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SS Future Re-Open Plan: Timing, Testing Needs??!!


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8 hours ago, Silver Spectre said:

More devastating revelations about the Hurtigruten disaster - ‘one of the two ships doctors had lost his licence to practice twice and the other was not licensed to practice in Norway’.

The sheer incompetence of this company is mind boggling.

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18 hours ago, Silver Spectre said:

More devastating revelations about the Hurtigruten disaster - ‘one of the two ships doctors had lost his licence to practice twice and the other was not licensed to practice in Norway’. Apparently Hurtigruten’s Chairmans responses are being compared to ‘Comical Ali’ pronouncing that Iraq was winning the war as the US tanks rolled into Baghdad. This is not doing the international cruising industry any favours.

 

Appreciate these various previous comments and the follow-ups.  Yes, agree that the details by Silver Spectre regarding Hurtigruten does hurt the image and reputation of cruise lines overall.  Certain folks want cruising to re-start, but it needs to be done correctly.  And, safely!!

 

This morning at 10 am (Eastern time) will be the quarterly investor call for Royal Caribbean Group.  You can go to 

www.rclinvestor.com

in order to sign in and listen.  Later, they also post an audio replay.    RCCL management will share details as to the major losses for the Silversea owner during the past three months.  

 

For me, the most interesting part will be when the various Wall Street analysts ask their questions as to how these top corporate officials view for their future path forward.  I will listen in and makes some notes to share here.  Plus, there will be newspaper stories that report the highlights as they view them for this Q&A session.  

 

THANKS!  Enjoy!  Terry in Ohio

 

Norway Coast/Fjords/Arctic Circle cruise from Copenhagen, July 2010, to the top of Europe. Scenic visuals with key tips. Live/blog at 240,075 views.

www.boards.cruisecritic.com/showthread.php?t=1227923

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3 minutes ago, brimary said:

Await the RC quarterly review with interest. Fear the worst but hope for the best!

 

Appreciate brimary's comment and interest.  That hour-long financial summary and Q&A session just concluded.  Here below are my rough notes, key take-aways and quick highlights: 

 

From RCCL Chairman/CEO Richard Fain, he noted that it has been five months, but it seems like "an eternity".  There have been many challenges.  And, all has been done while working remotely.  98% of their crew have been returned home.  He singled out the ship-board employees for their work and efforts during “an awful time”. Thinking of the future, he can’t wait to restart when "the circumstances are right".  The whole fleet is to be in laid-up by the end of this month.  Most capital projected have been delayed or deferred.  They have extended the suspension of cruise timings five different times.  They will not rush back to service until all is in place.  They are focused on: Upgraded screenings.  Enhanced health standards and practices on board.  Destinations we visit have varied circumstances and that complicates the future process.  It is extremely complex.  Wants to go above and beyond what is expected.  Revenue management has been more of "art than a science".  Want to come back strong with new ideas.  Humans are a social animal and cruising can be part of that recovery.  

 

RCCL lost $1.3 billion for the quarter.  Major costs for the quarter have been in re-positioning crew and ships.  Final buying of the rest of Silversea was done with stock and did not impact their cash-flow.  Did 12-month delay in debt obligations.  Certain new ship deliveries expected to be delayed by ten months.  


In their printed summary released prior to this call, here was a key and understated point: “The magnitude, duration and speed of COVID-19 remains uncertain."

 

A few other key points from their witten release

As of June 30, 2020, the Company had $1.8 billion in customer deposits of which approximately $300 million correspond to fourth quarter 2020 sailings. Approximately 48% of the guests booked on cancelled sailings have requested cash refunds.

The extended suspension of cruising has significantly impacted bookings for the remainder of 2020 which are meaningfully lower than same time last year and at lower prices.

Interest expense for the remainder of the year (July 1, 2020 through December 31, 2020) will be in the range of $505 million to $515 million.

