Carnival Corporation Exercises Option for New 86,000-Ton Ship for Holland Ameri

[johnlcruise]

Monday June 11, 9:15 AM EDT

 

MIAMI, June 11, 2007 /PRNewswire-FirstCall via COMTEX/ -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) today announced that it has exercised its option for a new 86,000-ton vessel for its Holland America Line brand.

 

The new 2,100-passenger ship will be built by Italian shipbuilder Fincantieri at its Marghera shipyard at an estimated all-in cost of euro 425 million. Delivery is scheduled for fall 2010.

 

Micky Arison, Carnival Corporation & plc chairman and CEO, said, "Holland America Line is performing very well and its growth is consistent with our business strategy for the premium segment of our business which seeks to capitalize on the increasing affluence of the baby boomer generation. The exercise of this option is another opportunity to strengthen Holland America's position as the leading premium cruise brand in the world."

 

 

 

Stein Kruse, Holland America Line's president and CEO, noted that the new vessel will be a sister to the Eurodam which is already under construction at Fincantieri and due to debut in summer of 2008. Eurodam's size has been increased slightly since originally announced and both ships will have a lower-bed capacity of 2,100. "These two elegant vessels will embody the many on-board amenities that Holland America Line first introduced to cruising as part of our very successful 'Signature of Excellence' initiative. Those amenities have uniquely positioned the Holland America vacation experience while building upon our distinction as a leader in premium cruising," Kruse said.

 

Kruse added that the two ships, to be the largest in Holland America's fleet, will maintain the brand's commitment to mid-sized vessels, larger staterooms, and richly appointed dining areas, lounges and other public rooms. "The addition of these two ships represent a 23 percent increase in our capacity over the 2008 through 2010 time period and will allow us to continue our premium leadership position and achieve a greater share of the growing cruise market," he said.

 

The new vessel will continue the evolution of the Holland America Line brand with features that will include a topside 144-seat specialty restaurant, a diversity of live music and entertainment facilities, outside-view glass elevators at mid-ship, and an expanded Greenhouse Spa and Salon with thermal suites and hydro-pool.

 

Of the new ship's 1,050 staterooms, 85 percent will offer an ocean view and 67 percent will feature private verandahs. All staterooms will offer plush Mariner's Dream beds, flat panel TVs and DVD players.

 

The vessel will feature such popular Holland America Line facilities as the Crow's Nest Lounge, Explorations Cafe, Pinnacle Grill and the innovative Culinary Arts Center presented by Food & Wine Magazine, offering cooking demonstrations and classes in state-of-the-art show kitchens.

 

With today's announcement, Carnival Corporation & plc has 17 new ships on order, 12 of which are being constructed by Fincantieri.

 

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, AIDA Cruises, Costa Cruises, Cunard Line, Ocean Village, P&O Cruises and P&O Cruises Australia.

 

Together, these brands operate 82 ships totaling 155,000 lower berths with 17 new ships scheduled to enter service between December 2007 and June 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.

 

SOURCE Carnival Corporation & plc

[hammybee]

On our last cruise, the Captain told us that Carnival is the owner of all HAL ships and that HAL charters and customizes each ship to its own specifications. This is done to take advantage of the economies of scale.

 

It was his prediction that the "S" class would be completely retired within the next ten years as they are too costly to operate/ maintain to existing standards and code, especially as it relates to fuel efficiency.

[Nutrioso]

Oh noooo! I love the S class.

[sail7seas]

How exciting to hear HAL will be getting a sister to Eurodam.

 

Breaks my heart to think of losing the "S" Class ships. Don't even want to think about it.

 

[grsnovi]

I'm not certain why this thread is flagged with a "warning" icon but on our 6/2 Oosterdam cruise we were told that a new ship would be essentially built on the Vista class platform with the addition of one more deck. I'm not sure if the ship we were discussing is the ship mentioned above nor do I know if the (new next year) Eurodam will be this larger size or if it will be another Vista class vessel.

[Druke I]

I'm having a memory lapse, and the release doesn't specify:

 

Does Eurodam (and its new sister) have podded propulsion, or standard shaft/propellors?

[jhannah]

I believe they are podded.

 

If the S class ships go, that will be a shame, indeed.

[Copper10-8]

That's unexpected yet good news!! Thanks for posting it!

Anybody want to start a ship naming contest for Eurodam's sister? (Of course with Eurodam, no way of telling what they will come up with);)

Traditional HAL names:

Leerdam

Spaarndam

Schiedam

Dubbeldam

Edam

Monnickendam

Potsdam

Obdam

Werkendam

Didam

Dutch names (not yet given to HAL ships):

Leidschendam

Stellendam

Alblasserdam

Polsbroekerdam

[RevNeal]

The Eurodam and the Yendam (so-named to celebrate HAL's expanded operations in the Asian sector! (<evil>:D) are "Signature Class" vessels ... based upon the Vista plan, but expanded and upgraded in several ways.

