Issue #

119

|

Volume

7

June 23, 2020

In this Issue

Here are some of the news articles we are following:

  • Pullmantur Files for Reorganization
  • Cruise industry announces US sailing suspension extended until Sept. 15
  • The end of tourism?
  • Rule changes force ACL-American Cruise Lines to cancel June 20 sailing
  • 'Feels very unfair': Families say cruise lines are using a 'technicality' to refuse refunds
  • Royal Caribbean’s payment vendor Wirecard reports $2.1 billion missing cash
  • Virgin Voyages Unveils New Health Protocols
  • Governments and Banks Provide Cruise Lines with Financial Lifeline


Cover Image by:

Pullmantur Files for Reorganization

“After placing ships in cold lay-up, Cruises Investment Holding and Royal Caribbean Group said they have filed for the reorganization of their Pullmantur Cruceros joint venture under the terms of Spanish insolvency laws. Cruises Investment Holding owns 51 percent of the Spanish cruise line, while Royal Caribbean owns the remaining 49 percent. It could mark the end of the Pullmantur brand as reports from crew aboard the company's ships said that they are removing equipment and other fixtures. According to a statement, Pullmantur's board of directors determined that the unprecedented impact of the COVID-19 pandemic made the action necessary. Pullmantur management notified employees of the decision after filings were made with Spanish authorities. 

Continue Reading

 

Cruise industry announces US sailing suspension extended until Sept. 15

“Cruise Lines International Association, the leading trade organization for the global ocean-going cruise industry, says its member cruise lines have voluntarily extended the suspension of U.S. cruise operations until Sept. 15 amid coronavirus concerns. The Center for Disease Control and Prevention's current "no-sail order" is scheduled to expire on July 24, but no extension has yet been announced. CLIA's member lines carry 95% of the world's ocean-going cruisers. The new order will apply to all CLIA member ships that the current CDC order applies to – vessels that can carry 250 or more passengers. "Although we had hoped that cruise activity in the U.S. could resume as soon as possible after that date, it is increasingly clear that more time will be needed to resolve barriers to resumption in the United States," Bari Golin-Blaugrund, senior director for strategic communications told USA TODAY, noting the organization informed the CDC of its continued voluntary suspension.” 

Continue Reading

 

The end of tourism?

“Of all the calamities that befell tourists as the coronavirus took hold, those involving cruise ships stood apart. Contagion at sea inspired a special horror, as pleasure palaces turned into prison hulks, and rumours of infection on board spread between fetid cabins via WhatsApp. Trapped in close proximity to their fellow passengers, holidaymakers experienced the distress of being both victims and agents of infection, as a succession of ports refused them entry. When it began, the deadly situation at sea was seen as a freakish outgrowth of what many still thought of as a Chinese problem. The first ship to suffer a major outbreak was the Diamond Princess. By mid-February, 355 cases had been confirmed aboard, and the ship was held being in quarantine in the port of Yokohama. At the time, the ship accounted for more than half of reported cases outside China. Fourteen passengers on the Diamond Princess would die of the virus.”

Continue Reading

 

Rule changes force ACL-American Cruise Lines to cancel June 20 sailing

“ACL-American Cruise Lines, which planned to operate the first sailing in the United States since mid-March, announced that a last-minute change in Oregon’s reopening plan had "scuttled the voyage." The small-ship company had planned to operate the June 20 sailing on the 184-passenger American Song on the Snake and Columbia rivers in the Pacific Northwest but the voyage was cancelled the evening of June 18.  In a statement, the company said that Oregon’s Phased Reopening Plan had been modified to exclude all overnight river sailings, even aboard ships as small as theirs. The Coronavirus (COVID-19) presented unprecedented challenges for community and state leaders across the country and ACL was very empathetic to the situation in Oregon.” 

Continue Reading

 

'Feels very unfair': Families say cruise lines are using a 'technicality' to refuse refunds

“Thousands of cruisers' plans were dashed earlier this year when coronavirus shut down the cruise industry.  The Centers for Disease Control and Prevention issued – and later extended – a no-sail order, which is now set to expire on July 24, though many lines have extended their sailing suspensions past that date. In fact, on Friday, Cruise Lines International Association, the leading trade organization for the global ocean-going cruise industry, said its member cruise lines are voluntarily extending the suspension of U.S. cruise operations until Sept. 15. While many cruisers have opted for refunds and are waiting to get their money back, some are not likely to see cash back at any point due to cruise line cancellation policies. Cruisers from Seattle were "trying to be good citizens" by canceling their voyage, another canceled less than an hour before refunds became an option and another was unable to board due to health issues, but cruise lines aren't budging on many refund cases.” 