As of June 30, 2020, the Company had liquidity of approximately $4.1 billion all in the form of cash and cash equivalents. The Company noted that as of June 30, 2020, the scheduled debt maturities for the remainder of 2020 and 2021, are $0.3 billion and $1.3 billion, respectively.

The Company estimates its cash burn to be, on average, in the range of approximately $250 million to $290 million per month during a prolonged suspension of operations.


From the various Q&A with Wall Street analysts

Europe is very different as to their conditions.  Testing will be a very relevant and part of the thinking when re-starting.  But, they are not ready to finalize or announce those plan specifics.   

As to the CDC, Sept. 21 is the deadline for this key U.S. health group to receive and start reviewing public comments and input.  “Huge amount of uncertainty, including what is happening now with Covid.”  End of September hoping for “meaningful dialogue” with CDC.  “It’s an on-going process."  More to come out later this fall. Key point as RCCL views this process as "more of a dimmer, not a light switch" that is suddenly switched on.  It will be a continual and evolving process.  This Covid-19 situation won’t end at one point in time.

 

RCCL has been doing consumer research since March to see consumer attitudes. Attitudes are varied by regions in the United States depending on the levels of Covid in their areas.  Loyalty cruisers are the core for those booking now for 2021, etc.  

 

Cash-burn can last till the end of next year (2021).  “It’s a real puzzle with so many variables to consider."  They view Covid both as a part and factor for the point of cruise departure, but also for the destinations.  Many Latin American countries are a part of the challenge given their high levels of infection now.  

 

How marketing to change?  Be a phased-in approach as fits with the "light switch/dimmer" comments made earlier.  Believe and hope that there is pent-up demand.  If lack of Europe flights from U.S. in 2021, then they will need to do more of a Europe-focused marketing effort to sell for that region. .  

 

From Fain: “We are all still learning” in referencing some early cruising starting in the Europe sailings out of Germany.  

 

Overall, I was impressed by the adult-like tone and approach expressed by CEO Fain.  He seems very realistic as to the time that this re-start will take and does not seem to be over-hyping the future hopes. Nor, trying to rush the timing.  These are just my quick, rough notes.  Hope this is of help.  

 

Any added questions, comments, etc.?
 

THANKS!  Enjoy!  Terry in Ohio

 

Sydney to NZ/Auckland Adventure, live/blog 2014 sampling/details with many exciting visuals and key highlights.  On page 23, post #571, see a complete index for all of the pictures, postings.  Now at 230,772 views.

www.boards.cruisecritic.com/showthread.php?t=1974139

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51 minutes ago, Silver Spectre said:

Thanks for your comprehensive report Terry.

 

Appreciate this above kind comments and follow-up from Silver Spectre.  Just posted on the CNBC business news website is a video interview segment with RCCL CEO Richard Fain being interviewed on this cable channel after he did the Wall Street analyst briefing..  Connect and see more below.  

 

Their headline is somewhat misleading and a little bit of "over-hype".  Most of his comments were not just focused on "pent-up demand".  If you listen to the full three-minute plus segment you can hear a good sampling for many more of the varied comments and messages from Fain that reflect their "realism" for the lack of certain as to what happens next, when and how.  He repeated his message for a "dimmer switch" being slowly ramp up . . . VERSUS . . . a sudden, one-step flipped "ON" switch.  

 

Full video of this interview segment is available at:

https://www.cnbc.com/video/2020/08/10/royal-caribbean-ceo-theres-pent-up-demand-for-cruises-from-past-customers.html

 

THANKS!  Enjoy!  Terry in Ohio

 

From CNBC, here is a screen shot of their video and the headline they placed on this interview segment.:

(Open your screen/viewer wider to see these visuals larger/better!)

39721157_ScreenShot2020-08-10at12_43_03PM.thumb.png.5561932568d446fd221d3415f8c11ab8.png

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Royal Caribbean's written press release, published in advance of today's call included:

 

"COVID-19 has impacted shipyard operations and will result in delivery delays for newbuilds. Currently, the Company expects that three of the five ships originally scheduled for delivery between July of 2020 and December of 2021 will be delivered within the remaining time frame. Two of these ships are Silver Moon and Silver Dawn, with capacity lower than 600 berths."

