MyTravel ships out of cruising

MYTRAVEL has announced it is to scrap its cruise division at a loss of £16 million, as part of its wider cost-cutting strategy.

The beleaguered operator is axeing its Sun Cruises business and passing over the operation of its three ships, Carousel, Sunbird and Sundream to Cypriot cruise and hotel group Louis.

Thomson Cruises has announced it will lease Sunbird as new ship Thomson Destiny from next summer in Palma. This means Thomson will now operate a cruise fleet of four ships including Spirit, Emerald and Celebration, running cruises to 90 ports.

Meanwhile, existing itineraries for MyTravel’s ships will continue this summer as planned but under the Louis banner. The sale will not affect passengers already booked, a spokeswoman said.

The assets are valued at £18 million, of which MyTravel will gain proceeds of £1.5 million after costs, having written off £16 million for its current financial year. The operator will receive $2 million at completion, before costs. A further $14 million will be payable over the period to 2005, less outstanding money related to Carousel.

In a statement, MyTravel said: “The disposal of the ships will result in a significant reduction in both the fixed costs and risk associated with cruise ship operations.”

Sundream will sail as planned until September 28, Sunbird up until January 15, 2005 and Carousel up until May 2005. Its Seawing vessel is due to leave the fleet at the end of this summer.  

Chief executive Peter McHugh announced last month the company was evaluating its cruise business as part of an overall strategic review designed to cut its £672.6 million debt (Travel Weekly March 29).

Its three ships made an operating loss of £8 million in the year to September 30, 2003.