Oceania Buying Ships?

[JeffElizabeth]

With some lines selling ships, do you think Oceania might use the opportunity to expand their line? Or just wait it out until we see the future of cruising post Covid-19? I do wonder if smaller ships might become more popular.  

[LHT28]

I think they will wait to see if they can survive

They already have 2 ships on order   so i would think they may be  a priority if they survive this pandemic

 

Oceania  ships are still smaller than most lines

JMO

[marieps]

20 minutes ago, LHT28 said:

I think they will wait to see if they can survive

They already have 2 ships on order   so i would think they may be  a priority if they survive this pandemic

 

Oceania  ships are still smaller than most lines

JMO

 

20 minutes ago, LHT28 said:

I think they will wait to see if they can survive

They already have 2 ships on order   so i would think they may be  a priority if they survive this pandemic

 

Oceania  ships are still smaller than most lines

JMO

I don't see a used vessel out there that appeals.  Buying R class was one thing.  Ancient Fantasy class are just that...ancient.  Potential M class from Celebrity or Vision class from RCL are too big.  IMHO.

[pinotlover]

The new Allura Class is the direction they need to be going, as/when they have the cash flow in the future to pay for them. Buying and refurbishing another R ship or other antiquated ship would be STUPID! 

[Flatbush Flyer]

 

2 hours ago, JeffElizabeth said:

With some lines selling ships, do you think Oceania might use the opportunity to expand their line? Or just wait it out until we see the future of cruising post Covid-19? I do wonder if smaller ships might become more popular.  

As it did originally with its two design/build "O" ships, Oceania is applying industry lessons learned (particularly as regards their passenger demographic) in the design/build of the two new Allura Class ships - also weighing in at under 1200 passengers (original plan was for launches in 2022 and 2025).

And, with the extensive NEXT makeovers for their four smaller ships, I do expect that the <700 passenger "R" ships will be around for years to come.

As for adding more than the two Allura ships, I think we can all agree that's not going to happen anytime soon.

[Paulchili]

2 hours ago, JeffElizabeth said:

With some lines selling ships, do you think Oceania might use the opportunity to expand their line? Or just wait it out until we see the future of cruising post Covid-19? I do wonder if smaller ships might become more popular.  

What could possibly even make you think of such a thing. Would you be buying an old ship (or even another home) if you were possibly on the edge of bankruptcy?

We are not even sure if O or how many other lines will make it through this disaster.

With their commitment to 2 new ships and very little cash, I am sure it is the very last thing on their mind - unless they were irresponsible or crazy (and I don't believe that they are either of those).

[Classiccruiser777]

Carnival Corp. announced retiring at least six ships across the brands, most likely to be scrapped.

[royallondon]

All cruise lines are on their knees and have a recently acquired big bag of debt to service and repay.  That’s before they resume sailing.  “Operation survival” will be before “operation Acquisition”.  Just my view.

 

Regards

[deadzone1003]

All cruiselines are having what businesses call a negative cash-flow, unless you have a large cash reserve or a large line of credit, it is the quickest way to bankruptcy.  If you can't pay your bills, you go out of business.  The cruiselines' revenue comes from their operations of their cruises which are on hold.  Basically, they have no cash coming in, but still have cash going out.  Virtually all of their assets are cruiseships, but they are only good for cruises or as scrap, they can't be converted to anything else that I can think of.  They know they can be profitable.  It's not a dying business (unless the virus is here to stay with no vaccine, cure, or prophylactic ever being developed).  They know it is a profitable business if they can get over this temporary situation.  Buying ships now doesn't make any sense as it will require additional capital which they do not have.  The cruiselines know they have to get back into operations even if it is at a lower capacity.  When they do return to operations, they do not have to be profitable - they need to have a positive cash flow.  Of course, profitability is the long-term goal, but the short-term goal will be positive cash flow where money is flowing into the company to pay for the non-operational bills.  I don't know if they can be profitable at 50%, but the cruiselines probably believe that they will have a positive cash flow at that capacity which allows them to survive until a vaccine, cure or prophylactic can be developed.  

 

[pinotlover]

I wonder if the new A ships are in fact still on order, or have those orders been cancelled or delayed?

[Noxequifans]

10 hours ago, royallondon said:

All cruise lines are on their knees and have a recently acquired big bag of debt to service and repay.  That’s before they resume sailing.  “Operation survival” will be before “operation Acquisition”.  Just my view.

 

Regards

Agree ++

[Shawnino]

The time to buy is when there's blood in the streets (even when it's your own). This would be a very interesting time to add to a fleet if one could swing it.

[JeffElizabeth]

On 6/23/2020 at 11:40 AM, Shawnino said:

The time to buy is when there's blood in the streets (even when it's your own). This would be a very interesting time to add to a fleet if one could swing it.

That is what I am thinking. If it isn't Oceania,  there has to be a very rich guy sitting on a pile of cash and earning less than one percent on his money.  Create a new line out of these surplus ships? Maybe even China based.  Billions of potential customers. 

[RJB]

17 minutes ago, JeffElizabeth said:

That is what I am thinking. If it isn't Oceania,  there has to be a very rich guy sitting on a pile of cash and earning less than one percent on his money.  Create a new line out of these surplus ships? Maybe even China based.  Billions of potential customers. 

Just what Mr. FDR did a number of years ago to start Oceania.  Be intresting.

[deadzone1003]

Outsiders can do it, but the cruiselines themselves are bleeding cash.  I don't think any of the cruiselines have any cash reserves to buy any more ships.  No bank will lend them cash to do it (too risky).  An outsider with cash can join a cruiseline to do it, but the cruiseline will probably have to give up equity in the company to the outsider in order to do it, not that great of an option for a cruiseline.  Let's see if an outsider turns up.