And it will be replaced by the newer and larger Nordic Empress on the Bermuda route as of the 1999 summer season.

Royal Caribbean Cruises Ltd. announced yesterday that it has entered into an agreement to sell the 1,400 passenger cruise ship to British leisure company Airtours Plc for approximately $95 million.

However it will lease the Song of America and operate it until March, 1999.

But the vessel will conclude its Bermuda operation this year, said Tourism director Gary Phillips.

"The sale will have no impact on Bermuda,'' he reassured.

Mr. Phillips said the Department was informed that the Song of America would be replaced by the Nordic Empress in 1999.

RCCL reported that the ship would complete its summer 1998 Bermuda season then resume winter 7-night cruises from Los Angeles to the Mexican Riviera.

Its final cruise will be a 14-night Panama Canal repositioning voyage from Los Angeles to Miami on February 28 of next year.

The 37,584 ton Song of America was built in 1982 and underwent a full refurbishment in 1994. It operates in the Caribbean during the winter and sailed to Bermuda during the summer.

It has a capacity for 1,414 passengers and carries a compliment of 525 crew.

In comparison, the Nordic Empress is 48,563 tons with a compliment of 685 crew. It was built in 1990 and can carry 1,606 passengers. It also boasts some of the most comprehensive conference and seminar facilities afloat.

RCCL chairman and chief executive Richard Fain said: " Song of America's debut in 1982 introduced a new class of cruise ship with expanded capacity and larger public areas.

"She created many wonderful memories for hundreds of thousands of guests during her 17 years of service in the Caribbean, Bermuda and Mexico.'' RCCL is selling ships while it awaits construction of seven new vessels. It recently purchased Celebrity Cruise Lines which it operates in conjunction with its original line.

This is part of the current trend for lines to expand their fleets with vessels featuring more amenities in anticipation of greater consumer spending on leisure activities in the future.

Mr. Fain said: "The vessels sale is an excellent business opportunity and reflects a continuation of our strategic policy to modernise our fleet during this time of rapid expansion.'' The Miami-based company previously sold two vessels, Song of Norway and former Bermuda visitor Nordic Prince to Airtours, a firm based in Manchester, UK, which owns travel agencies, tour operators, hotels, a charter airline and other cruise ships.