Norwegian Cruise Line
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Headquarters in Miami-Dade County, Florida
|Headquarters||Miami, Florida, United States|
|Harry Sommer (CEO)|
|Revenue||$6.06 billion (2018)|
|Parent||Norwegian Cruise Line Holdings|
Norwegian Cruise Line (NCL), also known in short as Norwegian, is a cruise line founded in 1966, incorporated in Bermuda and headquartered in Miami. It is the third-largest cruise line in the world by passengers, controlling about 8.7% of the total worldwide share of the cruise market by passengers as of 2018[update]. It is wholly owned by parent company Norwegian Cruise Line Holdings.
History [ edit ]
The cruise line was founded as Norwegian Caribbean Line in 1966 by the Norwegian Knut Kloster and the Israeli Ted Arison, with the 8,666-ton, 140-m cruise ship/car ferry, Sunward, which in 1966 operated as a car ferry between Southampton UK and Gibraltar, for that one short season only. Arison soon left to form Carnival Cruise Lines, while Kloster acquired additional ships for Caribbean service. Norwegian pioneered many firsts in the cruise industry, such as the first Out Island Cruise,[further explanation needed] the first combined air-sea program (marketed as "Cloud 9 Cruises"), which combined low-cost air fares with the cruise, and first shipline to develop new ports in the Caribbean, such as Ocho Rios in Jamaica.
Norwegians's second and third ship, the Starward and Skyward, were the first newly built ships designed for the cruise line. Like the original Sunward of 1966, they had the capability to carry automobiles through a well-concealed stern door. Later, this area was turned into cabins and a two-deck movie theater, later to be used as a casino. Norwegian was responsible for many of the cruise innovations that have now become standard throughout the industry.
Norwegian made headlines with the acquisition of the France in 1979, rebuilding the liner as a cruise ship and renaming her Norway. The conversion cost more than US$100 million. The Norway was at the time significantly larger than any existing cruise ship, and exploited the extra space available by adding a greater-than-usual variety of onboard entertainment. Her success paved the way for a new era of giant cruise ships. A boiler explosion in May 2003 forced Norwegian to withdraw the Norway from service, later being laid up in Bremerhaven, Germany, until 2005, when she was towed to Port Klang Malaysia with the claimed intent to use her as an anchored casino or slow overnight casino cruises on her remaining boilers. Instead, she was sold for scrap and renamed the Blue Lady and later beached at Alang, Gujarat, India, in August 2006 with claims that she had not been cleaned of toxic materials. On September 11, 2007, the India Supreme Court issued an order permitting her to be broken up at Alang, despite the presence of large amounts of hazardous asbestos remaining on board.
Norwegian has expanded to other parts of the world, including Alaska, Europe, Bermuda, and Hawaii. Between 1997 and 2001, the company also operated cruises out of Australia under the name Norwegian Capricorn Line.
Norwegian acquired Orient Lines in 1998. After talks, Norwegian itself was acquired in 2000 by Star Cruises, a subsidiary of Genting Hong Kong, part of the Malaysia-based Genting Group. In 2007, Star Cruises sold Orient Line's Marco Polo to Transocean Tours, and Orient Lines ceased operations in early 2008.
In 2002, Norwegian purchased the half-complete hull of the first Project America ship, at the time under construction at Ingalls Shipbuilding in Pascagoula, Mississippi, US, which was towed to Germany to be completed at the Lloyd Werft shipyard. Subsequently, Norwegian acquired the rights to move two ships built entirely outside the United States under the US flag, making it possible to start a US-flagged operation under the brand name NCL America. In 2003, the company announced the purchase of the American-flagged liners United States and Independence. In their July 2007 fiscal report, Norwegian noted the sale of the Independence, renamed SS Oceanic some time before. On July 1, 2010, the SS United States Conservancy struck a deal to buy the SS United States for $3 million. On February 1, 2011, the ownership was officially transferred to the SS United States Conservancy.
Subsequently, Norwegian reported in February 2008 that the Pride of Aloha, one of the two remaining NCL America ships, would be withdrawn from service in May of the same year. Initial reports suggested she would be transferred to the fleet of Star Cruises, but it was later announced that she would return to the Norwegian international fleet as the Norwegian Sky, while the Norwegian Majesty and Norwegian Dream would be sold to Louis Cruise Lines. The sale of the Norwegian Dream was subsequently cancelled. The Norwegian Dream became the Superstar Gemini for Star Cruises, from January 2013.
On June 1, 2012, Norwegian announced the signing of a memorandum of agreement to exercise its option to purchase Norwegian Sky. The purchase price was roughly $260 million, financing being provided by the seller.
On October 17, 2012, Meyer Werft and Norwegian reached a second agreement for the construction of two new vessels, slated for delivery in October 2015 and 2017, respectively. The project was under the code name "Breakaway Plus Class", with the vessels expected to be 163,000 gross tons and hold 4,200 passengers. The Norwegian Escape entered service in November 2015 and weighs 164,600 tons. Two more vessels were ordered on July 14, 2014, and they will enter service in 2018 and 2019 and will be slightly bigger at 164,000 GT.
