Divers were searching for two missing passengers after the 22,400-ton Sea Diamond sank just off of Santorini, Greece, at around 3 a.m. Friday morning, hours after a collision with a volcanic reef, Louis Cruise Lines said.

The 20-year-old ship scraped the volcanic reef off the Greek island on April 5 at around 4 p.m., ripping a hole in its starboard side, allowing water to penetrate the vessel, said Nicholas Filippidis, Louis Cruise Lines director of product development in North America.

"They tried to save the vessel but the damage was more severe and more water was coming in than they could get out," Filippidis said. "It was a beautiful vessel."

According to the Cypriot cruise line, 1,200 passengers, most of them Americans, were evacuated from the ship shortly after the collision, as well as 400 crewmembers.

The ship had been maneuvering to moor at the anchorage in Santorini, a port that Louis frequently visits. Louis has not yet determined the cause of the accident, but Filippidis said that the seas were not reported to have been rough.

Authorities are evaluating the situation to watch for any potential environmental hazards due to possible oil and fuel spills from the wreckage.

Two French tourists, a father and his daughter, were still missing Friday afternoon. Filippidis said that the man's wife is among the rescued.

All of the passengers, including eight student groups from the U.S. and Canada, were taken aboard other Louis Cruise Lines ships, the Perla and the Aegean II, and transferred to the Athens' port of Piraeus, for their return trips home. Athens was the Sea Diamond's next and last scheduled stop on the four-day itinerary.

Louis acquired the Sea Diamond one year ago from Finland's Birka Cruises for $35 million. Built in 1986 and refurbished in 1999, the ship carries 1,537 passengers in 584 cabins.

To contact reporter Johanna Jainchill, send e-mail to [email protected].

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