News

MSC Cruises launches two-year refit program for its Lirica class

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 20 December 2013 20 December 2013

MSC Cruises today announced a multi-million dollar program that will involve all four of its Lirica class ships over the next two years.

The $273 million "renaissance" has been commissioned from Fincantieri in Italy, one of the world’s leading shipbuilding companies, and will be completed by 2015. The upgrades of MSC Armonia, MSC Lirica, MSC Sinfonia and MSC Opera will add exciting new entertainment options, technological advancements, expanded shopping options and up to nearly 200 new cabins per ship.

The ships will boast a completely new splash park, with an exhilarating pathway of water features and water cannons. The impressive onboard boutiques will be enhanced with new interiors, more space and an all-new perfumery with display corners dedicated to leading brands, such as Dior, Lancôme and Dolce & Gabbana.

"When our four Lirica class ships return to the seas after a total of 38 weeks in dry dock, they will be entirely new ships with additional amenities and comfort for our travelers, allowing them to reach sophisticated and refined destinations around the world," said MSC Cruises’ Chief Executive Officer, Gianni Onorato, during a press conference in Rome. "The extensive renovations represent a huge investment, and reaffirms, once again, our company’s dedication to high standards, cutting-edge technology and continuous product innovation. MSC Cruises’ ships are works of art in their own right. With these exciting upgrades to our fleet - already renowned for its unrivalled style and elegance – we will be even more competitive."

Giuseppe Bono, Chief Executive Officer of Fincantieri, commented: "The winning of this contract is a source of great satisfaction to us in many respects. Above all, it involves us with an important partner like MSC Cruises in a program that is highly ambitious both technically and operationally. It also allows us to strengthen our position in the refitting and refurbishment segments and confirms our position as one of the leading players in this sector."

The line of credit is entirely guaranteed by SACE, Italy’s export credit agency and insurance and financial group. "We are pleased to once again confirm our commitment alongside Fincantieri. This is a further recognition of the high quality of our shipbuilding industry and a sign of renewed optimism for the future of such an important industrial sector” said Alessandro Castellano, Chief Executive Officer of SACE. We are very proud to contribute to the financing of this plan announced by MSC Cruises, knowing that the real winners will be the thousands of workers at Fincantieri and its SME supplier base."

Schedule and key figures

The MSC Lirica class “renaissance program” will follow the dry dock schedule below:

·        MSC Armonia: August 31 to November 17, 2014

·        MSC Sinfonia: 12 January 12 to March 16, 2015

·        MSC Opera: May 2 to July 4 2015

·        MSC Lirica: August 21 to November 9 2015

The four Lirica class ships were built between 2003 and 2005 at the STX yards in Saint-Nazaire, France. They are currently 251 meters long, weigh 60,000 tons and carry 2,069 travelers. After the renovations, the ships will be 275 meters long, weigh 65,000 tons and carry 2,680 travelers, boasting 193 additional cabins (plus 59 new cabins for crew members).

Carnival group cumulative advance bookings behind vs. year-on; catching up on volumes, sees 2014 net yield fall

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 20 December 2013 20 December 2013

Carnival Corporation & plc says at this time, cumulative advance bookings for 2014 are behind the prior year at prices in line with prior year levels. Since September, booking volumes for the first three quarters of 2014 are running well ahead of last year’s levels at lower prices.

President and CEO Arnold Donald noted: “We are catching up on booking volumes and gaining momentum as we enter 2014. We believe the compelling value we have in the marketplace will continue to stimulate strong demand leading to a solid wave period. We continue to expect revenue yields to turn positive in the second half of 2014 compared to the prior year.”

Based on current booking trends, the company forecasts full year 2014 net revenue yields, on a constant dollar basis, to be down slightly compared to the prior year (in line with the prior year on a current dollar basis). First quarter revenue yields (constant dollars) are expected to decline 3 to 4 percent compared to the prior year and improve during the remainder of 2014 based on a recovery in ticket prices.

The company expects net cruise costs excluding fuel per ALBD for full year 2014 to be slightly higher than the prior year on a constant dollar basis. Taking the above factors into consideration, the company forecasts full year 2014 non-GAAP diluted earnings per share to be in the range of $1.40 to $1.80, compared to 2013 non-GAAP diluted earnings of $1.58 per share.

Looking forward, Donald stated: “With over 100 ships and more than 10 million guests we have a scale advantage that cannot be replicated in this industry. We are aggressively seeking opportunities to leverage that scale to drive top line improvement and gain cost efficiencies. To support that effort, we have realigned our leadership team and processes to achieve greater collaboration and cooperation.”

“We have heightened our focus on the guest experience and further exceeding guest expectations. As 2014 progresses, we will commence a number of strategic initiatives designed to fuel our earnings power, drive cash flow and improve return on invested capital over time.”

First quarter constant dollar net revenue yields are expected to decrease 3 to 4 percent compared to the prior year. Net cruise costs excluding fuel per ALBD for the first quarter are expected to be 4.5 to 5.5 percent higher on a constant dollar basis compared to the prior year mostly due to higher advertising costs.

Based on the above factors, the company expects non-GAAP diluted losses for the first quarter 2014 to be in the range of $(0.07) to $(0.11) per share versus 2013 non-GAAP earnings of $0.09 per share.

Asia expansion, fuel consumption reduction and rebuilding Carnival Cruise Lines brand focal in 2013

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 20 December 2013 20 December 2013

Carnival Corporation & plc President and Chief Executive Officer Arnold Donald said the group realised major milestones in the emerging Asian cruise region this year by doubling its presence in China, as well as launching its first season of cruises originating from Japan. In addition, the company opened ten sales offices throughout Asia to support its continued expansion plans in this important emerging market.

Additionally, the company increased efficiency fleet wide, achieving an additional five percent reduction in fuel consumption per unit this year, bringing the cumulative reduction to 23 percent since 2005. The company also furthered its environmental efforts through the successful testing of new “scrubber” technology and plans to install exhaust-gas cleaning scrubbers throughout the fleet. Over the next few years, the company will further refine both the scrubber design and installation process. In addition to exceeding stricter air emission standards, this technology will help mitigate higher fuel costs.

Donald further commented that the company’s flagship brand Carnival Cruise Lines also undertook a number of strategic initiatives. The brand implemented a major travel agent outreach program, Carnival Conversations, a series of roadshows reaching thousands of agents across the country to better align with travel partners. In addition, the brand launched a new advertising campaign “Moments That Matter,” featuring the memorable vacation moments experienced every day by millions of guests as captured through their own images. The “Great Vacation Guarantee,” a one-of-a-kind hassle free vacation guarantee was also introduced.