Initial public offering and reorganisation [ edit ]
Following an initial public offering and corporate reorganisation in 2013, Norwegian was made a wholly owned subsidiary of Norwegian Cruise Line Holdings (NCLH), while Norwegian's previous owners Genting Hong Kong, Apollo Management and TPG Capital exchanged their stakes in Norwegian for shares in the newly listed NCLH.
On 11 March 2014, Norwegian announced that it was cancelling all future port calls in Tunisia following an incident wherein the country forbade Israeli nationals from disembarking.
In December 2016, Norwegian Cruise Line announced it had reached an agreement with the Cuban government. In May 2017, the Norwegian Sky was the first Norwegian Cruise Line vessel to ever visit Cuba. The Norwegian Sky makes weekly trips from Miami to Havana, making Norwegian the only line sailing that route weekly.
On May 2, 2017, Norwegian Cruise Line announced a new PortMiami Terminal. The construction began on May 1, 2018, and is scheduled for completion by fall 2019. Between 2022 and 2025, Fincantieri will deliver four ships and in July 2018, the company announced an order for two more Project Leonardo ships. They are expected to enter service in 2026 and 2027. In December 2018, Norwegian revealed plans to build a new pier in Alaska's Icy Strait Point.
COVID-19 pandemic [ edit ]
In March 2020, the Miami New Times reported that managers at Norwegian had prepared a set of responses intended to convince customers wary of the ongoing COVID-19 pandemic to book cruises, including "blatantly false" claims that the coronavirus "can only survive in cold temperatures, so the Caribbean is a fantastic choice for your next cruise", that "[s]cientists and medical professionals have confirmed that the warm weather of the spring will be the end of the [c]oronavirus", and that the virus "cannot live in the amazingly warm and tropical temperatures that your cruise will be sailing to."
On March 14, 2020, the U.S. Centers for Disease Control and Prevention (CDC) issued a No Sail Order for cruise ships. Concurrently Norwegian Cruise Line Holdings implemented a suspension of all cruise voyages across its three brands (Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises), with all 28 ships in port or at anchor and all passengers disembarked by March 28, 2020. This suspension has subsequently been extended through June 30, 2020.:S-1
On May 5, 2020, in a filing with the Securities and Exchange Commission, Norwegian Cruise Line Holdings (NCLH) said there is “substantial doubt” about its ability to continue as a “going concern” as it faces a liquidity crisis over the next twelve months.:S-6
By the next day, NCLH was able to secure over $2.2 billion of additional liquidity in oversubscribed capital markets transactions, but at a price: (1) $400 million in common stock at $11 per share; (2) $675 million in senior secured notes due 2024 at a 12.25% interest rate; (3) $750 million in exchangeable notes due 2024 at 6% interest rate, and exchangeable at any time into common shares at $13.75; and (4) $400 million private investment from a global private equity firm. On May 7, 2020, NCLH CEO declared that the company has secured enough liquidity to get through potentially 18 months of zero revenues and may resume cruising later in 2020.
In anticipation of sailing again, Norwegian is implementing new health and safety measures, including installing H13 HEPA air filters. The company is also working with the CDC and the new color-coding system to indicate each ship's COVID-19 status, and to repatriate Norwegian crews still stuck aboard their vessel.
Fleet [ edit ]
As of December 2020[update], Norwegian Cruise Line operates 17 cruise ships, with six on order. It has also previously owned or operated 19 other ships. All its ships are flagged to the Bahamas, except for the Pride of America, which operates cruises within the United States and is flagged and registered in the US, as well as being owned by a US-registered subsidiary, NCL America.
