I noticed that I have been a lurker and have not posted anything for quite some time (many months?). So figured I could bring up a topic of discussion…

Over the past few weeks with all the news about Norwegian Epic, I have been wondering about the future of Star Cruises, the 50% owner of NCL. In recent years, we have seen them reduce their former fleet, and take on some of NCL’s older ships. However, they have decided not to take on Norwegian Majesty, Marco Polo, Norwegian Dream and even Norwegian Sky. We have also seen them sell off SuperStar Gemini and MegaStar Taurus. This leaves them with five ships in their fleet:

SuperStar Aquarius (former Norwegian Wind)
SuperStar Libra (former Norwegian Sea)
SuperStar Virgo
Star Pices
MegaStar Aries

Here are a few scenarios that I potentially see taking place in the future (but hey, nothing may ever happen!):

Scenario 1: Apollo takes 100% ownership of NCL

Scenario 2: Genting Group puts Star Cruises up for sale. This could get interesting…Carnival Corp (highly unlikely though) or RCCL could come in and purchase the name and fleet. Star Cruises has already built themselves a brand in Asia-Pacific. This would make it much more convenient for a big player to come with a purchase of an already established brand. If this happens, Apollo would likely take over the remaining 50% of NCL.

Scenario 3: Apollo takes ownership of Star Cruises

Scenario 4: Star Cruises continues to consolidate their fleet. Now that NCL is turning a profit with only 1 ship under construction (which was quite expensive with all the cancellation and modification issues), Star could sell or lease/charter SuperStar Virgo to NCL. This has already taken place with the Norwegian Spirit (former SuperStar Leo). This is a viable option because they would not have to wait several years and spend a great deal of money for a new modern ship. SuperStar Virgo is as modern as the rest of the NCL fleet and NCL already has the operating ability of this class of ship down.

Scenario 5: Genting Group liquidates Star Cruises completely with no actions taken place by Apollo or NCL.

I personally (as I have said before) think the best scenario is number 4. This could work best in the interest for both companies as they would be able to have a new revenue generator online quick.

Well that is me on my soap box. I am interested to see what everyone else’s opinions or other scenarios could take place. As a side note…this is just for fun and something I was just thinking about. I do not know anything that is, or is not, happening behind the scenes with any other these companies. Just a topic of discussion…

Has "MegaStar Taurus" actually been sold? My understanding was that while laid up, she is still owned by them.

Best,

you know I was wondering about that...I'm assuming she is still laid-up...they did remove her from their website when I referencing it for this post...

Apollo isn't a cruise company. They are an investment company. They exist to buy assets, build their value, and sell them for a profit. That's what Apollo does. Personally, I don't see them keeping NCL, Oceania, or any other cruise line for the long run. I think Apollo will make NCL more profitable and then sell it to a cruise company that needs a significant stake in the North American market. The obvious buyer would be MSC.

It's because there are smart people running Apollo that NCL canceled their second F3 order. They know the ships are a poor design and a huge risk. They didn't want more than one, and they only built the Epic because canceling that order would have been too costly. The best they could do was modify the design. (Wouldn't you love to know what the pre-Apollo NCL folks had originally planned for the Epic? Remember, these were the same geniuses the came up with NCLA...a line with a very expensive American crew, no casinos for revenue, and higher fares than other lines in Hawaii. Not a recipe for success. They drove NCL into the ground. The only upside was the new ships thanks to Star.)

Apollo's plan for making NCL profitable is simple:
1. Ditch NCL America (which has been a huge money loser)
2. Sell older ships which are less profitable
3. Refine the Freestyle concept with more fees
4. Reduce NCL's debt by staying away from newbuildings while the dollar is weak. (Thus, the canceling of the second F3 ship).

This plan is already working as NCL is now profitable. Once the line is clearly heading in the right direction, expect Apollo to put it up for sale for a handsome profit.

the other part of Apollo's plan would be

5. Reduce operating costs by running the ships more efficiently.

I know you are a big MSC fan but there is no way they will purchase NCL to gain a foothold in the US market. They have invested billions in the MSC cruise ops and will continue to do so rather than spend a few billion to buy NCL.

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Originally posted by Andy:
STAR PISCES has been laid up for around 2 months and STAR CRUISES currently has only 4 ships in operation.

