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DFDS made a plea to the Royal Court to halt Brittany Ferries' legal challenge to the island's ferry tender process on the basis that it could potentially cause damage worth millions to its business, it has emerged.
The Danish ferry operator argued that it would lose "substantial revenues" if the court case left them unable to take over the Jersey ferry route, but the application, which was considered by the Royal Court on New Year's Eve, failed.
DFDS signed the 20-year ferry deal with Jersey's Government that same day.
Pictured: Economic Development Minister Kirsten Morel, who has political responsibility for the selection process, said on New Year's Eve that he was "delighted" the contract had been signed with DFDS.
But last week, it emerged that Brittany Ferries launched legal action against the government after losing the Jersey bid.
After a hearing on 20 December, the Royal Court rejected most of its grounds for judicial review, but did give Condor's majority owner permission to challenge a limited aspect of the decision-making process.
The Government has said it will "robustly defend" its conduct when further court hearings take place this month.
It has now emerged in a judgment published this evening that DFDS asked the Royal Court to set aside the decision to allow Brittany Ferries to challenge Jersey's ferry tender process.
DFDS argued to Commissioner Matthew John Thompson that Brittany Ferries' application was not promptly enough, and also claimed that, if the permission to challenge the decision was granted to Brittany Ferries, it would be likely to cause "substantial hardship" to the company.
The Danish ferry operator claimed that it would lose "substantial revenues" if the court case left them unable to take over the Jersey ferry route – with €30-35 million of projected revenue for the first three months of operation.
Pictured: The Royal Court granted Brittany Ferries “leave on a limited basis to challenge the Ministerial Decision.
DFDS also said that it has already committed to the chartering of vessels at a rate of €32-35,000 per day, whilst other DFDS vessels which could be chartered or sold remain stood idle waiting for deployment for Jersey.
The ferry provider also stated it that it needed to commit to refurbishment of one of its vessels at a cost of over €1 million, and enter into agreements with ports, stevedores and linesmen before the end of this month.
The judgment states: "Of critical importance is the question of whether DFDS may safely publish its timetable and open its booking system to customers.
"This is already overdue. The proceedings are impacting its reputation."
DFDS also claimed that if a further procurement process is required, the company would be at a "significant disadvantage" to Brittany Ferries because it could continue its existing services.
"DFDS will in all probability not be able to mobilise in time," the judgment added.
It continued: "Any hiatus in ferry services will be costly and disruptive to the public of Jersey and may lead to costs in the region of £1 million per month of interim or contingency service."
However, DFDS's claim was rejected.
Commissioner Thompson dismissed the claim that Brittany Ferries' application was not submitted in good time, stating: "Brittany Ferries have acted promptly in relation to challenging that decision.
"Their application was made on 18 December and was accompanied by a very extensive affidavit.
"Brittany Ferries had also been engaged in correspondence seeking to understand the reasons why it had not been successful.
"That is an understandable and correct approach to take before launching any proceedings. They certainly did not sit on their hands and do nothing."
Pictured: Brittany Ferries is the majority shareholder of Condor Ferries.
The Commissioner did however accept that there is "clearly some risk to DFDS if the contract awarded to it is later cancelled or the signing of it is delayed", but said that it "not possible for me on an application to review the granting of for leave to determine the extent of that risk".
He explained that "some of these risks are normal commercial risks accepted by anyone seeking a licence to operate a long-term ferry service and that steps would be taken to address such risk in relation to tendering of ferries".
He added: "In addition, many of the risks only crystalise at the end of January, by which time, subject to any appeals, it is hoped that any challenge by Brittany Ferries would have been determined. At present, that challenge is due for hearing on 13 and 14 January."
A court hearing is scheduled to take place tomorrow (Friday 3 January), with a further hearing due to be held on 13 and 14 January to "decide the limited ground of challenge".
The news comes just hours after DFDS issued an update to investors, estimating that it would transport 400,000 passengers on its new Jersey route this year, generating revenue of around £50m. The contract is due to come into effect on 28 March.
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