 

As Mr. Terry noted, the company's representative did indicate that most capital projects were on hold, but I believe he excepted the Silver Moon and Silver Dawn, mentioning them by name.

 

 

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19 minutes ago, dawntrdr said:

Royal Caribbean's written press release, published in advance of today's call included:

"COVID-19 has impacted shipyard operations and will result in delivery delays for newbuilds. Currently, the Company expects that three of the five ships originally scheduled for delivery between July of 2020 and December of 2021 will be delivered within the remaining time frame. Two of these ships are Silver Moon and Silver Dawn, with capacity lower than 600 berths."

 

Agree as to above that only certain ships in the overall fleet for Royal Caribbean, Celebrity, etc., are being delay.  This information for the Silver Moon and Silver Dawn matches what I had heard during this briefing.  

 

From the Motley Fool stock website today, they had this headline: “Why Royal Caribbean, Carnival, and Norwegian Cruise Line Stocks Just Jumped” with these highlights: “t's Monday, and things seem to be taking a turn for the better for cruise line stocks.”

 

Below is the late afternoon, near closing, Wall Street Journal chart for Royal Caribbean.  Up 10% today.  WOW!!  Carnival and NCL were each up more than 7%.

 

Here is more from their reporting today: "Today is earnings day for Royal Caribbean, and in contrast to rival Norwegian Cruise Line last week, it appears that Royal Caribbean beat on revenue.  Heading into earnings, analysts had forecast that Royal Caribbean would incur a pro forma $4.82 per share loss for its fiscal Q2, and with cruises suspended, they forecast revenue of only $43.5 million. Royal Caribbean's loss actually came in bigger than expected: $6.13 per share pro forma, and its GAAP loss was even worse at $7.83 per share. Still, Royal Caribbean's revenue was quite a bit better than predicted at $175.6 million, and investors seem to be focusing on that bright note today.  Based on Royal Caribbean's statement that it has 'approximately $4.1 billion, all in the form of cash and cash equivalents,' even a $290 million-a-month burn rate implies that it still has more than a year of cash left in the kitty to fund it through the tail end of this recession. But if burn rates keep rising beyond what's been planned for, that would clearly be a risk worth keeping an eye on -- for shareholders in Royal Caribbean, and for investors in the other cruise stocks as well."

 

Full story at:

https://www.fool.com/investing/2020/08/10/time-sensitive-why-royal-caribbean-carnival-corpor.aspx

 

THANKS!  Enjoy!  Terry in Ohio

 

Venice: Loving It & Why??!!  Is one of your future desires or past favorites? See these many visual samples for its great history and architecture.  This posting is now at 88,316 views.

http://boards.cruisecritic.com/showthread.php?t=1278226

 

From the Wall Street Journal, here is the chart for RCL during the past five days.  Up and UP!!??.:

(Open your screen/viewer wider to see these visuals larger/better!)

1676651183_ScreenShot2020-08-10at4_15_25PM.thumb.png.58e8284512405e462421f367f6398d08.png

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Thanks for the detailed updates Terry which we much appreciate in the UK.Having spent a career in the Finance business I am delighted to see the positive liquidity position of RC which indicates if nothing progressed during 2021 with returning Cruising to some sort of normality RC has the financial capability of surviving a blank 2021 and still having a good liquidity position to come back in 2022.Hope this is the worst case scenario,fingers crossed!

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1 hour ago, brimary said:

Thanks for the detailed updates Terry which we much appreciate in the UK. Having spent a career in the Finance business I am delighted to see the positive liquidity position of RC which indicates if nothing progressed during 2021 with returning Cruising to some sort of normality RC has the financial capability of surviving a blank 2021 and still having a good liquidity position to come back in 2022.Hope this is the worst case scenario,fingers crossed!

