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Carnival sale of Cunard rumoured


BigAl94
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What dou think they could sell as "Cunard"?

 

There is not much left of Cunard but merely a brand, a name used for marketing.

There is no company, no real operating entity called Cunard.

 

You do not have a contract with a company called Cunard but with Carnival. (eg "You are entering into this contract with Carnival plc trading as Cunard,", "“Cunard” means Carnival plc trading as Cunard Line;").

There is no captain, no steward, no even long time maitre d' employed by a company called Cunard, as there is no such company. They are employed by Carnival.

The same obviously goes for all land based people and all the systems.

The ship are owned by Carnival resp. some subsidiary.

 

Of course the "brand" alone could be sold, or the ships. Yet this is not what most people would consider finding a new owner who continues to operate "Cunard".

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Guest SilverHengroen
4 hours ago, carlmm said:

What dou think they could sell as "Cunard"?

 

There is not much left of Cunard but merely a brand, a name used for marketing.

There is no company, no real operating entity called Cunard.

 

You do not have a contract with a company called Cunard but with Carnival. (eg "You are entering into this contract with Carnival plc trading as Cunard,", "“Cunard” means Carnival plc trading as Cunard Line;").

There is no captain, no steward, no even long time maitre d' employed by a company called Cunard, as there is no such company. They are employed by Carnival.

The same obviously goes for all land based people and all the systems.

The ship are owned by Carnival resp. some subsidiary.

 

Of course the "brand" alone could be sold, or the ships. Yet this is not what most people would consider finding a new owner who continues to operate "Cunard".

Assuming they sold it as a going concern, Carnival would likely transfer the Cunard brand name, along with any associated IP/ trademarked material (likely the subject of negotiations), the ships themselves, and any furniture, artwork etc on board if the new owners wanted to keep it. For staffing likely the on-board crew would be offered new contracts with the new company (either ‘Cunard plc’ or similar, or the new parent company buying Cunard) with anyone who didn’t make the leap being replaced by newly hired/ trained personnel. The new owners would rent new office space, and if they remain based in Southampton some Cunard-centric Carnival staff like Simon Palethorpe would likely be given the opportunity to transfer to the new company’s executive team to help with transitioning smoothly. 
 

companies spin off sections of their business all the time, it’s really not an unprecedented process. Having said that I don’t see what is in it for Carnival for the moment, this is the sort of last resort big move that comes when the cash runs out with little prospect to raise more affordable debt. Throwing things up in the air like this just now would likely be a big negative, just adding to uncertainty surrounding the company going forward. 

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How do you explain Cunard and Princess having different web sites, method of refunds and operating procedures? Seems to me they are different. Cunard has a different dress code, Grill rooms, ball room dancing etc.

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Guest SilverHengroen
3 minutes ago, oskidunker said:

How do you explain Cunard and Princess having different web sites, method of refunds and operating procedures? Seems to me they are different. Cunard has a different dress code, Grill rooms, ball room dancing etc.

Each brand doesn’t have entirely separate organs, but they are maintained largely as self-contained (and internally competitive) entities by one of several Carnival operating companies (Holland America Group for Princess I believe). Cunard is under Carnival UK, based in So’ton with P&O, and Costa acts as Carnival for Europe operating Costa cruises and AIDA. 
 

This wiki article actually does quite a good job of explaining how the carnival group is set up:

https://en.wikipedia.org/wiki/Carnival_Corporation_%26_plc

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54 minutes ago, SilverHengroen said:

 

 

 

 For staffing likely the on-board crew would be offered new contracts with the new company (either ‘Cunard plc’ or similar, or the new parent company buying Cunard) with anyone who didn’t make the leap being replaced by newly hired/ trained personnel.

 

 

As the staff are just as important as the ships, aren't we lucky it looks as if sell off talk was speculative and seemingly, without foundation.

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I’ve really enjoyed the Cunard cruises I’ve been on, but they should do more to appeal to a younger demographic. 

 

Suggestions: 

 

- Younger people in advertising and promotional materials

- Better and more effective use of social media including Facebook and Instagram 

- More 90s and 00s music in the theatre and nightlife venues - same goes with booking acts 

- Sail away parties that are properly promoted and have a DJ

- More of a focus on the use of technology onboard - Cunard ships such as the QE2 were innovative for their times - have they lost their way on this? 

