Cruise Talk: Passenger Services Act

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Author

Topic: Passenger Services Act

asoowal
First Class Passenger
Member # 485

posted 08-11-1999 09:36 AM

How is it that American Hawaii can purchase and sail the Nieu Amsterdam in Hawaii? As I understand the PSA the ships must not only be US flagged, but US built as well. That is why they are building a new ship in Mississippi, the first pax ship built in the US for 40 some years. Has there been a special deal struck with Congress?

Posts: 68 | From: Plymouth Meeting, PA, USA | Registered: Feb 99

MagnmPI
First Class Passenger
Member # 299

posted 08-11-1999 03:45 PM

Good question, I'm wondering the same. Not to change the subject but if you read Porthole Magazine, I was the one who asked Gavin MacLeod, "Why do American cruise companies register their ships in foriegn countries?" I was so proud of that question and they didn't even print my name in the magazine. Then I read some of my back issues and realized they never print anyones name. Just had to get that off my chest, sorry. He also didn't mention that cruise companies getaway with not having to pay U.S. taxes since these ships are not registered here(U.S.A.). I think I heard that somewhere.

Posts: 545 | From: San Francisco Bay Area | Registered: Aug 99

sympatico
First Class Passenger
Member # 797

posted 08-11-1999 05:26 PM

Probably shouldn't be answering this as I am a Canadian and don't know your laws but if you will read Joe from TravelPage's press release bulletin it says "the agreement is contingent on a number of conditions expected to be resolved in the fall of 1999". They are probably somehow getting around the PSA.

Posts: 3305 | From: Toronto, Ont. Canada | Registered: Jul 99

asoowal
First Class Passenger
Member # 485

posted 08-12-1999 12:34 AM

Somewhere in the back of my memory there is a nagging thought that in the negotiations to build the new ships in Pascogula(?) Miss., there might have been a concession made to accomodate American Hawaii. It is also confused with the negotiations at the same time for Kvaerner to buy the Phila Navy Yard, specifically to build the Amer.Hawaii ships there. They lost the contract, and have apparently backed away from shipbuilding in the US. The two ships being built amount to 1 Billion dollars. With cost overruns, 2 Billion!! Politics definately played a part!

Posts: 68 | From: Plymouth Meeting, PA, USA | Registered: Feb 99

mrblanche
First Class Passenger
Member # 714

posted 08-12-1999 02:34 PM

There is an exception to the Passenger Services Act working its way through Congress that would allow companies to promise to build some ships in the U.S. and use other ships until those are finished.

The American Hawaii deal was that they had to contract to build some ships in the U.S., then could use another ship to build up the business in the meantime. You can't just suddenly throw 2 or 3 new ships on line and expect to fill them.

Posts: 308 | From: Cedar Hill, TX | Registered: Aug 99

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