Louis Cruise Lines has entered into an agreement with Star Cruises for the purchase of two of its cruise ships.
Its parent, Louis plc, plans to buy the Norwegian Dream and the Norwegian Majesty for a total of $380 million (240 million euros).
As part of the agreement, the Norwegian Dream will be chartered back to Star Cruises until November 2008 and the Norwegian Majesty until December 2009.
The funding has been undertaken by DVB Bank, a specialist transportation finance bank.
Louis said the move will strengthen its position in the Eastern Mediterranean cruise market.
“This very important expansion in the company’s cruising operations is expected to lead to substantially higher profitability for 2009 onwards and at the same time will create new prospects for Louis plc internationally,” said a statement.
Louis executive chairman Costakis Loizou added: “Today’s announcement is in line with our strategy for the renewal of our fleet and continuous upgrading of the services we provide.
“It is a major step forward not only for Louis but for the Mediterranean cruise market as a whole, where we have been particularly active for a couple of decades now.
“Our decision is consistent with the current trends of the cruise market, the most rapidly growing tourism sector internationally.”
By: Bev Fearis
