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Weak Finnish, regional economy hits Tallink interims

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 15 November 2013 15 November 2013

Weak performance of in particular the Finnish economy, its most important source of passengers, but also that of other economies in the North Eastern European region has hurt the third quarter interims of Tallink, the Estonian listed ferry company.

Group net profit fell to €44.0 million in the third quarter of the year from €49.6 million in the same period in 2012, while revenues fell to €278.4 million from €282.4 million. Tallink operates a fleet of 19 cruise and ropax ferries.

"The Group’s operations were affected by overall weak economic environment in the region. The countries which are the Group’s main markets are experiencing noticeable slowdown in their economies. The continuing decline of Finland economy is seen in the reported weak retail sales indicators and has also had impact to the Group’s passengers’ spending behaviour," Tallink said in a statement.

The Group carried a total of 2.7 million passengers in the third quarter which is 1.9% less compared to the same period last year. The number of cargo units transported amounted to 76.0 thousand, which is 10.5% more than in the same period last year due to some capacity and structural changes in the market when compared to the previous year.

Growth in the number of passengers on the Estonia-Finland route amounted to 2.3% and on the Latvia-Sweden route by 4.1%. The number of passengers decreased on the Finland-Sweden route by 9.6%, where the competition situation has changed and the Group has decreased its capacity.

Ticket sales continued to show increase, but passenger spending from restaurant and shop sales experienced some decline.

"The management is not pleased with the results in the 2013 financial year. Due to the dividend related tax expense, adverse economic developments and the increased competition on Finland-Sweden routes the Group’s management foresees that the results for this year will not reach the previous year’s level. Improvements in product development are being made to increase the revenue generation but also cost reductions in some areas are processed in order to adapt with the changed economic environment," Tallink said.

Allure of the Seas to undergo repairs in February 2014

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 15 November 2013 15 November 2013

Royal Caribbean International announced yesterday that a mechanical issue has made it necessary to perform unscheduled repairs to Allure of the Seas. The repairs will take place at Grand Bahama Shipyard, in Freeport, Bahamas, the week of February 24, 2014. As a result, it will be necessary to cancel the February 23, 2014, sailing of Allure of the Seas.

"We sincerely regret that we will be unable to deliver the Royal Caribbean cruise vacation that our guests were looking forward to," said Adam Goldstein, president and chief executive officer, Royal Caribbean International. "We understand that our guests’ vacation time is very precious and can assure you that we did not take this decision lightly. But it was very important to us that we bring Allure back up to speed so that she could continue to deliver the amazing cruise vacations our guests expect."

Allure of the Seas has been experiencing unanticipated bearing wear in one of its three propulsion motors. All three motors are fully operational, and there is no impact on the maneuverability of the ship or on the safety of guests and crew. However, since the rate of bearing wear is directly related to ship speed, the ship’s top speed has been limited. This has reduced the rate of bearing wear, and will ensure that all three propulsion motors are fully available for maneuvering and emergencies until repairs can be completed.

"While Allure could have continued to sail at a reduced rate of speed, we felt it was important to fix the problem as soon as possible," said William D. Baumgartner, senior vice president of Marine Operations, Royal Caribbean Cruises Ltd. "We explored numerous repair options. Unfortunately, there was no satisfactory solution that did not involve taking the ship temporarily out of service."

The company said guests currently booked on the February 23, 2014, sailing of Allure of the Seas will receive a full, 100 percent refund, or the option to sail on select itineraries at the same rate.

Additionally, until the repairs can be made, it will be necessary to make minor adjustments to Allure of the Seas’ eastern Caribbean itineraries. Allure of the Seas will now call on Nassau, Bahamas, from 7:00 a.m. to 1:00 p.m. and on Charlotte Amalie, St. Thomas, from 11:00 a.m. to 5:00 p.m. There is no need to modify Allure of the Seas’ western Caribbean itineraries.

Cunard's three Queens to meet in Liverpool: Queen Mary 2 to offer voyage to Halifax in 2015

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 12 November 2013 12 November 2013

Cunard Line's three ships - Queen Mary 2, Queen Elizabeth and Queen Victoria - will meet in Liverpool on 25 April 2015 and on 4 July , Queen Mary 2 will sail from the port to Halifax to commemorate the first voyage of RMS Britannia, which departed Liverpool on that date in 1840, the company said on Facebook.

Cunard Line, which was originally known as The British & North American Royal Mail Steam Packet Company, had its head office in Liverpool until the late 1960s. Liverpool was the UK terminus of its Trans-Atlantic express service until 1919, when it was moved to Southampton. However, Cunard Line continued to offer voyages from the port until 1968.

The city council is preparing to convert the Cunard Building on the Pier Head, which was built for the company in 1914-17, to a cruise terminal to replace the current, temporary structure. It is expected to open in 2015.

Regent Seven Seas stages strong rise in interim earnings on 10% yield increase

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 11 November 2013 11 November 2013

Regent Seven Seas Cruises, the luxury market unit of the Miami based Prestige Cruise Holdings group, has staged a strong rise in both third quarter and January-September net profit on firmer yields.

The company reported third quarter net profit of $32.8 million, compared to $20.9 million in the same period last year, while revenues increased to $165.9 million from $159.0 million. In the first nine months of the year, Regent's net profit rose to $34.3 million from $17.5 million in the same period in 2012 on revenues of $433.0 million, an increase from $411.9 million.

Net Yield for the third quarter of 2013 increased 10.6% $638.08 from $577.00 in the same period in 2012. Net cruise costs, excluding fuel, only rose by 0.2% to $287.15

Frank Del Rio, chairman and CEO said in a statement:“We are pleased to have reached record revenues, Adjusted EBITDA and net income for the third quarter. Along with our financial results, we were also proud to take home Virtuoso's "Best Luxury Cruise Line" honour for the third consecutive year. Both our financial results and market accolades are a reflection of the focus we place on providing our guests with an exceptional experience."

Cruise ships bigger than 96,000 gross tons banned from Venice lagoon from November 2014

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 06 November 2013 06 November 2013

Government officials in Rome on Tuesday ordered a halt to large cruise ships passing through the Venice lagoon, effective from November 2014, and a limit on smaller cruise vessels effective in January, the ANSA news agency reports.

Ferries will also be limited from passing in front of St Mark's Square. As of January, the number of cruise ships with gross tonnage in excess of 40,000 must be reduced to 20% of their current volume in Venetian waters. The outright ban on cruise ships in November 2014 only applies to those over 96,000 gross tons.

“According to the order, cruise traffic will eventually be rerouted through the Contorta Sant'Angelo Canal, so that any accident would not touch the best-known and most vulnerable parts of the city. Environmentalists warn that the lagoon surrounding Venice, itself a UNESCO heritage site, is at great risk due to its fragile ecosystem,” the report said.

The move will mean that Post-Panamax cruise ships can no longer offer a few of St Mark's Square from their decks ass the ships sail in and out of the port.