One of Bermuda's new cruise lines for 2000 could become part of the massive Carnival Cruise Lines if a takeover bid is successful.

Talks are reported to have been held between Princess owners P&O Cruises and Carnival Corporation, about a possible takeover of the Princess line.

Next year, Princess starts a schedule to Bermuda, replacing the current route followed by the Horizon . The 650-berth Pacific Princess has a contract until 2002 and is expected to call at Dockyard and Hamilton on its weekly visits from New York, between April and October.

Just last weekend, Carnival's Inspiration made its first visit to Bermuda.

Carnival has 45 ships under different brands and Princess operates nine vessels. Both companies have plans for new vessels and a merger could create a huge fleet of 68 ships with 100,000 berths.

Carnival played down the reports. Although admitting talks have taken place, it denied an $11 billion bid was made. Princess Cruises refused to comment.

POSSIBLE AIR CANADA MERGER FLY Possible Air Canada merger Meanwhile, another of Bermuda's travel partners could also find itself taken over by a conglomerate.

Air Canada and Canadian Airlines are the subject of a $3.8 billion bid by Onex Corporation.

The company, if it is successful, aims to merge the two rival companies to create a single national airline for Canada.

But Air Canada, which operates daily Bermuda flights to and from Toronto, and a weekly service from Halifax, Nova Scotia, is resisting the move.

A spokesman confirmed to The Royal Gazette that a proposal had been received but added that a shareholders' rights plan had been revealed, to lure shareholders away from the Onex offer.