- Refresh of the cabin interiors - they are ok but look a little stuck in the 90s

- Free or much cheaper WiFi 

- Revamp the loyalty programme so it is much more attractive to younger cruises 

- More active promotion of wellness and exercise classes

- Speakers that appear to a younger audience - some of the lectures are really quite boring 

- Less emphasis on ballroom dancing - how about a party afternoon tea? 

- Bring back a once per cruise midnight buffet

- More adventure focused shore excursions - totally optional of course 

- Drinks package - too expensive currently - Celebrity is a better model 

- An “in between” dining venue - i.e. a restaurant where you don’t have to be dressed up but not the buffet

- A revamp of the Golden Lion - feels like an expensive Wetherspoons currently 

- New cocktail menus 

- Special meets and greets / possibly drinks parties for under 40s 

- Encouraging diversity onboard 

 

All of the above should be cheap and easy to implement. 

 

I personally like dressing up, but I’d also suggest a “white party” or a theme party that is different from what they do currently and isn’t dinner suitS and ball gowns, in particular, on the Med and port intensive cruises. Sophistication does not always mean black tie. 

 

Edited by AspirationalFlyer
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24 minutes ago, AspirationalFlyer said:

I’ve really enjoyed the Cunard cruises I’ve been on, but they should do more to appeal to a younger demographic. 

 

Suggestions: 

 

- Younger people in advertising and promotional materials

- Better and more effective use of social media including Facebook and Instagram 

- More 90s and 00s music in the theatre and nightlife venues - same goes with booking acts 

- Sail away parties that are properly promoted and have a DJ

- More of a focus on the use of technology onboard - Cunard ships such as the QE2 were innovative for their times - have they lost their way on this? 

- Refresh of the cabin interiors - they are ok but look a little stuck in the 90s

- Free or much cheaper WiFi 

- Revamp the loyalty programme so it is much more attractive to younger cruises 

- More active promotion of wellness and exercise classes

- Speakers that appear to a younger audience - some of the lectures are really quite boring 

- Less emphasis on ballroom dancing - how about a party afternoon tea? 

- Bring back a once per cruise midnight buffet

- More adventure focused shore excursions - totally optional of course 

- Drinks package - too expensive currently - Celebrity is a better model 

- An “in between” dining venue - i.e. a restaurant where you don’t have to be dressed up but not the buffet

- A revamp of the Golden Lion - feels like an expensive Wetherspoons currently 

- New cocktail menus 

- Special meets and greets / possibly drinks parties for under 40s 

- Encouraging diversity onboard 

 

All of the above should be cheap and easy to implement. 

 

I personally like dressing up, but I’d also suggest a “white party” or a theme party that is different from what they do currently and isn’t dinner suitS and ball gowns, in particular, on the Med and port intensive cruises. Sophistication does not always mean black tie. 

 

 

Cunard is the only cruise experience that  remotely resembles what cruising was like  in the last century .

Seems enough people  like that to keep 3 ships sailing. Lets keep it that way for a while longer .

 

 

 

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29 minutes ago, AspirationalFlyer said:

I’ve really enjoyed the Cunard cruises I’ve been on, but they should do more to appeal to a younger demographic. 

 

Suggestions: 

 

- Younger people in advertising and promotional materials

- Better and more effective use of social media including Facebook and Instagram 

- More 90s and 00s music in the theatre and nightlife venues - same goes with booking acts 

- Sail away parties that are properly promoted and have a DJ

- More of a focus on the use of technology onboard - Cunard ships such as the QE2 were innovative for their times - have they lost their way on this? 

- Refresh of the cabin interiors - they are ok but look a little stuck in the 90s

- Free or much cheaper WiFi 

- Revamp the loyalty programme so it is much more attractive to younger cruises 

- More active promotion of wellness and exercise classes

- Speakers that appear to a younger audience - some of the lectures are really quite boring 

- Less emphasis on ballroom dancing - how about a party afternoon tea? 

- Bring back a once per cruise midnight buffet

- More adventure focused shore excursions - totally optional of course 

- Drinks package - too expensive currently - Celebrity is a better model 

- An “in between” dining venue - i.e. a restaurant where you don’t have to be dressed up but not the buffet

- A revamp of the Golden Lion - feels like an expensive Wetherspoons currently 

- New cocktail menus 

- Special meets and greets / possibly drinks parties for under 40s 

- Encouraging diversity onboard 

 

All of the above should be cheap and easy to implement. 