 

I doubt that HAL will start replacing the S-class ships until they actually have replacement ships for them at least in the pipe-line. The passenger-capacity / itinerary flexibility of the fleet will NOT be decreased any from the size established with the Signature series, so whatever retirements that might be scheduled won't go through until there is a projected replacement. Also, given the millions that HAL has recently dumped into the S-class vessels, I would expect that their retirements won't start for at least a half-decade, at the earliest. Also, little Seattle birds have suggested that one or two of the S-class ships might well be retained for at least several more years to make some of the more "exotic" runs that the big tubs can't handle due to port depths, etc.

 

But ALL of this -- including any guesses offered by Captains -- is speculation and projection based upon trends and statements from the Line management ... not hard-and-fast guarantees. I seem to remember, back in 2005, several Captains telling us at Mariner Receptions that the Prinsendam was up for sale and would be gone by the end of 2006 (after only 3 years with the fleet). But, this proved wrong.

 

So ... take heart, Sail and friends ... while we might see some of the S-class sold off, that won't start for a number of years yet ... and we might not see them all sold off for quite a while (beyond 2020).

[kryos]

I believe they are podded.

 

If the S class ships go, that will be a shame, indeed.

 

A real shame. Twenty years from now I would imagine that if you want to sail a small, intimate ship, you will have to step up to a luxury line ... and that's a shame.

 

Guess my cruising days will be over then. I just don't like huge ships and the large crowds they draw.

 

Blue skies ...

 

--rita

[jtl513]

I'm not sure if the ship we were discussing is the ship mentioned above nor do I know if the (new next year) Eurodam will be this larger size or if it will be another Vista class vessel.

There will be no more Vistas, though the Eurodam and today's announcement are indeed "based on" the Vista platform with an additional deck.

[Atomica]

Fantastic News - though I sort of figured they'd have a sister ship for the Eurodam in the works :)

 

Let's hope they pick a better name for this one - I'd personally love to see a return of the Nieuw Amsterdam name, however I realize this would create a ton of confusion with the existing Amsterdam.

 

While I'm sorry to hear they'll retire the S-class, I'm not entirely surprised. However, their retirement is still a long way off, so let's enjoy them while we can!

[Tricia724]

But ALL of this -- including any guesses offered by Captains -- is speculation and projection based upon trends and statements from the Line management ... not hard-and-fast guarantees. I seem to remember, back in 2005, several Captains telling us at Mariner Receptions that the Prinsendam was up for sale and would be gone by the end of 2006 (after only 3 years with the fleet). But, this proved wrong.

 

Likewise, I remember when we were on Oosterdam a few years ago, the Captain told us that the Vista Class ships would be the largest ships in HAL's fleet and that future builds would all be smaller. There was enthusiastic applause....but unfortunately, this also proved wrong.

[sail7seas]

:) I sooo hope you are right, Greg.

 

I've heard nothing either way about the possible retirement of the wonderful "S" class ships. Happy we have a lot of cruise time upcoming on "My" :) Maasdam.

[hammybee]

It was Captain John Scott who shared his thoughts on the retirement of the "S" class.

 

I am thinking that Noodam lll had about a 20 year run before being sold off. This would give the Statendam another 5 years, +/-. But who knows- QE ll may see her 40th, under Cunard. It would be swell, if feasible, to keep at least one of the "S" class in the fleet, indefinitely.

[RetiredMustang]

:) I sooo hope you are right, Greg.

 

I've heard nothing either way about the possible retirement of the wonderful "S" class ships. Happy we have a lot of cruise time upcoming on "My" :) Maasdam.

 

... Trying again, my post disappeared on me!...

 

Sail,

 

Sorry, but eventually the "S" class ships will get too old and have to be scrapped or sold, as was the case of my favorite, Noordam III. We can just hope it is a very long time before that happens.

 

On the Westerdam, the Captain joked that the ship after Eurodam would be the "Dollardam" but if that's so and he meant U.S., I'm thinking it will be about 30% smaller :D ; if he meant Canadian dollar, even smaller. But, by 2010 it may be larger, who knows?

 

As a somewhat serious question: X has two Journey class ships, now called Azaramas (sp?, I'm going from memory here). They seem to be in the 30,000 ton and 700 passenger range, and go to smaller ports like Nevis and Jost Van Dyke. I know Prinsendam has some of that niche, but do you think HAL would go with such a class of ships for shorter trips, like 7-day cruises? If so, would you book one? I think I would -- the HAL experience in a more intimate setting sounds appealing.

 

Dave

[RevNeal]

It was Captain John Scott who shared his thoughts on the retirement of the "S" class.

 

I am thinking that Noodam lll had about a 20 year run before being sold off. This would give the Statendam another 5 years, +/-. But who knows- QE ll may see her 40th, under Cunard. It would be swell, if feasible, to keep at least one of the "S" class in the fleet, indefinitely.

