S/S Norway Media Statement

May 25, 2003 – Today, at approximately 6:30 a.m. while the S/S Norway was at the Port of Miami returning from an Eastern Caribbean cruise; there was an incident in the engine room involving one of the boilers. We are deeply saddened by the death of two crewmembers. Several other crewmembers have been taken to local hospitals.

All 2,135 passengers have been safely disembarked and are being made as comfortable as possible at the Port of Miami and at local hotels until their flights are scheduled. No passengers were injured in the incident.

The May 25th cruise has been cancelled. Embarking passengers are being notified and offered a compensation package of a full refund for the cancelled cruise as well as a future cruise credit certificate equal to the value of the cancelled cruise (cruise only portion).

Anyone needing more information about the cruise cancellation should call 1-800-625-5672.

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kph06 said:
Do you think this will have an affect on Big U and Independance's future with NCL?

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A small fire in her aft turbo charger room while entering Barcelona, Spain, on May 28 1999 resulted in the termination of her cruise and the cancellation of the following cruise. She was scheduled to return to service, following repairs at Barcelona, on June 12 1999.

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I only wonder how big the damage is since there aren’t many easily replaceable engine parts available for her it could be that repairing the damage is a too greater and expensive task for NCL. I guess we have to wait for more information.

Onno

[ 05-25-2003: Message edited by: Onno ]

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Originally posted by cruiseny:
Could someone explain exactly how a leaking steam pipe causes an explosion and/or a fire?

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I assume that the Norway’s engine parts are not available off the shelf, so they will need to be made. NCL may well decide to make modifications to the engine systems as a result of this tragedy?

I understand the Norway's boilers run 950psi of steam and learned from this board, the a steam leak of that pressure can cut a person in half. A car tire at 30psi if punctured can injure someone.

The parts for the Norway engines are no longer available and have to be custom made. Much of her MEP has been replaced since 1980.

NCL is going to convert the BigU to diesels since there are fewer and fewer personnel who know how to run a steam turbine powerplant. Many of the Premier ships boiler problems were due to ISP's ineptitude rather than poor condition.

Norway is valued at $100 million and NCL could not take that loss on the books. A start up line could not afford her at any price. Her daily operating costs are the weekly operating costs of the NCL recent builds. 400' a month of plumbing lines are replaced. Her tendering at every port is a liability, especially for the handicapped.

If the engines cannot be rebuilt properly, the only alternative is a stationary gambling ship in Asia or Monaco, as per original plan until 9/11

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Originally posted by moodus2:
if it was just a steam line
that ruptured,i would questioned
the condition of the whole steam
plant. my guess is that the main
steam line blew off the steam drum or the steam drumm ruptured.
if the steam drum blew good bye
boiler. were the relief valves
functional? these are to prevent
too high a pressure in the system. or is it fatigue and
stress do to old age?
the whole steam plant will need to be inspected.

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Originally posted by Keitaro:
Can someone please tell me what made the NORWAY worth 100 million?

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She isn't. Kloster grossly overvalued her, and when Star bought NCL, they inherited that value. If they reported her value as actual market value (scrap value) they'd have to show a $90m+ loss, which would of course not be a good thing for the stocks. So they're basically "stuck" with NORWAY.

Personally I think they'd ought to find the cash to do a full refit, incl. new powerplant etc. Yes it would cost almost as much as a new ship but what they'd have at the end (IF MARKETED PROPERLY!!!) would be BETTER than a new ship, because they could easily create an "aura" with a good marketing campaign separate from the rest of NCL (Freestyle/Homeland etc.) and maybe even some slightly more varied itineraries (New York in the summer, Miami in winter???). In the end, I don't see why they couldn't make it make financial sense considering all the money that goes down the drain RUNNING the ship, or the amount that they'd supposedly "lose" if they actually sold her.

Basic economics: NCL loses 'less' money by operating her on the cheap than it would to dispose of her. Her Greyhound bus rates also bring in many first time cruisers who may then try their modern ships.

Most cruise lines make money on extras such as the casino, bars, photos, salons, shopping etc. Studies have shown that they cold berth and feed the passengers for free, and make the money on the extras.

With a multi-ship line losses on one ship can be offset by profits on another. Her $100m value nets great depreciation which is a tax deduction, yet does not hurt cash flow. So when the depreciation is added back, and is bringing in first time cruisers,
the Norway is actually making money

A smart accountant can take any set of books and show a profit or a loss.

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Originally posted by Keitaro:
Can someone please tell me what made the NORWAY worth 100 million? I would think the additional decks and deck extentions would not cost this much. Also, if NCL is spending alot on her daily cost, how come they are still operating her? Her fares are some-what cheap (I would think because she is old), but NCL is loosing money on her.

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Originally posted by desirod7:
Basic economics: NCL loses 'less' money by operating her on the cheap than it would to dispose of her.

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BUT could they be making more money if they spent the money to fix her up, and then sell her for much higher fares?

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they have a ready source of replacement parts.

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In depth article here.