Windstar Sold

[SeattleJ]

Holland America selling Windstar line for $100M

 

Puget Sound Business Journal (Seattle) - 2:28 PM PST Thursday, February 22, 2007

 

Seattle-based cruise and tour company Holland America Line has sold its Windstar Cruises unit to Ambassadors International Inc. of Newport Beach, Calif.

Under the terms of the agreement, Ambassadors will pay $100 million for Windstar Cruises -- $19 million in cash, $60 million in seller financing and the assumption of working capital deficit of $21 million.

The seller financing will be paid over 10 years at 7 percent interest and collateralized the Windstar's three-ship fleet -- the 312-passenger Wind Surf and the 148-passenger sister ships Wind Star and Wind Spirit.

The three ships are all sail yachts outfitted with engines that sail in such areas as the Mediterranean Sea and the Caribbean Sea.

The deal has not yet been finalized and is subject to approval by the Federal Trade Commission.

[mlleach]

I read that this morning. Wonder if that will be good or bad. There goes my stockholder on-board credit.

ML

[shirlr]

I can almost assure you this will be bad news for all of us who have loved Wind Star. There are two things I can almost guarantee. Maybe not right away, but as soon as Majestic takes over. One, the prices will skyrocket. That's what Majestic did with Delta Queen. The fares for their whole fleet are totally unrealistic and uncompetitive. Two, Majestic won't last. Trust me on this one. The ships need a major infusion of cash for updating and remodeling. I can't see it happening. Sadly, 17 years since my first one, I've taken my last Wind Star cruise.

 

It was wonderful while it lasted.

[lovecruisingtoo]

If you look at the business description for Ambassadors International, they focus on corp. incentive events. Specifically, it states:

 

Ambassadors International, Inc. operates as a cruise, marine, insurance, and travel and event management company in the United States. The company engages in the development, marketing, and management of performance improvement programs, as well as provides event services. Its event services include hotel reservation, registration, and other services for conventions, tradeshows, and large specialty events.

 

I think this spells the end to Windstar as we know it.

[Host Walt]

I can almost assure you this will be bad news for all of us who have loved Wind Star. There are two things I can almost guarantee. Maybe not right away, but as soon as Majestic takes over. One, the prices will skyrocket. That's what Majestic did with Delta Queen. The fares for their whole fleet are totally unrealistic and uncompetitive. Two, Majestic won't last. Trust me on this one. The ships need a major infusion of cash for updating and remodeling. I can't see it happening. Sadly, 17 years since my first one, I've taken my last Wind Star cruise.

 

It was wonderful while it lasted.

My opinion...while I understand your point quite well, I hope the Carnival top dogs keep a close eye on Majestic management as the structured slow transition takes place and jumps in to reconsider the deal if/when things start going bad.

 

Carnival PLC is acutely aware of how reputation damaging it could be if it is seen by the HAL/Seaborn loyalists as a possible future circumstance.

 

Let's hope that things go well with Majesty and that the success of the current fleet will result in a replacement for the WindSong and the addition of other similar ships and with it a bunch of new, imaginitive itineraries. (I'd love to sail down the Amazon in a Windstar ship, for example.)

["Wandering Wino's&quo]

I think this may answer the question I have had in relation to the 2008 Foremast Cruises. They are not published because "things are a changing" and while I find change often to be for the good, some how I don't think that will be the case for Windstar. I really would love to be wrong.

[Pudgesmom]

So, so sad.

 

It wasn't broke. I guess it just didn't make enough money.

 

Beth

[MGC]

If you look at the business description for Ambassadors International, they focus on corp. incentive events. Specifically, it states:

 

Ambassadors International, Inc. operates as a cruise, marine, insurance, and travel and event management company in the United States. The company engages in the development, marketing, and management of performance improvement programs, as well as provides event services. Its event services include hotel reservation, registration, and other services for conventions, tradeshows, and large specialty events.

 

I think this spells the end to Windstar as we know it.

