Expedia to raise $3.2bn funding ‘to survive’

Posted on 24 April, 2020 by Spacejunkie2

Expedia has named group vice-chairman Peter Kern as new chief executive and announced moves to raise $3.2 billion in funds.

Kern has been running Expedia with chairman Barry Diller since the removal of former chief executive Mark Okerstrom in December.

The $3.2 billion in new capital will come via a $1.2 billion investment by private equity firms Apollo Global Management and Silver Lake and $2 billion in new debt.

Apollo Global Management and Silver Lake will each receive a seat on the Expedia board.

The group also announced acting chief financial officer Eric Hart will take the role permanently. Hart took over from former chief financial officer Alan Pickerill, who left alongside Okerstrom.

Expedia said it would seek government aid in countries where it could and announced the furlough of employees and reduced hours of others, initially to the end of August

The group said executive salaries would be cut by 25% and board members be paid nothing for the remainder of the year.

In February, Expedia announced the loss of 3,000 jobs, 12% of its workforce, as Diller pronounced: “We are stopping doing dumb things.”

In a statement yesterday Diller said: “We have one mandate to conserve cash, survive and use this time to reconstruct a stronger enterprise.

“We are unable to make any predictions as to when travel will rebound but emphatically believe that it will.”

The $2 billion in debt will be raised through the issue of ‘senior unsecured notes’ (bonds) and is expected to close on May 5.

In a statement, Expedia said: “These efforts are part of a comprehensive strategy to enhance Expedia Group’s financial flexibility and strengthen its liquidity position.

Kern has been a member of Expedia’s board since 2005 and vice chairman since 2018. He was chief executive of Tribune Media until September 2019 and is a managing partner of private equity firm InterMedia Partners.

Hart has been with Expedia for 11 years and chief strategy officer since November 2019. He previously ran Expedia’s CarRentals.com brand for three years of oversaw corporate strategy.

Kern said: “Between the significant steps Expedia Group continues to take to simplify the business and this new funding, we are in a better position to rise to the current challenge and come out even stronger. We understand the financial challenges ahead.”

Norwegian Cruise Line Holdings brands extend the suspension of sailings

Posted on 24 April, 2020 by Spacejunkie2

Norwegian Sky leaving the Port of Miami, photo credit Dave Jones

Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises have extended the suspension of all cruises until June 30.

The Norwegian Cruise Line Holdings brands extended the current extension from May 11 as they bid to help stem the spread of Covid-19.

The company said it will continue to work with the US Centers for Disease Control and Prevention (CDC), the federal government and global public health authorities to take “all necessary precautions” to ensure the health, safety and security of guests, crew and the communities it visits.

“We are committed to taking all appropriate actions to combat the spread of Covid-19 and, as such, have extended our global voyage suspension through June 30,” said Frank Del Rio, president and chief executive of Norwegian Cruise Line Holdings. “We continue to work closely and in partnership with the US CDC, global public health authorities and local, state and federal governments to build upon our already rigorous health and safety protocols to ensure that our brands are ready to safely resume operations with these new protocols in place.

“Our teams are working around the clock to do what is right by our loyal guests and valued travel partners and we greatly appreciate their understanding as we continue to adapt to the ever-evolving global health environment.”

Guests who are booked on voyages with embarkation dates between May 11 and June 30, 2020, on Norwegian Cruise Line, Oceania Cruises or Regent Seven Seas Cruises are asked to contact their travel agent or the cruise line for more information.

Inside the MSC Magnifica’s Journey Home with Captain Roberto Leotta

Posted on 22 April, 2020 by Spacejunkie2

From March 14 to April 20, the MSC Magnifica did not disembark any guests and sailed straight back to Marseille amid the COVID-19 crisis with Captain Roberto Leotta at the helm for the unprecedented journey.

The ship was in the middle of its world cruise, which was set to span 118 days.

“We were aware of the COVID-19 situation from the moment it became public,” said Leotta. “During the early days of the world cruise, we monitored the situation closely as it was constantly evolving. We adapted to the situation as it unfolded and followed the appropriate heightened health and safety measures.”

As the situation unfolded, Leotta said that government restrictions were remaking port calls more difficult, with the decision coming in Hobart on March 14 to no longer allow guests to disembark for safety reasons.

“By the time we reached Sydney we had technically cancelled the planned world cruise,” he said. ”It was obviously a difficult decision and we, of course, evaluated all of the options carefully.”

Heading back to Marseille, the 2010-built ship provisioned in Fremantle and Colombo.

“I think it is safe to say that this is an unprecedented situation and I am not sure that anyone has experienced anything like this before,” Leotta added, noting that the cruise home was basically treated as a cruise sailing with food, beverage and entertainment.

Leotta will stay aboard the ship for now. He went to sea in 1984, first serving on tanker ships before moving to cruise ships as a deck cadet in 1988, making the grade of captain in 2006.