Virgin Cruises seeks dismissal of Veitch lawsuit

Virgin Cruises has asked a federal court to dismiss a lawsuit filed in March that alleges it misappropriated the basics of its cruise strategy from Colin Veitch, a former cruise line CEO turned consultant.

In a motion filed June 1, Virgin argues that any agreement between Veitch’s consulting firm and Virgin Management USA falls short of a working partnership that could form the basis of a lawsuit.

In addition, the response says communications between the two parties indicated that a preliminary agreement on how income would be allocated between the partners was subject to later revision. In filing suit, Veitch said that Virgin unilaterally revised the financial terms of the partnership once it realize the potential for profits. At that point, the partnership fell apart, the lawsuit said.

Virgin also asks that the Veitch lawsuit be dismissed because it names a number of Virgin entities as defendants but fails to say what misconduct is attributable to each defendant.

Virgin, which is associated with Richard Branson’s Virgin Group, said in December it will enter the cruise business by building two new “world-class cruise ships.”

The Veitch lawsuit contends that the business outlined by Virgin was based on a plan for “ultra ships” that he presented to Virgin in 2011.

Veitch was Norwegian Cruise Line’s CEO from 2000 to 2008.

Renderings Leaked Of New Ship For Virgin Cruises

The cruise industry can hardly keep a secret anymore and today we learned even cruise lines that don’t technically exist aren’t exempt.

virgin cruisesVirgin Cruises, Richard Branson’s new cruise line, is set to make waves by 2019 and promises to deliver a cruise experience not yet offered by any other cruise line. Today, the cruise industry has been granted a peek into Branson’s plans thanks to a lawsuit filed against Virgin Cruises by Colin Veitch, the former President and CEO of Norwegian Cruise Line. Veitch, a former partner of Branson, claims the Virgin Group stole his plans for a “Virgin style” cruise line.

The lawsuit, which has now been made public, shares detailed renderings of ships that could potentially sail for the Virgin fleet. The designs leaked through the lawsuit show a red hulled ship sporting a unique bow design, a split superstructure similar to Royal Caribbean’s Oasis of the Seas, and even a skydiving simulator similar to the one found aboard yet another Royal Caribbean ship, Quantum of the Seas.

virgin 2The renderings, while undated, would appear to share similarities with many modern cruise ships sailing today, notably with the Royal Caribbean ships mentioned prior.

The new Virgin Cruises brand states they will debut two new ships focused on offering a high end, yet mainstream, cruise experience to cruise passengers. While Virgin has been successful with this unique approach in other industries, Virgin may find difficulty in cornering a market that has already been captured by cruise lines such as Norwegian, Royal Caribbean, and Celebrity.

Virgin in ‘final throes’ of negotiating deal for two cruise ships

Virgin Group is weeks away from signing an order for two new cruise ships worth several billion dollars.

Virgin founder Sir Richard Branson boss is to commission the construction of two large vessels as part of ambitious plans to enter the burgeoning cruise sector.

He revealed the move in an interview with The Telegraph as Virgin Trains took over the running of the East Coast train line between London and Edinburgh.

The ships are likely to be built in a German or Italian shipyard and will take four to five years to complete, at a cost of about $1.7 billion.

“We’re in the final throes of those negotiations,” Sir Richard said.

Financial backing for Virgin Cruises, which will be based in Miami, has been secured from private equity firm Bain Capital.

Tom McAlpine, part of the management team that founded Disney Cruise Line in 1996, has been appointed to head the new Virgin cruise venture.