Hoverlloyd possessed excellent operational bases, a hovercraft-friendly route, a fleet capable of generating returns on investment, and good quality staff.

In 1981, in response to increasing operating costs and intensifying competition, Hoverlloyd opted to merge with its long-term rival Seaspeed to form Hoverspeed.

[2] 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.

[4] 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.

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.

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.

[8] 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.

[9] 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.

[10] 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.

[12] 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.

[13] 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.

[15] 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.

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.

[19] In 1976, with the company financially attractive, Brostroms Rederi AB decided to purchase Swedish Lloyd's stake in Hoverlloyd, becoming the sole owner of the entire operation.

[21] 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.

[23] Crew received extensive safety training, including weekly drills, so that they were able to readily respond to a wide range of emergency situations.

[27] Each SR.N4 was powered by an arrangement of four Bristol Proteus gas turbine engines; while these were marinised and proved to be one of the hovercraft's more reliable systems, they were relatively fuel-hungry, consuming significant amounts of aviation-grade kerosene.

As the worldwide oil crisis of the 1970s caused fuel prices to rise sharply, the operation of the SR.N4 became increasingly uneconomic, especially in comparison to slower, diesel-powered ferries.

These combined factors gradually worsened Hoverlloyd's balance sheet as time progressed and demanded economies of scale, and consolidation of operations.