 

My first thought when I read the description of Ambassadors International last night was that they may be looking at these ships as a new venue for specialty events. The cruise immediately before the one I was on in December was a privately-chartered 'event'. I have to wonder if that's going to become more common with this company. I'd love to be wrong.

[surfklutz]

My opinion...while I understand your point quite well, I hope the Carnival top dogs keep a close eye on Majestic management as the structured slow transition takes place and jumps in to reconsider the deal if/when things start going bad.

 

Carnival PLC is acutely aware of how reputation damaging it could be if it is seen by the HAL/Seaborn loyalists as a possible future circumstance.

 

Let's hope that things go well with Majesty and that the success of the current fleet will result in a replacement for the WindSong and the addition of other similar ships and with it a bunch of new, imaginitive itineraries. (I'd love to sail down the Amazon in a Windstar ship, for example.)

 

The real question is - once the sale is made - will Carnival Corporation really care? I believe that they will try and transition their Windstar clients into the new Seabourn builds. And I believe they will try and distance themselves completely from Majestic Management. I don't think the whole thing bodes well for keeping anything the same - and I question whether they will go ahead with the extensive renovations that Carn. Corp had planned.

[caledonian]

My wife and I are taking our first Windstar cruise 7/30/07 Athens to Istanbul. Final payment on this trip is not due until 3/1 and we are within the cancelation timeframe. For all you experienced cruisers out there, which we are not, do you think we should cancel this trip and book with another company? Or maybe do what we usually do, stay on land. Any thoughts or insight is appreciated.

[shirlr]

Even in light of this disappointing development, I'd still go. I took this cruise, actually the reverse - Istanbul to Athens - in 2005 and it was one of the best trips I've ever been on. The itinerary is so fantastic that even if the shipboard experience is somewhat not up to par you'll still have an incredible trip. But, I'll bet that they will try hard to keep things going for a while so you should be ok. When Majesty takes over completely, that's another story. I don't think anyone knows when that will be, but I wouldn't book a a cruise for next year. I'm never booking Windstar again.

 

While it is true that Carnival is financing this deal, so they could resume ownership if anything happens, I don't think they will have any impact on how the ships are run after Majesty takes over. You can expect big changes, and not pleasant ones. Like the price to go up.

 

Let us know how things went when you get back.

[lovecruisingtoo]

In the short term, I don't see any changes. The Spirit will still undergo the retrofit during the trans-atlantic cruise.

 

However, once the FTC makes the formal approval, HAL will give complete control over to the new company. That is when you will see things change. I suspect that Ambassadors International will focus on incentive cruises and leave the past Windstar passengers high and dry.

 

I agree with other posters that I would not book any cruise for next year. We need to see what A.I. will do.

[steamboats]

I wouldn´t be too worried about Windstar. David Giersdorf was with HAL and Windstar before he switched to MAL as president. He surely exactly knows what he has bought. By the way MAL will not take over operation of the ships until next year. HAL will still operate the ships for the 2007 season.

 

steamboats

[CruisingChics]

steamboats is 100% right, as i hear from an inside source.

 

Why is everyone so ready to jump "overboard" and be so negative on such a great thing?

Why would you consider bad-mouthing something you haven't even given a chance to?

 

If Carnival's reason to sell is that they want to get away from niche cruises, then by god, do it and let someone who cares take over.

from what i hear, nothing is changing, itineraries as published are the same, and the product will remain as it is known.

Where is the competition? I hear every day "i'm never going back to the big ships".

Ambassador's would be STUPID to change anything! They've got a built in clientele, and all they have to do is keep things as they are, perhaps make improvments.

I am also told, and convinced, by people who know the management who are visiting the ships, that they are ready for positive changes.

 

People, just take the cruise!

 

Give it a chance, good grief!!

