airtana Posted March 12, 2020 #1 Share Posted March 12, 2020 Now that the company has suspended all operations through at least April 30th and offering cash refunds and/or 125% future cruise vouchers, we wonder if they can sustain such losses and still remain in business. We were booked on the Sea which was to depart today from San Juan heading to Barcelona, so we were like deer caught in headlights when we got the call last night at 11:21pm (yes, indeed, the 11th hour)from a Representative saying it had been cancelled. Yes, Viking is definitely stepping up in a very generous way to offer these cash refunds or 125% in Future Cruise vouchers, but I am wanting to gauge what people are feeling about making the decision between the two. If (and that’s a big IF) this coronavirus outbreak continues to get worse and they have to make more major cancellations, and subsequently are forced into bankruptcy, that 125% might not be worth anything. Any opinions or thoughts???? 1 Link to comment Share on other sites More sharing options...
duquephart Posted March 12, 2020 #2 Share Posted March 12, 2020 100% of something is better than 125% of nothing. 3 Link to comment Share on other sites More sharing options...
airtana Posted March 12, 2020 Author #3 Share Posted March 12, 2020 So true, that is kind of how we are leaning at this moment. Link to comment Share on other sites More sharing options...
Dukefan Posted March 12, 2020 #4 Share Posted March 12, 2020 I believe Viking Management has demonstrated its ability to make sound business decisions for the 23 years it has been in existence. It has grown from a small River cruise enterprise into the major River cruise organization and into one of the top ocean cruise companies in the world. Based on past performance, I do not believe this privately held company's management would make any offers that it feels would be financially destructive to its stability and growth. Do you folk's have some private knowledge of this company's finance situation that causes you to question their management's approach to dealing with this event? 5 Link to comment Share on other sites More sharing options...
DaveSJ711 Posted March 12, 2020 #5 Share Posted March 12, 2020 Like any big company (public or private), Viking will have lines of credit it can draw on. And Viking will, if necessary, contact its lenders to restructure or suspend debt payments for new ships and other capital obligations. For these and other reasons, the potential for a Viking bankruptcy is vanishingly small IMO. 3 Link to comment Share on other sites More sharing options...
twodjs Posted March 12, 2020 #6 Share Posted March 12, 2020 If they were not in a financially sound position, they would not have taken the industry lead in stopping operations. Even before yesterday's announcement, we decided to move our cruise from next week to a year from now with the same itinerary. We appreciate Viking's decision and have no reason to doubt Viking's ability to remain viable. 2 Link to comment Share on other sites More sharing options...
Justalone Posted March 12, 2020 #7 Share Posted March 12, 2020 1 hour ago, DaveSJ711 said: Like any big company (public or private), Viking will have lines of credit it can draw on. And Viking will, if necessary, contact its lenders to restructure or suspend debt payments for new ships and other capital obligations. For these and other reasons, the potential for a Viking bankruptcy is vanishingly small IMO. Isn’t Viking highly leveraged? Link to comment Share on other sites More sharing options...
Steve Q Posted March 12, 2020 #8 Share Posted March 12, 2020 Moody’s announced today that Viking’s credit rating is “under review”. They are already rated below Investment Grade. Link to comment Share on other sites More sharing options...
DaveSJ711 Posted March 12, 2020 #9 Share Posted March 12, 2020 12 minutes ago, Justalone said: Isn’t Viking highly leveraged? I have no idea - I don’t know Viking’s debt-equity ratios. Regardless, Viking’s lenders have no reason to force a successful company into bankruptcy. Each side has ample reason to negotiate its way out of this mess. 1 Link to comment Share on other sites More sharing options...
travel09 Posted March 12, 2020 #10 Share Posted March 12, 2020 If anyone can survive this unprecedented crisis, Viking can... They are streets ahead of the competition, and we are all poised, dreams in place, to be there again ASAP..I'm sure..The knockers are always raising their ugly heads, lets ignore and be grateful. I think it takes courage to cancel ,but really anyone poised to cruise, should be wondering if it was a wise decision to go ,I would have imagined...Lets look ahead to much better things...! 5 Link to comment Share on other sites More sharing options...
