The Tyne-built Coronia cost $40m in 1973

The Caronia was built by Swan Hunter at the company's Wallsend yard at a cost of $40m and launched in 1973.

Cunard have sold the 24,000-ton vessel to over-50s holiday company Saga.

The 668-passenger ship will complete her 2004 season with Cunard before starting cruises with Saga in 2005.

The Caronia, which 627 feet long, has nine decks and a crew of 370, entered service as the Vistafjord and was bought by Cunard in 1983.

She was renamed Caronia in 1999 becoming the third Cunard ship to bear the name.

Saga chairman Roger De Haan said the vessel will undergo a major refit when she adopts the company's colours.

He added: "Demand for Saga Cruises has been growing every year, outstripping the capacity we have available.

"The introduction of the new ship will significantly increase our capacity, enabling many more Saga customers to enjoy the classic cruise ambience which has proved so popular aboard the Saga Rose."

Although losing Caronia, Cunard has two new ships coming into service soon.

The 150,000-ton Queen Mary 2, the world's largest and most expensive cruise liner, will leave Southampton on her maiden voyage in January 2004.

Then, in April 2005, the 85,000-ton Queen Victoria will enter service.