[parislady40]

Not everyone has an "inside source", as you seem to have. If we all had an inside source or track, we all would not have been surprised by the announcement! So many posters have come here for years, to what we consider a small comunity, so that we can talk through our fears, tips, joy,etc. It is not that we are negative, won't give it a chance or are ready to jump overboard as you state, but we are reacting in many different ways to the present state of affairs. From your profile, you are in the travel industry, so you should understand the varied reactions of the public, good or otherwise, to announcement like this. Steamboats has worded his reply so kindly to us. Take a hint! In this instance, and similar to your previous quote.....

 

Give us a chance, good grief!!

[Host Walt]

Not everyone has an "inside source", as you seem to have. If we all had an inside source or track, we all would not have been surprised by the announcement! So many posters have come here for years, to what we consider a small comunity, so that we can talk through our fears, tips, joy,etc. It is not that we are negative, won't give it a chance or are ready to jump overboard as you state, but we are reacting in many different ways to the present state of affairs. From your profile, you are in the travel industry, so you should understand the varied reactions of the public, good or otherwise, to announcement like this. Steamboats has worded his reply so kindly to us. Take a hint! In this instance, and similar to your previous quote.....

 

Give us a chance, good grief!!

 

Easy, now. CruisingChics' post states what is basic common sense about the likely outcome, that the new owner should have no interest in alienating the customer base.

 

Why not take a "glass is half full" approach and wait to see what transpires?

[mlleach]

We're booked for 1/12/08, Costa Rica RT. Seems this is the time to book. You can lock in existing prices, in case they do increase. There are only 25 unsold cabins, so we won't be alone.

ML

[lovecruisingtoo]

Some of us have not been too happy with some of the changes that HAL has made. On our last cruise, they changed the time significantly on a couple of the ports. For one of the port changes the crew made the statement that they did not understand why the cruise documents (and the internet) showed the schedule it did. The itinerary had changed months before. On the other time change, they did not give any rationale or explanation.

 

I hope that the change in management does bring some improvements however I am skeptical. Typically when one company buys another company the first thing they do is make sure that they get a good return on their investment and covering the payments to the seller. Many times this means raising prices and cutting services.

 

In addition, A.I. is primarily in the corporate incentive business. In the past, we have seen cruises cancelled because Windstar had the opportunity to sell out the ship for a special interest group. Will this happen more often? Only time will tell - but it is a concern.

 

Overall, I do hope that the change will be positive for Windstar and the loyal customer base. However, I will be looking very closely at the reviews after A.I. takes control.

[gymswim]

Well gang, lets all keep our fingers crossed about this development! Ambassadors International Inc. runs a small fleet of rivers boats and coastal cruisers according to the website.

http://www.majesticamericaline.com/products/ourships.aspx

I wonder what this sale means for the future of Windstar, the crew and officers of who have become family to us over the years?

 

Bill

 

Carnival Corp. Agrees to Sell Windstar Cruises

Feb 23,2007 by Carnival Corporation

 

MIAMI -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) today announced that it has signed a definitive agreement to sell its Windstar Cruises brand to Ambassadors International Inc. (NASDAQ:AMIE) . Windstar Cruises, which operates three sailing vessels, is a wholly owned subsidiary of Holland America Line, a unit of Carnival Corporation & plc.

 

Under the terms of the agreement, Windstar will be sold for $100 million, $40 million of which is payable in cash and assumption of liabilities, and Carnival will provide mortgage financing for $60 million. The loan will be payable over 10 years at seven percent interest, collateralized by the three Windstar ships.

 

 

"Windstar is an outstanding and unique cruise product and has garnered an extremely loyal following, however, Carnival Corporation & plc's growth strategy is focused on expanding our core growth brands and opening new markets," said Micky Arison, Carnival Corporation & plc chairman and CEO. "We made the decision to exit from the niche cruise business some time ago and the sale of Windstar is in line with that strategy. Last year we made a decision to cease operation of UK's Swan Hellenic and transfer its one ship to the Princess Cruises brand. Both of these are excellent products but simply do not fit into our future growth plans," he explained.

