Pullmantur to reorganise business under Spanish insolvency legislation

Pullmantur Cruceros, the Spanish cruise operator , has decided to file for reorganisation of its business under the terms of Spanish insolvency legislation in the aftermath of the COVID-19 pandemic, minority shareholder Royal Caribbean Cruises Ltd. (RCCL) said in a statement.

Pullmantur's board of directors determined that the unprecedented impact of the COVID-19 pandemic made the action necessary and its management notified employees of the decision after filings were made with Spanish authorities.

"Despite the great progress the Company made to achieve a turnaround in 2019 and its huge engagement and best efforts of its dedicated employees, the headwinds caused by the pandemic are too strong for Pullmantur to overcome without a reorganisation," the board stated.

The company canceled sailings through November 15, 2020. Royal Caribbean Group said that guests already booked to sail on Pullmantur will be offered the option to sail on other RCCL brands including Royal Caribbean International and Celebrity Cruises. Pullmantur noted that details of the offer will be shared with guests in the near future. Crew are staffed at minimum maintenance levels on Pullmantur's three ships and the company will take care of their safe return home.

The company operates three ships - Monarch, Sovereign and Horizon, all of which are on charter from the RCCL group.

Meanwhile RCCL that has a 49% stake in the company noted that all of its assets related to the Pullmantur Cruceros joint venture had been included in the non-cash asset impairment charge.

CLIA continues voluntary suspension of cruise operations from U.S. ports

Cruise Lines International Association (CLIA) issued the following statement today to announce that the association’s ocean-going cruise line members will voluntarily extend the suspension of cruise operations from U.S. ports until 15 September 2020.

“Due to the ongoing situation within the U.S. related to COVID-19, CLIA member cruise lines have decided to voluntarily extend the period of suspended passenger operations. The current No Sail Order issued by the U.S. Centers for Disease Control and Prevention (CDC) will expire on 24 July, and although we had hoped that cruise activity could resume as soon as possible after that date, it is increasingly clear that more time will be needed to resolve barriers to resumption in the United States.

“Although we are confident that future cruises will be healthy and safe, and will fully reflect the latest protective measures, we also feel that it is appropriate to err on the side of caution to help ensure the best interests of our passengers and crewmembers. We have therefore decided to further extend our suspension of operations from U.S. ports until 15 September. The additional time will also allow us to consult with the CDC on measures that will be appropriate for the eventual resumption of cruise operations.

“This voluntary suspension applies to all CLIA members to which the No Sail Order applied (vessels with capacity to carry 250 persons or more). CLIA member cruise lines will continually evaluate the evolving situation and make a determination as to whether a further extension is necessary.”

Virgin Voyages announces comprehensive health plan for Scarlet Lady

Virgin Voyages, the new lifestyle travel brand focused on delivering irresistible cruise vacations that has raised the bar on boutique design and unique experience, today released its comprehensive ‘Voyage Well’ plan. This industry-leading program delivers innovative health and wellbeing standards to give sailors and crew confidence in the future of cruise travel.

With plans to ‘‘soft open'’ for sailing the brand new Scarlet Lady ship in Oct. 2020, Virgin Voyages has worked with leading experts to elevate its existing standard of excellence by creating an environment built to tackle today’s global health crisis. As one of the newest ships at sea that has not yet sailed with passengers, Scarlet Lady will welcome future Sailors into an environment designed to meet health expert recommendations and sailor expectations before, during, and after a voyage. The Oct. “soft open” plans are reliant on the lift of travel restrictions and Virgin Voyages is staying close to these developments.

The Voyage Well plan was created in partnership with expert advisors consisting of scientists, doctors and clinicians. Referred to as the Voyage Well Expert Advisory Group, this team is composed of partners at AtmosAir Solutions, EcoLab, Dr. Heymann with Vikand, Global Public Health Services, and close collaboration with the CDC as well as frequent reviews of WHO best practices and guidelines.

“The health and wellbeing of our Sailors is our number one priority, so we rolled up our sleeves with leading experts to further innovate and create an even healthier way to travel and still have an incredible vacation,” says Tom McAlpin, CEO of Virgin Voyages. “We appreciate some people will be apprehensive about traveling, so we are committed to being led by science and creating ways to give people confidence to explore the world while feeling safer, more relaxed and free to enjoy themselves.”

On top of a uniquely designed HVAC system that pumps fresh air through the new ship's public spaces and cabins to effectively remove recirculated air, Virgin Voyages will be among the first in the industry to invest in the installation of a 100% fresh air, ‘bow to stern’ air purification system. In partnership with AtmosAir Solutions, Scarlet Lady and her sister ships will be equipped with an air purification system that also disinfects air on board by leveraging bi-polar ionization technology that has been shown to kill 99.9% of viruses. In addition, recent tests performed by Microchem Laboratory, one of the world’s preeminent laboratories for testing EPA- and FDA-registered sanitizing products, has reported that this HVAC device is more than 99.9% effective in neutralizing Coronavirus.

