Report: Finnish government rejects financing for third Oasis-class ship

Posted on 27 November, 2012 by Spacejunkie2

By Tom Stieghorst

The Finnish government rejected a financing package for shipyard STX Finland to build a third Oasis-class ship, according to a report in Finnish newspaper Turun Sanomat.

The paper said the shipyard in Turku and Royal Caribbean Cruises Ltd. will try to renegotiate an acceptable financing package.

Royal Caribbean, which had the Oasis and Allure of the Seas ships built in Turku, confirmed in an earnings call last month that it was negotiating for a third 5,400-passenger ship.

Oasis cost $1.4 billion or about $220,000 per berth when it was ordered in 2006. Royal Caribbean said the new ship could be ordered at a lower cost per berth than the Oasis or sister ship the Allure of the Seas, which cost $1.2 billion.

Outside of the Oct. 25 earnings call, Royal has declined to comment on the negotiations.

A second Finnish paper, Yle Uutiset, quoted former Turku shipyard CEO Martin Saarikangas, as saying he was confident the deal would get done.

“I’d take the silence as a positive signal,” he said to the paper. “If history is correct, there is sure to be something pending. The situation is not hopeless.”
Yle Uutiset said Finnish Economic Minister Jan Free Mount and Defense Minister Carl Haglund refused to comment on the financing of the project.

Costa accident hurts Royal Caribbean’s booking levels

Posted on 4 February, 2012 by Spacejunkie2

Costa accident hurts Royal Caribbean’s booking levels

By Donna Tunney

The Costa Concordia accident on Jan. 13 has had a “significant impact on bookings in the near term,” said Royal Caribbean Cruises Ltd. in its 2011 financial report on Thursday.

RCCL’s U.S. brands are Royal Caribbean International, Celebrity and Azamara.

“Overall booking volumes from North America have fallen by low to mid-teen percentages versus same time last year for the last few weeks. In Europe, where media coverage hasbeen more extensive, the decline has been higher, though results vary significantly by country. In aggregate, the company’s other markets, including Asia-Pacific and Latin America, are down slightly,” the company stated.

The impact on bookings has been greatest in the first three quarters and “wanes as the year progresses,” the company said.

RCCL, the world’s second-largest cruise operator after Carnival Corp., said there has been “no material change” in cancellation activity, but that new bookings have been affected.

Carnival Corp., in a filing to the Securities and Exchange Commission on Jan. 30, reported that booking levels across its brands, not including Costa, had dropped by a “mid-teen” percentage.

RCCL’s net income for 2011 was $607.4 million, up from $515.7 million in 2010.

Revenue rose to $7.5 billion, up from $6.8 billion.

For the fourth quarter, net income was $36.6 million, up from $31.9 million in 2010. Revenue increased to $1.8 billion, up from $1.6 billion. Net yields increased 3.5%.

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Medical emergency delays Royal Caribbean cruise

Posted on 28 January, 2012 by Spacejunkie2

Medical emergency delays Royal Caribbean cruise

By Donna Tunney

Royal Caribbean International’s Explorer of the Seas will arrive a day late to Cape Liberty, its homeport in Bayonne, N.J., on Jan. 28 due to a medical emergency onboard the 1,185-passenger ship.

According to the cruise line, an ill passenger required urgent medical treatment in a hospital, so the ship altered course to its closest port of call, San Juan.

The U.S. Coast Guard evacuated the sick passenger Jan. 25, and the ship is now headed back to New Jersey.

The delayed arrival will impact the itinerary of the cruise departing Jan. 28. The ship will spend Jan. 29 and 30 at sea, and a planned call at Labadee, Royal Caribbean’s private destination on Haiti, has been canceled.