 

Glad that our above UK friend has the financial experience and appreciates the details as relates to money aspects for Royal Caribbean surviving the next year or so.  Clearly the Wall Street experts liked what they saw and heard yesterday.  In the early morning trading before the markets open at 9:30 am today, RCL, plus the other two major cruises, were trending up, UP.  Good sign?  Hopefully, maybe, if and if??!! 

 

From Barron's, the sister publication of the Wall Street Journal, they had this morning this headline: Royal Caribbean’s CEO Says Cruising Will Be Different After Covid-19. Here’s How.” with these highlights: “Royal Caribbean Group CEO Richard Fain continues to see a gradual return to business, at least initially, whenever that does occur.  Several companies have begun to operate cruises in Asia and Europe with scaled-down passenger occupancy, including several affiliated with Royal Caribbean. In an interview with Barron’s Monday, Fain said he was encouraged to see those cruises begin and that 'we’ll learn from that.'  Fain, the company’s CEO since the late-1980s, spoke to Barron’s after the company released its second-quarter earnings. 'It’s not only a question of protocols that we put in place,' Fain said. 'It’s relevant to how prevalent [Covid] is in society. If there is a high level of prevalence, no protocols are adequate. But with more reasonable prevalence, you can bring the risk way down.'  Fain declined to discuss many specifics of what the new protocols will look like.  'We will see differences but I think it will all be part of the evolutionary state of cruising,' he said. 'Just as flying is different now after 9/11, cruising will be different after Covid-19. But it will still be cruising.' ”

 

From this headline, I was hoping for more detailed specifics.  BUT, I understand that it will vary much depending on where the ships will be sailing from  headed. Plus, how the rest of this current, worldwide crisis plays out.  Overall, CEO Fain is being cautiously "hopeful", but also in my view, "REALISTIC" that there is so very, very much that we do not know, yet.  This includes for how some of the early stages of cruise re-starting is happening in Europe, China, etc.  Right now if I was guessing, I would say starting some cruises from Florida in mid December is being, maybe, optimistic.  

 

Full story at:

https://www.barrons.com/articles/royal-caribbean-rcl-ceo-cruising-will-be-different-after-covid-19-51597104309?adobe_mc=MCMID%3D49586136100231753311353363585221703500|MCORGID%3DCB68E4BA55144CAA0A4C98A5%40AdobeOrg|TS%3D1597146665

 

THANKS!  Enjoy!  Terry in Ohio

 

Amazon River-Caribbean 2015 adventure live/blog starting in Barbados. Many visuals from this amazing river and Caribbean Islands (Dutch ABC's, St. Barts, Dominica, Grenada, San Juan, etc.).  Now at 67,250 views:

www.boards.cruisecritic.com/showthread.php?t=2157696

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From the Miami Herald late yesterday, they had this headline: “Royal Caribbean floats testing passengers for COVID-19 when cruising resumes” with these highlights: “For likely the first time in Royal Caribbean Group’s 52-year history, the company has gone nearly four months without a passenger cruise. It’s no surprise then, that the company’s second quarter earnings were the worst on record as the COVID-19 pandemic keeps the industry largely paralyzed.  Unlike its largest competitor Carnival Corporation, Royal Caribbean does not have any concrete plans to start cruises again. Carnival Corp. planned to start cruises on its AIDA Cruises ships in Germany on Aug. 5, but pushed back to Sept. 6. Royal Caribbean Group cruises, along with cruises for other member companies of Cruise Lines International Association, are canceled in the U.S. until Oct. 31.”

