Should RCL spinoff Celebrity?

[HS2BS]

A quick look back to the beginning of the pandemic, when RCL needed a credit line of 2.2 billion dollars. This loan was secured by several Celebrity ships and the Celebrity LOGO.

Then it secured another four billion in secure notes and bonds that added up to at least 6.2 billion dollars In new debt. Edge and Apex have huge outstanding build loans, leaving Celebrity with a monthly burn of cash at about 250 - 275 million dollars.

Nothing to spin off except a debt ridden company, and RCL is either selling or scraping older ships to avoid the cost of daily operations, and still has the liability of repatriating crew(reports of over 25.000 crew members) to their home countries.
Spin off - no, survival yes!

 

Hal

[TeeRick]

16 minutes ago, HS2BS said:

A quick look back to the beginning of the pandemic, when RCL needed a credit line of 2.2 billion dollars. This loan was secured by several Celebrity ships and the Celebrity LOGO.

Then it secured another four billion in secure notes and bonds that added up to at least 6.2 billion dollars In new debt. Edge and Apex have huge outstanding build loans, leaving Celebrity with a monthly burn of cash at about 250 - 275 million dollars.

Nothing to spin off except a debt ridden company, and RCL is either selling or scraping older ships to avoid the cost of daily operations, and still has the liability of repatriating crew(reports of over 25.000 crew members) to their home countries.
Spin off - no, survival yes!

 

Hal

It is very bleak for all cruise lines.  I do hope that some form of cruising survives.

[Cruising89143]

Update on RCI crew repatriated.

 

https://www.cruiseindustrynews.com/cruise-news/23171-royal-caribbean-has-repatriated-38-000-crew.html

[Ray in NH]

On 7/2/2020 at 11:13 PM, cruisingator2 said:

Don’t see it happening. It’s hard for the smaller lines to make it on their own.
 

We outgrew RCI. Entertainment on the Oasis class was the best that I have experienced but that’s where it ends for us. Too many people/kids. We love X but our next cruise is on Azamara. We could not find the right itinerary on X. We did on Azamara. Should be interesting.

Our first Celebrity cruise was aboard Meridian (1993), to Bermuda, and is still enjoyingly memorable.

If you have enjoyed Celebrity, you will probably be very satisfied with Azamara.  AZ has smaller venues, but also much lower passenger count, which helps lessen the "crowding" that sometimes occurs on larger capacity ships.  We enjoy both lines and base our choice more on timing, itinerary differences.

We also enjoy the smaller ships for ease of boarding/disembarking at ports of call.

Hope this helps.

 

NRayH

[Cruising89143]

6 minutes ago, Ray in NH said:

Our first Celebrity cruise was aboard Meridian (1993), to Bermuda, and is still enjoyingly memorable.

If you have enjoyed Celebrity, you will probably be very satisfied with Azamara.  AZ has smaller venues, but also much lower passenger count, which helps lessen the "crowding" that sometimes occurs on larger capacity ships.  We enjoy both lines and base our choice more on timing, itinerary differences.

We also enjoy the smaller ships for ease of boarding/disembarking at ports of call.

Hope this helps.

 

NRayH

Thanks. We’re looking forward to trying Azamara. We love the port intensive itinerary.

[Charles4515]

Be careful what you wish for. Unfortunately spinning off Celebrity could very well mean spinning it off to oblivion.


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[boscobeans]

On 7/2/2020 at 5:00 PM, hcat said:

Agree...The formality is passe   but eveything else was above and beyond the Royalized experience.  Mercury was perfect.. enjoyed  Century...M Class and even S and E....but Royal  is  just not at the level that X offered! And never will be...

Yes, cruising on the Zenith, Century and Mercury back then was special.  The Millennium class was still in that category even with the introduction of "SPECIALTY" dining.  Back then dining in the Olympic WAS REALLY something SPECIAL, and although the food itself was not that much better than what was always EXCELLENT in the MDR there was a difference in the entire experience making it a wonderful and very memorable event.

 

After 10 years with mostly X the differences between it and RC became less and less and now after 10 more years sailing more on Royal Caribbean the differences have more or less vanished unless you look at the "Suite Life" that is now dividing the passengers into different levels of the cruise experience, which NEVER existed back 15-20 years ago on Celebrity.

 

For us, port of departure, itinerary and sail date determine which cruise we book and we have 2 booked on Royal coming up.

The days of Michel Roux in the MDR and real chocolate treats at turndown are as long gone as plunking quarters and silver dollars into the slots.. LOL.

[George C]

I like the fact that is rare to see people in T-shirts and shorts for dinner on celebrity but really common on rccl. Also love suite perks on celebrity, always enjoyed our dinners in luminae, I have only sailed celebrity 5 times all in suites, first time we booked a balcony and was upgraded to suite . 

[Baron Barracuda]

5 hours ago, HS2BS said:

A quick look back to the beginning of the pandemic, when RCL needed a credit line of 2.2 billion dollars. This loan was secured by several Celebrity ships and the Celebrity LOGO.

Then it secured another four billion in secure notes and bonds that added up to at least 6.2 billion dollars In new debt. Edge and Apex have huge outstanding build loans, leaving Celebrity with a monthly burn of cash at about 250 - 275 million dollars.

Nothing to spin off except a debt ridden company, and RCL is either selling or scraping older ships to avoid the cost of daily operations, and still has the liability of repatriating crew(reports of over 25.000 crew members) to their home countries.
Spin off - no, survival yes!

 

Hal

In addition to all that secured debt RCL has substantial unsecured liabilities including borrowings, payables and customer deposits.  Unsecured creditors would fight any attempt to move X's assets beyond their reach.

[LXA350]

X would loose and the passengers would loose as well if something like this would happen. You just have to look at the cruise industry, there has been always more consolidation over the years, a trend that will not stop or better said there is almost nothing major left to buy.

 

The reason X was able to grow over the past years and to get great ships like the Solstice Class and now Edge Class is because of them being part of the RCL group.