The group is reporting losses of £ 14 million for the years trading up to October 2013.

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[ 02-13-2014: Message edited by: Neil - Ex P. & O. S. N. Company. ]

DISCOVERY's trading losses are in the region of £4m, with the other £10m due to non-operational factors. £6.7m, is due to an impairment charge following a revaluation of DISCOVERY and over £2m due to closing their Southampton office and moving HQ.

But........ DISCOVERY is operated by CMV, under the 'joint venture' which took effect at the beginning of last year. Her cruises end in Nov. Does this mean CMV's charter [or whatever the agreement was - ISTR 'indefinite term' being stated] is therefore dead at the end of the year?

There are a number of classic cruise ships which have been updated to meet the latest safety regulations which are still in service and prove very popular !

One of the bext examples is the 1948 built ' Azores ' which started life as the Swedish operated ' Stockholm '. and has recently been updated and returns to service in March 2014

Many poeple do not wish to travel on these massive amusement parks with a hotel mounted on a pontoon but prefer a proper ship !

.At present I think the ' Discovery ' is priced too high at about US $ 19.75 million but she might find a buyer and remain in service like the original 1971 built Love Boat ' Sun Princess ' which now operates in waters around Thailand. with cruises at present advertised until the end of April 2014.

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[ 02-14-2014: Message edited by: Neil - Ex P. & O. S. N. Company. ]

there is a large and inherent difference between the Discovery and Azores in that the Azores was so heavily and thoroughly rebuilt in the early 90's, that she essentially emerged a brand new ship.

And while I agree that there is a very small niche markets for "traditional" ships, the market is ebbing and it is becoming increasingly tough for any operator to profitably operate these smaller, older ships.

As lovely as Discovery is, she has outlived her usefulness by about 5 to 6 years and in hindsight, ALG should probably have disposed of her prior to spending the money they did on her most recent drydock.

On a side note, I would hardly tag any of the past niche or traditional operators of the Azores as a success in any way.

My two cents...

Their 1948 built ' Azores ' , which retained most of her original hull after being rebuilt, is operating on the German market from March until November 2014.

With the order for the new Viking Ocean Cruises ships, which are to be 49,000 grt, it seems some companies feel there is still a market for the smaller cruise ship.

While PSC may feel that there is a market for older, smaller ships and there is, it has yet to prove itself a profitable niche beyond a small number. Going into the UK market they are going to get killed by the likes of cheap cruises offered by Fred Olsen - who consistently operates in the red. And the cruise ops at Saga rarely make a dime. CMV has clearly shown they are progressing with newer vessels such as Astor and river cruisers.

While the Azores retained her original hull (that would be necessary, no?), all of her interior spaces and the vast majority of mechanical systems were new. She still has yet to be run by an operator who doesn't go bust - Nina Cruises, Festival, Classic - all went bust.

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With the order for the new Viking Ocean Cruises ships, which are to be 49,000 grt, it seems some companies feel there is still a market for the smaller cruise ship.

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quote:

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Originally posted by Tim in Fort Lauderdale:
likes of cheap cruises offered by Fred Olsen - who consistently operates in the red.........................................
While the Azores retained her original hull (that would be necessary, no?), all of her interior spaces and the vast majority of mechanical systems were new.

Tim

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I met the president of Fred Olsen at Sea Trade. He mentioned there is little onboard spending from the bars since the 75plus age group cannot drink since it interferes with their medications.

Does Fred Olsen also have a cargo division that is profitable? If so, is the break even passenger division a place to hide cash from the tax collectors?

The Azores former Stockholm totally rebuilt in the early 1990's:

My understanding is that was a make work project to keep the shipyards busy and cost the Italian government less to rehab the ship at a loss than unemployment compensation for laid off shipyard workers. It came in late and over budget.

20 years later, I am sure there are fewer shipwrights that can work on camber, shear, and tumblehome of a classic liner hull.

It is not farfetched since every shipyard in Europe turned down RFP's from Norwegian Cruise Lines to rehab the SS United States.