 

But what for the future from this reporting?: "Royal Caribbean International CEO Michael Bayley said it’s looking like those protocols could include COVID-19 testing for passengers.  'Testing is part of the thinking,' he said.  Whether to test passengers before boarding has so far divided the industry. TUI Cruises, partially owned by Royal Caribbean Group; AIDA Cruises and Hurtigruten, among others, have decided to restart cruises without testing for passengers. Hurtigruten’s MS Roald Amundsen experienced a COVID-19 outbreak last week that left 62 people infected and several hospitalized in Norway. MSC Cruises announced last week that it will be testing passengers before boarding once it gets the go-ahead to restart cruises. 'There is still a lot of uncertainty,' said Royal Caribbean Group Chairman Richard Fain. 'We will not rush to return to service until we are confident we have figured out the changes we must make.' "

 

From the June 30 earnings conference call transcript with the top officials of  Lindblad Expeditions Inc., they highlighted their view that testing will be a key part of the cruising future.  Sven-Olof Lindblad, their founder and CEO noted that as a cruise line with small ships doing expedition-style sailings, they are more flexible to do BOTH testing a few days prior to a passengers boarding the ship . . . AND . . . then to do another test a few days after the start of the cruise.   Of interest and connecting a little with the Silversea positioning, he noted for expedition sailings (such as in the Galapagos Islands): “We do not require ports, except when we begin. And then and even if there was a problem of space, we could function from the anchor. We are also finding that countries are way happier with the idea of smaller ships, and our brand stands for small and remote. So we don't have to reinvent ourselves in this COVID environment.  Most of the time, we are in the wild.  Travel and tourism are not going away. Millions of people each year will want to get out and explore the world.  The question is how, and when and what they will value.

 

Smaller ships and having a large part of their business model being for expedition-style cruising does offer some unique advantages for Silversea.  Much better than Mr. Bayley must manage with those giant Royal Caribbean ships holding four, five or six thousand passengers.  Plus, such a large crew in cramped quarters!!?? 

 

Full stories/links at:

https://www.miamiherald.com/news/business/tourism-cruises/article244849552.html

https://www.fool.com/earnings/call-transcripts/2020/08/11/lindblad-expeditions-hldgs-inc-lind-q2-2020-earnin.aspx

 

THANKS!  Enjoy!  Terry in Ohio

 

AFRICA?!!?: Fun, interesting visuals, plus travel details from this early 2016 live/blog. At 49,996 views. Featuring Cape Town, South Africa’s coast, Mozambique, Victoria Falls/Zambia and Botswana's famed Okavango Delta.

www.boards.cruisecritic.com/showthread.php?t=2310337

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From MSN news website and the experienced, former travel editor for USA Today two days ago, here is this headline: “New COVID-era cruise restriction: No leaving the ship without an escort with these highlights: “Would you take a cruise if you couldn’t leave the ship during a port call without an escort?  That’s the way it’s going to work on two MSC Cruises vessels that are scheduled to restart sailings in Europe later this month.  MSC Cruises this week said passengers on the two ships — MSC Grandiosa and MSC Magnifica — only would be allowed to get off in ports if they were on an official, MSC Cruises-organized shore excursion with a guide.  Passengers will not be allowed to tour port towns on their own, and the same rule will apply to crew on the ships, too.  MSC Cruises CEO Gianni Onorato suggested the measure was critical to ensuring that passengers and crew don’t bring COVID-19 back on board the ships after visiting a port.”

 

As discussed earlier, many of us would prefer more "freedom" to do our "own thing" when visiting various locations and ports, but this story makes more clear the reasons as to why MSC is planning this approach.  Here is more from Gene Sloan's reporting: "MSC Cruises is one of a handful of cruise lines starting to resume voyages on a limited basis in Europe, where coronavirus case counts have dropped significantly in recent months. For now, the trips only are open to local European travelers from select countries.  A no-touring-on-your-own restriction of the sort MSC Cruises plans to implement is relatively rare in the cruise world, though not unprecedented. The small vessels that sail in the Galapagos, for instance, only allow passengers to disembark for wildlife watching when in a group accompanied by a licensed guide. The rule is mandated by the Ecuadorian government agency that oversees tourism in the Galapagos.  The touring restriction is one of several measures that MSC Cruises is implementing.  The line also will require passengers to undergo a rapid COVID-19 test at the port on the day of embarkation and daily temperature checks while on board. Passengers who test positive for COVID-19 at embarkation or show symptoms of the illness will be denied boarding.  MSC Cruises is the first cruise line to announce plans to test all passengers for COVID-19 on the day of departure."

