IRISH CONTINENTAL Group (ICG) said yesterday that P&O European Ferries does not plan to renew its lease on the MV Pride of Bilbaoship it charters from the Dublin-based company when the lease expires in October.
The vessel has been leased to P&O since 1993.
Analysts estimated yesterday that the charter arrangement contributes between €3 million and €4 million a year to ICG’s ebitda (earnings before interest, tax, depreciation and amortisation).
P&O said it would cease operating on the Portsmouth-Bilbao route at the end of September. Its charter deal with ICG expires on October 15th.
ICG said it would “now engage in a review of best options for the vessel for 2011 and beyond”.
These comprise selling the vessel; leasing it to another ferry operator, most probably for use in the Baltics or the Mediterranean; or using it as part of its own fleet, which analysts say is highly unlikely.
ICG owns Irish Ferries, which operates passenger and cargo services between Ireland and the UK and France.
The Pride of Bilbaowas built in 1986 for Viking Line for service between Stockholm and Helsinki. It is one of the 20 largest cruise ferries of its type in the world.
The 37,583-tonne vessel can carry 2,500 passengers and 580 cars.
It has 2,373 berths in 841 cabins and can carry 62 freight units. The ship has a club, casino, two bars and three restaurants, as well as shops and a cinema.
Shares in ICG closed in Dublin unchanged yesterday at €14.60.
