Ambassadors International has sold the Mississippi Queen paddlewheeler for "salvage value," Ambassadors CFO Mark Detillion told investors during the company's first-quarter call earlier this month.
The Mississippi Queen, which has been laid up since 2007, formerly cruised for Majestic America Line, Ambassadors' river cruise line that ceased operations in 2008.
The 412-passenger Mississippi Queen was launched by the old Delta Queen Steamboat Co., in celebration of the country's centennial in 1976, and at that time was the largest passenger steamboat ever built. The 382-foot-long ship has seven decks, exterior suites with private balconies, a pool, theater and grand calliope.
Ambassadors purchased the Mississippi Queen and its sister ships the Delta Queen and the American Queen in April 2006, but in early 2007, Ambassadors postponed the ship's relaunch indefinitely, citing the need for interior upgrades.
By 2008, Ambassadors estimated the amount of investment the ship would need to continue operating to be between $10 million and $15 million.
Detillion said the company is also stepping up its efforts to sell the Delta Queen, which is currently on charter as a floating hotel in Chattanooga, Tenn.
There is some interest in the Columbia Queen, but nothing definitive, said Detillion. Ambassadors also has yet to unload the 48-passenger Alaska vessel Contessa.
$5.8 million net loss in Q1
Ambassadors, parent of Windstar Cruises, reported a net loss of $5.8 million in the first quarter of 2010, down from a $11.4 million loss a year earlier.
First-quarter revenue from continuing operations declined 21.7%, to $12.6 million, as the company felt the effects of reduced charters and incentive cruises.
The transition of ship management from a third-party company to in-house personnel helped Ambassadors cut cruise operating expenses 11.4%, to $11.7 million, Ambassadors stated.
This report appeared in the May 24 issue of Travel Weekly.