American Classic selling riverboats for $3.75 million

Bankrupt American Classic Voyages Co. has signed a letter of intent to sell most assets of its subsidiaries Delta Queen Steamboat Co., Great River Cruise Line and Great Ocean Cruise Line to WI-DQSC, a Delaware company affiliated with Chicago investment firm Waveland Investments.

The subsidiaries' assets, primarily riverboats Delta Queen and Mississippi Queen, are being purchased for $3.75 million, American Classic said in a filing with the Securities and Exchange Commission. Part of the deal allows WI-DQSC to purchase additional vessels by Dec. 31, 2003, for $500,000 each.

The letter of intent has been approved by the Bankruptcy Court, the filing says. American Classic filed for Chapter 11 bankruptcy protection in October and halted the Hawaii cruises it ran on the ships SS Independence and ms Patriot.

Continental severs America West alliance

Phoenix >> America West Airlines said larger rival Continental Airlines Inc. broke off a seven-year ticket-selling alliance the same day the smaller carrier adopted lower fares designed to draw last-minute travelers.

"They are disciplining America West for cutting their fares -- Continental is slapping their hands," said Terry Trippler, who monitors airline fares and rules on the terrytrippler.com Web site. "I'll bet the rent on that one."

Continental told the No. 8 U.S. carrier in a letter that the "code-sharing" alliance allowing the partners to book tickets on each other's flights will end April 26, America West said. An accord on frequent-flier benefits and airport clubs will end Sept. 24. Fifth-largest carrier Continental declined to comment.

America West on Monday cut fares as much as 70 percent on tickets bought shortly before travel and dropped a required Saturday night stay to lure more last-minute passengers -- a main source of airline revenue.