HOLIDAY firm Airtours is to sell its half share in an Italian cruise firm.

It is disposing of its holding in Costa to Carnival Corporation for £350million.

Airtours will make a profit of around £250million on the cruise line which it bought in 1997, when Costa was heavily in debt.

"The transaction represents an excellent opportunity for Airtours to realise its investment in a non-core business at a time when capacity in the cruise industry is set to increase significantly," said the firm, which was founded by David Crossland

"The transaction will leave Airtours considerably better placed to invest in business areas which provide opportunities for strong growth and which further support and enhance the group's core activities."

The disposal is conditional upon the approval of Airtours' shareholders. The transaction is also subject to competition clearance being received from the Italian, Spanish and German competition authorities.