Disney to Add Two Ships to Cruise Line

As expected, The Walt Disney Co. is expanding its fleet of cruise ships, more than doubling the capacity of what has proven to be a highly popular - and profitable - business.

Disney said Thursday it has signed a letter of intent with Meyer Werft shipyard of Papenburg, Germany, to negotiate a contract to build two 122,000-ton cruise liners.

The ships will each be two decks taller than the two existing Disney cruise ships, Disney Magic and Disney Wonder. Each ship will have 1,250 staterooms and are expected to be ready by 2011 and 2012.

The company has not yet determined where the ships will be docked or what routes they will travel. Its current ships are based in Florida and offer three, four and seven-night Caribbean cruises....