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Thanks,
Logan
keitarocruiser@yahoo.com
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justinmarcs@optonline.net
Many Thanks!
Pam
Project Pineapple..uhm..Pinnacle..
Edit: Does anyone else think that Architecture of the Seas is a slam at RCCL?
[ 05-16-2008: Message edited by: DEIx15x8 ]
- Dollar exchange rate- Cost of Euro yards doing it - if it happens this will go to Asia- Possible market downturn in US (Europe is not ready for a ship like this yet).
Micky has said a couple of times that Solstice and Genesis are being built at a cost that currently does not allow them to pay back the financing costs even if full under current circumstances thus Carnival will not go the same route. If he wanted to they could build it without finance at all ! but things will have to even out first.
I suspect there is also the issue of how they propel the thing etc and they are waiting for some technical breakthough that will allow a much more economic way of operating somehting this size.
quote:Originally posted by mike sa:Micky has said a couple of times that Solstice and Genesis are being built at a cost that currently does not allow them to pay back the financing costs even if full under current circumstances....
That would seem foolish if true, but are RCI and NCL (F3) really being foolish? If the Carnival brand is allowed to fall behind that would be foolish!
RCI's credit rating was recently reduced to junk status indicating that Moody's agrees with Micky ! The concern is the level of debt and cost of it going forward against projected earnings. Whether RCI is taking a risk is unclear at least the result of taking the risk is unclear, much will depend on what happens to the US economy over the next 5 years.
As for Carnival falling behind, well they continue to expand outside the US and are refreshing their products to stay up there, also by not ordering ships they feel they do not need or indeed that are too expensive and waiting until they feel they are then they are even further ahead then than they are now without the risk. And if they did feel liek they were they could always right out a petty cash slip for their version of Genesis, or indeed a few of them.
All that aside, I've never doubted CCL's business savvy. They are much better positioned to ride out a weak American economy by having strong shares of other markets. RCI is not only at risk for the massive debt they're accumulating through newbuilds, but a much larger share of their revenue is linked to North America. In other words, virtually all of their eggs are in one basket and that basket might break.
If someone could combine CCL's strong financial opeations with RCI's innovation and design strength- that would be an incredible combo. (This is exactly why I as sad to see P&O/Princess not merge with RCI...it would have given the company a strong financial platform, larger international market share, and a great design department. Uh, what could have been...)
1. by having a narrow superstructure and braod promenade deck it solves a common problem for larger ships (including Genesis perhaps)--not enough deck space.
2. The tram is a great solution for getting passengers around a very large ship, and it offers quite a view.
3. For being so large, the ship is actually well proportioned and good looking.
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