In 1968 the company ran trials with an HM2 sidewall hovercraft, number 002, in order to compete with the Seaspeed service which used an SRN6 between Southampton and Cowes. Due to the unreliability of the craft it never entered passenger service. In 1981 Red Funnel acquired a pair of HM2 MkIIIs, GH2019 & GH2024, which were primarily used on the charter service for Vosper Thorneycroft transporting workers from the Isle of Wight to the Woolston yard and back each day. These two craft were disposed of in June 1982 and the charter subsequently operated by the augmented hydrofoil fleet.