1. Wightlink
- the facts -
October 2013

2.  This document seeks to build understanding of the complex range of factors
which Wightlink balances when making decisions about pricing and services.
 It also highlights that ...
 Wightlink services are highly rated by customers and operate to a high
level of reliability.
 Wightlink is Part of Island Life, offering a comprehensive timetable,
discounted fares for Islanders, and support for charities and vulnerable
groups.
 Wightlink is investing to secure the future of its services.
 This is a competitive market where Islanders enjoy a high level of service from
the three operators.

3. Wightlink balances a complex range of
factors when making decisions about
pricing and services

4.  At Wightlink we take a rounded approach to planning our services and prices,
and measuring their success.
 We know that frequency is important, but it is not the only measure which
matters to our customers, staff and shareholders. As a private business, which
operates with no public subsidy, yet is subject to increased regulation and
legislation as well as rising costs, we must balance the interests of all three
groups.
 We monitor closely how customers are using our services and align our
timetables to match with when the overwhelming majority are travelling.
Nevertheless, we run thousands of loss-making sailings and last year ran 500
sailings which were completely empty!
 Our customers appreciate our focus on safety and recognise our obligations
towards the environment.
 By taking all of these factors into account, we can secure the future of our
services for the benefit of Island and mainland customers, staff and investors.

5. Year Ending 2012
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
0
25000
50000
75000
100000
125000
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Lymington-Yarmouth
VEHICLE CEU
Capacity Utilisation Utilisation %
In order to secure the long term viability of our services, and faced with rising costs and a
flat market, Wightlink has to match timetables with customer demand. When services are
consistently under-used, the company has to review whether they are viable.
For example, the services withdrawn from the timetable in December 2012 typically
operated 93% empty for passengers and 80% empty for vehicles.
On the Yarmouth-
Lymington route,
average monthly
utilisation regularly
drops below 40%.
Sailings have recently
been retimed throughout
the day to allow better
connections with trains
from Lymington Pier.
Wightlink matches its timetables with customer demand
2012-13 financial year

6. Year Ending 2012
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
0
100000
200000
300000
400000
500000
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Portsmouth-Ryde
PASSENGERS
Capacity Utilisation Utilisation %
The high-speed
catamaran services
operate at relatively low
utilisation, reflective of
the high number of
sailings.
Even at peak Festival
times, sailings are only
full on one leg of a
return journey.
Wightlink matches its timetables with customer demand
Wightlink continues to operate thousands of loss-making sailings a year across its three
routes. This is part of our commitment to being Part of Island Life.
However, as a private business operating without public subsidy, we must have the
flexibility to adapt our services in the face of usage by our customers. All operators face
the same pressures. For example, Red Funnel cut more than 1,000 sailings from its
annual timetable from 2011-12, and Hovertravel recently cut the size of its fleet by 33%.
2012-13 financial year

7.  We never compromise on safety, even if it could cut costs.
 We invest in more highly qualified crews as part of making safety our priority.
 Our standards of certification well exceed the legislative requirements.
 We invest in internationally accredited training not required for domestic
operators.
 We regularly operate with more crew members than required by legislation.
 We maintain our ships to very high standards, even if it costs more.
 This means using high quality, and often more expensive, materials.
 For major works we always bring in specialist engineers, and wherever
possible use the original manufacturer’s own staff and spare parts.
 Running more services means more maintenance and more cost.
Wightlink never compromises on safety

8.  Our CO2 emissions have dropped by almost 25% since 2007.
 We are taking a leading role in converting our ships to cleaner fuel.
 The new ships we have invested in for two of our three routes burn fuel more
efficiently.
 Larger ships operating less frequently burn less fuel.
 We operate a pioneering habitat management programme at Lymington in
partnership with a wide range of environmental stakeholders.
 We have made outstanding progress on recycling and now recycle over 60% of
our waste.
 All of this comes at a cost, and is one of the factors we must consider when
planning our services.
Wightlink takes its environmental responsibilities seriously

9. Wightlink services are
highly rated by customers and
operate to high levels of reliability

10.  Over 1,400 customers were surveyed in summer 2013.
 Over a third rated Wightlink’s service as excellent, and 80% rated it as excellent
or good.
 Almost two thirds rated Wightlink’s service as excellent, good or acceptable
value for money.
 Around 70% of customers who expressed a preference, said Wightlink was their
preferred cross-Solent operator.
 Only 5% of customers said they would not recommend Wightlink to a friend.
A recent survey found high levels of customer satisfaction

11.  Wightlink consults regularly with customers and gains feedback through a wide
range of sources.
 It has supported the establishment of ferry user groups:
 The recent timetable changes at West Wight were shared with the
Yarmouth Ferry User Group.
 The retiming of sailings to dovetail with train times was as a direct result of
YFUG input.
 Other valuable input regarding timetabling is currently being considered.
 It is hoped that a similar group will soon be established for the Eastern
routes.
 Our uniforms now invite customers to provide feedback@wightlink.co.uk.
 Managers are regularly onboard speaking with customers.
 Directors regularly engage with local businesses and sit on a range of local
boards and committees.
 The company invests in Mystery Shoppers to ensure levels of customer service
are constantly improving.
Wightlink regularly consults with customers and other stakeholders