"Delivering effective health and safety measures is going to be essential for ensuring consumer trust in the cruise industry," says Steve Levine, President and CEO, AtmosAir Solutions. "We're proud to partner with Virgin Voyages and believe our bi-polar ionization technology will be crucial to creating a safe, clean and sanitized indoor environment throughout the entirety of the Scarlet Lady."

In addition, Virgin Voyages has developed a comprehensive plan, with key points that work to address all safety standards before, during, and after a voyage.

Key pillars of the Voyage Well Plan include:

– Rapid and effective COVID-19 testing for all Sailors and Crew prior to embarking*
– Post-voyage notification process through which Sailors and Crew can report on becoming unwell within 14 days of leaving the ship* (through an ethical health tracking app)
– Advanced pre-boarding health checks and screenings for both our Crew and Sailors*
– Thermal Camera technology in terminals and on board to monitor our Crew and Sailors’ temperatures
– Fair and flexible booking policies — from moving the final payment dates to 60 days (from 120 days) before sailing, ability to cancel up to 48 hours before and receive a 100% Future Voyage Credit for sailings through December 16th, 2020
– Implementing best practices around sanitation, physical distancing, limited occupancy, and health checks for everyone on board
– Installing the latest technology from AtmosAir Solutions — an air purification system that disinfects air on board. Leveraging bi-polar Ionization technology that has been shown to kill 99.9% of viruses
– Managing overall ship occupancy so appropriate physical distancing is possible across all public spaces
– Leveraging digital onboard technology to limit contact; The Band (for contactless payment), Service Chat (for assistance digitally) and Virtual Queues (for getting in lines for onboard experiences without actually getting in physical lines)
– As has always been a part of the Virgin Voyages experience since first introducing the
brand, there will be no communal food sharing, buffets or large dining halls, allowing for hygienic service of fresh food

*These are paramount and dependent on medical advancements and availability. As technology and science advances, Virgin Voyages will continuously evolve and refine efforts to improve and perfect health and safety standards on board.

Carnival expects to repatriate 21,000 more crew by end of June

Carnival Corporation & plc, the world’s largest cruise shipping group, said it expects to repatriate a further 21,000 crew members by the end of June, with e.g. counseling being offered to ease their situation.

“The company expects substantially all of the approximately 21,000 remaining shipboard team members to be able to return home by the end of June. The safe manning team members will remain on the company's ships,” it said.

“For those shipboard team members experiencing extended stays onboard, the company is focusing on their physical and mental health. The company is providing most shipboard team members with single occupancy cabin accommodations, many with a window or balcony. Shipboard team members have access to fresh air and other areas of the ship, movies and internet, and available counseling,” Carnival said in a statement.

The company said it is working around the clock with various local governmental authorities to repatriate shipboard team members as quickly as possible. So far, 49 cruise ships have traveled more than 400,000 nautical miles and the company has chartered hundreds of planes to repatriate approximately 60,000 of its shipboard team members to more than 130 countries around the globe.

Carnival sees gradual improvement in 2021 booking volumes

Bookings for 2021 have started to pick up despite reduced marketing efforts, Carnival Corporation & plc said, adding that at the end of May, about half of passengers whose holiday has been cancelled have asked for a cash refund and the other half future cruise credit (FCC).

“Despite substantially reduced marketing and selling spend, the company is seeing growing demand from new bookings for 2021. For the six weeks ending May 31, 2020, approximately two-thirds of 2021 bookings were new bookings. The remaining 2021 booking volumes resulted from guests applying their FCCs to specific future cruises,” Carnival said..

At the end of May, the current portion of customer deposits was $2.6 billion with $121 million relating to third quarter sailings and $353 million relating to fourth quarter sailings. “The company expects any decline in the customer deposits balance in the second half of 2020, all of which is expected to occur in the third quarter, to be significantly less than the decline in the second quarter of 2020,” Carnival said.

At the same point in time, cumulative advanced bookings for the full year of 2021 capacity currently available for sale are within historical ranges at prices that are down in the low to mid-single digits range including the negative yield impact of FCCs and onboard credits applied, on a comparable basis.

“For the full year of 2021, booking volumes for the six weeks ending May 31, 2020, were running meaningfully behind the prior year. However, the company saw an improvement in booking volumes for the six weeks ending May 31, 2020 compared to the prior six weeks,” Carnival said.