Oceania (and Apollo) Win a Round

[hondorner]

I mean they will organize a leveraged buyout of the raft...gallows humour I suppose. I agree things look very bad for Apollo.

I got it. I thought it was funny.

 

It looks to me like things look pretty bad for everybody. I don't even look at my portfolio these days, because I don't have to sell anything, so I haven't lost anything...yet...except dividends being cut in half or worse. When this is over, the winners will be the ones who got beat up the least -- everyone will have gotten beat up to some degree.

[Leonid]

Regarding O adjusting their pricing downward for cruises in the latter part of 2009/early part of 2010, I doubt that that will happen unless Apollo is really strapped for cash.

 

If the economic picture does deteriorate significantly more than what we've seen to date, I would not be surprised to see them offload O, but, then again, which line is in a position to buy O. That's my take.

 

We're booked on an 10/2009 and a 02/2010 sailing. Given that O, in the past, has not reduced prices for people who are already booked, it will be interesting to see if they change their policy and what our respective TAs will do, if anything, to retain bookings if O continues with their present policy.

 

Only time will tell!

[myrtlewinston]

I mean they will organize a leveraged buyout of the raft...gallows humour I suppose. I agree things look very bad for Apollo.

 

Got it. How daft of me!

 

More bad news -- Oceania's debt is now trading at 65 cents to the dollar, that is, at distressed levels.

[world~citizen]

I got it. I thought it was funny.

 

It looks to me like things look pretty bad for everybody. I don't even look at my portfolio these days, because I don't have to sell anything, so I haven't lost anything...yet...except dividends being cut in half or worse. When this is over, the winners will be the ones who got beat up the least -- everyone will have gotten beat up to some degree.

 

I agree.

 

I wish the best for Apollo and Oceania. I felt horrible when EOS had to fold. I hate to see new companies (in particular) fail. I like to think I champion the underdog - or at least the new kid on the block.

 

I have felt for a long time that cruise companies have been a bit too ambitious with their newbuilds. That is why I said I think in this new environment there will be a shakeup. As veterans, RCL and Carnival have so much depth I suspect they will be in the best position to ride out the storm. O has a loyal following though, and that counts for a lot.