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Wow what a flop Star Cruises has turned out to be. I think it's in NCL's best interest to distance themselves as much as possible from Star. I remember several years back Star Cruises was going to be the next Carnival. It was nothing but bright blue skies and a company that could not expand fast enough to keep up with the pace. My how things have changed.

Taking the place of Star Cruises as a success story is MSC Cruises. They are living the dream that Star started. Massive expansion, the newest fleet, and more newbuilds on the way. It's impressive especially in this economy.

I just read that Spain and some other parts of Europe have unemployment reaching 20%. It makes the US at 9.1% look pretty good in comparison.

I think that the brand would have expanded much more if the capital was not spent to buy NCL, but to build those new ships intended. The brand could have entered new markets like Australia with newer ships. They brought the LEO and VIRGO to Australia and later P&O Princess successfully deployed the Sun / Diamond class, I can't see why STAR can't suceed if they have the ships.

NORWEGIAN STAR was originally to have been SUPERSTAR LIBRA but passed to NCL
NORWEGIAN DAWN was to have been SUPERSTAR SCORPIO but passed to NCL
SUPERSTAR LEO became NORWEGIAN SPIRIT
then Star took on the older tonnage
NORWEGIAN WIND becoming SUPERSTAR AQUARIUS
NORWEGIAN SEA becoming SUPERSTAR LIBRA

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Originally posted by PamM:
What's the max no. of vessels Star have ever had sailing at any one time? NCL wouldn't have the ships they do today without Star having passed over the newbuilds. I think they have had the better deal.

NORWEGIAN STAR was originally to have been SUPERSTAR LIBRA but passed to NCL
NORWEGIAN DAWN was to have been SUPERSTAR SCORPIO but passed to NCL
SUPERSTAR LEO became NORWEGIAN SPIRIT
then Star took on the older tonnage
NORWEGIAN WIND becoming SUPERSTAR AQUARIUS
NORWEGIAN SEA becoming SUPERSTAR LIBRA

Pam

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SUPERSTAR LEO
SUPERSTAR VIRGO
SUPERSTAR GEMINI
SUPERSTAR TAURUS
SUPERSTAR ARIES
STAR AQUARIUS
STAR PISCES
MEGASTAR ARIES
MEGASTAR TAURUS
MEGASTAR CAPRICORN
MEGASTAR SAGITTARIUS

In addition, 4 more new ships to be built between 2001-2004 (2 x 91000 tons, 2 x 112000 tons).

Since then, these ships have been either sold, transferred or laid up one by one, and among them only SUPERSTAR VIRGO and MEGASTAR ARIES are still actively sailing in fleet now.

[ 07-07-2009: Message edited by: Andy ]

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Originally posted by Fairsky:
H
3. Refine the Freestyle concept with more fees

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Just wanted to tab this subject. I just got back from my first NCL cruise in 11 years. I expected Nickel and Diming but there was no such.

NCL is no more about fees than any other cruise line. There is free food 24/7 and excellent food I may add. I had food in "The Crossing" on the Sky which RCI i.e. could not compete with in the last 3 or 4 years.

The Freestyle concept is not about fees but rather that you can eat whenever or wherever and wear whatever.

On the Sky were 2 sit-down restaurants for free serving breakfast lunch and dinner, 1 buffet serving breakfast lunch and dinner, one bar with late night food for free, late night free hor d'oeuvres in the casino, free room service 24/7. In contrast to that were three pay restaurants. Since the Sky has been modified to fully accept Freestyle 2.0 I don't expect it any different on the Pearl in December. As a matter of fact, having toured that ship I am fully aware of at least two free restaurants.

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Originally posted by Andy:
There is a special 5-night cruise to Taiwan (Tainan, Taichung, Keelung) on AQUARIUS departing on 2 AUG. This is the ONLY destination cruise schedule for this year so far. On every other days the ship is sailing daily overnight cruises.

As ASIA STAR and GOLDEN PRINCESS have both suspended sailings we only have 5 ships here in Hong Kong now... again smallest fleet than ever.

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As ASIA STAR and GOLDEN PRINCESS have both suspended sailings we only have 5 ships here in Hong Kong now...

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Poor "Asia Star". I hope will find some proper employment, soon.

Best,

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Originally posted by Neil - Ex P. & O. S. N. Company.: Asia Star has been advertised for sale but it does not look as if anyone want a twin hull cruise ship.

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