Birka axes jobs to trim costs
MARIEHAMN 18 December – Birka Cruises, part of the Finnish short cruise and freight ferry group Birka Line, is to axe 27 jobs on its 34,758-gt cruise vessel Birka Paradise to trim costs. Starting early next year, the ship’s cabins will be cleaned up during turn around in Stockholm by contracted shore-based personnel rather than the ship’s own staff. The company said in late October it wants to save between euro2.5M-3.0M (up to $3.9M) a year by streamlining its administration, marketing and on board operations. The number of passengers increased by 27% in the nine months to 30 September and yields rose 3%, but this has not been enough to improve the financial performance of Birka Paradise as expected, which has forced the company to seek cost savings. The group made a 3Q06 pre-tax profit of euro1.24M, an increase from euro1.08M in the same period a year earlier. The company has forecast tough trading conditions in the Swedish short cruise market, while its six freight ferries have staged a stable performance.
Etiquetas: cruise market, cruises