Norwegian Cuts Pay 20%; Moves to 4 Day Work Week

Norwegian Cruise Line

Norwegian Cruise Line is cutting pay and moving to a four-day work week for most staff starting on March 30, according to an email sent to staff members on Wednesday, and first reported by Business Insider.

The company is said to be cutting salaried employee pay by 20 percent, starting on March 30, according to the memo.

The changes will last through mid June, the memo said.

Royal Caribbean Suspends U.S. Cruises, Joining Rivals

March 13 (Reuters) – Royal Caribbean Cruises Ltd said on Friday it was suspending its cruises in the United States for 30 days, an hour after Norwegian Cruise Line Holdings Ltd said it suspended all its cruise voyages through April 11.

Earlier larger peer Carnival Corp’s Italy-based unit Costa Cruises halted its trips until April 3. Carnival’s other subsidiary Princess Cruises had suspended its voyages for two months on Thursday.

Costa Cruises accounted for 15% of Carnival’s overall capacity as of Nov. 30, offering voyages in Asia and Europe, including the Mediterranean.

Image result for ncl escape

The Princess Cruises unit has been in the spotlight after its Diamond Princess and Grand Princess ships were quarantined after they became hotbeds for coronavirus infections.

Norwegian, however, said no confirmed case of the virus was reported across its 28 ships.

Walt Disney’s Disney Cruise Line and Finland’s Viking Line have also temporarily paused operations as the global cruise industry battles cancellations in the wake of the fast-spreading virus.

The outbreak, described by the World Health Organization as a pandemic, has infected thousands in the Mediterranean countries such as Italy, where it has claimed more than 1,000 lives.

Carnival said it was checking if their guests are aged over 70 years and would deny entry to people with chronic or severe medical conditions.

Separately, credit rating agency S&P Global said it lowered the credit ratings on Carnival and its unsecured debt to ‘BBB’ from ‘A-‘, on expectations of a significant loss in revenue and cash flow in 2020.

Stocks of cruise operators are among the worst hit, with Carnival, Norwegian and Royal Caribbean down between 66% and 81% this year through Friday’s close. (Reporting by Praveen Paramasivam in Bengaluru; Editing by Sriraj Kalluvila and Krishna Chandra Eluri)

(c) Copyright Thomson Reuters 2019.

Norwegian Cruise Line Holdings Orderbook Update

Norwegian Leonardo Class Rendering
Norwegian Cruise Lines project Leonardo

Norwegian Cruise Line Holdings is introducing ten new ships between 2020 and 2027 for its three cruise brands.

Norwegian Cruise Line is poised to get six Leonardo-class newbuilds with capacity for 3,300 guests each.

Regent just took delivery of the ultra-luxury Seven Seas Splendor, with another 750-guest luxury ship following in 2023.

Oceania, the line’s upper premium brand, has two new ships on order with delivery dates in 2022 and 2025.

The company’s new ship orderbook, spanning ten ships, amounts to just under 24,000 new berths and a value of $7.5 billion, with all ships being built at Fincantieri.

NCLH Orderbook:

Cruise Line Ship Cost1 Tonnage Capacity Yard Sailing Delivery
Regent Splendor $478 54,000 750 Fincantieri World January 2020
Norwegian Unnamed $850 140,000 3,300 Fincantieri TBA TBA 2022
Oceania Unnamed $660 67,000 1,200 Fincantieri TBA TBA 2022
Regent Unnamed $545 54,000 750 Fincantieri World Q4 2023
Norwegian Unnamed $850 140,000 3,300 Fincantieri TBA TBA 2023
Norwegian Unnamed $850 140,000 3,300 Fincantieri TBA TBA 2024
Norwegian Unnamed $850 140,000 3,300 Fincantieri TBA TBA 2025
Oceania Unnamed $660 67,000 1,200 Fincantieri TBA TBA 2025
Norwegian Unnamed $850 140,000 3,300 Fincantieri TBA TBA 2026
Norwegian Unnamed $850 140,000 3,300 Fincantieri TBA TBA 2027

1. In Millions