Viking Line cuts loss but warns of uncertain outlook

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Written by Kari Reinikainen Kari Reinikainen

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Published: 13 May 2015 13 May 2015

Viking Line, the Finnish cruise ferry group, has halved its net loss in the first quarter, but the company warns that the future development of fuel price can impact its full year result significantly.

Group net loss narrowed to €8.2 million in the review period from €15.6 million in the first three months of 2014. Revenues rose a fraction, to €105.0 million from €103.4 million. Lower dry docking costs and operating expenses explain the reduction of the loss.

The company's fleet carried 1.27 million passengers, up from 1.23 million, while the number of freight units increased to 34,500 from 31,200. It noted that competition remains tough in its markets, but forecast EBIT to exceed this year the €13.7 million of 2014, although price of fuel can significantly affect the outcome.

TUI expected to bring Hapag-Lloyd and Thomson Cruises brands into TUI Cruises operation

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Written by Kari Reinikainen Kari Reinikainen

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Published: 11 May 2015 11 May 2015

TUI, the world's largest tour operating company, is expected to bring its Hapag-Lloyd Kreuzfahrten brand in Germany and Thomson Cruises in the UK to the operation of TUI Cruises, its joint venture with Royal Caribbean Cruises, Ltd. (RCCL), media reports say

"TUI is also expected to outline plans to bring its Thomson Cruise and Hapag-Lloyd Kreuzfahrten operations into its joint venture with Royal Caribbean to improve cross-selling and operational synergies, according to a research note from Morgan Stanley," Travel Weekly reported in the UK.

TUI will hold a capital markets day for investors in London on Wednesday, when it is also due to publish its first quarter interim result. The company is headquartered in Hannover in Germany and listed on the stock exchanges in Frankfurt and London.

In March, Thomson Cruises said it would receive the current Spledour of the Seas from RCCL in the summer of 2016, which it will introduce as Thomson Discovery. "The ship will be acquired by the Group’s subsidiary TUI Cruises, a joint venture between TUI Group and Royal Caribbean Cruises Ltd., and chartered to the Group’s British cruise line Thomson Cruises. Splendour of the Seas is to be operated in the British market from Summer 2016. The vessel will replace Island Escape, currently operated by Thomson Cruises’ sister company Island Cruises, so that the overall UK fleet will continue to be comprised of five cruise ships. Financial details of the transaction were not disclosed," TUI said on 2 March.

"As already announced at our Annual General Meeting, we intend to continually modernise our fleet in the UK in the next few years. The acquisition of the Splendour of the Seas is the first step in this direction. We regard the cruise market as a growth market for our Group and intend to develop into one of Europe’s leading providers in this segment," said Sebastian Ebel, TUI Group CEO Platforms in charge of cruise operations.

The TUI Group currently has a fleet of 13 cruise ships via its subsidiaries TUI Cruises, Hapag-Lloyd Kreuzfahrten and Thomson Cruises. Mein Schiff 4 of TUI Cruises was delivered last week and commissioned in the summer of this year. Mein Schiff 5 and Mein Schiff 6 have already been ordered and will be delivered in 2016 and 2017.

Mein Schiff 4 delivered by Meyer Turku

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Written by Teijo Niemelä Teijo Niemelä

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Published: 08 May 2015 08 May 2015

On Friday 8 May 2015, Meyer Turku handed over Mein Schiff 4 to TUI Cruises. The day was remarkable since this was the first delivery from Turku Shipyard under Meyer's ownership. Two days earlier, on 6 May 2015, the Meyer family, operating the shipbuilding company Meyer Werft in Germany, became 100% owner of the Meyer Turku Oy.

Meyer Turku has showed its capabilities in building the most demanding and complex cruise ships. Now, with Mein Schiff 4, Meyer Turku has refined its building processes even further. The project entered production two years ago and in February 2014, the keel of the ship was laid in the dry dock, and, in October 2014, the ship got water under her keel for the very first time. The production of the next evolution in the Mein Schiff series, Mein Schiff 5, started in February 2015. In June, there will be a keel laying ceremony for Mein Schiff 5 and, on the same day, the production of Mein Schiff 6 will start. By the end of this year, Mein Schiff 5 will be floated out and she will be delivered to TUI Cruises in the summer of 2016.

Mein Schiff 4 is 294 metres long and 36 metres wide. The ship, with a gross tonnage of 99,500, has a total of 1,253 cabins. 90 percent of these are outside cabins, 82 percent also have their own balcony. With a wide range of different cabin categories on offer, including cabins for families and spa fans, Mein Schiff 4 caters ideally to passengers’ individual comfort and well-being. Special highlights are the sea-and-sky suites over two decks, which feature their own 29-square-metre roof terrace.