 

I personally like dressing up, but I’d also suggest a “white party” or a theme party that is different from what they do currently and isn’t dinner suitS and ball gowns, in particular, on the Med and port intensive cruises. Sophistication does not always mean black tie. 

 

 

It appears you have posted an eclectic mix of requirements already delivered by  Carnival, Royal and Celebrity.   

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33 minutes ago, AspirationalFlyer said:

I’ve really enjoyed the Cunard cruises I’ve been on, but they should do more to appeal to a younger demographic. 

 

Suggestions: 

 

- Younger people in advertising and promotional materials

- Better and more effective use of social media including Facebook and Instagram 

- More 90s and 00s music in the theatre and nightlife venues - same goes with booking acts 

- Sail away parties that are properly promoted and have a DJ

- More of a focus on the use of technology onboard - Cunard ships such as the QE2 were innovative for their times - have they lost their way on this? 

- Refresh of the cabin interiors - they are ok but look a little stuck in the 90s

- Free or much cheaper WiFi 

- Revamp the loyalty programme so it is much more attractive to younger cruises 

- More active promotion of wellness and exercise classes

- Speakers that appear to a younger audience - some of the lectures are really quite boring 

- Less emphasis on ballroom dancing - how about a party afternoon tea? 

- Bring back a once per cruise midnight buffet

- More adventure focused shore excursions - totally optional of course 

- Drinks package - too expensive currently - Celebrity is a better model 

- An “in between” dining venue - i.e. a restaurant where you don’t have to be dressed up but not the buffet

- A revamp of the Golden Lion - feels like an expensive Wetherspoons currently 

- New cocktail menus 

- Special meets and greets / possibly drinks parties for under 40s 

- Encouraging diversity onboard 

 

All of the above should be cheap and easy to implement. 

 

I personally like dressing up, but I’d also suggest a “white party” or a theme party that is different from what they do currently and isn’t dinner suitS and ball gowns, in particular, on the Med and port intensive cruises. Sophistication does not always mean black tie. 

 

Isn't that just making Cunard the same as many other lines? Isn't the point of Cunard that it's usp is that it still has proper formal nights, ballroom dancing and "grown up" entertainment. There are a huge number of "older" people who particularly enjoy these things. And that is a growing number, with the older population increasing all the time.

 

Ok, things are not good now for the older generation, but hopefully that will not be for too long, given a reliable vaccination, and there will then still be a big market for Cunard. Why change every thing for, what we all hope will be, a short term problem. 

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It’s an interesting debate, but irrespective of the current COVID-19 crisis the reality is that Cunard does have a long-term demographic issue. Carnival know that too. 

 

Just because Cunard fills three ships now, does mean it will automatically do so in the future. Many travel brands have disappeared over the years. 

 

Moving aspects (certainly not all....!) of Cunard closer to what other cruise lines do well is - in my view - a good and not a bad thing. We all need to embrace change. Cruise lines too. You can take aspects of what other cruise lines do well, whilst retaining the dress code, aspects of interior design, sophisticated ambience, afternoon teas and many of the things that passengers of all ages love. 

 

Aspects of Cunard are already moving forward. I was pleased to see the design team for the fourth ship and Tihany has commented in interviews on how Cunard has often been innovative and that the interior plan for the new ship is a lighter and more contemporary feel. 

 

My Mum (who is in her fifties) also loves Cunard but also agrees that some future change is probably for the better. 

 

I disagree that what I’m suggesting overall (or what I’d like to see) can be found on any of RC, Celebrity or Carnival. Of those three lines, I’d only travel on Celebrity. 

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2 hours ago, AspirationalFlyer said:

I’ve really enjoyed the Cunard cruises I’ve been on, but they should do more to appeal to a younger demographic. 

 

Suggestions: 

 

- Younger people in advertising and promotional materials

- Better and more effective use of social media including Facebook and Instagram 

- More 90s and 00s music in the theatre and nightlife venues - same goes with booking acts 

- Sail away parties that are properly promoted and have a DJ

- More of a focus on the use of technology onboard - Cunard ships such as the QE2 were innovative for their times - have they lost their way on this? 

