FRANKFURT (Reuters) - TUI Cruises, a joint venture between TUI Group (TUIT.L) and Royal Caribbean Cruises (RCL.N), is ordering a new ship to expand its fleet to seven vessels from 2023, a TUI spokesman said on Monday, confirming a newspaper report.
- German daily Frankfurter Allgemeine Zeitung (FAZ) reported that TUI Cruises would order an additional cruise ship from Finnish shipbuilder Meyer Turku Oy for about 500 million euros ($614 million).
- The TUI spokesman declined to say how much TUI Cruises would pay for the new ship.
- He said the purchase would be financed in a similar way as previous orders, with about 80 percent debt-financed and 20 percent covered by its own funds.
- The new vessel will be about the same size as two ships TUI Cruises already has on order. Those ships are due to be delivered this year and next year and each have capacity of about 2,900 passengers.
- Those two ships are due to replace smaller ships in TUI Cruises’ existing fleet, though FAZ said the company could hold off retiring one of them, Mein Schiff 2, longer than planned to keep up with rising demand for cruise travel.
- London-listed TUI Group is due to report first-quarter earnings on Tuesday.
Reporting by Maria Sheahan; Editing by David Goodman