CANADA TO CONDITIONALLY ALLOW RETURN OF CRUISE SHIPS IN NOVEMBER

Posted on 16 July, 2021 by Spacejunkie2

Canada will allow cruise ships back into its waters starting in November as the COVID-19 pandemic fades, but they must fully comply with public health requirements that have yet to be finalized, Ottawa said on Thursday.

Earlier this year, Canada extended a ban on cruise ships until February 2022, citing the need to protect public health. Transport Minister Omar Alghabra said in a statement that the restriction would now be lifted on Nov. 1, 2021.

“We will welcome cruise ships – an important part of our tourism sector – back in Canadian waters for the 2022 season,” he said.

The news should please major operators who complained that Canada’s ban was hurting their business on the West Coast. U.S. law obliges foreign-flagged cruise ships sailing from Washington state to Alaska to make a Canadian stop.

Canada, however, has not yet lifted a ban on non-essential travel with the United States. A Canadian government official said Alghabra’s announcement would allow both countries to work on ways of safely managing the cruise sector.

“We’re working hard through our embassy, through our officials, myself, through our department, and ensuring that we maintain business as usual,” Alghabra told reporters.

He gave no indication of when the border between the United States and Canada would reopen to tourists.

Prime Minister Justin Trudeau told reporters in Montreal on Thursday that Ottawa would make an announcement on the next steps to reopening the border in the coming weeks.

A day earlier he had said it “would be catastrophic and heartbreaking to have to go back into lockdown, as some countries are now looking at with surges in the Delta variant, because we were overly eager to reopen by a few weeks.”

‘Positive Signs’ as Holland America Moving Six Ships Toward U.S.

Posted on 19 November, 2020 by Spacejunkie2

Holland America Line is preparing for a gradual restart and is said to be moving six cruise ships toward the U.S. citing positive signs and a new conversation around the return to service.

The news came in a letter sent to crew from President Gus Antorcha, reported by Crew Center, and also obtained by Cruise Industry News.

“Following in-depth discussions with the CDC, other government agencies, and medical and science authorities, we have decided to start moving six Holland America Line ships toward U.S. waters over the next several weeks to begin completing the requirements for conditional sailing,” Antorcha said in the letter sent to the crew.

The ships heading to U.S. waters are the Koningsdam, Nieuw Statendam, Nieuw Amsterdam, Westerdam, Zuiderdam, and Noordam. Holland America did not specify port information but the line has traditionally had a strong presence in the winter from Port Everglades and Tampa, which would pull from a large drive-to market.

“While there is still much to be done, this is an important first step toward our goal of resuming cruise operation,” the letter said.

“Holland America Line will continue to work with the CDC on our eventual return to guest cruise operations. We are fully aligned with the CDC on our top priorities for compliance, protecting the environment, and the health, safety, and well-being of our guests, the people in communities we touch, our crew, and shoreside employees.”

Carnival: Optimistic For Restart in the U.S. By Year’s End

Posted on 9 October, 2020 by Spacejunkie2

“At this time, we have every reason to be optimistic we will be sailing in the U.S. before year’s end,” said Arnold Donald, president and CEO of Carnival Corporation, on today’s third-quarter earnings call.

The company’s Costa Cruises brand has already returned to service with two ships in the Mediterranean, soon to be joined by a third ship, the Costa Smeralda, according to Donald. They are sailing weeklong cruises from different Italian homeports. The sister brand, AIDA, is set to launch service later this month, also in the Mediterranean, with German passengers.

Donald explained that the ships are sailing with lower occupancy levels enabling the cruise lines to test and assess their health and safety protocols.

With national brands, Donald said Carnival is ideally positioned for a phased-in return to service, as each brand can be restarted independently, and in most cases with ready access to drive-to markets.

Also, with a small percentage of the fleet entering service, for now, he said, there will be less reliance on new-to-cruise, compared to all previous growth cycles that required the brands to tap more new passengers.

In addition, as Carnival is disposing of some 18 older ships and right-sizing its shoreside organization, Donald said a leaner and more efficient company would emerge.

“All initiatives going forward will be focused on maximizing cash generation and creating shareholder value. The delivery schedules of new ships have been stretched out and there is only one new ship on order for 2024 and one for 2025. This will further reduce our capital expenditures and allow us to repay debt,” he added.

Added David Bernstein, CFO and chief accounting officer: “We are focused on assets that are cash generative, so we can pay down debt, rebuild our balance sheet and get back to investment-grade rating.

“We are working through a number of different financial scenarios, but there is a lot of uncertainty involved so it is difficult to give (financial) guidance. (However), we expect over time to build occupancy up to generate positive cash flow and reduce the cash burn. The start-up occupancy level is less than 50 per cent. Over time, once we know we have things right, we will increase occupancy, while keeping social distancing in mind as well.”

Bernstein noted that the break-even point ranges from 30 to 50 per cent occupancy for different ships.