- Refresh of the cabin interiors - they are ok but look a little stuck in the 90s

- Free or much cheaper WiFi 

- Revamp the loyalty programme so it is much more attractive to younger cruises 

- More active promotion of wellness and exercise classes

- Speakers that appear to a younger audience - some of the lectures are really quite boring 

- Less emphasis on ballroom dancing - how about a party afternoon tea? 

- Bring back a once per cruise midnight buffet

- More adventure focused shore excursions - totally optional of course 

- Drinks package - too expensive currently - Celebrity is a better model 

- An “in between” dining venue - i.e. a restaurant where you don’t have to be dressed up but not the buffet

- A revamp of the Golden Lion - feels like an expensive Wetherspoons currently 

- New cocktail menus 

- Special meets and greets / possibly drinks parties for under 40s 

- Encouraging diversity onboard 

 

All of the above should be cheap and easy to implement. 

 

I personally like dressing up, but I’d also suggest a “white party” or a theme party that is different from what they do currently and isn’t dinner suitS and ball gowns, in particular, on the Med and port intensive cruises. Sophistication does not always mean black tie. 

 

Easy to instigate the majority of these for UK cruisers  is book with P&O.

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1 hour ago, PORT ROYAL said:

 

It appears you have posted an eclectic mix of requirements already delivered by  Carnival, Royal and Celebrity.   

 

Certainly most of the things suggested would make me less keen to travel on Cunard.

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5 minutes ago, majortom10 said:

Easy to instigate the majority of these for UK cruisers  is book with P&O.

 

Hello, 

 

We are taking about Cunard though, Cunard’s business model and Cunard’s long-term ability to make money. I much prefer the Cunard brand to P&O. I think this is about making sure Cunard has a long-term and sustainable future and not turning it into something else which already exists. 

 

I know people have an emotional attachment to Cunard - I do too - but I’d personally like to see it survive long-term. 

 

I guess the “book elsewhere” argument works both ways. If someone doesn’t like a reformed Cunard, is it better for them to book elsewhere - perhaps Saga as an example? 

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1 hour ago, AspirationalFlyer said:

 

Hello, 

 

We are taking about Cunard though, Cunard’s business model and Cunard’s long-term ability to make money. I much prefer the Cunard brand to P&O. I think this is about making sure Cunard has a long-term and sustainable future and not turning it into something else which already exists. 

 

I know people have an emotional attachment to Cunard - I do too - but I’d personally like to see it survive long-term. 

 

I guess the “book elsewhere” argument works both ways. If someone doesn’t like a reformed Cunard, is it better for them to book elsewhere - perhaps Saga as an example? 

But everything you suggest is available on P&O and those are just as loyal and wouldnt pay extra for virtually same experience on Cunard and those that cruise with Cunard wouldnt book with them, me for one, if they went down that road. Also not good business having two different cruise lines within the same company giving the virtual same experience.

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4 hours ago, AspirationalFlyer said:

I’ve really enjoyed the Cunard cruises I’ve been on, but they should do more to appeal to a younger demographic. 

 

Suggestions: 

 

- Younger people in advertising and promotional materials

- Better and more effective use of social media including Facebook and Instagram 

- More 90s and 00s music in the theatre and nightlife venues - same goes with booking acts 

- Sail away parties that are properly promoted and have a DJ

- More of a focus on the use of technology onboard - Cunard ships such as the QE2 were innovative for their times - have they lost their way on this? 

- Refresh of the cabin interiors - they are ok but look a little stuck in the 90s

- Free or much cheaper WiFi 

- Revamp the loyalty programme so it is much more attractive to younger cruises 

- More active promotion of wellness and exercise classes

- Speakers that appear to a younger audience - some of the lectures are really quite boring 

- Less emphasis on ballroom dancing - how about a party afternoon tea? 

- Bring back a once per cruise midnight buffet

- More adventure focused shore excursions - totally optional of course 

- Drinks package - too expensive currently - Celebrity is a better model 

- An “in between” dining venue - i.e. a restaurant where you don’t have to be dressed up but not the buffet

- A revamp of the Golden Lion - feels like an expensive Wetherspoons currently 

- New cocktail menus 

- Special meets and greets / possibly drinks parties for under 40s 

- Encouraging diversity onboard 

 

All of the above should be cheap and easy to implement. 