Designed for the German premium-class cruise market, Mein Schiff cruise ships are sophisticated and highly innovative. The ships have been constructed using advanced and eco-friendly technologies. Featuring cutting-edge technologies, these new ships set standards in terms of energy efficiency, with energy consumption around 30 percent lower than for other cruise ships of the same size. By using the combined exhaust after-treatment system consisting of a scrubber and a catalyzer, sulfur emissions are lowered by as much as 99 percent and nitrogen oxide emission are reduced by around 75 percent.

"Our expansion is advancing in leaps and bounds thanks to the perfect coordination between the shipyard, our construction team, and all companies involved. We are highly satisfied and delighted at this new addition to our fleet," says Wybcke Meier, CEO of TUI Cruises.

"Today is a proud day since we have delivered Mein Schiff 4 to TUI Cruises and this beautiful ship is ready to sail. I want to warmly thank the ship builders of Meyer Turku, our subcontractors and the ship owner TUI Cruises for the great cooperation which enabled us together create this sophisticated cruise ship which is comparable to a complex travelling city. Now that Turku yard is 100% family company this makes me even more proud. Our passion for shipbuilding drives us to success with a long-term view. We value our history but we know that we have to constantly reinvent ourselves," says Jan Meyer, CEO of Meyer Turku Oy.

Following today’s handover, the Mein Schiff 4 will be named in Kiel on June 5, before sailing on her maiden voyage to the Baltic States on June 6, 2015.

Fred. Olsen to move Balmoral to Newcastle to capitalise on its proximity to Norway

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Written by Kari Reinikainen Kari Reinikainen

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Published: 07 May 2015 07 May 2015

Fred. Olsen Cruise Lines, the destinational UK cruise shipping company, says it has made the strategic decision to base its 1,350-guest flagship, Balmoral, in Newcastle on the north east coast of the country for the first time, from May to August 2016.

Fred. Olsen has more than 100 years of heritage in running passenger services from Newcastle and has been operating regular cruise calls from there since 2006. The company has operated ships with about 900 berths from the port so far. Since the start of operations from theport, Fred. Olsen has seen bookings departing from the Newcastle soar, with its Norwegian Fjords cruises selling out in record time.

Mike Rodwell, Managing Director of Fred. Olsen Cruise Lines, said: “We are very excited to be basing Balmoral in Newcastle from May to August in 2016, as it means that we are almost doubling our capacity and offering our loyal guests in the North East an even greater number of cruise departures than ever before, with a choice of 11 in total. Bookings for 2016 have shown that, so far, our 14-night ‘The Wonders of Spitsbergen’ and 11-night ‘Icelandic Wildlife, Falls & Hot Springs’ cruises are bestsellers.

“The Port of Tyne is also ideally placed for our ever-popular Norway, Scandinavian and Baltic itineraries, and we can save up to three days’ cruising time sailing from Newcastle to Norway than from Southern ports.” The passenger terminal in Newcastle is located oi North Shields at the mouth of River Tyne, which also has given its name to the port.

The appealing combination of choice and value offered by Fred. Olsen has already seen many first-time cruisers and repeat customers from the North East region make the decision to use their local port and sail from the Port of Tyne.

Research shows that guests from the North East rate the choice of destination as the most compelling factor when booking a cruise with Fred. Olsen. As a result, in 2016, guests can choose from a wider selection of destinations sailing directly from the Port of Tyne, including the cooler climes of Norway, Scandinavia and the Baltics, to the warmer shores of the Canary Islands, Madeira, the Azores, Portugal, Morocco and Spain.

In 2016-17, Fred. Olsen's Balmoral will be setting sail from Newcastle for the first time ever, with a record 11 departures, representing a 45% increase in capacity from the Port of Tyne.

Balmoral’s cruise season from Newcastle will commence on 21st May 2016, with a five-night ‘Norwegian Festival & Fjords’ cruise. Other departures include a ten-night ‘UK Castles’ sailing, which offers guests the chance to visit Balmoral and Braemar Castles - both of which lend their names to Fred. Olsen ships - and an 11-night ‘Spain, Portugal & Guernsey’ getaway.

Andrew Moffat, Chief Executive Officer, Port of Tyne, said: “The Port of Tyne’s cruise operations continue to grow and it is great news that Fred. Olsen Cruise Lines are expanding their itineraries and basing their flagship at the Port from next year. Fred. Olsen is one of many leading cruise lines operating from the Port of Tyne and, in 2015, the Port has 27 cruise calls planned during the year. 2016 promises to be a record year for cruise calls.”

Fred. Olsen's 880-guest Boudicca is today [7th May 2015] heralding the first of its calls into the Port of Tyne for 2015, on an 11-night ‘Floral Britannia’ itinerary. This floral-themed sailing, which departed from Dover on 28th April 2015, will take in some of the best and most spectacular gardens and attractions in the UK, including the world-famous Alnwick Castle in Northumberland - where 'Harry Potter' was filmed - and its intriguing 'Poison Garden'.