12. Route Reliability Punctuality
Portsmouth-Fishbourne 99.8% 83.3%
Lymington-Yarmouth 99.5% 88.6%
Portsmouth-Ryde 99.8% 99.4%
Wightlink operates a highly reliable service
Lymington-Yarmouth Reliability Punctuality
2012 2013 2012 2013
July 2013 99.2% 99.5% 91.0% 87.0%
Wightlink operates a highly reliable service to an excellent degree of punctuality. Where
punctuality performance falls, this is often due to matters outside the company’s control,
such as harbour movements and weather restrictions.
2013 year to date information. Reliability refers to the proportion of sailings which actually operated. Punctuality
refers to those sailings which departed within 5 minutes of published departure time. The proportion of on-time
arrivals is typically higher as vessels can make up time en-route.
Reliability on the Lymington-Yarmouth route has marginally improved year on year.
Punctuality has reduced; the restrictions of operating in the narrow channel at Lymington
limiting the ability to make up time during busy periods (during 40 minute timetable).

13. Wightlink is
Part of Island Life

14.  Wightlink operates a 24 hour timetable on its flagship Portsmouth-Fishbourne
route.
 Wightlink operates thousands of loss-making sailings ever year, recognising
that Islanders, commuters and local businesses rely on its services.
 Last year Wightlink operated more than 500 sailings which were completely
empty.
 Wightlink receives no public subsidy for its lifeline services.
Wightlink operates lifeline services

15. Wightlink’s annual programme offers £350,000 of support to over 100 charities, arts
groups and individuals.
Wightlink is the only Solent ferry operator to have such an extensive programme of
support in place.
 17 Island athletes
 40 members of the IOW Council ‘Talented Athlete Programme’
 35 teams covering a variety of sports ranging from Ice Hockey to Speedway
 17 charities including St Catherine’s, Hampshire & Isle of Wight Air Ambulance
and the Earl Mountbatten Hospice
 Sponsorship of Festivals
 6 arts organisations
Wightlink is one of the biggest charitable donors on the IOW

16. Wightlink provides discounted travel to support more vulnerable sectors of the Isle
of Wight community who through health reasons require frequent travel to the
Mainland or are more likely to be financially restricted.
 Blue Badge Holders receive discounted travel. In 2012, this amounted to
more than 25,000 journeys, which Wightlink discounted by over £100,000.
 Isle of Wight Residents who need to make frequent hospital visits to the
Mainland receive a 50% discount. In 2012, over 4,000 journeys were made (a
total discount of around £40,000).
Wightlink offers an unrivalled discount travel scheme

17. Wightlink provides Islanders with a range of discounted fares. These give savings
of up to 50% in the peak and 30% in the off peak.
 Season tickets for foot passenger travel
 Student discounts of up to 50% (plus tailor-made annual tickets to cover the
academic year)
 Multilink tickets for car and motorcycle travel
 Isle of Wight Resident Fares (fixed price bands throughout the year)
 Reduced foot passenger fares for Island-originating travel
 Full access to Promotional and Economy Fares
 IOW Council employee discount
Wightlink offers an unrivalled discount travel scheme

18. Wightlink is investing to
secure the future of its services

19. New ‘W’ class vessels on Lymington-Yarmouth
New catamarans on Portsmouth-Ryde
New retail facilities
New terminal facilities
New toilets in ports and onboard
Wightlink has invested almost £60m in the last 5 years alone

20. Wightlink is owned by the Macquarie European Infrastructure Fund (MEIF), whose investors
are pension funds. This type of capital is well suited to the long-term investment which
companies such as Wightlink need.
 Our shareholders have invested almost £60m in the last five years enabling Wightlink to
purchase new ships and improve ports and facilities.
 An OFT investigation concluded that Wightlink’s level of return on capital employed was
reasonable. Comparison showed that 75% of FTSE companies achieved a greater level
of return.
 In order to secure future investment, including in the new ships needed on the
Portsmouth-Fishbourne route, Wightlink and its shareholders need as much certainty as
possible about the future of the market and the operating environment.
 Continuing negative publicity creates uncertainty and threatens investment.
Committed shareholders who make a reasonable return

21. A competitive market
offering high levels of service
for Islanders

22.  Islanders enjoy a very high level of service with more than 150 sailings a day
from three operators to and from the Isle of Wight.
 This compares very favourably to the level of service which was provided when
the routes were in public ownership. Wightlink’s Portsmouth-Fishbourne service
runs 33% more sailings than when in public ownership*.
 Wightlink operates 16% more sailings a day (midweek) on its Portsmouth to
Fishbourne route than Red Funnel runs on its comparable Southampton to
Cowes service, and runs 83% more sailings than Red Funnel at busy weekend
periods to meet customer needs. When Lymington-Yarmouth is factored in,
these figures increase to 194% and 272% respectively.
 Like Red Funnel, Wightlink’s catamaran offers a twice hourly service to meet
demand at busy commuter periods, and runs hourly during midweek daytime
periods.
* Timetable comparison of 1974 with 2013