Norwegian in financial trouble - link to NCL thread

[UPNYGuy]

Active thread on the NCL forum. Looks like NCL is in worse financial shape than possibly thought. This hit CNBC. 
 

https://www.cnbc.com/2020/05/05/norwegian-cruise-line-says-theres-substantial-doubt-about-its-ability-to-continue-as-a-going-concern.html

some of this might be journalistic sensationalism, but this might not be far off base. 

 

********** There is a very active thread on Norwegian board if you want to discuss this!

 

 

Edited May 5, 2020 by Host Carolyn

[Shynook11]

This is exactly why I filed a credit dispute for a refund.

[jas1178]

While not CCL, it would be very bad for the industry if anyone fails at this point.

[Trueblueky]

Would it be a surprise if a cruise corporation went out of business?  Or if CCL reduced the number of ships or brands?

[pe4all]

Saw this on news this a.m.  DH thinks that if they do "go out" another line will buy them up.  With our economics being in such turmoil right now who knows what will happen in the next few months.  No sailings = no business = no income.  Don't know how deep the cruise line pockets are to keep up the expenses of running cruise ships without any passengers, paying dock fees, salaries of those still working, etc. 

[Joebucks]

14 hours ago, Shynook11 said:

This is exactly why I filed a credit dispute for a refund.

 

I can't imagine why NCL is in trouble.

 

Forced to halt all operations. Scapegoat of all problems. Customers whos cash flow is more important.

[Honolulu Blue]

14 hours ago, Trueblueky said:

Would it be a surprise if a cruise corporation went out of business?  Or if CCL reduced the number of ships or brands?

 

I wouldn't be surprised by any of it.

 

1 hour ago, pe4all said:

Saw this on news this a.m.  DH thinks that if they do "go out" another line will buy them up.  With our economics being in such turmoil right now who knows what will happen in the next few months.  No sailings = no business = no income.  Don't know how deep the cruise line pockets are to keep up the expenses of running cruise ships without any passengers, paying dock fees, salaries of those still working, etc. 

 

The big three publicly held cruise lines (NCLH, RCL, CCL) are suspected to be holding enough cash to be able to survive for about a year with very limited revenue.  They're all still looking for the green stuff.  I think they'll all be OK until the end of this year; if they still can't cruise by New Year's Day, then all bets are off.

[ladylyn915]

Just saw this online.

 

https://www.travelweekly.com/Cruise-Travel/NCL-Holdings-raising-more-than-2-billion

 

Lyn

[ProgRockCruiser]

Hmm. Weird that NCL would sound the alarms about future viability, only to secure financing the next day or so.  Wonder if it was a "shake the tree" false alarm to get someone to finally budge.

 

I had been contemplating whether CCL Corp might try to scoop up NCL if there was an opportunity to do so.

 

Moot point now, perhaps.

[Bookbug53]

"Norwegian also announcing a series of financial transactions that if completed would provide enough liquidity to fund operations even if its cruises remain suspended for over 12 months."

 

We should just stop playing the 'what if' games and see where they are 12 months from now. Not my cruise line of choice anyway. 

[Host Carolyn]

Link above to discussion on NCL board

[jakeT]

When you pay your money the cruise line as airlines used that money that week.  Knowing that money will always be coming in.   With no sailing, no one is buying cruises.   So no money is coming in.  I love cruising but I will have to see How the first cruises go before I will be committing to go cruising.

what Entertainment being offered, how food is being handled.   Can’t wear a mask in a pool   Ect.ect.  

Edited May 6, 2020 by jakeT

[MagnoliaBlossom]

If you go to the NCL board you can read that this morning it was announced that they secured an additional huge amount of cash that they say will carry them through 12 months at least.


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Upcoming:
CCL Dream 8/22/2020. Western Caribbean
NCL Breakaway 1/10/2021 Western Caribbean
CCL Dream 5/16/2021 Western Caribbean
NCL Star 6/27/2021 - Scotland, Norway & Iceland

[Bowman1]

While chapter 11 bankruptcy may happen, I do not see one of the 3 major lines going out of business (it is just a matter of weathering the storm)

 

If the pause in sailings continues long term, the cruise lines will probably look to diversify into cargo transport or other marine markets as necessary to generate revenue