CUNARD, one of the most prestigious names in British shipping, is sailing back home to Southampton after a gap of ten years when its ships were controlled from America.

The company's famous golden lion flag will fly over Southampton once more as Cunard brings together all of its many different departments and operations under one roof.

Although the move creates only a handful of jobs, the return of one of the city's proudest business names is an historic moment.

One of the first major undertakings to be managed by Cunard in Southampton will be the construction of its brand new vessel, Queen Elizabeth, which will enter service in the port during the autumn of 2010.

In May 1998, Cunard was acquired by the world's largest cruising empire, the Florida-based Carnival Corporation and the day-to-day running of the shipping line was switched from Southampton to Miami. Then, six years later, Cunard operations were moved to Los Angeles.

Up until last December, Cunard's global business was overseen by the offices in California but towards the end of 2007 it was decided that the shipping line should return to Southampton, the city that has been the company's main centre of maritime operations since the 1930s.

Peter Shanks, chief commercial officer for Carnival in the UK, said: "During the naming ceremony for Queen Mary 2 we told the people of Southampton that this was their ship and now we will also be able to say, to the port and city, that Cunard is your company.

"Over the past months we have been drawing together all the aspects of the Cunard operation and now all that remains for us to do is to put the finishing touches to the department that looks after the hotel operations on our ships,'' said Mr Shanks.

"At the beginning of next month everything should be in place and Cunard will be back home again.'' The change, underlining Cunard's most British of credentials, comes as Carnival UK prepares to occupy the purpose-built corporate headquarters now rising on Southampton's skyline at West Quay Road, just a short distance from the port.

Work is also gathering pace in the Eastern Docks where Associated British Ports is investing £10m in the construction of the city's fourth cruise passenger terminal that will be used by Carnival brands such as Cunard, P&O Cruises, and Princess Cruises.