Channel Tunnel operator says EU software issues could delay biometric checks

By Gianluca Lo Nostro and Zakarya Meliani

July 23 (Reuters) - Channel Tunnel operator Getlink warned on Thursday that the biometric phase of the European Union's digital border security check system for car passengers using the tunnel could be delayed beyond its September 6 due date by software issues.

Chief Executive Yann Leriche said the biometric component of the new Entry/Exit System had yet to be implemented for passenger vehicles and warned that software provided at the European level was not yet fully stable.

The new EU system, which became fully operational across the Schengen area in April, has raised concerns among airline groups and British authorities over the risk of travel disruption during peak holiday periods.

"I'm not going to tell you that we aren't experiencing any difficulties at all, because there's one issue that affects us all and for which there is no obvious immediate solution: the software provided by the European Union," Leriche told reporters.

Getlink, which operates the Channel Tunnel under a concession running until 2086, has invested €80 million ($91 million) to prepare its terminals for the EES.

Queues at the tunnel have generally remained limited to one or two hours, compared with significantly longer delays reported in certain airports, according to Leriche.

"All this bad press — especially from the British side, since 80% of our tourists are British — ultimately creates a negative impression, even though, in reality, the problems are largely manageable if we do our job."

The Paris-based company also said it had initiated proceedings over a revaluation of business rates by the British government that tripled its annual tax bill.

Leriche said the company would give the UK's new government until the end of the summer to reconsider its position before launching the first stage of a formal legal challenge.

The Eurotunnel owner raised its full-year earnings guidance to a range of €835 million to €870 million, compared with €820 million to €860 million previously, assuming only limited disruption from the new entry system's rollout.

($1 = 0.8763 euros)

(Reporting by Gianluca Lo Nostro and Zakarya Meliani; Editing by Edmund Klamann)