 

Full story at:

https://www.msn.com/en-us/travel/news/new-covid-era-cruise-restriction-no-leaving-the-ship-without-an-escort/ar-BB17JKls

 

THANKS!  Enjoy!  Terry in Ohio

 

Kotor/Montenegro:  Exciting visual samples, tips, details, etc., for this scenic, historic location. Over 47,787 views.

http://boards.cruisecritic.com/showthread.php?t=1439193

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I see that Seabourn have just cancelled their 2021 World Cruise and moved the bookings to 2022, also their earliest start for any ship is now 25th November (wing and a prayer). As Carnival seem to set the tone for Seabourn cancellations at present pretty sure that SS/RCI will not be that far behind.

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Well, Terry, you had it right.......announcement about the BIG 10 just released.  They are not playing football this 

fall. Lets see when the next shoe drops.

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1 hour ago, Silver Spectre said:

I see that Seabourn have just cancelled their 2021 World Cruise and moved the bookings to 2022, also their earliest start for any ship is now 25th November (wing and a prayer). As Carnival seem to set the tone for Seabourn cancellations at present pretty sure that SS/RCI will not be that far behind.

 

Appreciate Silveer Spectre doing the follow-up in sharing this posting about Seabourn.  Agree that their decision in making these adjustments does somewhat "predict" a little as to what Silversea might be doing later.  Nice to see Lois' kind comments about my predicting correctly the Big Ten college football shut-down for this fall.  

 

Two other articles/news items today that might be of interest.  First, from the Wall Street Journal this afternoon, they had this headline: “Cruise Ship Owners Left Thousands of Workers Adrift for Months” with these highlights: “The coronavirus pandemic hit the cruise industry early and hard.  For more than 125,000 crew members, that was only the beginning. Long after passengers were gone and the cruise-ship story had faded from the headlines, thousands of employees were still stuck on the vessels, far from their homes in India, Indonesia, the Philippines and other far-flung nations and largely barred from boarding commercial jets to return.  The cruise companies decided to sort most of their employees by home country, regroup them on their own cruise ships and sail them home. The result was a disorganized shuffling of workers between vessels that increased their risk of exposure to the virus.  In interviews, crew members and officials in 13 countries described dangerous conditions for employees on ships owned by the world’s largest cruise lines. Some ships allowed employees to congregate in restaurants and bars, serve themselves in buffet lines and hold parties, some crew members said. Even ships with Covid-19 outbreaks often didn’t enforce such basic precautions as social distancing, they said.  The logistics of repatriating crew members to more than a hundred nations were a nightmare for cruise companies.”

 

This WSJ article is very comprehensive and highly detailed.  The more I would read, the worse it became.  Very sad tale!!   It's no wonder that the CDC views these goofs and this mismanagement by the major cruise lines to be a serious "negative mark" that causes distrust for gaining approval to do a future re-start to sailing.  Here are just few more story highlights: "Crew members on 100 of the 106 cruise ships for which the U.S. Centers for Disease Control and Prevention had data suffered Covid-19 infections or “Covid-like illness” between March 1 and June 23, with 638 crew members testing positive for the virus and 1,408 with Covid-like illness not verified by tests, according to CDC data.  At least 23 with the virus died after the cruise ships suspended commercial sailing."

 

Second is story as to how quickly conditions and rules can change in an individual country.  From the UK Daily Mail today, here is their headline "Jacinda Ardern plunges New Zealand BACK into lockdown with 1.6million Kiwis told they can't leave home as nation records just FOUR new cases of Covid-19 after 100 days without any" with these quick highlights: "New Zealand's remarkable COVID-19 run is over, with the country plunging back into lockdown after four members of the same family tested positive to the virus on Tuesday.  The nation has been the envy of the world for its handling of the COVID-19 crisis, with Monday marking 101 days without a single case of community transmission.  For three months, New Zealanders enjoyed the return of usual freedoms after an autumn lockdown proved effective in eliminating the deadly virus.  But Prime Minister Jacinda Ardern scheduled an unexpected press conference for 9.15pm on Tuesday night and announced those freedoms would be put on hold. Stay-at-home orders will be implemented throughout Auckland for 72 hours from midday on Wednesday after the four new cases were identified in the city."

