In response to the continued rise in oil prices, NCL Corporation has announced an increase to its current fuel supplement. The new fuel supplement will be $9 per person per day for the first and second guests in a stateroom and $4 per person per day for any additional guests in the same stateroom, based on the guidelines below.
Individual reservations The increased fuel supplement applies only to new individual reservations made on or after May 1, 2008.
Group reservations The increased fuel supplement applies to any group reservation booked on or after May 1, 2008. The increased fuel supplement will also apply to group space held prior to May 1, 2008 without specific names and full confirming deposit by April 30, 2008.
(0) Comments (Leave a Comment)Filed under: NCL America, Norwegian Cruise Line Posted by Michael on 02/17/08
The majority of this week was dominated by just one cruise line - NCL America. Last week it was the departure of Pride of Hawai’i from the Hawai’i fleet, this week NCL America announced that Pride of Aloha was leaving the fleet too. The announcement comes ahead of a much anticipated ruling on cabotage law interpretations from US Customs and Border Patrol.
In theory, Pride of America should be remaining in Hawai’i at least through 2010 and the stories at the beginning of the week seemed to indicate that - until USAToday and the Honolulu Star Bulletin report that NCL has been hinting to Hawai’i state leaders that if the CBP ruling doesn’t go their way then Pride of America could potentially leave the islands as well…
While we understand NCL’s concerns - the uncertainty that they are injecting into the issue doesn’t help anybody. NCL’s casting doubt on their ability or desire to remain in Hawai’i for the long run makes it hard to make a confident decision about sailing on NCLAmerica.
There was some other news this week - like the lawsuit filed against various cruise lines accusing them of collusion when implementing their fuel surcharges late last year. Oceania’s Regatta was a good samaratan. Royal Caribbean will upgrade their Labadee pier to accommodate the Genesis ships, and Celebrity and Azamara will join Princess and offer weddings at sea…
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Filed under: Azamara Cruises, Celebrity Cruises, NCL America, Oceania Cruises, Podcast, Royal Caribbean International Posted by Michael on 02/11/08
Since it was such an incredibly slow news week we just couldn’t get inspired to come up with a good topic this week. As a result we were expecting that this would be a really short show.
Instead we got to talking about the new restaurants coming to Celebrity Solstice and the transfer of Pride of Hawai’i among other things and the next thing we knew we had a 50 some odd minute show… Go figure!
A simple show this week is fine - because next week we have something cool planned. You’ll just have to come back to find out about it!
(0) Comments (Leave a Comment)Filed under: Celebrity Cruises, NCL America, Podcast, The Yachts of Seabourn Posted by Michael on 02/11/08
NCL today announced the withdrawal of Pride of Aloha from the Hawai‘i market effective May 11, 2008. The ship is being transferred to Star Cruises and will be re-flagged and deployed in Asia in the summer of 2008.
The remaining year-round ship in Hawai‘i will be the larger and newer Pride of America, introduced in 2005, a vessel specifically designed and built for Hawai’i cruising. The company announced, and put on sale, Pride of America’s sailings through 2010 offering its popular inter-island cruises departing every Saturday from Honolulu.
“Pride of Aloha pioneered the new inter-island market but, as we move forward with Freestyle 2.0 to take our product to the next level across what is already the youngest fleet in the industry, we cannot justify further investment in this ship,” said Andy Stuart, NCL’s executive vice president of marketing, sales and passenger services. “Withdrawing Pride of Aloha was an extremely difficult but necessary commercial decision; however we see a strong future for the long-term flagship in Hawai‘i, Pride of America. In Pride of America, we have created a commercially successful modern U.S. Flag cruise ship home ported in Hawai‘i - the first time that has ever been achieved. With Pride of America, we are offering a high quality product, on a world class ship sailing one of the most exciting itineraries available in the industry.
“With today’s announcement of Pride of America’s itinerary through 2010, our guests and travel partners can choose a Freestyle Cruising vacation on a big, modern ship visiting all four main islands and featuring more time to explore ashore than any other cruise line sailing in Hawai‘i. In the longer term, as demand continues to grow for this premium experience, we hope to bring back our other modern purpose-built U.S.-flag ship, Pride of Hawai‘i.”
Guests booked on Pride of Aloha For guests booked on Pride of Aloha from May 11, 2008 and beyond, NCL is holding space and will offer the same cruise fare as they currently have paid on their Pride of Aloha cruise if they would like to transfer to the same week on Pride of America, departing one day earlier. In addition: -Guests will receive a $100 per person on-board credit (up to $200 per stateroom). -For guests who made their air and/or hotel arrangements through NCL, NCL will protect the rates they currently have paid and cover any air or hotel change fees. -For guests who purchased their own air, NCL will protect up to the first $100 per person of any increase in air costs and cover up to $75 per person in air change fees. -For guests who made independent hotel arrangements, NCL will cover any hotel change fees up to $25 per person.
