A NEW management team in North America will be responsible for turning round the group’s ailing Canadian operations.
Continuing overcapacity in the market has been blamed for another disastrous year for the North America Leisure Group which reported losses of £10.9m compared to a deficit in 1998 of £1.1m.
NALG’s new chief executive officer Chris Mottershead will be joined in Canada by UKLGfinance officer Colin McKinlay, while chief executive officer Johan Lundgren becomes vice-president.
Chairman David Crossland predicted trading conditions should improve next year.
“Bookings for winter 1999/2000 are 11% ahead of last year with higher prices,” he said. “Our US operation is showing a profit. The problems are in Canada.”
With joint ventures, Costa Cruises performed strongly with profits rising from £21m to £31.6m despite the Kosovo crisis.
Crossland said: “We carefully managed fleet capacity changes.” Bookings are 7% ahead of last year at increased prices.
Scandinavia showed record profits with increased load factors and brochure price sales.