 

Things can change quickly??!!  This, in part, may be why many countries and consumers are going to be slow and very caution in re-starting large-scale travel and opening back up.  

 

Full stories at:

https://www.wsj.com/articles/cruise-ship-coronavirus-workers-adrift-home-pandemic-11597160058?mod=hp_lead_pos5

https://www.dailymail.co.uk/news/article-8615231/New-Zealand-records-four-new-coronavirus-cases-plunges-lockdown.html

 

THANKS!  Enjoy!  Terry in Ohio

 

Dubrovnik!  Nice visual samples, tips, details, etc., for this super scenic location. Over 47,427 views.    

http://boards.cruisecritic.com/showthread.php?t=1439227

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On 8/8/2020 at 5:01 PM, cruiseej said:

It doesn't look like it's being marketed by Silversea; it seems like the ship has been chartered by the Saudi Arabian travel company for these two months of short cruises. For Silversea, it's a chance to (a) have some income, however small, and employ some staff, and (b) get some experience with their safety protocols in the era of COVID. If all goes well, they can tout the success as they launch additional cruises; if they Hurtigruten it (yes, I say that can now be used as a verb!), it will be small, self-contained, and perhaps avoid wider international scrutiny.  

 

It's also interesting to look at this travel website that, as best I can see, has zero mention of COVID-19.

 

My speculation was correct: Seatrade Cruise News has a story today about the series of short Silver Spirit cruises in the Red Sea, which are a two-month charter of the vessel by the Saudi Tourism Authority for local residents.

 

https://www.seatrade-cruise.com/news/silver-spirit-chartered-red-sea-cruises-saudi-summer-campaign 

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17 hours ago, brimary said:

Having spent a career in the Finance business I am delighted to see the positive liquidity position of RC which indicates if nothing progressed during 2021 with returning Cruising to some sort of normality RC has the financial capability of surviving a blank 2021 and still having a good liquidity position to come back in 2022.


Based on your finance background, would you agree before the end of 2020 RCL is going to have to bolster their liquidity position?  I certainly think so.  Once they hit the 12-month liquidity position, the vultures will start circling.  As such, they should consider floating a secondary now while their stock has stabilized, rather than issuing more debt, in order to shore up their finances for more than 24-months.

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9 hours ago, cruiseej said:

 

My speculation was correct: Seatrade Cruise News has a story today about the series of short Silver Spirit cruises in the Red Sea, which are a two-month charter of the vessel by the Saudi Tourism Authority for local residents.

 

https://www.seatrade-cruise.com/news/silver-spirit-chartered-red-sea-cruises-saudi-summer-campaign 

 

I received an email promotion for these Red Sea cruises using the Silver Spirit a good 10 days or so ago and they were being marketed by Royal Caribbean Arabia who have an office here in Dubai - I have no idea why I got an email because as far as I can tell they are open to Saudi nationals or residents only!!!!????  This was a feature on them in the Conde Nast Middle East edition - although at the time of going to press they said they didn't know which cruise line whereas the email I received clearly identified the Silver Spirit

 

https://www.cntravellerme.com/25264-leisure-cruises-are-coming-to-saudi-arabias-red-sea-coast-for-the-first-time

 

I also found the original mailing in my deleted email box, here's a link:

 

https://mailchi.mp/80acf9a2d550/cruise-from-saudi-arabia-on-an-ultra-luxury-cruise?e=287dea51d5

 

Anne...

Edited by Jayayeff
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On 8/8/2020 at 8:14 PM, FlyerTalker said:

 

I would have to wonder....will this be a "dry" cruise or will this be a time for the booze to flow?  Saudis visiting Dubai have a bit of a reputation as party people.