 

 

Added Stein Kruse, president and chief executive officer, Holland America Line, "We are pleased to have a committed buyer like Ambassadors International to take over Windstar. The transaction has been structured to ensure a smooth transition for all parties. Holland America Line will continue to operate the company through a transitional services agreement in the short term which includes vessel, reservations and other operational functions."

 

 

Windstar Cruises' three ships include the 312-passenger Wind Surf and the 148-passenger Wind Star and Wind Spirit.

 

 

Carnival expects the transaction to close in the second quarter of 2007, subject to any applicable regulatory requirements, and to be neutral to earnings on an annualized basis for the 12-month period following closing.

 

 

About Carnival Corporation & plc

 

 

Carnival Corporation & plc is the largest cruise vacation group in the world, with a portfolio of cruise brands in North America, Europe and Australia, comprised of Carnival Cruise Lines, Holland America Line, Princess Cruises, Seabourn Cruise Line, Windstar Cruises, AIDA Cruises, Costa Cruises, Cunard Line, Ocean Village, P&O Cruises, Swan Hellenic, and P&O Cruises Australia.

 

 

Together, these brands operate 81 ships totaling 144,000 lower berths with 20 new ships scheduled to enter service between March 2007 and spring 2011. Carnival Corporation & plc also operates Holland America Tours and Princess Tours, the leading tour companies in Alaska and the Canadian Yukon. Traded on both the New York and London Stock Exchanges, Carnival Corporation & plc is the only group in the world to be included in both the S&P 500 and the FTSE 100 indices.

 

 

About Ambassadors International, Inc.

 

 

Ambassadors International, Inc. is a cruise, marine, and travel and event company. Through Ambassadors Cruise Group, the company operates Majestic America Line, North America's premier river and coastal cruising company. The company is also a global leader in providing construction and consulting services to marina owners through its Ambassadors Marine Group subsidiary.

 

 

In addition, the Company provides travel and event services through its Ambassadors Travel and Events division.

 

 

For more information on Windstar Cruises visit http://www.windstarcruises.com.

 

 

Source: Carnival Corporation & plc

[Calliope]

I have been a passenger on the Delta Queen boats for every year since 1978. That was until this year! The price increase and the new management not renewing the union contract with MEBA (Marine Engineers Beneficiary Assoc.) means that the most skilled steam engineers necessary to keep the steam machinery operating will no longer be around. This is also the deck and navigation departments' union too, so the most important and familliar crew will all be gone. Also there were major changes with the entertainment last year that in my opinion cheapened the cruise experience. At least right now, steamboatin' is something that I don't need to do, and the travel options available on other cruise lines are excellent substitutes.

 

I also know, that when all of the MISSISSIPPI QUEEN's passengers were kicked off of the vessel five days early in Hannibal, MO. last year because of the Norwalk Like Virus they were only offered 2/7 of the total fare back. If the passengers want to go on another steamboat cruise, then all fares paid could be applied, but the higher new fares require the inconvenienced passenger to pay the difference between the old and new fare. This is even if it is for the same type of trip, same room, and same boat! This certainly is not anyway to treat a valued passenger.

 

My advice to Windstar enthusiast is to ride the boats this year and enjoy what you have come to love; it could soon disappear.

[surfklutz]

I have been a passenger on the Delta Queen boats for every year since 1978. That was until this year! The price increase and the new management not renewing the union contract with MEBA (Marine Engineers Beneficiary Assoc.) means that the most skilled steam engineers necessary to keep the steam machinery operating will no longer be around. This is also the deck and navigation departments' union too, so the most important and familliar crew will all be gone. Also there were major changes with the entertainment last year that in my opinion cheapened the cruise experience. At least right now, steamboatin' is something that I don't need to do, and the travel options available on other cruise lines are excellent substitutes.

 

I also know, that when all of the MISSISSIPPI QUEEN's passengers were kicked off of the vessel five days early in Hannibal, MO. last year because of the Norwalk Like Virus they were only offered 2/7 of the total fare back. If the passengers want to go on another steamboat cruise, then all fares paid could be applied, but the higher new fares require the inconvenienced passenger to pay the difference between the old and new fare. This is even if it is for the same type of trip, same room, and same boat! This certainly is not anyway to treat a valued passenger.

