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Carnival CEO On bailout

jimbo5544

By jimbo5544,
in Carnival Cruise Lines

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jimbo5544 "Live from...." Rare

jimbo5544

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59 minutes ago, john91498 said:

I find it interesting that Carnival thinks there would be a bailout. Only 2 industries have ever been given a bailout.

 

And why do some of you think bankruptcy is so bad? Our president has gone through numerous bankruptcies and he's still a rich man.

I have no idea what  the last sentence has to do with it.  Which two industries exactly are you thinking of?

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john91498

john91498

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A friend told me there were 3 industries that had federal bailouts, not 2. Airlines, Automotive, and Financial. Those 3 were considered vital to the US economy.

Do anyone really think a vacation industry is vital to the US economy?

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jimbo5544 "Live from...." Rare

jimbo5544

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9 minutes ago, john91498 said:

A friend told me there were 3 industries that had federal bailouts, not 2. Airlines, Automotive, and Financial. Those 3 were considered vital to the US economy.

Do anyone really think a vacation industry is vital to the US economy?

Vital, can you describe vital?  Did you see the list I posted?

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RWolver672

RWolver672

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4 hours ago, john91498 said:

Why would the feds help a company that skirts US tax laws by flagging their ships in 3rd world countries?

 

This is just my opinion.  The cruise industry is more than the cruise ships.  It's people flying in to a cruise.  It's people driving into a cruise using gas and staying at a hotel on the way to a cruise.  It's shop owners at the ports that cater to cruisers.  It's Uber drivers that take people from their hotels to the port or picking them up at the airport.  It's hotels that cater to cruisers coming in a few days early and staying after the cruise.  It's the TAs that book the cruises.

 

It's the longshoremen that handle the luggage.  It's the restaurants that feed the people while staying at the hotels.  It's even the clothing industry where people buy new clothes to go on a cruise.

 

As you can see, there are many, many people affected by the cruise industry.  Not just the cruise lines.

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jimbo5544 "Live from...." Rare

jimbo5544

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2 minutes ago, indychristine said:

Just thought I would add these numbers to the conversation.

Cruise industry economic impact on US Economy, according to CLIA, for 2018-

52.7 Billion 


I do have a meme with the numbers just was not sure if I am allowed to post.  

CLIA is a reputable source, you can post, but we believe you.  😃

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Joebucks

Joebucks

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If he's being strategic about it, this is the best thing he could have said. Customers are worried, employees are worried, shareholders are worried. Him coming in and saying we have money and a plan is a lot more reassuring than "we need cash now!". This also doesn't prevent him from making a deal down the line with the US government to "stimulate the travel economy"

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Denverdonkeys

Denverdonkeys

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16 hours ago, shipbound2 said:

It has been reported that Carnival has 150 million in cash.

 

that is not that much cash. however as of 11/28/19 they had 518 mil in cash. 

 

they have over 1.8 BILLION in short term debt (due by November 2020) plus another 9.7 billion in long term debt.

 

they need more cash to make it a few more months without substantial cash inflows.

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jimbo5544 "Live from...." Rare

jimbo5544

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6 minutes ago, john91498 said:

The cruise lines didn't qualify because most of the work force are foreign nationals:

 

https://www.foxbusiness.com/markets/big-cruise-ship-lines-wouldnt-qualify-for-aid-under-stimulus-package

It was almost a sure thing the package was designed specifically for this reason.  Politics is politics.  That said, the ball game is not over.  

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Chief Vette

Chief Vette

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I'm on the Mississippi Gulf Coast.  We drove by the Port of Gulfport yesterday evening.  The Valor and Freedom are docked alongside the RC Majesty of the Seas.  Sad day for the cruise industry.  If they're not sailing full of passengers, expenses will overwhelm a company very fast.

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Thebosn1

Thebosn1

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"Donald said that the company is prepared for a cruising pause to last for the rest of the year, but he thinks the industry will come back stronger."

 

Hope that is not what he actually meant. 

 

  

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Thebosn1

Thebosn1

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18 hours ago, DryCreek said:

That's not much when you consider all of the overhead they are still carrying.

They still run diesel generators to keep their ships powered up.  They still have crew salaries.  They still have port fees to pay every time they come in to replenish fuel and other supplies (food, consumables, etc.).

I would be very curious as to what the average daily cost is to keep all of those ships in non-revenue status.

Even if they start sending some of their nonessential crew home as RCI has, they will still need bridge officers, navigation and communication, engineering and the crew support (cooks, laundry, general maintenance).

 

I wonder what a skeleton crew would number for a unique vessel such as a cruise ship - ChEngP?

They are sitting OK for cash, but have massive loans due in the next 2 years.   

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hattack

hattack

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The New Orleans Convention & Tourism Board did an Economic Footprint Study in 2016 to measure the impact of Cruising on the local economy (New Orleans ) and how many direct/indirect jobs are generated in a Service Industry base economy as a result of placing cruise ships in New Orleans as the Home Port 

 

CEO Arnold (who is born and raised in New Orleans 7th Ward and a graduate of St "Aug" ) has an excellent grasp of the situation (IMHO) and is a disciple of the School of Project Management and i am confident he has a plan 

 

next year when one takes a cruise you might do a mapping exercise starting from the time you make your reservation thru the time you cross the gang plank and set up the Ship and see how many jobs are link to cruising 

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Liljo22 Great Review Rare

Liljo22

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36 minutes ago, Chief Vette said:

So why is the stock price tanking?

The whole market is tanking.  Travel companies are tanking a little more but as a whole everyone is taking.  

Edited by Liljo22
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