Current ships [ edit ]
|Ship||Built||In service for NCL||Last
|Norwegian Spirit||1998||2004–present||January 2020||75,904||Bahamas||Previously SuperStar Leo|
|2019||77,104||Bahamas||Originally constructed as Costa Olympia but sold to NCL during construction, sailed under NCL America as Pride of Aloha from 2004 to 2008|
|Norwegian Star||2001||2001–present||2018||91,740||Bahamas||Originally ordered as Superstar Libra|
|Norwegian Dawn||2002||2002–present||June 2016||92,250||Bahamas||Originally ordered as SuperStar Scorpio|
|Pride of America class|
|Pride of America||2005||2005–present||March 2016||80,439||United States||The only US flagged cruise ship in the world|
|Norwegian Jewel||2005||2005–present||November 2018||93,502||Bahamas|
|Norwegian Jade||2006||2006–present||March 2017||93,558||Bahamas||Formerly Pride Of Hawaii, reconstructed in 2008 as the Norwegian Jade|
|Norwegian Pearl||2006||2006–present||February 2017||93,530||Bahamas|
|Norwegian Gem||2007||2007–present||November 2015||93,530||Bahamas|
|Norwegian Epic||2010||2010–present||October 2015||155,873||Bahamas||The only ship in her class|
|Norwegian Breakaway||2013||2013–present||April 2018||145,655||Bahamas|
|Norwegian Getaway||2014||2014–present||June 2019||145,655||Bahamas|
|Breakaway Plus class|
|Norwegian Joy||2017||2017–present||February 2019||167,725||Bahamas||Originally designed for China in 2017, but refurbished and transferred to the American Market in 2019.|
|Norwegian Encore||2019||2019–present||None||169,145||Bahamas||9th largest cruise ship in the world after Royal Caribbean International's Spectrum of the Seas.|
Future ships [ edit ]
|Ship||Inaugural Voyage||Gross tonnage||Flag||Notes||Image|
Previous Ships [ edit ]
|Status as of 2021||Image|
|Sunward||1966||1966–1976||10,558||Scrapped in 2004 at Chittagong, Bangladesh.|
|Starward||1968||1968–1995||15,781||Scrapped in 2018 at Alang, India.|
|Skyward||1969||1969–1991||15,653||Since 2000 Leisure World for New Century Cruise Lines.|
|Southward||1971||1971–1994||16,710||Scrapped in 2013 at Aliaga, Turkey.|
|Sunward II||1971||1977–1991||14,194||Scrapped in 2014 at Aliaga, Turkey.|
|Norway||1961||1979–2003||76,049||Scrapped in 2008 at Alang, India.|
|Seaward / Norwegian Sea||1988||1988–2005||42,285||Previously SuperStar Libra. Now used as hotel ship for workers at MV Werften.|
|Westward||1972||1991–1993||28,613||Since 1996 Black Watch for Fred. Olsen Cruise Lines.|
|28,551||Since 2005 Boudicca for Fred. Olsen Cruise Lines.|
|Dreamward / Norwegian Dream||1992||1992–2008||50,764||Since 2012 SuperStar Gemini for Star Cruises.|
|Windward / Norwegian Wind||1993||1993–2007||51,309||Since 2007 SuperStar Aquarius for Star Cruises.|
|Leeward||1980||1995–1999||25,611||Since 2007 Cristal for Louis Cruise Lines.|
|43,537||Since 2008 Balmoral for Fred. Olsen Cruise Lines.|
|Norwegian Star||1973||1997–1998||28,518||Since 2004 MS Albatros for Phoenix Reisen.|
|Norwegian Dynasty||1993||1997–1999||24,344||Since 2001 Braemar for Fred. Olsen Cruise Lines.|
|Norwegian Majesty||1992||1997–2009||41,662||Since 2018 Crown Iris for Mano Maritime.|
Ships which never entered service for NCL [ edit ]
|Status as of 2021||Image|
|Independence||1951||Never entered service||26,658||Wrecked and scrapped in 2010 off Alang, India.|
|SS United States||1952||Never entered service||38,216||Laid up in Philadelphia, Pennsylvania.|
|Seaward||1972||Never entered service||17,042||Sank in 2016 near the port of Laem Chabang, Thailand.|
Private islands [ edit ]
References [ edit ]
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Gander, Kashmira (February 11, 2020). "Could Coronavirus Really Be Killed by Hot Weather? Scientists Weigh In". Newsweek. Retrieved March 12, 2020.
Dr. Ravinder Kanda, senior lecturer in evolutionary genomics at Oxford Brookes University, U,.K., told Newsweek: "Little is known about the seasonal dynamics of this particular virus—we cannot take it for granted that the warmer weather will simply drive the virus out of existence."
Gunia, Amy (February 28, 2020). "Will Warmer Weather Stop the Spread of the Coronavirus? Don't Count on It, Say Experts". Time. Retrieved March 12, 2020.
Dr. Nancy Messionnier of the Centers for Disease Control and Prevention, warned against assuming the number of cases will slow as the weather warms. “I think it’s premature to assume that,” she said during a call with reporters on Feb. 12. “We haven’t been through even a single year with this pathogen.”
Farber, Madeline (February 20, 2020). "Will the coronavirus die out as the weather warms?". Fox News. Retrieved March 12, 2020.
"We hope that the gradual spring will help this virus recede, but our crystal ball is not very clear. The new coronavirus is a respiratory virus, and we know respiratory viruses are often seasonal, but not always. For example, influenza (flu) tends to be seasonal in the U.S., but in other parts of the world, it exists year-round. Scientists don’t fully understand why even though we have been studying [the] flu for many years,” Dr. William Schaffner, the medical director of the National Foundation for Infectious Diseases, told Fox News in an email.
Norwegian Cruise Line Holdings Ltd. "Preliminary prospectus supplement: $350,000,000 ordinary shares". nclhltdinvestor.com: SEC filings. p. see page S-6. Retrieved May 5, 2020.
The factors described above, in particular the suspension of cruise voyages and decline in advanced bookings, as well as debt maturities and other obligations over the next year, have raised substantial doubt about the Company’s ability to continue as a going concern, as the Company does not have sufficient liquidity to meet its obligations over the next twelve months, assuming no additional financing or other proactive measures.
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[ edit ]
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