NCLA Ships Now Fully Staffed

I found this and thought it might make those of you headed to Hawaii a little more comfortable.

http://www.cruise-community.com/ShowStory.asp?ID=10146

NCL America’s Hawaii fleet is now at full-manning level. The company had been undermanned since Pride of Hawaii’s introduction in late May, even though it began taking on crew since early in the year.

NCL America is recruiting 400 people a week in order to have 100 a week trained and documented to keep the three ships fully staffed, said Colin Veitch, NCL Corp. president and ceo.

"Hell froze over... Pigs flew..."

Oh wait... that was about Apples new OS release.

But anways, I guess I'll start to work on booking a Feb cruise on NCLA

NCL America is recruiting 400 people a week in order to have 100 a week trained and documented to keep the three ships fully staffed, said Colin Veitch, NCL Corp. president and ceo.

I'm a little puzzled by this statement. As I read the comment, it sounds like only 1 out of the 4 recruits ended up making it through the training and documentation process. Also, do they figure that the turnover on the ships will be 100 people a week, or is that just the amount of replacements that they will need for vacations, expiring contracts, etc.

One more question, sort of along this line. Someone had suggested that they send NCLA employees to work a contract on a regular NCL ship to see how experience "normal" cruise line customer service. Is that a possibility, or are they limited to NCLA ships? Any ideas, Shoreguy?

And it gets a mention in yesterday's second quarter results:-

Despite this increase and the continued increase in payroll and start-up costs from the expansion of the Company’s inter-island cruises in Hawaii, second quarter 2006 operating income increased to $19.6 million from $0.9 million for the same period in 2005. On a per Capacity Day basis, operating income increased to $9.89 from $0.53.

What does this mean, from NCL News Website?

"MIAMI – August 15, 2006 - NCL Corporation Ltd. (“NCL” or the “Company”) today announced second quarter 2006 results, including a 9.2% increase in Net Yields; a reduction in controllable Net Cruise Costs per Capacity Day; significantly increased profitability at the operating income level; but steeply increased fuel and interest costs and foreign exchange translation losses, resulting in a net loss of $35.1 million."

I'm not a accountant, does net loss of $35.1 million for the second quarter mean after revenues and expenses they were in the red 35 million dollars. I didn't realize the cruise industry was in such financial trouble. Is there to much cabin (stateroom) capacity out there, if so why do they keep buying bigger and bigger ships? Finally the airline industry is beginning to recover and the cruise lines are taking a hit.

Most of that lost was because fuel cost increased by something like 50%. The ships are sailing pretty full, but you'll probably be seeing cruise prices rise to cover the additional cost. I listened to the NCL earnings call they had the other day and they do have over 300 million dollars in the bank to play with and the two new ships under construction have been partially paid with cash so they won't have to finance the full amount. Hope this helps some.

Michael

I'm a little puzzled by this statement. As I read the comment, it sounds like only 1 out of the 4 recruits ended up making it through the training and documentation process. Also, do they figure that the turnover on the ships will be 100 people a week, or is that just the amount of replacements that they will need for vacations, expiring contracts, etc.

 

One more question, sort of along this line. Someone had suggested that they send NCLA employees to work a contract on a regular NCL ship to see how experience "normal" cruise line customer service. Is that a possibility, or are they limited to NCLA ships? Any ideas, Shoreguy?

I think its a combination of both those not making it through the program, and rplacements for vacations.

All American workers work under a Union contract. The international workers have no Union. I believe it's the Union rules that prevents American workers working on non Union ships. It's unlikely Union members will want to work on ships without Union protection.

Most of that lost was because fuel cost increased by something like 50%.

What's turned that operating profit into an accounting loss is interest payable, plus other (unspecified) expenses.

I believe that when they say they get 400 new workers a week that means the amount of people that show up at fairs and apply. I wouldnt be suprised if 80% of them never get to training. The progress to getting to training from the time you apply is very annoying. And i also believe that 50% leave after training, then another half of those that made it to the ship leave after a week. Still this is good news though!

I'm afraid that's a bit of misleading distraction in the blurb in the results announcement. The fuel cost is taken before operating income (profit) is calculated. So the increased operating profit already takes into account the increase in fuel costs.

 

What's turned that operating profit into an accounting loss is interest payable, plus other (unspecified) expenses.

Interest expense increased approximately 100% to $33.9 million in the second quarter of 2006 from $17.0 million in the second quarter of 2005. (Simply, another $16.9 million lost to interest) With the Dollar/Euro exchange rate weakening to 1.2790 as of June 30, 2006, the Company reported a non-cash foreign exchange translation loss of $22.3 million for the second quarter. During last year's second quarter, NCL made a $15.3 million gain on foreign exchange.

Euros are important to NCL because many stockholders of Star Cruises live in Europe, from th eera before Star Cruises bought NCL.

To review, losing an additional $16.9 million in interests charges with the $37.6 million loss on foreign exchange compared to last year, means NCL lost an additional $54.5 million over last year's second quarter on these two items alone.

Kind of explains the $35.1 million loss for the second quarter this year.

NCL, before these two items, had almost a $20 million profit.