 

That would fit with some things that Captain Scott said to several of us, at various gatherings, this last January aboard the Noordam. Among his observations was the clear inference that HAL was not going to be shrinking its fleet, its passenger capacity, or its itinerary diversity; industry trends were pushing for more capacity and more diversity in itinerary, not less. To me, this indicated that if the S-class vessels were to be retired in the near future they would not simply be sold, thus reducing the fleet size, passenger capacity, and itinerary options of the Line... no, they would be replaced with new ships capable of carrying at least as many passengers (probably MANY more passengers) on a wide variety of itineraries. When I threw out this conclusion Scott's response was: "That seems most likely to me, too." Hence, we can have some idea of how long the S-class vessels have.

 

HAL won't be launching any new ships post-Signature class until (at the very earliest) 2011 or 2012. Hence, we have that long before the first of the S-class ships retire (i.e. about 5 years). If they release a new ship the year after an S-ship retires, giving it the historic name, we can expect the last of the S-ships to retire in 2016 or 2017. In other words ... 10 years from now. This matches up with what Captain Scott said. It also assumes that they would simply sell off all the S-ships, not keep one for service in out-of-the way regions or other exotic itineraries. Their size is such that they would be perfect for providing cruise service in parts of the world where it might be hard to drum up a large passenger base, but where 1200 for each cruise would be do-able.

 

At any rate, I think it's likely we're looking at the last decade of the S-class vessels; the R-class will last about 5 - 10 years beyond the S-class ships, perhaps a little longer depending upon the industry trends and the needs of the HAL fleet by 2020.

[ldog]

We've been on the Oosterdam and Westerdam and liked them quite a lot but our last two cruises on the Rotterdam were very special.

 

I'm not looking forward to bigger ships.

[RevNeal]

To be frank, I didn't think I'd like the bigger ships ... the Vistas, specifically. I've adored the older, smaller ships ... I LOVED the Nieuw Amsterdam and the old Rotterdam V, and each of the S and R class ships have been wonderful. However, I finally tried out the Oosterdam and have, since, sailed on the Westerdam and the Noordam and have loved all my cruises aboard those lovely ships. Particularly the Noordam ... HAL got everything right with her. Yes, the Vistas are larger than the lovely S and R vessels, and it's true that they are noticeably larger; however, I didn't feel as though I was packed in like a Sardine.

 

I just love the Damships. I'm sure, apart from the name, I'll love the Eurodam too. Would I prefer a smaller ship? YES! And I have every intention of trying out the Prinsendam. But, I've found that even the larger Vistas (and the future Signatures) are wonderful too. Hey ... they're damships!

[gizmo]

Micky Arison, Carnival Corporation & plc chairman and CEO, said, "Holland America Line is performing very well and its growth is consistent with our business strategy for the premium segment of our business which seeks to capitalize on the increasing affluence of the baby boomer generation. The exercise of this option is another opportunity to strengthen Holland America's position as the leading premium cruise brand in the world."

 

 

Interesting comment. So how is Hal capitalizing on the affluence of the baby boomer generation?

[sail7seas]

...By selling us Lots of Cruises. Filling the 'dam' ships cruise after cruise with a fair number of boomers. By selling cruises to multiple generations all vacationing together. We've seen families with four generations on cruises. :)

[Tinknock50]

I have observed Captains at the parties give out wrong information before about future HAL plans. I don't think they are the best source of information about future new-builds.

 

I would wait until an official press release before I believed anything.

 

I will miss the S class too......but the reality is ships have a certain lifespan after which it becomes very expensive to keep them going.

 

Enjoy them while you can.:)

[gizmo]

Filling cabins and selling to 4 generations is nothing new and other lines do the same.

 

Why mention the words "baby boomers" ? Is it just a "fluff" word ? Sure many people cruising are considered baby boomers. Anyone born from 1946 to 1964 can be considered a baby boomer.

 

If they REALLY wanted to go after the baby boomers, they should have a marketing plan geared towards baby boomers. I am not seeing anything geared towards baby boomers at this time.

[sail7seas]

Filling cabins and selling to 4 generations is nothing new and other lines do the same.

 

Why mention the words "baby boomers" ? Is it just a "fluff" word ? Sure many people cruising are considered baby boomers. Anyone born from 1946 to 1964 can be considered a baby boomer.

 

If they REALLY wanted to go after the baby boomers, they should have a marketing plan geared towards baby boomers. I am not seeing anything geared towards baby boomers at this time.

 

They don't have to 'woo' the baby boomers to any great degree IMO

They have a great many of us already.

 

I didn't take that statement to mean they were necessarily soliciting our business but more that they were enjoying having our business.

 

All cruise lines, of course, want the boomers as many of us boomers have more time than some younger folks and more disposable income that isn't targeted to paying off mortgages and educating children. Many boomers have finished doing that.

 

As to generational cruising, I think there is much more of it in the last five to ten years than previous to that. Many more people who never thought to cruise are discovering this wonderful way to vacation and it is perfect for multi-generations. In the not too distant past, it was either 'your grandmother's cruise line' or party hearty. That is no longer the case. Many lines have morphed into a product appealing to wider range of tastes.

[Orcrone]

Interesting comment. So how is Hal capitalizing on the affluence of the baby boomer generation?

By raising prices?:eek: