NCL reported exactly what I, and other Cruise Talkers, predicted when they first concocted this US flagged scheme: US crews are too expensive, the ships don't generate enough revenue without casinos, and competition from other (lower cost) cruise lines in Hawaii is too strong.

Colin Veitch even said NCL would consider removing some of their US flagged ships from Hawaii if necessary, but that would be a last resort. The law does not permit the ships to operate in the Caribbean or Alaska. The only other options would be the West Coast, which Veitch said was not attractive, or reflag the ships and absorb them into NCL's main operation.

The writing is on the wall, folks. Within two years Pride of America will be alone in Hawaii as the orphan of NCL poorly conceived US flagged fleet. Honestly, if more cruise execs read this board the industry would be in better shape.

[ 02-26-2007: Message edited by: joe at travelpage ]

I wanted to cruise Hawaii, but the NCL web site cannot even give me a price with flights - the flights being a major cost for us Brits and Europeans (probably more expensive than the cruise). That's two potential passengers lost.

If they put together a nice long haul air/cruise package they may attract more Europeans to Hawaii - although I appreciate that this would hardly save the operation.

Fairsky said: "The law does not permit the ships to operate in the Caribbean or Alaska. The only other options would be the West Coast.."

Why is the west coast only permitted?

Quote: It is clear that the addition of capacity - both ours and our foreign-flag competitors - has outstripped demand in the short term, and we are not achieving the pricing needed to support our higher U.S.-flag operating costs.

So who are NCL's Hawaii competitions then?

As I have said before, pumping all of that money into NCL America and eight newbuilds was never going to be profitable in the short term.

[ 02-26-2007: Message edited by: Malcolm @ cruisepage ]

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Originally posted by J.S.S.Normandie:
So I take it this can't be very good news for the SSUS. Without NCL America she has no future in NCL........well let me correct myself.......she officially has no future.

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Other wice within 2 years the NCLA fleet is moved to NCL and flagged out. Then there is no way back. I hope this will not happen.

Greetings Ben.

[ 02-26-2007: Message edited by: Maasdam ]

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Originally posted by Maasdam:

I wonder why and maybe someone can explain to me why NCLA cannot sail to Alaska ore other destinations.
[ 02-26-2007: Message edited by: Maasdam ]

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That's easy to answer. NCL got the US Congress to pass special legislation to allow them to complete the unfinished Project America ships in a foreign shipyard and still flag the ships in the US. That legislation was sponsored by the very powerful senator from Hawaii. As payback NCL had to agree to a stipulation in the bill that they would not take the ships out of Hawaii. The senator wanted the jobs and revenue NCL's ships would generate. That's why the bill restricts the ships from sailing in the Caribbean or Alaska--the two most popular non-Hawaiian destinations.

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Originally posted by Thad:
Well I think that now that the two "purpose built" NCLA ships are online, the Pride of Aloha should return to NCL as the N. Sky.

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1. Man I love this country, but why is it that a US flagged vessel cannot operate in other places?

2. Is it me or why does everything we do is bad quality? Look at Project America and US built yachts.

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Originally posted by Carlos Fernandez:

2. Is it me or why does everything we do is bad quality? Look at Project America and US built yachts.

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Originally posted by lasuvidaboy:

I have no idea what you are referring to but from what I can see about the problems w/NCL America it is that fact that they need to be crewed by US citizens. The sad truth today is that many young people in the States are just lazy, don't have a good work ethic AND have a sense of entitlement.

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Originally posted by timb:

While in general I agree with what you are saying I think by the time a young person reaches the age to be crew there are often better oportunities regarding work and pay conditions.

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Most - if not all - cruise lines rely on cheap labour, often from developing countries. They rely on wages which are by the standards of the industrialized nations not even coming close to be acceptable (I know - there might be tips) - one of the MAJOR reasons why they can offer prices which are lower than they ever were.

I am not a big fan of unions - but one must not forget that it's maybe the wages on most - if not all - cruise lines which are too low - and not the wages on U.S. flagged ships which are too high.

It is certainly true that most young people here in the U.S. (and also in other industrialized countries) are not willing to work as hard as one has to work on a ship - for a rahter low (?) salary. One must also not forget that (luckily) education system somehow improved - O.K. - only somehow - we can certainly discuss that - let me better put it this way: In industrialized countries more people have an 'education' than several decades ago (whatever one call education - some sort of certificate) - and often they are therefore not relying or 'willing' to do unskilled labour.

[ 02-26-2007: Message edited by: Ernst ]

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Originally posted by Ernst:
[QB]
It is certainly true that most young people here in the U.S. (and also in other industrialized countries) are not willing to work as hard as one has to work on a ship - for a rahter low (?) salary.
/QB]

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Originally posted by Ernst:
...on the other hand - I see mre 'kids' working at supermarkets, restaurants etc. here in TN than I am used to. (this is my subjective perception - not necessarily true)

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Originally posted by mike sa:
Its not only NCLA, they lost numbers across the board, they carried less pax at lower fares in the Carribean, Alaska and Hawaii (which used to be premium income), they failed to redeploy the fleet to other premium areas, a huge 20% extra spent in marketing failed to make an impact as the occupancy actually fell and of course costs went up not only in Hawaii but across the board, NCL need a huge rethink - across the board.

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Originally posted by avalon1025:
The NCLA product is very poor, I had a group come back from Pride of America (even after we fully warned them) and they had a horrible time. Poor service, poor food, etc. I would not be surprised if they did not turn a profit.

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Originally posted by lasuvidaboy:

I don't know about Europe, but this has been going on in the States for some time. I did jobs in college (20 years ago) that kids today just won't do. There has been a huge shift in the States in the last several years where many young people are in fact far less educated than past generations and have a bizarre sense of entitlement. They are in for a rude awakening when reality slaps 'em in the face.

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Originally posted by Cunard Fan:

I don't think you can blame this all on the kids. I would say its more the fault of the older generations, sadly.

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