Cienfuegos Posted March 12, 2020 #11 Share Posted March 12, 2020 There's also the issue of ships on order. Payments are made as construction targets are achieved. Link to comment Share on other sites More sharing options...
Jim Avery Posted March 12, 2020 #12 Share Posted March 12, 2020 2 minutes ago, Cienfuegos said: There's also the issue of ships on order. Payments are made as construction targets are achieved. With the world running in panic to close everything including our local rec centers and gyms, would shipyards stay open? Who knows. I just hope those good folks at the power company and the water/sewer company still go to work. If they don't, those hoarders won't need 400 rolls of Loo paper......😱🍸 1 1 Link to comment Share on other sites More sharing options...
Rare Peregrina651 Posted March 12, 2020 #13 Share Posted March 12, 2020 See Heidi13's comment in another thread: #37 Basically, he says that operating costs will be reduced more if the ships sit idle than if they sail at 50% or less of capacity. 1 Link to comment Share on other sites More sharing options...
DaveSJ711 Posted March 12, 2020 #14 Share Posted March 12, 2020 15 minutes ago, Peregrina651 said: See Heidi13's comment in another thread: #37 Basically, he says that operating costs will be reduced more if the ships sit idle than if they sail at 50% or less of capacity. And construction costs for future ships are funded by construction loans that Viking has already obtained and is drawing on. The company is well-positioned financially to withstand the current hurricane. 3 Link to comment Share on other sites More sharing options...
Cienfuegos Posted March 13, 2020 #15 Share Posted March 13, 2020 1 hour ago, DaveSJ711 said: And construction costs for future ships are funded by construction loans that Viking has already obtained and is drawing on. The company is well-positioned financially to withstand the current hurricane. I certainly hope that comes to pass. Viking's credit lines almost certainly require them to maintain certain financial ratios, so the outcome of the Moody's review will be significant. I am not aware of Viking's cash reserves, or its ability to meet current obligations on its existing ship debt without collecting new revenue. But, the use of Italian shipyards could mean that little work is progressing on the new ships. Which may mean those interval payments will be delayed. No doubt the bankers are penciling the cash flows under various scenarios. Or, they might get a no interest loan from Uncle Sam to tide them over... Link to comment Share on other sites More sharing options...
Captain_Morgan Posted March 13, 2020 #16 Share Posted March 13, 2020 Interesting to hear/read the expert opinions of those claiming Viking will come out of this unscathed based on little to no factual information....if we all based our opinions on hopes and dreams the world would be a different place! There's no doubt the Italian shipyards are closed or barely operating out of an abundance of caution, which of course means delays and massive cost overruns. Add to the fact that Moody's has downgraded Viking's credit status (public information) and I don't think the outlook is all rainbows and unicorns.....just saying Link to comment Share on other sites More sharing options...
Captain_Morgan Posted March 13, 2020 #17 Share Posted March 13, 2020 8 hours ago, Cienfuegos said: Or, they might get a no interest loan from Uncle Sam to tide them over... So a company based in Switzerland with ships flagged in Norway would get a loan from the US gov't?? 🙄 Link to comment Share on other sites More sharing options...
DGHOC Posted March 13, 2020 #18 Share Posted March 13, 2020 Folks beware of the troll. Most folk aren't responding to him as he is on their ignored list so they don't see his posts. Such a good idea that CC provides this facility. Look back at his posting history and all will become clear. He is anti Viking, his posts will confirm this, he regularly pops up to spread dissent and worry. Make your own minds up about Viking and don't let his poisonous negativity influence you. Have a good day all! 5 1 Link to comment Share on other sites More sharing options...
