Coast guards say they were alerted yesterday night by a passenger on the Hasan Reis saying that the boat was in danger, but high winds prevented rescue boats immediately taking to the water.
The passengers in the ship were rescued by a Dutch cargo ship about seven hours after the call that alerted the coast guard. The ship's captain reported he took 241 people on board and that the Italy-bound Hasan Reis sank.
Authorities say they are waiting for the cargo ship's imminent arrival at Corfu harbour. A helicopter search has found no survivors at sea.