The simple truth is that not enough people are able to travel as often as would be necessary to make the service viable,” said HD Ferries chief executive James Howe-Davies.
“HD Ferries is privately funded and does not enjoy any special privileges such as those from which our competitor benefits.”
“With little prospect of generating a reasonable return on investment in the foreseeable future, we have taken the difficult decision not to resume services.”
HD Ferries launched the service in January 2007 promising customers a “high speed, no frills,” value for money service for both passenger and freight traffic.
It chartered the Incat K-class catamaran Incat K3 for the link to France. It can carry 400 passengers and 89 cars.
The ferry remains moored in Newhaven from where it is expected to be sold or chartered to a new operator in the near future.
The previous operator of the service between France and the Channel Islands, Emeraude Lines, withdrew from the service in 2005.
HD Ferries' departure now leaves UK company Condor Ferries with a monopoly on the routes between the Channel Islands and France.