Kristina Cruises sinks
As per recent reports of the struggling Finnish one-ship company, it came as no surprise when Kristina Cruises (KC) announced a withdrawal from the cruise business altogether a week into January.
As part of its debt rescheduling agreed with creditors, the ship 'Kristina Katarina' – which cost KC €20 million (US$27.2 million) plus rebuilding when it was purchased from Israel and was languishing in Las Palmas – was sold on the same day to an international investment group.
The ship will be managed by Miami-based FleetPro Ocean. Formerly known as International Shipping Partners, FleetPro changed its name at the start of 2014.
Needless to say, all KC's 2014 cruises were cancelled and its seagoing personnel were made redundant. The company will now focus on its new core business of selling international sea and river cruises in Finland using its established contact network.
KC's downsizing was inevitable as it became the victim of circumstances beyond its control, with the culmination of its large investment in 'Kristina Katarina', high bunker rates, and small capacity in a single market all contributing factors. This was further hampered by instability in certain market areas such as the Middle East and Mediterranean.
In 2012, the company's bottom line saw red to the tune of €3.1 million (US$4.2 million) on revenue of €28 million (US$38.1 million). Following an equally bad loss of €2.6 million (US$3.5 million) the year before, its situation and future swiftly became unsustainable.
KC is owned by the Partanen family and is based in the Finnish east coast port city of Kotka. The sale of 'Kristina Katarina' brings down the curtain on the company's 30-plus year active involvement in shipping and the cruise industry.
John Pagni
