Cruise line goes bankrupt, sinking its Hawaii cruises

Vacationers bound for Hawaii cruises have been left high and dry after American Classic Voyages declared bankruptcy and halted its cruises last week.

The 1,200-passenger Patriot and 1,100-passenger Independence stopped sailing last week. The ships had offered weekly cruises among the Hawaiian islands.

Protecting yourself :: Pay with a credit card. Under federal fair-credit laws, if travelers don't receive a trip they may be able to dispute charges through credit-card companies. :: Don't pay for trips too far in advance. Right now, it's a buyers' market; the more time to assess a company's financial health, the better. :: Buy locally. Dealing with a local company or travel agent gives more recourse. :: Consider buying trip insurance, but be aware that many policies have, since Sept. 11, excluded company defaults. :: Comparison-shop by checking the Web site www.insuremytrip.com, which details major travel-insurance companies' coverage and prices.

The company also ran a small cruise ship in the Pacific Northwest on the Columbia and Snake rivers. Those voyages have ceased.

"The tragic events of Sept. 11 dealt a devastating blow to our business that has made it impossible to continue our full operations," said Phil Calian, the CEO of American Classic Voyages.

In the four weeks after the terrorist attacks, the company said, its bookings declined 50 percent and its cancellations increased 30 percent. The bankruptcy follows the sudden shutdown last month of the Renaissance cruise line. It, too, was severely affected by the travel slowdown after the Sept. 11 attacks.

American Classic's filing for Chapter 11 bankruptcy protection put 2,100 employees out of work and may leave vacationers who've paid for cruises in a financial lurch.

The company is not giving refunds. It said travelers who have paid for a cruise or made a deposit need to work with their travel agents and seek refunds through their credit-card companies or through insurance companies if they bought trip-cancellation insurance.

Travelers who paid for an American Classic cruise by check or cash will need to seek a refund with other creditors through the U.S. Bankruptcy Court for the District of Delaware (the address and claim particulars will be posted on the American Classic Voyages Web site, www.amcv.com). However, filing for bankruptcy gives a company protection from creditors while it reorganizes, and individual travelers may be very low on the list.

Some information on the bankruptcy is posted on the American Classic Web site. There's also a phone line with a brief, recorded announcement: 800-856-9904.

American Classic had four divisions: American Hawaii Cruises, United States Line, Delta Queen Steamboat Co. and Delta Queen Coastal Voyages.

Four of its five ships that offered river and coastal voyages in the mainland United States are no longer sailing, including the 161-passenger Columbia Queen, which offered eight-day trips along the Columbia and Snake rivers. Only the Delta Queen steamboat, the flagship and historic core of the company, will continue its Mississippi River cruises.

The company, one of the few U.S.-flagged cruise lines (most cruise lines are registered overseas, which exempts them from some U.S. laws), had expanded rapidly in recent years and was in financial trouble even before the widespread drop in travel that followed the terrorist attacks.

American Classic also was building two new 1,900-passenger ships due to sail in Hawaii. The Miami-based company said it hopes to continue construction.

Kristin Jackson can be contacted at 206-464-2271. E-mail: kjackson@seattletimes.com.