It should be noted that NCL made a significant accounting policy change, that of including the entire cost of a drydock during the quarter it occurs rather than spreading these costs out over two to three years. But I don't believe that accounting change should affect the bottom line much.

I'm a little puzzled by this statement. As I read the comment, it sounds like only 1 out of the 4 recruits ended up making it through the training and documentation process. Also, do they figure that the turnover on the ships will be 100 people a week, or is that just the amount of replacements that they will need for vacations, expiring contracts, etc.

 

One more question, sort of along this line. Someone had suggested that they send NCLA employees to work a contract on a regular NCL ship to see how experience "normal" cruise line customer service. Is that a possibility, or are they limited to NCLA ships? Any ideas, Shoreguy?

That would never happen for several reasons. number 1 the international ships run fully staffed, so you would have trouble finding places to house the americans. so they would need to swap a person who knows how to do the job with one that doenst.

That would never happen for several reasons. number 1 the international ships run fully staffed, so you would have trouble finding places to house the americans. so they would need to swap a person who knows how to do the job with one that doenst.

In fact it did happen. Before the POAL was in service Americans were on many ships in training. Many on what was then the Sky and many more on other ships the winter of 2004.

From the Dawn Feb 2004

at the NCLA job fair they said after 12 months on a pride of ship you can try to get a job on any of the ncl ships. Key word here is "try"

I found this and thought it might make those of you headed to Hawaii a little more comfortable.

 

http://www.cruise-community.com/ShowStory.asp?ID=10146

 

 

NCL America’s Hawaii fleet is now at full-manning level. The company had been undermanned since Pride of Hawaii’s introduction in late May, even though it began taking on crew since early in the year.

 

NCL America is recruiting 400 people a week in order to have 100 a week trained and documented to keep the three ships fully staffed, said Colin Veitch, NCL Corp. president and ceo.

Thanks shoreguy, I think I can start breathing alittle easier. POH 1/1/07

at the NCLA job fair they said after 12 months on a pride of ship you can try to get a job on any of the ncl ships. Key word here is "try"

I think that's because the pool of openings for jobs for Americans on foreign-flagged ships is very limited.

While an American could, ostensibly, take a job as a cabin steward or in the dining room, it would be highly unusual and unlikely because of the longer hours and no FICA, insurance or vacation pay. American workers, though, are not unusual in staff (as opposed to crew) positions. There are fewer of those, though, so there's much more competition for say... housekeeping manager, purser, shore excursion rep, food and beverage manager or youth counselor.

Jana

at the NCLA job fair they said after 12 months on a pride of ship you can try to get a job on any of the ncl ships. Key word here is "try"

Why would they want to? Don't they get paid more and have better benifits on The Pride Ships?:confused:

Why would they want to? Don't they get paid more and have better benifits on The Pride Ships?:confused:

Those were my thoughts too. Only reason I could see for changing would be to see some other parts of the world if they got bored with Hawaii. I don't see it as a serious long term option for most of them though.

As far as being place on international crew ships by NCL to see how those ships are run, for training purposes, I don't think it is going to work. Yes, NCL did it in the beginning since they didn't have much choice. They had virtually no experienced American stewards or waiters so it would have been extremely difficult to run the ship with a completely inexperienced crew. The old international crew on the Sky worked with the new American recruits for quite a while but reports from cruisers on that ship at the time seemed to indicate that it wasn;t a particularily happy situation.

Lets face it, the new American workers were there on a different and better paid basis than the international crew that was helping to train them. I don't think that did anything to improve the morale of the international crew. NCL may have done this at the start as a short term proposition to get the Aloha up and running but I don't think they would want to continue to parade these less experienced but better paid workers through their international ships.

In fact it did happen. Before the POAL was in service Americans were on many ships in training. Many on what was then the Sky and many more on other ships the winter of 2004.

 

From the Dawn Feb 2004

yeah it did happe then cause they had no choice when the transfered the sky to the aloha. They didnt have a choice. Also there was horror stories about how the internationals treated the americans. I still say it was a one time thing, and that It would be too much for NCL to pull off, and secondly they just wouldnt want to do it. It would be like mixing oil, and water

at the NCLA job fair they said after 12 months on a pride of ship you can try to get a job on any of the ncl ships. Key word here is "try"

Well this would be a change in NCL's policy. when the aloha came out they pulled all americans they had working on the international ships and transfered them to the aloha. There was very few, but still a few. Recruiters will tell people anything to get tem hired

I personally wouldn't want to work on their intl ships but thats just me..but I guess some people like the idea of being anywhere in the world when they sign up at the fairs.

yeah it did happe then cause they had no choice when the transfered the sky to the aloha. They didnt have a choice. Also there was horror stories about how the internationals treated the americans. I still say it was a one time thing, and that It would be too much for NCL to pull off, and secondly they just wouldnt want to do it. It would be like mixing oil, and water

I heard the stories. Rich the tall bartender in the picture from the Dawn could not wait to get off the ship and onto the soon to be reflagged Sky.

The international crew was not happy and wrongly felt the US workers were taking their jobs. Rich said one thing for sure he would never eat white rice again in his life after he got off the ship. No choice onboard it was part of almost every crew meal. ;)