manoeuvrability somewhat dulled the value of such experiences.Paine and Syms 2012, pp. 481-483. In particular, while the Goodwin Sands were historically avoided as a threat to conventional vessels, the hovercraft could easily operate in their vicinity without hindrance, free of other traffic concerns.Paine and Syms 2012, pp. 484-491.
Between 1969 and 1977, Hoverlloyd took delivery of a total of four significantly larger SR.N4 hovercraft, capable of carrying 30 vehicles and 254 passengers; the type quickly replaced the SR.N6s on the Ramsgate-Calais link. The first craft was purchased at a cost of £1.2 million from the British Hovercraft Corporation.Paine and Syms 2012, p. 596. The SR.N4s were given the names Sure, Swift, Sir Christopher, and The Prince of Wales respectively.
In 1969, in conjunction with the arrival of the first SR.N4s, Hoverlloyd re-positioned its services to run between the purpose-built Ramsgate hoverport and a similar facility just east of Calais harbour which was shared between Hoverlloyd and its rival Seaspeed. The development of suitable hoverports for the SR.N4 fleet had not come cheaply; Hoverlloyd incurred a significant cost to develop suitable infrastructure to facilitate its future operations, and thus commenced service after a relatively short prototype testing period.Paine and Syms 2012, p. 505.
Early on, hovercraft operations proved to be prone to disruption and abrupt cancellations on the part of adverse weather conditions, which were unfortunately common to the Channel.Paine and Syms 2012, p. 479. However, the impact of unfavourable conditions was eased over time by various modifications and improvements to the craft, such as increasingly durable rubber 'skirts', which had sustained damage from rough seas as well as ordinary wear-and-tear.Paine and Syms 2012, pp. 521-523, 529.
Other initial issues, such as hydraulic unreliability and equipment failures, were also partially attributable to worker unfamiliarity with the craft. A side effect of the hovercraft's high speed was a relatively bumpy ride. Benefits of the hovercraft configuration included an unmatched turnaround time, partly enabled by the ability to disembark/embark cars at both ends of the craft, whilst simultaneously facilitating the movement of foot passengers via two main exits on the port and starboard cabins. The capabilities of its SR.N4s were significantly augmented in 1973 with the delivery of the Mk.II modifications.Paine and Syms 2012, pp. 474, 531-540.
Competition with Seaspeed Hoverlloyd was not the only hovercraft operator that decided to move on the cross-Channel market at the time; a rival company Seaspeed, owned by British Rail, was established and launched its own competing route between Calais and Dover. The two firms would compete with one another, as well as incumbent ferry operators, for market share throughout Hoverlloyd's existence.
Heyday of operations
Hoverlloyd principally concentrated on the Ramsgate to Calais link throughout the life of the company. By 1979, a typical day's operation at Pegwell Bay Hoverport involved 27 daily departures, starting as early as 6:00am and ending late in the evening; that year, 1.25 million passengers travelled by Hoverlloyd services on this route.Paine and Syms 2012, p. 14.
Furthermore, rival Seaspeed proved incapable of matching the reliability record of Hoverlloyd, which consistently operated over 98 per cent of scheduled crossings while maintaining an unblemished safety record throughout the firm's existence.Paine and Syms 2012, p. 481.
In 1975, Hoverlloyd was reportedly operating its fleet at near-maximum capability throughout the peak season; this feat was successfully repeated during the following year and again the year after that. According to Paine and Syms, the company had an attitude of optimism and confidence at the time, as it continued to expand its operations.Paine and Syms 2012, pp. 561-563.
Sale to Broströms Rederi AB From initial losses of -£250,000 in 1968 and -£164,000 in 1969, Hoverlloyd returned a profit in 1972 and continued to do so until 1980 with profit margins of 10.5% in 1976, 10.0% in 1977 and 7.0% in 1978. In 1976, with the company financially attractive, Broströms Rederi AB decided to purchase Swedish Lloyd's stake in Hoverlloyd, becoming the sole owner of the entire operation. Hoverlloyd would remain a wholly owned subsidiary of Broströms Rederi AB until 1981.Paine and Syms 2012, pp. 614-617. +Hoverlloyd Ltd Margin of Profits 1976-1980YearTurnover (£)Profit/Loss (£)Margin of Profit (%)1976£10,501,000£1,107,00010.5%1977£14,628,000£1,470,00010.0%1978£16,728,000£1,183,0007.0%1979£18,621,000£243,0001.3%1980£17,242,000 (-£686,000) (-3.9%) According to authors Robin Paine and Roger Syms, Hoverlloyd possessed excellent operational bases, a hovercraft-friendly route, a fleet capable of generating returns on investment, and good quality staff.Paine and Syms 2012, pp. 474. Specifically, the company's customer-facing staff were strictly drilled and trained for their roles; stewardesses were required to maintain a high level of presentability, being compelled to wear their hair up, wear white gloves, and instructed how to apply their makeup.
Presentability and enthusiasm were considered to be competitive advantages over the rival Seaspeed's services. Staff typically displayed a high level of loyalty to the company, an outcome which has been attributed to the company's amenable management style, which positively affected industrial relations.Paine and Syms 2012, pp. 467-469. Crew received extensive safety training, including weekly drills, so that they were able to readily respond to a wide range of emergency situations.Paine and Syms 2012, pp. 551-553.
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