Red Funnel, the trading name of the Southampton Isle of Wight and South of England Royal Mail Steam Packet Company Limited,^[3] is a ferry company that carries passengers, vehicles and freight on routes between the English mainland and the Isle of Wight. High-speed foot passenger catamarans, known as Red Jets, run between Southampton and Cowes, while vehicle ferries run between Southampton and East Cowes.

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Red Funnel

Red Jet 5 leaving Town Quay
Trade name	Red Funnel
Industry	Transport
Founded	1861
Headquarters	Southampton, Hampshire, England
Area served	Isle of Wight Southampton
Key people	Stephen Ridgway (Chairman) Fran Collins (CEO)
Revenue	£45.4 million (2014)[1]
Operating income	£14.3 million (2014)[1]
Net income	£9.7 million (2014)[1]
Total assets	£44.6 million (2014)[1]
Total equity	£39.4 million (2014)[1]
Owner	West Midlands Pension Fund Workplace Safety & Insurance Board
Number of employees	426 (2020)[2]
Parent	Falcon Acquisitions Limited, Red Funnel Limited
Website	redfunnel.co.uk

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Red Funnel's main competitor is Wightlink whose services operate from Portsmouth to Fishbourne and Ryde, and from Lymington to Yarmouth. The other major Solent ferry company, Hovertravel, operates between Southsea and Ryde. Both provide a frequent service to the Isle of Wight, but neither normally serve Southampton, Cowes or East Cowes.

The origins of Red Funnel date back to 1820, when the Isle of Wight Royal Mail Steam Packet Company was established by Cowes interests to operate the first steamer service from there to Southampton. In 1826, the Isle of Wight Steam Packet Company was formed in Southampton, and by the following year the two companies had started co-ordinating their operations. In 1860, the Southampton, Isle of Wight & Portsmouth Improved Steamboat Company was created to compete with the two established operators, and the threat posed caused the two older companies to merge. They subsequently acquired the assets of the Improved Steamboat Company in 1865.^[4]

Formed in 1861, and called The Southampton Isle of Wight and South of England Royal Mail Steam Packet Company Limited, the merged company's name remains the longest^{[citation needed]} for a registered company in the United Kingdom.^[3] The trading name Red Funnel Steamers was adopted in 1935 when all the company's ships had black-topped red funnels, and later shortened to the current Red Funnel.^[4][5] The 1861 name remains the company's formal name.

The company originally operated a paddle steamer ferry service between Cowes, Isle of Wight and Southampton. During its history the company has operated other routes connecting the Isle of Wight and the English mainland, together with a sizable excursion steamer business along the South Coast of England including day trips from the Isle of Wight to France, but today services are concentrated on two routes. In 1931 it introduced its first diesel ferry, the MV Medina. Ferries have steadily increased in size to the current Scottish-built Raptor class operated between East Cowes and Town Quay in Southampton. Between 1969 and the 1990, the company also ran Italian-built hydrofoils between Town Quay and Cowes. This route is now served by high-speed, passenger-only catamarans.

In 1867 Red Funnel instituted a service crossing the River Medina between Cowes and East Cowes. This service was operated by a series of small launches over the years. The service ceased on the outbreak of war in 1939 when the vessels involved were requisitioned by the Admiralty. In 1868 the company took over the Cowes Floating Bridge Company and operated the floating bridge until 1901.^[6]

In 1885 the company bought the New Southampton Steam Towing Company and operated tugs and tenders, later under the subsidiary Red Funnel Towage. In 2002 Red Funnel Towage was sold to the Adelaide Steamship Company, later passing to Svitzer Marine.^[4]

In 1946 Red Funnel acquired a controlling interest in Cosens & Co Ltd, a rival pleasure steamer operator based in Weymouth. This enabled the combined company to coordinate their excursions and also gave Red Funnel access to the Cosens' marine engineering and ship repair facilities. Excursions came to end in 1966 but the engineering side continued until sold off in 1990 to a management buy-out.^[7]

In 2001 the company was sold to JP Morgan Partners by Associated British Ports Holdings, which had acquired the company in 1989 as a white knight to fend off a hostile takeover by Sally Lines. In 2004 the company was sold again in a management buy-out backed by the Bank of Scotland for £60 million. On 12 April 2007, the owners of Red Funnel (who include HBOS) announced that they were considering selling Red Funnel.^[8] In June of the same year, the company was sold to the Prudential's infrastructure specialist, Infracapital, in a deal valuing the business at more than £200m.

In 2014, plans came to light for the relocation of Red Funnel's Southampton terminal, as part of the redevelopment of the derelict Royal Pier.^[9] The plans would include relocating the vehicle and foot passenger terminals to a new site at Trafalgar Dry Dock, also known as Pier 50.^[10] Plans were approved in 2016,^[11] and Red Funnel was supposed to relocate at the end of 2017.^[12][13] However, Southampton City Council terminated the deal to relocate the Royal Pier in August 2019,^[14] with the impact on the project to relocate the Red Funnel terminals unclear.^[15]

In 2017 the company was sold to a consortium, including West Midlands Pension Fund and the Workplace Safety & Insurance Board.^[16][17] In the same year, construction work began on renovating and enlarging the terminal at East Cowes,^[18] the first phase of which was completed in August 2018.^[19]

In July 2022, Unite members at Red Funnel went on strike over pay, causing the company to have to run a reduced timetable.^[20] According to Red Funnel, this was the first strike at the firm since 1966.^[21] The strikes were suspended in August 2022 after the company proposed a new pay agreement.^[22]

On 7 September 2023, Red Funnel announced the acquisition of Blue Funnel Ferries which operates the Hythe Ferry service. Blue Funnel Ferries will be renamed the Hythe and Southampton Ferry Company Limited.^[23][24]

On 9 March 1997 Red Falcon, inbound from Cowes, collided in Southampton Water with the outbound trailing suction hopper dredger Volvox Hansa in fog. Both ships' masters were held to blame.^[56]

On 10 March 2006 the car ferry Red Falcon, collided with the linkspan at the Southampton Town Quay terminal.^[57] Eight passengers and one crew member were injured and significant damage was caused to the Southampton end of the Red Falcon and to the linkspan. The collision caused a 5-metre (16 ft) hole above the waterline and buckling of the car deck doors.

Red Eagle collided with Humber Energy in the Thorne Channel, near Southampton Water, on the evening of 21 December 2006.^[58] Coastguards said nobody was injured and neither vessel was badly damaged. Richard Pellew, of the Maritime and Coastguard Agency, said: "Having examined the minor damage sustained to the Red Eagle we are advising Red Funnel on the repair work the ferry needs before it can resume normal service."

On 5 November 2016 a man on a personal water craft collided with Red Jet 4. No one was injured and no damage was caused.^[59]

Red Eagle was involved in a collision in thick fog on 27 September 2018. It was reported that the ferry had ploughed through the moorings of three yachts and a channel marker was struck.^[60] The following month, the Red Falcon also hit several yachts at East Cowes in thick fog, sinking one of them. The vessel grounded in the incident with forty passengers aboard and was not refloated until three hours later. The sunken yacht, Greylag, was recovered the following day.^[61]