 

I personally like dressing up, but I’d also suggest a “white party” or a theme party that is different from what they do currently and isn’t dinner suitS and ball gowns, in particular, on the Med and port intensive cruises. Sophistication does not always mean black tie. 

 

 

The general set of suggestions you list are pretty well covered by quite a number of ships already in service under the brands of Princess, Celebrity, Royal Caribbean and others as well as the British version under the P&O flag.  So for those who want to party, eat masses of food, and consume plenty of alcohol, there is a lot of choice already (at least once cruising starts up again when the pandemic is more under control).  However there is a market, and not just for those in their twilight years, who hanker after a quieter cruise environment, and who do like ballroom dancing, and who don't particularly want to spend their holiday attached to an iPad for much of the time, and who like quieter excursions.  For that group of cruise passenger there is very little choice other than Cunard, and one or two other lines.  So why is that that those few ships that do offer that kind of cruise experience should change to become like the many dozens of other ships already offering the style of cruise you describe? There should be a variety so that different desires can be accommodated by a choice of cruise style.  Some like small boutique ships with small passenger numbers, others like adult only ships, and others want family oriented facilities, and children's entertainment.  Some will be happy with large pools full of happy noisy children, whilst others will want a quiet swim or gentle soak in a hot tub adjacent to the pool.  May Cunard keep offering its unique style of classic cruise ship and entertainment for some time yet - and let's all hope a vaccine will indeed become available before too long.  Any additional changes to operations, such as improved hygiene, and temperature scanning, as well as improved ventilation and even enhanced air filtration on ships, can only lead to less risk to passengers and crew on board.  After all if the filtration systems were to be enhanced with HEPA filtration and fresh air circulation instead of part fresh air circulation then there would be fewer passengers coming away with the Cunard cough, and lower risk of norovirus, as well as lower risk of covid-19.  There is for sure a lot to think about - but I am certain that a lot of experienced cruise passengers will be only too keen to see arrangements made that will allow us all to get back aboard and enjoy holidays at sea again, whatever part of the world you like to travel the oceans.

 

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7 minutes ago, majortom10 said:

But everything you suggest is available on P&O and those are just as loyal and wouldnt pay extra for virtually same experience on Cunard and those that cruise with Cunard wouldnt book with them, me for one, if they went down that road. Also not good business having two different cruise lines within the same company giving the virtual same experience.


Thanks all for the interesting debate.

 

Even with the reforms suggested above I think there would be material differences between Cunard and the other cruise lines. Perhaps even more than there is currently.

 

For example:

 

- the exterior ship design (albeit QV, QE and the new ship are just modified versions of what already sails in the wider Carnival fleet as we all already know) 

- interior design

- approach to customer service 

- dress code 

- level of emphasis on enrichment and education (to be clear, I would personally upgrade to something more high brow )

- sophisticated atmosphere (see comments re the pub/Golden Lion) 

 

Also, I’m not advocating mass consumption of food or alcohol. I also strongly believe that waste reduction, recycling and mitigating environmental impact should be a priority of ALL cruise lines. If Cunard can lead on that, so much the better. 

 

Ultimately, the economics have to prevail. If the viable long term business model is for things to remain exactly as they are, then so be it. But I think we all know that is unlikely to be the case. So the question becomes what do you change and when. 

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Sounds like Cunard is not the line for you.   I prefer the QM2 as she is definitely a liner although I have also sailed on the QV.    Have you tried Seabourn.    They have the demographic mix you would like and no ballroom dancing.    I am not sure what type of diversity you want.   They offer fares from very reasonable to extremely expensive.   I have sailed on Cunard as a poor college student to now occasionally traveling in QG suites.   I don’t believe Cunard will ever appeal to all cruise passengers.   As for the exercise classes, our “spin” classes were always filled to capacity as were the other classes so no more publicity is needed.

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11 hours ago, AspirationalFlyer said:

 

 

Also, I’m not advocating mass consumption of food or alcohol. I also strongly believe that waste reduction, recycling and mitigating environmental impact should be a priority of ALL cruise lines. If Cunard can lead on that, so much the better. 