 

My advice to Windstar enthusiast is to ride the boats this year and enjoy what you have come to love; it could soon disappear.

 

Yikes - that compensation is terrible - this is the first I had heard of that. Doesn't sound like they were too concerned with keeping those guests as future supporters!

[dougnewmanatsea]

the new management not renewing the union contract with MEBA (Marine Engineers Beneficiary Assoc.) means that the most skilled steam engineers necessary to keep the steam machinery operating will no longer be around. This is also the deck and navigation departments' union too, so the most important and familliar crew will all be gone.

Too bad that they let go of all those people. Given the scarcity of steam engineers it certainly doesn't sound like a very good move to me.

 

But to be fair, I don't know anyone who was terribly impressed with Delaware North's management either; most of the steamboat people I know seemed to think them much worse than American Classic Voyages while my ex-American Hawaii friends would ask how anyone could be worse than AMCV to begin with ;) !

[scottsea]

Just got back yesterday from r/t St. Thomas on Wind Spirit. We knew about the sale from reading the cc boards. There was a letter in each stateroom explaining sale. We had dinner with Captain Walsh one night and discussed it. He said at first, crew was apprehensive. But they had a meeting with reps of the purchaser and were assured there would be no major changes made. His quote was that the repeated mantra was "No Change!" As stated somewhere in this thread the new CEO is a former HAL employee and was the person who came up with the "180 degrees from ordinary" slogan. Other staff members repeated that they felt confident things would be the same. I guess we'll have to wait and see. The only change mentioned was that the new company is considering having guest lecturers on the cruises. I think that might work with a Med. cruise but not with a port intensive Carib. cruise. Oh, the cruise was wonderful in every way.

["Wandering Wino's&quo]

Just got back yesterday from r/t St. Thomas on Wind Spirit. We knew about the sale from reading the cc boards. There was a letter in each stateroom explaining sale. We had dinner with Captain Walsh one night and discussed it. He said at first, crew was apprehensive. But they had a meeting with reps of the purchaser and were assured there would be no major changes made. His quote was that the repeated mantra was "No Change!" As stated somewhere in this thread the new CEO is a former HAL employee and was the person who came up with the "180 degrees from ordinary" slogan. Other staff members repeated that they felt confident things would be the same. I guess we'll have to wait and see. The only change mentioned was that the new company is considering having guest lecturers on the cruises. I think that might work with a Med. cruise but not with a port intensive Carib. cruise. Oh, the cruise was wonderful in every way.

 

 

Quote:

Originally Posted by Afternoon Tea

I spent 5 years working (living) on board Windstar ships and I will always consider Windstar as my second home. Great people and great memories...

Knowing almost every crew member on board Windstar ships I am sure that every single company will be more than happy to have them on board.

Dear friends, I wish you all the best in the future!!!!

 

Afternoon Tea, it sounds like from your post that you might feel that the new owners of our beloved Windstar Ships will be looking for a different type of crew member when they assume ownership. While our experience sailing on the Windstar was very limited, only one cruise aboard the Windsurf last September, out of all the cruises that we have taken this cruise stood out for us, not because of the beautiful ship, the wonderful food and the great ports, but because of the friends we made with the incredible crew. I could board one of their ships today and feel like I was visiting a friend. A friend that welcomed you with open arms. These individuals are true treasures for the cruise industry and I hope they are recognized as such.

 

__________________

 

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[tiffnco]

I've been off the boards for a while and this is the first I've heard of the sale. We're booked for our first Windstar in December...Costa Rica. Do you think we need to be concerned? We were debating between this sailing and another line's in Brazil...but Costa Rica won out. Just want to make sure we're not in for problems.

 

Realistically, I know noone here has the answer yet. But, do you think we're going to be okay?

 

Thanks,

 

Tiffany