The parting is on amicable terms as Star and Carnival just could not agree on certain details. Star now remains as the sole shareholder in Arasass Ltd; the parent holding company of NCL Holdings.

See Press Release below:

Thursday March 16, 7:20 pm Eastern Time
Company Press Release
SOURCE: Carnival Corporation
Carnival Corporation and Star Cruises PLC Agree to End NCL Joint Venture; Star to Remain Sole Shareholder in NCL Holding ASA
MIAMI, March 16 /PRNewswire/ -- Carnival Corporation (NYSE: CCL - news) and Star Cruises PLC (SES: STRC) today announced their decision to end a previously announced joint venture agreement to acquire NCL Holding ASA. Carnival said it and Star could not agree on the detailed terms of the joint venture and Carnival had asked Star Cruises to release it from the joint venture. Star Cruises agreed to release Carnival and the parties are amicably terminating their arrangement. As a result, Star will remain NCL's sole shareholder. A formal agreement terminating the venture is expected to be concluded shortly.

``We are disappointed that we are unable to participate in the planned joint venture,'' said Micky Arison, chairman and CEO of Carnival Corporation. ``Nonetheless, we believe that the ultimate outcome remains beneficial to Norwegian Cruise Line and the cruise industry as a whole, and we wish Star great success going forward.'' Arison added that the termination of the joint venture is not expected to impact Carnival Corporation's earnings.

Colin Au, CEO of Star Cruises, stated, ``We have tremendous respect for Carnival Corporation and what they have accomplished within the cruise industry. Regrettably, we were unable to come to agreement on our joint venture plan. However, Star looks forward to proceeding with its strategy to strengthen NCL and cultivate the many avenues for growth that exist in the combined Star Cruises-NCL organization,'' Au said.

Carnival Corporation is comprised of Carnival Cruise Lines, the world's largest cruise line based on passengers carried, Holland America Line, Windstar Cruises, Cunard Line Limited, which operates the Cunard and Seabourn cruise brands, and interests in Costa Cruises and Airtours plc. Combined, Carnival Corporation's various brands operate 45 ships in the Caribbean, Alaska, Europe and other worldwide destinations.

Star Cruises is the equal-third largest cruise group (with P&O/Princess), with a fleet of 18 ships and over 21,000 lower berths.

Statements in this press release relating to matters that are not historical facts are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performances or achievements of Carnival Corporation to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions; increases in cruise industry capacity and competition; changes in tax and other laws and regulations affecting Carnival and other factors, which are described in further detail in Carnival's filings with the Securities and Exchange Commission.

SOURCE: Carnival Corporation

I always thought this arrangement or joint venture regarding NCL between Star Cruises and Carnival had something strange, "against-natural" and would not be viable after few time. Okay, business, economy and stock exchange are sometimes rather skilful or complicated for a no-initiated person (...and for initiated sometimes too), but this situation of the last weeks left me perplexed. In few words: "wait and see" before having an opinion and, anyway the informations revealed about the future of NCL (excepted about the itineraries for the next 2 years, but I'm sure they were thought before this story by NCL itself like any other cruise company use to do. They were just a little adapted to take part in the commercial strategy of the new owners.) were, in my opinion, too vague and common to mean something really firm and reliable.
So, that's why, as I'm not nor in the confidences of the cruise companies CEO, nor well informed, I'm waiting with impatience and big interest for the next informations regarding this subject...and I'm very concerned regarding NORWAY. In fact, I think it depends of the degree of autonomy NCL will have in relation to Star Cruses.
If this one is low, I have no doubts Star will retire the NORWAY within the next two years. If NCL has still the power to make decisions (hmm...when you are not the one who decides about money...), maybe NORWAY will be able to sail during the next ten years, depending of her condition and if she doesn't loose money by her costs in the future of course. My opinion is, sure she's not the vessel which is the most profitable for NCL, new ones have been designed to be more economic and "money maker" without any doubts (crew, machinery, ease of maintenance, standardization of the various equipments, layout of the rooms to push passengers to consume, facilities in ports, quay accessibility...) but I'm absolutly convinced, today she's NOT loosing money and she is still profitable. Which company in the world would keep during the last years (I just speak about the last years because this is since we began to heard about her retirement) a ship, as beautiful and loved she is, which looses money? Not any.
If no major problem regarding her maintenace happens, she has two major advantages regarding her profitability:
her passenger capacity and her very high fame and good image.
Eric, I can't be agree with you when you tell "forget her, let her retire..." as if only new and future ships are worthy of interest, good experience and vacation, existence. One question: do you know one ship still sailing in the world who (I prefer who than which) is able to attract several dozen of thousand peoples in a port of call with several kilometers of cars file with several special TV broadcasts when she went to Le Havre, Marseille and Oslo two years ago? I never saw that phenomenon in my country before (only the liberation after WWII and the victory in the soccer World Cup beat it), and believe me, though Frenchs have not a big interest in sea things or a big maritime culture like other countries have! Even a small plane crashed collided with another taking photography of her! And not to search very far, do you know the ship which is the more cited in this forum since its begining? Peoples can or can't understand that, be agree or not with that, but it is a fact. And I'm sure no modern Star Cruise ship (or any other modern cruise company with the same philosophy than the actual ones) will never be able to lead of such enthusiasm or passion. Do you think , in the future, peoples will fight with associations, foundations to save Star Saggitarius II when she will about to retire as peoples are doing now or did for QUEEN MARY and UNITED STATES.
Oh, I'm not one of those who think past was always better, refusing modern things, absolutly not, I prefer live today than 50 years ago. And I'm still young (34) so I'm turn toward future too, and sure I would really like to have several cruises onboard the next Superstar Leo or Saggitarius, but it is not a reason to forget the good things of the past (despite all the bad things there was). It is not a reason to accept the demolition of the more symbolic things of the maritime patrimony. I know several peoples like you have nothing against the NORWAY, and many of them thinking she is a nice ship but I do not accept someone can say it is better to forget all these old ships and only look after the modern ones. Both can exists and both can be operated by cruise lines if they are still profitable of course, and this is still the case for many of them. After, I think the better is to fight to preserve few of them, (we can't keep all too) the famed ones, exactlly as several old or antique monument in every town. They are our patrimony, the memory of our history.
And when they are beautiful too...