Continue Reading….

 

Royal Caribbean’s payment vendor Wirecard reports $2.1 billion missing cash

“The company that Royal Caribbean Cruises Ltd. uses to process crew payments, Wirecard, said Thursday that auditors cannot locate $2.1 billion in cash on its balance sheet, raising concerns among cruise employees. The Munich, Germany-based fintech company has been plagued by allegations of financial mismanagement and wrongdoing for the last few years. On Thursday, Wirecard suspended its chief operating officer after announcing the $2.1 billion shortfall. Crew members who have Wirecard accounts use debit cards to access their Royal Caribbean paychecks and are worried their funds may be affected. Wirecard’s shares plummeted more than 60% Thursday. Royal Caribbean spokesperson Jonathon Fishman said crew pay is not at risk. “We are aware of the situation,” Fishman said via email. “We used Wirecard only to provide limited administrative services.” ” 

Continue Reading

 

Costa Victoria reported sold to San Giorgio del Porto

“According to news reports in Europe, the 1996-built Costa Victoria is being sold to San Giorgio del Porto shipyard in Genoa. A Costa Cruises spokesman said the information is not official, and the shipyard did not comment.  The reports closely follow Carnival Corp. & plc's announcement that it would be accelerating planned ship sales, with six vessels expected to exit the fleet in the next 90 days.”  

Continue Reading

 

Governments and Banks Provide Cruise Lines with Financial Lifeline

“Faced with the unprecedented total shutdown of their operations, generating no income and with large liabilities in the form of passenger deposits for canceled cruises, the cruise industry has had to scramble to develop methods to strengthen their balance sheets and improve liquidity.”  

Continue Reading

Disclaimer: The views expressed in the articles above are those of the authors' and do not necessarily represent or reflect the views of this e-Newsletter


Having trouble reading?

Download this Issue

Issue #

119

|

Volume

7

June 23, 2020

In this Issue

Here are some of the news articles we are following:

  • Pullmantur Files for Reorganization
  • Cruise industry announces US sailing suspension extended until Sept. 15
  • The end of tourism?
  • Rule changes force ACL-American Cruise Lines to cancel June 20 sailing
  • 'Feels very unfair': Families say cruise lines are using a 'technicality' to refuse refunds
  • Royal Caribbean’s payment vendor Wirecard reports $2.1 billion missing cash
  • Virgin Voyages Unveils New Health Protocols
  • Governments and Banks Provide Cruise Lines with Financial Lifeline


Cover Image by:

Pullmantur Files for Reorganization

“After placing ships in cold lay-up, Cruises Investment Holding and Royal Caribbean Group said they have filed for the reorganization of their Pullmantur Cruceros joint venture under the terms of Spanish insolvency laws. Cruises Investment Holding owns 51 percent of the Spanish cruise line, while Royal Caribbean owns the remaining 49 percent. It could mark the end of the Pullmantur brand as reports from crew aboard the company's ships said that they are removing equipment and other fixtures. According to a statement, Pullmantur's board of directors determined that the unprecedented impact of the COVID-19 pandemic made the action necessary. Pullmantur management notified employees of the decision after filings were made with Spanish authorities. 

Continue Reading

 

Cruise industry announces US sailing suspension extended until Sept. 15

“Cruise Lines International Association, the leading trade organization for the global ocean-going cruise industry, says its member cruise lines have voluntarily extended the suspension of U.S. cruise operations until Sept. 15 amid coronavirus concerns. The Center for Disease Control and Prevention's current "no-sail order" is scheduled to expire on July 24, but no extension has yet been announced. CLIA's member lines carry 95% of the world's ocean-going cruisers. The new order will apply to all CLIA member ships that the current CDC order applies to – vessels that can carry 250 or more passengers. "Although we had hoped that cruise activity in the U.S. could resume as soon as possible after that date, it is increasingly clear that more time will be needed to resolve barriers to resumption in the United States," Bari Golin-Blaugrund, senior director for strategic communications told USA TODAY, noting the organization informed the CDC of its continued voluntary suspension.” 

