August cruise resumption played down by Carnival Corporation chief

How Carnival Corporation is bringing people together

Hopes of an August 1 restart of Carnival Cruise Line sailings have been played down by the boss of the company’s parent company.

Carnival Corporation president and chief executive Arnold Donald described the fallout from Covid-19 as “devastating”.

Ships would only sail when “it will be no greater risk, or even lower risk, than other forms of social gathering”.

Carnival Cruise Line announced a month ago plans to resume services from three US ports from the beginning of August at a time when other operations were being cancelled.

But Donald told The Telegraph that the August 1 date should not be taken as concrete as the situation is “constantly evolving and changing”.

He said: “Those we didn’t cancel [was] in hope that we would be able to cruise at that time and the ships would be positioned properly to honour the cruise, so on and so forth.

“We’re not trying to predict when we’ll open up but we’re hopeful that we’ll be able to. But it’s obviously dependent on what’s in the best interest of public health, not about the cruise but about broad social gathering… if people are in restaurants, hotels, airport terminals and subway stations, if a social gathering is happening, then it’s a condition for the cruise.

“But if we’re still in a state of highly constrained social gathering then it’s not the right situation. So we’ll see where society is at that point.

“We’re aware that people are anxious to get their economies going again, people are definitely anxious to cruise.

“We continue to get bookings and so on. So we’re anxious to go, too. But we only want to do it when the time is right so I think that there is a broader societal metric that we have to look at – we can’t just look wholly at cruise.”

His comments follow UK brand P&O Cruises further cancelling sailings until mid-October.

Donald added: “Our highest responsibility and our top priorities are, and they remain, compliance, environmental protection and the health and safety and wellbeing of our guests, our crew and the people and the places we go,” he said.

“So I want people to know that we will do everything to make certain that they are not taking a far greater risk by being on a cruise than other forms of social gathering – we don’t want that, we’re not going to let that happen. It will be no greater risk or even lower risk than other forms of social gathering.”

Looking forward, he said: “I don’t think there will be any issue filling the ships initially because the reality is that there’s not going to be that many ships and that many itineraries, [and] there will be plenty of people wanting to cruise.

“Over time, we’re going to eventually need to get back to where we were which was attracting people who haven’t cruised before.

“That job has been made, short-term, more difficult because people who haven’t cruised are hearing lots of stories and read stuff in the news, and now in their mind, they have another reason not to cruise.

“We’re going to have to, over time, chip away at whatever myth they happen to hold about a cruise, and help them see that that’s not the case.”

Princess Cruises abandons summer sailings

Regal Princess Cruise - Ship Review - Photos & Departure Ports on ...

Worldwide coronavirus travel restrictions have forced Princess Cruises to abandon sailings for the remaining summer season.

The line, at the centre of controversy over Covid-19 outbreaks on a number of ships, has extended its pause in global operations from June 30 – the date new ship Enchanted Princess had been due to be named in Southampton.

The delivery of the new vessel was previously delayed with the Carnival Corporation brand now cancelling its five-ship programme in Europe this summer on Enchanted Princess, Regal Princess, Sky Princess, Crown Princess and Island Princess as part of the new wave of suspended sailings.

Other cruises cancelled until the end of the summer season include:

All remaining Alaska cruises on Emerald Princess and Ruby Princess

Summer Caribbean cruises and all Canada and New England cruises on Caribbean Princess and Sky Princess

Summer to autumn cruises departing from Japan on Diamond Princess

Australia-based cruises on Sapphire Princess and Sea Princess until August

July cruises sailing from Taiwan on Majestic Princess

Autumn cruises sailing to Hawaii and French Polynesia on Pacific Princess through to November

Princess originally announced a voluntary pause in operations for two months, affecting departures between March 12 and May 10. That was then extended in April through to June 30 before yesterday’s announcement.

The line made the “extremely difficult” decision to cancel select cruises through the end of the 2020 summer season due to reduced flight availability, the closure of cruise ports in regions around the world and “other factors impacting international travel”.

Princess pledged to protect travel agent commissions on bookings for cancelled cruises that were paid in full, “in recognition of the critical role they play in the cruise line’s business and success”.

Refunds are being offered but must be requested via an online form by June 15 or customers will receive refundable future cruise credits.

People who have booked and paid for the newly cancelled cruises have the option to receive a future cruise credit plus an additional bonus credit equal to 25% of the fare.

Princess will double the deposit, providing a refundable future cruise credit, for those who have not paid in full for the money currently on deposit plus a matching bonus FCC that can be used on any voyage until May 1, 2022.

The matching bonus FCC will not exceed the base cruise fare amount of the currently booked cruise and will have a minimum value of £100 per person.

President Jan Swartz said: “As the world is still preparing to resume travel, it is with much disappointment that we announce an extension of our pause of global ship operations and the cancellation of cruise holidays for our loyal guests.

“Among other disruptions, airlines have limited their flight availability and many popular cruise ports are closed.

“It saddens us to think about the impact on the livelihood of our teammates, business partners and the communities we visit.”

Norwegian Cruise Line Flags ‘Going Concern’ Over Ability to Stay Afloat

Norwegian Jade photo credit Dave Jones

Norwegian Cruise Line Holdings Ltd., the world’s third-largest cruise operator, raised doubts about its ability to keep running as a business on Tuesday, the first in the sector to signal it may succumb to the coronavirus crisis.

The company’s shares slumped about 20% as it also launched a $1.6 billion offering of shares and bonds in a scramble to raise money, and announced a $400 million investment in a subsidiary from a private equity firm.

Norwegian Cruise and rivals Carnival Corp and Royal Caribbean Cruises have been among the most high-profile victims of the pandemic after deadly outbreaks on some cruise ships led to extended port quarantines in Japan and California.

Norwegian, which has suspended its sailings through June 30, has not yet announced a relaunch date. On Monday Carnival said it plans to resume some cruises beginning Aug. 1, pending continued efforts to coordinate with government officials.

The cruise industry was left out of a $2.3 trillion U.S. stimulus package for troubled companies as the major players are all incorporated outside the United States.

“COVID-19 has had, and is expected to continue to have, a significant impact on our financial condition and operations, which adversely affects our ability to obtain acceptable financing,” Norwegian said, also flagging substantial doubt about its ability to continue as a “going concern.”

The company said that as of April 24, advanced bookings for the remainder of the year were “meaningfully lower than the prior year, with pricing down mid-single digits.” Norwegian’s shares have lost almost 80% of their market value this year.

The Miami-headquartered company faces class-action lawsuits alleging that it made false and misleading statements to the market and customers about COVID-19 and its impact on its business – allegations it says are without merit.

In March, the Florida Attorney General announced an investigation related to Norwegian’s marketing to customers during the coronavirus outbreak, based on allegations it downplayed the severity and highly contagious nature of the virus in an effort to sell cruises.

Other attorneys general and governmental agencies are conducting similar investigations, according to the company.

Norwegian said it does not have sufficient liquidity to meet its obligations over the next 12 months.

Since the start of the crisis, the company has borrowed $1.55 billion under credit facilities. At the end of last year, it had about $6 billion of total long-term debt obligations and cash and cash equivalents of $252.9 million.

A subsidiary of Norwegian Cruise got a $400 million investment from consumer-focused private equity firm L Catterton on Tuesday. It had been in talks with several private equity firms.

Shares of Carnival were down 4.3% and shares of Royal Caribbean were down 5.6% on Tuesday. (Reporting by Helen Coster in New York and Ankur Banerjee and Nivedita Balu in Bengaluru; Editing by Saumyadeb Chakrabarty, Sweta Singh and Tom Brown)