Carnival Corp and Star could not agree on Carnival's level of involvement (or lack thereof) in the joint venture.

Carnival wanted to be involved and have at least some say in NCL's future while Star just wanted Carnival to sit quietly and collect their share of any profits.

On one hand, with Star having sole ownership is good as it will cut out any "red tape" and bureaucray and allow Star to make their decision and implement change with minimal discussion.

On the other hand, I believe that Star will have its hands full trying to properly run an entity that is half a world away and maintain proper channels and levels of communication.

Star must also now contend with and bear the burden of having a debt load which has just ballooned to $2 Billion USD.

Star will most likely end up issuing additional stock warrants to the tune of $1 to 1.5 Billion US on the Hong Kong and Luxembourg Exchanges. This could open them up and make them just as vulnerable as NCL was should Genting Int'l and Resorts World choose not to participate to any great extent in the stock issue.

It could also speed up their endeavours to launch IPO's on the NY and Oslo Exchanges.

As for any degree of autonomy NCL might have, I believe that initially, there will be very little. The new CEO, Colin Veitch, was hand picked by Star and is basically in Miami to do their bidding and carry out their orders. The fact that he is a hardline bottom line business man and meshes perfectly with Star's Corporate Culture makes him, in their eyes, perfect for the job.

As with any venture, their will be many dicussions and meeting held as their already have with the first fruits of these labors having already been born in the form of revised deployments and initial commitments for new tonnage.

There is still a lot more to be done and it will certainly take some time before the proverbial dust settles and smoke clears, before it becomes perfectly clear exactly what will and will not happen.

In the end, I think that NCL can only be an improved and stronger company.

I totally agree with you!! Ships like the S/S Norway, the QE2, The big U and the S/S Rembrandt are part of our maritime heritage. They must be preserved to the joy of future generations. And think it is reasonable that the cruise-industry will contribute in one way or the other.

I hope we all can agree that the few remaining ships from the "by-gone era" should not end up on a beach in Pakistan. Look what happened to the S/S Canberra (www.sscanberra.com/gallagad.htm)

I am very grateful for the people who saved the RMS Queen Mary. Perhaps she is not the museum / hotel she could have been - but nevertheless she exists to the joy of thousands of shiplovers.

Nice to heard someone from Sweeden.
As a next cruise ship is being built in your country (WORLD OF RESIDENSEA), maybe you'll be able to share infos regarding her progress if you can have.

Regarding the NORWAY, lets strongly hope all the old symbols will be able to sail few years again besides the modern cruise ships!
Variety, contrarily to uniformity has been often good for the quality.
Nice too to heard someone who is not indifferent about the fate of our maritime patrimony!

To my knowledge The World of Residence.. is beeing built at Landskrona. We are only building the hull then she will be moved to Norway.