 

That is the crux, not just for cruise lines but for each of us individually, and, obviously, the two connect.

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18 hours ago, SilverHengroen said:

I don’t see what is in it for Carnival for the moment,

I agree but for a different reason.  We don't know which ships Carnival used to secure their recent loans. If it was 'most ships' then the Cunard ships are likely to be included, if it was 'all of their ships' then obviously the Cunard ships were included. 

 

So selling the Cunard brand, and the ships, may allow them to pay back some of that debt and avoid the future interest payments but wouldn't raise large sums of cash.

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2 hours ago, Colin_Cameron said:

I agree but for a different reason.  We don't know which ships Carnival used to secure their recent loans. If it was 'most ships' then the Cunard ships are likely to be included, if it was 'all of their ships' then obviously the Cunard ships were included. 

 

So selling the Cunard brand, and the ships, may allow them to pay back some of that debt and avoid the future interest payments but wouldn't raise large sums of cash.

But the big question is who in current climates could afford to buy Cunard certainly not other cruise lines who are struggling to survive.

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18 hours ago, MCC retired said:

 

Cunard is the only cruise experience that  remotely resembles what cruising was like  in the last century .

Seems enough people  like that to keep 3 ships sailing. Lets keep it that way for a while longer .

 

 

 

Exactly - why would Carnival want to give up a special product to one more version another version of another product they already market under different brand names?

 

But, back on topic: “Sale of Cunard” — it is hard to see who the buyer would be.  At this point, with deep uncertainty as to whether sailings might start in a couple of months, or not until year-end, or possibly well into 2021 - or later —— there cannot be a lot of bidders offering an attractive price for an entity which might be a bottomless money pit for an indeterminate length of time.

 

What does seem likely is that, once sailings do start, there will be a fair amount of re-shuffling ——— and this may be after bankruptcy proceedings.

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On 8/1/2020 at 6:47 PM, canoncruiser said:

PRIVATE EQUITY!!!!!!!🤢 Most of the PE acquisitions strip a firm of its cash and load it up with debt in order to reward themselves with huge fees. God forbid such a fate for Cunard. The acquired firm then spirals into overwhelming debt and starts cutting and cutting to pay off the debt; imagine such a fate for Cunard. 😠

 

Likely would be more of a "stalking horse" acquisition, Carnival simply trying to get perceived liabilities off the accounts ledger for a while to keep the share price up.  Then they could reacquire later on on the cheap.  I can't see any private equity in their right mind going into oil, airlines, hotels, or cruise lines unless the goal was to rack up debt and bleed money in the short term.

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Carnivore Corp stripped all that was the old Cunard that sailed ocean liners as opposed to cruise ships...even QM2 doesnt have the draft of QE2 & sails completely differently.

The personality of the old lines have been white washed. Cunard. ITALIAN, FRENCH US LINES all had different food, crew & design..

Ships of state..the FRANCE &, QE2 WERE THE LAST. .now there are only floating non descriptive floating malls.

if you were blindfolded & put on a Carnivore ship you wouldn't know where you were...too bad.

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3 hours ago, Rotterdam said:

Carnivore Corp stripped all that was the old Cunard that sailed ocean liners as opposed to cruise ships...even QM2 doesnt have the draft of QE2 & sails completely differently.

The personality of the old lines have been white washed. Cunard. ITALIAN, FRENCH US LINES all had different food, crew & design..

Ships of state..the FRANCE &, QE2 WERE THE LAST. .now there are only floating non descriptive floating malls.

if you were blindfolded & put on a Carnivore ship you wouldn't know where you were...too bad.

Had not Carnival bought Cunard then regular transatlantic service would have ended with the retirement of QE2. (Her retirement was a kindness when one considers how the SS America and RMS Queen Elizabeth ended their days as rotting carcasses.)  There just is not enough demand for TA service to support more than one ship.  Even Cunard cannot operate TAs all year round like the old ships of state.  If it was profitable they would do so! 

 

I'd have loved to have taken an ocean liner in the days when every night except embarkation and disembarkation night was formal.  But even those who frequently sail on QM2 whine and moan about the extra packing.  

 

But don't lose hope.  Maybe Clive Palmer will actually build Titanic II.  The rigidly enforced class system will have a style to suit everybody.

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