01/08/09, 23:09:43 UTC

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Majestic America Line Signs Vessel Management Agreement with V.Ships Leisure

eTN

Ambassadors International, Inc. announced today that its subsidiaries have selected V.Ships Leisure to manage the vessel operations of Majestic America Line.

Under the agreement, V.Ships Leisure will provide services which include deck, engine and hotel crew management, procurement and technical and hotel operations. The agreement is subject to United States Maritime Administration ("MARAD") approval and both companies are in the process of working with MARAD toward that goal.


The Company also announced that it is anticipating the 2007 operating losses in Majestic America Line to continue into the fourth quarter, with the fourth quarter pre-tax loss for the line being in excess of $6 million prior to any potential benefit received from insurance recoveries related to 2006 and 2007 incidents. In addition, the Company announced that due to the V.Ships management agreement, the Company will change its operations accordingly. The Company anticipates recording certain charges during the fourth quarter of 2007 which could have a significant effect on the quarterly results. The Company is currently in the process of finalizing its plans and estimating the full impact on the fourth quarter of 2007.


Joe Ueberroth, Chairman and CEO of the Company, stated, "We are looking forward to utilizing the services and resources of V.Ships Leisure to support our efforts to deliver the premier river and coastal cruising experience of Majestic America Line. V.Ships Leisure brings an exemplary record of safety, excellence and operating efficiencies that is aligned with the Company's goals for a profitable Majestic America Line."


Lorenzo Malvarosa, CEO of V.Ships Leisure, stated, "We are delighted to expand our services to the highly regarded Ambassadors group for whom we already provide services for Windstar Cruises."


Roberto Giorgi, President of V.Ships added, "V.Ships is pleased to increase its presence in American flagged operations with American crew. Through the management of the fleet of Majestic America Line, V.Ships is also further developing its expertise in providing outsourcing services to U.S. publicly listed companies."

 Printable Version  | published Nov 20, 2007