Guests may book any other NCL cruise and receive a $100 per person on-board credit (up to $200 per stateroom) if they rebook by March 7, 2008. In addition, NCL will cover up to $75 per person in air change fees and up to $25 per person in hotel change fees. Guests may cancel their cruise and receive a full refund if NCL is notified by March 7, 2008. In addition, NCL will cover up to $75 per person in air change fees and up to $25 per person in hotel change fees. After March 7, 2008 cancellation fees will apply in accordance with NCL’s cancellation policy.
Pride of America’s deployment announced through 2010 Following a 14-day scheduled dry dock in Hawai’i from April 26, 2008 to May 10, 2008, Pride of America will sail its four main island itinerary with a change in order of ports including an overnight in Nawiliwili, Kaua’i; an afternoon cruise of the breathtaking Napali Coast; Hilo, Hawai’i; an evening sail by Mount Kilauea; Kona, Hawai’i; and an overnight in Kahului, Maui.
All of the Freestyle 2.0 enhancements will be rolled out on Pride of America during the ship’s dry-dock.
Launched in 2005, Pride of America has over 660 balcony staterooms, the broadest range of family-friendly interconnecting cabins available at sea, a choice of nine different restaurants and 12 dining options, multiple entertainment venues, three pools, extensive children’s facilities, an abundance of spacious public rooms, and the largest dedicated meeting facilities at sea. All inspired by the diverse regions of America.
Cabotage Issues Commenting on the Pride of Aloha withdrawal, NCL’s President and CEO Colin Veitch said: “Our Hawai’i business has been extraordinarily difficult, and although we have progressively established a stable operation, delivering a good product in a great destination, the overall price level in the market has been driven down, to a significant degree, by an unprecedented expansion of capacity from low-cost foreign flag ships based on the west coast operating domestic Hawai’i itineraries that the Customs Service has indicated are legally the preserve of U.S. flag ships.
“We have invested heavily in U.S. flag cruising in reliance on our nation’s cabotage laws providing a level playing field in Hawai’i. Our remaining ship, Pride of America, is generating an encouraging profit now, and we project a continued improvement in this one-ship operation as the unique nature of Hawai’i, from a cabotage standpoint, is clarified and restored. In due course, we would then expect, and hope, to be able to grow our U.S. flag business back to two profitable ships by reintroducing Pride of Hawai’i.“
(0) Comments (Leave a Comment)Filed under: NCL America Posted by Michael on 08/17/07
NCL Corporation Ltd (”NCL”), parent company of Norwegian Cruise Line and NCL America, announced today that private equity group, Apollo Management, LP (”Apollo”), has agreed to make a $1 billion cash equity investment in NCL.
The new investment, in the form of common stock alongside NCL’s existing sole shareholder, Star Cruises (”Star”), is designed to strengthen NCL’s balance sheet and its ability to continue to expand what is fast-becoming the youngest fleet in the industry, and to evolve further the company’s successful Freestyle Cruising concept first introduced in 2000.
Under the terms of the proposed investment, which includes an agreement for additional future distributions to be made directly by NCL to Star, Apollo will become 50 percent owner of NCL and will name a majority of the NCL board with certain consent rights retained by Star. Star will retain all of its existing stock in NCL and will, like Apollo, be 50 percent owner of the recapitalized company.Star Cruises Chairman and CEO Tan Sri KT Lim, welcomed the new partner and remarked on the opportunities that lie ahead: “Apollo’s significant financial commitment in NCL’s common stock means we have an equal partner who believes in the business as much as we do. This is a powerful validation of what we have achieved so far and of our vision for the future. It is also truly the start of the next - and most exciting - chapter for this great company.”
The proceeds of the Apollo investment will be used to repay existing NCL indebtedness, greatly increasing the liquidity available to fund a continuation of the dramatic new building program that has seen the introduction of eight purpose-built Freestyle Cruising ships to the fleet in just six years. The NCL-owned fleet today (excluding four chartered ships) stands at 19,740 berths, with another 15,000 berths under construction and under option, including the new Norwegian Gem due for delivery at the start of October this year.
As part of Apollo’s investment in NCL, Apollo and Star have entered into a sub- agreement relating to NCL’s U.S. flagged Hawai`i operations under the NCL America brand (”NCLA”) providing for deferred consideration to be paid to Star by NCL in the future. The sub-agreement is designed to support the business of NCLA in the near term and permit NCLA time to realize the benefits of various measures recently implemented to raise revenue yields and to lower crew turnover and payroll costs. Taken together with the pre-money valuation implied by Apollo’s $1 billion payment for 50 percent of the expanded equity, this added element of the transaction implies a total enterprise valuation of NCL of approximately $4 billion.
Completion of the transaction is expected early in Q4 2007 and is subject to customary conditions, including regulatory approval, Star Cruises shareholder approval, and Star and NCL lender consents.
The completion of the transaction will constitute a change of control under NCL’s outstanding 10 5/8% senior notes and NCL expects to make a change of control offer at 101% after completion as required under the indenture governing the notes.
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