Captain_Morgan Posted March 13, 2020 #19 Share Posted March 13, 2020 39 minutes ago, DGHOC said: Folks beware of the troll. Most folk aren't responding to him as he is on their ignored list so they don't see his posts. Such a good idea that CC provides this facility. Look back at his posting history and all will become clear. He is anti Viking, his posts will confirm this, he regularly pops up to spread dissent and worry. Make your own minds up about Viking and don't let his poisonous negativity influence you. Have a good day all! again with the simplest form of trying to turn people away from reading a contrary or differing opinion....label someone as a ‘troll’...how very mature! sadly, this seems to be one of the few boards within CC whereby grown up, intelligent conversations are drowned out by gushing fanfare for a cruise line which, like all the others takes our money and offers a service. the company execs don’t know you, don’t care whether you love them and all that they do or if you see things differently, and they’re not going to reward you for being the most loyal on CC. as has been said, the use of the ignore function is there and is no doubt being used by those who are afraid of differing views or anything that might seem remotely realistic in fear that it might somehow tarnish their otherwise rosy view from the same tinted glasses... If reality is considered ‘poisonous negativity’ I shudder to think that CC is somehow an escape.... 1 Link to comment Share on other sites More sharing options...
DGHOC Posted March 13, 2020 #20 Share Posted March 13, 2020 Better still folk, report them to CC admin and they will remove the offending posts or even better remove the troll. How sad to be overwhelmed by such festering hate, what an unhappy person he must be. 1 1 Link to comment Share on other sites More sharing options...
GrJ Berkshire Posted March 13, 2020 #21 Share Posted March 13, 2020 Not just Viking, how many cruise lines will survive a sustained shut down? The loss of revenue, plus need to lay off staff, and repaying fares or FCC will be a hammer blow to most with the debt they have. Parking a ship, mothballing will have cost against zero income 1 Link to comment Share on other sites More sharing options...
Heidi13 Posted March 13, 2020 #22 Share Posted March 13, 2020 Unfortunately, when we block the trolls, we lose the ability to report the post, as I see nothing other than the CC message advising I have blocked the content. Needs members who still see the content to report it. From personal experience aboard the Viking Sun, Viking are extremely fair and generous with their actions and compensation. With respect to survival, I suspect the mega lines with their shareholders demanding dividends are in way worse condition than Viking. 3 Link to comment Share on other sites More sharing options...
Nippy Sweetie Posted March 13, 2020 #23 Share Posted March 13, 2020 (edited) I don't understand. Who is the troll? All the posts seem relevant and it's not unreasonable to consider less than positive potential outcomes. We're all trying to work out what to do one way or another. Edited March 13, 2020 by Nippy Sweetie 5 Link to comment Share on other sites More sharing options...
DGHOC Posted March 13, 2020 #24 Share Posted March 13, 2020 Not unreasonable at all Nippy Sweetie, I entirely agree with you but we have an unbiased view. This chap turns up to turn the knife and upset others at every opportunity. He has plagued threads causing upset and if you look at his posting history, he has spent almost his entire time disparaging Viking. I suspect he is a disgruntled passenger with an axe to grind or is working for a competitor. He has been blocked by many and many of his posts have been removed. Link to comment Share on other sites More sharing options...
Hanoj Posted March 13, 2020 #25 Share Posted March 13, 2020 (edited) 4 hours ago, Captain_Morgan said: if we all based our opinions on hopes and dreams the world would be a different place! Indeed it would. Everything, both positive and negative, that exists was first imagined. Thoughts and beliefs create our realities, which obviously differ among us. Whether you (me too) believe a thing to be true or not, you are right. That is, it is true for you (me). Once, long before cruising, the world was flat. We know that it was never true, but thankfully there were those who believed differently and took the risks to realize a different world. I recently read from A New Earth by Eckhart Tolle: "Acute crises and dysfunction always precede or coincide with any evolutionary advancement or gain in consciousness." While I believe this is true, it does not necessarily mean humanity will collectively gain in consciousness from the present crisis, but I hope we do. Freedom is living without fear. Precautions are prudent. But, as President Roosevelt famously said, fear is crippling, "nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance." Let's advance to freedom for all. Can Viking remain viable? Yes. Will Viking remain viable? If enough people believe, hope and dream Viking will remain viable, then it will be so. Edited March 13, 2020 by Hanoj typo 5 Link to comment Share on other sites More sharing options...
Recommended Posts
Please sign in to comment
You will be able to leave a comment after signing in
Sign In Now