Carnival Corp: On Track to Slowly Remove Older Ships

Adonia in her Fathom livery during a 2016 turnaround day in Miami
Adona (Fathom) is set to join Azamara Cruise.

Carnival Corporation remains on pace to remove one to two older, less efficient ships from its fleet on an annual basis following two recent transactions.

Carnival announced earlier in the week the P&O Adonia has been sold to Azamara for a March 2018 delivery. The Adonia joins the neoClassica, which will leave the Costa fleet around the same time.

Newer ships are not only generally larger, but burn less fuel and generate higher ticket pricing and onboard revenue.

The 2001-built Adonia is one of the smallest ships in the Carnival fleet, at 684 passengers. The neoClassica is also on the smaller side, with capacity for 1,308 passengers, having been built in 1991.

The sales are part of the company’s broader corporate strategy to remove older, less efficient ships, while moderating capacity growth in line with demand, according to executives.

“We remain on track with our strategically enhancement program as we continue to deliver more efficient vessels, while replacing less efficient ones over time,” said Arnold Donald, president and CEO of Carnival Corporation, on the company’s third quarter earnings call.

Last year followed a similar beat as the 1988-built Pacific Pearl left the P&O Australia fleet for a new home with Cruise & Maritime Voyages. Her capacity was replaced by the much newer 1997-built Dawn Princess, which was transferred to P&O Australia and renamed the Pacific Explorer.

Image result for pacific explorer

“As demonstrated by our April sale of Pacific Pearl, as well as our recently announced sale of Costa neoClassica, expected to leave the fleet next April, and our P&O Adonia, expected to leave the fleet next March. We remain on pace with our historical average of removing one to two ships per year,” Donald added.

In 2014, the company moved a number of ships off its books as the Voyager, which was operating for Costa was sold to Bohai Ferry.The Celebration went to Bahamas Paradise after her stint with Iberocruceros. The Grand Holiday, another Ibero ship, was sold to Cruise & Maritime Voyages, and finally, the Ocean Princess was sold to Oceania, a deal in which Carnival even provided financing.

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Cruise & Maritime Voyages adds new vessel to fleet

Cruise & Maritime Voyages adds new vessel to fleetThe 600-passenger ship Astor has been acquired by Cruise & Maritime Voyages.

The vessel, which was built in 1986, was refurbished four years ago and has been bought from bankrupt German owner, Premicon Hochseekreuzfahrt.

CMV, which had been chartering the 21,000 tonne vessel, is reported to be in the final negotiations of the purchase agreement.

Astor will return to Australia for its 2015-16 season, which will be its third year based at Fremantle.

The season will include an Asian cruise from Fremantle to Hong Kong with stops in Singapore, Malaysia, Brunei, Sabah, Philippines, Vietnam and Indonesia.

Astor originally joined the CMV fleet in December 2013 under a charter with ship management services provided by CMV’s majority shareholder, Global Maritime Group, which has acquired the vessel.

Astor will operate under long-term charter to CMV.

Christian Verhounig, chief executive and chairman of CMV, said: “The acquisition of the Astor is another important milestone in the strategic development of the group’s presence in the international markets.

“Astor has a fine pedigree and provides an important smaller ship premium option within our cruise portfolio,”

CMV commercial director Chris Coates said: “Astor has added 22,000 passengers to our global carryings and since her introduction has proved a firm favourite with high levels of customer satisfaction and repeat business being achieved.

“Next year we have programmed a special eight-night ex-London Tilbury round Britain cruise before Astor starts her German market season and forward booking levels are very encouraging”.

Astor arrived in Fremantle on Saturday following a 38 night re-positioning voyage from Tilbury and will continue to operate cruises under the CMV brand for the Australian market during the southern hemisphere summer season.

The ship will then reposition to Europe in April 2015 to operate a summer season of ex-Kiel and Bremerhaven sailings for the German market under the TransOcean brand.

Cruise & Maritime Voyages expands fleet

Cruise & Maritime Voyages will add the Grand Holiday cruise ship to its fleet next spring and will change the vessel’s name to Magellan.

The 29-year-old ship currently sails for Ibero Cruises, a line owned by Carnival Corp. It entered service in 1985 as the Carnival Holiday.

At 1,250 passengers, Magellan will become Cruise & Maritime Voyages’ largest ship. It will operate adults-only cruises (age 16 and over), its first being a 12-night sailing to Iceland and the Faroes from the Port of Tilbury near London on March 15.

U.K.-based Cruise & Maritime Voyages currently has two ships, the 800-passenger Marco Polo and the 600-pasenger Astor. The 550-passenger Azores also will join the fleet in 2015.

John Dennis, the cruise line’s vice president of sales and marketing, said the Magellan “will be very well suited to our U.S. and Canadian guests sailing from the U.K. throughout Northern Europe.”

“Having already sold 65% of capacity for next year, we remain confident that Magellan will help satisfy the growing demand for our product,” he said.