It appears that NCL has struck a deal with Hawaii Senator Daniel Inouye that would push legistlation to allow both Project America ships to be completed in a European shipyard, but still be flagged in the US, and carry a US crew.

Furthermore, NCL would be allowed to reflag one already completed foreign built ship to the US (likely Norwegian Star). All three ships would sail in Hawaii as US flagged and operated ships. This would give NCL a huge monopoly over the Hawaii market.

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Originally posted by skyej
Furthermore, NCL would be allowed to reflag one already completed foreign built ship to the US (likely Norwegian Star). All three ships would sail in Hawaii as US flagged and operated ships. This would give NCL a huge monopoly over the Hawaii market.

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They want to dominate Hawaii to draw first time cruises to the NCL brand where other cruise lines don't have much of a presence- and once people know and experience NCL they can try the same cruise brand, NCL, to other destinations. Why would they start a new brand when their current one still needs a lot of help?

I still believe flagging ships in the US is a poor business move for numerous reasons:

1. No casinos are permitted on the ship- and casinos generate huge profits for any cruise operation.
2. All American crews, while a nice idea, are terribly expensive. Americans don't work for cheap.
3. US flagged ships must meet different regulations (tax regulations among them) which adds to the cost of operation and lowers profit.

I'm not convinced this is the best move for NCL. For one ship, maybe. But three!?

quote:

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Originally posted by skyej
No casinos are permitted on the ship- and casinos generate huge profits for any cruise operation.

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It’s a big different to run a cruise ship compared to a war ship.

The only way for NCL to get this working successfully would be to stay with Norwegian ( Scandinavian) officers. ( with working permit). That is the way RCI does it today with the employers at the Miami office involved with ship operations.

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Originally posted by Keitaro:

Why?

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The laws that regulate US flagged vessels does not permit the operation of casinos.
This seems really silly to me- given that many states in the US allow riverboat casinos.

I have always wondered about the casinos being illegal on U.S. flagged ships. It just doesn't make any sense. For a country that doesn't allow gambling we sure have a lot of casino's to choose from! I lived in Montana for a year and there were casino's everywhere. They have them on Indian reservations and on river boats. I have been to casino's in Delaware and New Mexico and there are countless others across the country. As a matter fact the newly elected Governor on Maryland is pushing for slot machines in that state and they will probably get them. And let's not forget that just about EVERY state has a lottery!!!!! Gambling in the States is only illegal if you can't find a loop-hole to use to your advantage.

Perhaps they could register the ships in a state such as Nevada instead of the United States! That way the ship would be run under Nevada law and therefore gambling would be legal!
I am only kidding, but stranger things have happened.

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NCL Exclusive Blocked in US Sentate
January 17: US Senate Commerce Committee chairman, John McCain moved to block a provision in the Omnibus Appropriations Bill that allowed Norwegian Cruise Lines 'the exclusive right to operate foreign-built cruise vessels in the domestic cruise trade'. McCain's amendment would strike out a provision allowing NCL, (which recently bought the hull and parts of two Project America cruise vessels after the bankruptcy of American Classic Voyages) to incorporate the parts into a cruise ship that would be constructed in a German shipyard. NCL executives were not available for comment.

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Hawaiian Senator Daniel Inouye introduced provisions last Friday in a Senate fiscal appropriations bill that calls for the re-flagging of former "Project America" ships as U.S.-flag vessels even though their construction will be completed in a foreign ship yard. Inouye slipped the provision into a spending bill that Congress is drafting to pay for government operations this fiscal year. An attempt by Sen. John McCain, R-Ariz., to strip the provision from the bill was rejected by the Senate last week.

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BUT- he said the proposed bill that allows NCL, and no other cruise line, a way around these laws is unfair and gives NCL an unfair advantage.

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Originally posted by skyej:Senator McCain, who is blocking the provision to allow NCL to exclusively operate foreign built ships under the US flag in Hawaii, has said that he disagrees with the restrictive laws that permit only US built, flagged, and crewed ships to sail US waters. He would like these laws done away with.

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Well, now that's another matter. I misjudged McCain entirely on this one. He certainly has some very understandable objections. Why should NCL be the only company allowed to operate foreign-built ships under US registry? Why should only US-built ships be allowed under US registry? Our depressed shipbuilding industry has been holding back our merchant marine for too long.

[ 01-21-2003: Message edited by: Britanis ]

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Originally posted by moodus2:
ncl bought 2 americas project
cruise ships from the american
taxpayers who would otherwise
have to swallow $500 million
for unfinished ships that would
be scrapped.
no other cruise line aproached
the americans for these ships.
so my hat off to ncl for bailing
out the american taxpayer and
finishing the construction of
these ships.

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Ok, let me get this right. The US government makes a stupid decision to fund the building of two cruise ships for a company in poor financial standing. Then the company goes under, the ships are partially constructed and left to rust while the government figures out a solution.

NCL, in desperite need of new ships, swoops in and grabs the project america hulls and takes them to Germany- but with the intent of lobbying the government to give them a special deal- one that gives them an advantage over the competition and exemption from US law.

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Originally posted by seatrials
Are there any specific detail about what NCL has planned for the ships? Any photos of models, etc?

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quote:

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Originally posted by moodus2:
ncl bought 2 americas project
cruise ships from the american
taxpayers who would otherwise
have to swallow $500 million
for unfinished ships that would
be scrapped.
no other cruise line aproached
the americans for these ships.
so my hat off to ncl for bailing
out the american taxpayer and
finishing the construction of
these ships.

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quote:

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Originally posted by skyej:
Senator McCain, who is blocking the provision to allow NCL to exclusively operate foreign built ships under the US flag in Hawaii, has said that he disagrees with the restrictive laws that permit only US built, flagged, and crewed ships to sail US waters. He would like these laws done away with.

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1. No casinos are permitted on the ship- and casinos generate huge profits for any cruise operation.
2. All American crews, while a nice idea, are terribly expensive. Americans don't work for cheap.
3. US flagged ships must meet different regulations (tax regulations among them) which adds to the cost of operation and lowers profit.

I'm not convinced this is the best move for NCL. For one ship, maybe. But three!?

If this deal goes through the real loosers will be the residents of Fanning Is.[/QB][/QUOTE]

About one month ago Mr. Bernhard Meyer delivered,
the ,,NORWEGIAN DAWN'' to NCL.
In 1995 Mr. Meyer would have paid a lot of money
to build the best and most advanced ship yard in Philadephia.
But he was not wanted. Seé web.
www.rand.org/publications/MR/MR.1364/MR.1364.ch6.pdf

I am sure that taxpayers money is better spent on a ,,Project America'' if it helps to make a living for abt 3.000 families of shipyard workers, for abt 2.000 shipyard suppliers and abt. 2.000 people, related to jobs, in hotels + restaurants etc.