Continue Reading

 

The end of tourism?

“Of all the calamities that befell tourists as the coronavirus took hold, those involving cruise ships stood apart. Contagion at sea inspired a special horror, as pleasure palaces turned into prison hulks, and rumours of infection on board spread between fetid cabins via WhatsApp. Trapped in close proximity to their fellow passengers, holidaymakers experienced the distress of being both victims and agents of infection, as a succession of ports refused them entry. When it began, the deadly situation at sea was seen as a freakish outgrowth of what many still thought of as a Chinese problem. The first ship to suffer a major outbreak was the Diamond Princess. By mid-February, 355 cases had been confirmed aboard, and the ship was held being in quarantine in the port of Yokohama. At the time, the ship accounted for more than half of reported cases outside China. Fourteen passengers on the Diamond Princess would die of the virus.”

Continue Reading

 

Rule changes force ACL-American Cruise Lines to cancel June 20 sailing

“ACL-American Cruise Lines, which planned to operate the first sailing in the United States since mid-March, announced that a last-minute change in Oregon’s reopening plan had "scuttled the voyage." The small-ship company had planned to operate the June 20 sailing on the 184-passenger American Song on the Snake and Columbia rivers in the Pacific Northwest but the voyage was cancelled the evening of June 18.  In a statement, the company said that Oregon’s Phased Reopening Plan had been modified to exclude all overnight river sailings, even aboard ships as small as theirs. The Coronavirus (COVID-19) presented unprecedented challenges for community and state leaders across the country and ACL was very empathetic to the situation in Oregon.” 

Continue Reading

 

'Feels very unfair': Families say cruise lines are using a 'technicality' to refuse refunds

“Thousands of cruisers' plans were dashed earlier this year when coronavirus shut down the cruise industry.  The Centers for Disease Control and Prevention issued – and later extended – a no-sail order, which is now set to expire on July 24, though many lines have extended their sailing suspensions past that date. In fact, on Friday, Cruise Lines International Association, the leading trade organization for the global ocean-going cruise industry, said its member cruise lines are voluntarily extending the suspension of U.S. cruise operations until Sept. 15. While many cruisers have opted for refunds and are waiting to get their money back, some are not likely to see cash back at any point due to cruise line cancellation policies. Cruisers from Seattle were "trying to be good citizens" by canceling their voyage, another canceled less than an hour before refunds became an option and another was unable to board due to health issues, but cruise lines aren't budging on many refund cases.” 

Continue Reading….

 

Royal Caribbean’s payment vendor Wirecard reports $2.1 billion missing cash

“The company that Royal Caribbean Cruises Ltd. uses to process crew payments, Wirecard, said Thursday that auditors cannot locate $2.1 billion in cash on its balance sheet, raising concerns among cruise employees. The Munich, Germany-based fintech company has been plagued by allegations of financial mismanagement and wrongdoing for the last few years. On Thursday, Wirecard suspended its chief operating officer after announcing the $2.1 billion shortfall. Crew members who have Wirecard accounts use debit cards to access their Royal Caribbean paychecks and are worried their funds may be affected. Wirecard’s shares plummeted more than 60% Thursday. Royal Caribbean spokesperson Jonathon Fishman said crew pay is not at risk. “We are aware of the situation,” Fishman said via email. “We used Wirecard only to provide limited administrative services.” ” 

Continue Reading

 

Costa Victoria reported sold to San Giorgio del Porto

“According to news reports in Europe, the 1996-built Costa Victoria is being sold to San Giorgio del Porto shipyard in Genoa. A Costa Cruises spokesman said the information is not official, and the shipyard did not comment.  The reports closely follow Carnival Corp. & plc's announcement that it would be accelerating planned ship sales, with six vessels expected to exit the fleet in the next 90 days.”  

Continue Reading

 

Governments and Banks Provide Cruise Lines with Financial Lifeline

“Faced with the unprecedented total shutdown of their operations, generating no income and with large liabilities in the form of passenger deposits for canceled cruises, the cruise industry has had to scramble to develop methods to strengthen their balance sheets and improve liquidity.”  

Continue Reading

Disclaimer: The views expressed in the articles above are those of the authors' and do not necessarily represent or reflect the views of this e-Newsletter


Having trouble reading?

Download this Issue

June 23, 2020

Pullmantur Files for Reorganization

Having trouble reading?

Download this Issue
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