 

Oh, I know their reputation!!!!   However, it's anyone's guess whether these will be 'wet' or 'dry' cruises as in the carefully worded promo material I received there is no direct mention of mini-bars in suites or all inclusive wine, cocktails, spirits, etc. in lounges or dining rooms.... I guess you'll need insider information for the answer to that one when the time comes for these sailings...😀

 

Anne..

Edited by Jayayeff
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6 hours ago, Stumblefoot said:


Based on your finance background, would you agree before the end of 2020 RCL is going to have to bolster their liquidity position?  I certainly think so.  Once they hit the 12-month liquidity position, the vultures will start circling.  As such, they should consider floating a secondary now while their stock has stabilized, rather than issuing more debt, in order to shore up their finances for more than 24-months.

My own personal conclusions were based upon TLC Ohio excellent regular updates from the USA .In this instance the post by TLC on Monday at 4.30 pm giving details of the official quarterly report to 30/6/20 issued by the Management of RC.

At that date the company had liquidity of 4.1.billion US dollars.Scheduled debt requirements for 2020/2021 total 1.6 billion US dollars.Cash Burn per month at present is 290 million US dollars per month.My conclusion from these basic facts suggest thar RC have sufficient cash flow to meet requirements until the final quarter of 2021 if RC are unable to resume cruising until then.I would think that there are a large number of Cruise Lines around the World would love to be in this positive cash flow scenario. This is my personal assessment as I see it now but fully accept in these unprecedented times when forecasting the future is a nightmare for the Cruise Industry I may be completely wrong but as someone wishing to cruise again I hope my optimism is repaid.

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On 8/8/2020 at 5:14 PM, FlyerTalker said:

 

I would have to wonder....will this be a "dry" cruise or will this be a time for the booze to flow?  Saudis visiting Dubai have a bit of a reputation as party people.

Confirmed by a crew member, it’s a full alcohol ban on the Saudi Spirit cruises.

Edited by Silver Spectre
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22 minutes ago, Silver Spectre said:

Confirmed by a crew member, it’s a full alcohol ban on the Saudi Spirit cruises.

 

That makes sense.  They will probably offer a variety of (often elaborate) mocktails.  Presumably it is also Halal.  

Edited by Observer
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8 hours ago, Jayayeff said:

I received an email promotion for these Red Sea cruises using the Silver Spirit a good 10 days or so ago and they were being marketed by Royal Caribbean Arabia who have an office here in Dubai 

https://www.cntravellerme.com/25264-leisure-cruises-are-coming-to-saudi-arabias-red-sea-coast-for-the-first-time

I also found the original mailing in my deleted email box, here's a link:

https://mailchi.mp/80acf9a2d550/cruise-from-saudi-arabia-on-an-ultra-luxury-cruise?e=287dea51d5

Anne...

 

Great to see this added information from Anne in Dubai.  Very helpful!!  Anne was very knowledgeable and sharing in 2018 as we were preparing to do our Egypt, Israel, Jordan, etc., cruise that went from Athens to Dubai.  Enjoyed our experiences in the U.A.E.  Fascinating areas!!!!  It looks as if these upcoming Silver Spirit cruises are fairly short and kind of cruises from "nowhere to nowhere". There will be a couple of stops, but I am not sure how it will all work out, sell, etc.  

 

Appreciate ALL of the great sharing, comments, questions, etc.  Keep it up!!  Great "detective" work by cruiseej from Philadelphia.  These are "INTERESTING TIMES".  We would like to be traveling, sailing, exploring, etc.  BUT, following these evolving situations now and how folks are dealing with these challenges has kept some of us both stimulated and focused on the future.  

 

Don't be shy with any questions, news stories you are reading, input, viewpoints, etc.  

 

THANKS!  Enjoy!  Terry in Ohio

 

Athens & Greece: Many visuals, details from two visits in a city with great history, culture and architecture.  Now at 36,086 views.

http://boards.cruisecritic.com/showthread.php?t=1101008

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