YORKBOAT will keep on sailing. That was the definite assurance given today by the new boss of York's river passenger boat company, based below Lendal Bridge on the Ouse.

Roland Ayling, new managing director of the firm, which was bought last November by Manchester-based investment company Zeus Capital, said the staff and traditions of YorkBoat would continue. He said: "YorkBoat and the city of York are one and the same thing."

The business, complete with five modern passenger boats and 13 self-drive "red boats", plus various freehold properties and leased moorings on the banks of the Ouse, were sold by John and Denise Howard, who had built it up into a major award-winning venture in the city.

For most of his career Mr Ayling, 48, has been a hotelier in charge of luxury hostelries - his last job was as manager of the 125-bedroom de Vere Whites joint venture with Reebok stadium in Bolton, Lancashire.

Zeus Capital, after just 18 months' existence, has already bought Borrowdale Gate Hotel in Keswick and has been negotiating to buy two more hotels in the Lake District.

So why were "landlubbers" interested in a boat company? Was there any likelihood that in time either luxury apartments or even an hotel would arise on that prime riverside land, worth millions of pounds?

"Categorically not. It won't happen," said Mr Ayling. "There are 4.5 million visitors to York and the potential is too good an opportunity to let go. YorkBoat is part of the York community. The people of may not own our boats, but they do own them spiritually.

"It is a wonderful business in which everyone pays as soon as they get on to our boats. You can't get a more liquid asset than that!"

Future plans, he said, included integrating White Rose Catering, its separate catering company, into the business. This would continue to serve at functions on the firm's five passenger boats, as well as in the wider public.

Updated: 11:57 Wednesday, February 16, 2005