Apollo Management L.p. Makes Strategic Investment In Oceania Cruises

[fsalzer]

It seems that I recently read that Joe Watters' title was changed to "founding director", if that tells you something.

 

From Oceania's Media Center

 

http://*****.com/2xszj5

 

"Organizational Changes

 

Miami, FL, December 6, 2006 - Joe Watters, Chairman of Oceania Cruises, announced that he will transition into his new role as Founding Chairman at the end of the year. Frank Del Rio will assume the title and duties of Chairman and Chief Executive Officer, and Bob Binder has been named the new President of the line."

 

Fred

[dougiefresh]

After that fatal fire on the Princess last year, they STILL allow smoking on the verandas, but have placed smoke alarms in case of fire. Sounds kind of ridiculous to me. My sister returned from a cruise from LAX to Hawaii on Celebrity and could NOT use their veranda the whole cruise. The people on either side of her were chain smokers.

 

Here's to Oceania not going backwards in their smoking policy!!!!!

 

 

Sheila

The last time we were on Princess (and it's been over a year, last three have been on Oceania) there was a designated side of the entire ship for smoking/non-smoking, I forget which was which. One needs to be sure to book the "correct" side depending on preferences to avoid/allow smoking.

[Druke I]

I don't believe Princess has ever designated one side smoking in private areas, but perhaps yes in public areas. Perhaps I have not noticed, but as a nonsmoker I do think I would have noticed.

 

I thnk NCL does designate one side of the ship with non-smoking cabins - but it has been years since I have been on NCL.

 

Many moons ago, when I was still a smoker, you could designate smoking/no smoking in the dining rooms. That led to several disagreements with my wife, who has never smoked.

[shoshona2]

Dear Dougiefresh,

 

Druke I is correct -- some ships have a public non-smoking side, but not private (cabins). Even with have one side of the public areas non-smoking, it doesn't stop people from smoking on whichever side they feel like doing so. I had to find an employee on RCCL to tell a lady in the restroom that she had to put her cigarette out.

 

Sheila

[serendipity1499]

My thoughts exactly - what is he doing on these boards? I think it is a joke - don't you?

:(

We've been on many cruises on other lines, ( mostly HAL) & have never seen a CEO of any Cruise Line take an interest in his Passenger's comments as Mr. Del Rio does...

 

We're booked on our first Oceania cruise in Nov....One of the reasons I agreed to try Oceania & go back to the Amazon (which we did last year on HAL) was because of Mr.s Del Rio's handling of a passenger who was inadvertently canceled on a full Oceania cruise last year..:)

 

I for one, don't think it's a joke at all..I have the greatest respect for Mr. Del Rio & agree that you owe him an apology!

 

I'm really excited about our cruise! :) Betty

[timbo89]

 

We hope to order additional ships, but if we do, they won't "arrive" until 2010.

 

FDR

 

If these "additional ships" are newbuilds, then they'd have to be ordered fairly soon in order to make a 2010 launch, wouldn't they?

 

If, however, they are ships currently owned or leased by someone else, then I suppose an announcement could be delayed for some time before they "arrive".

 

I guess I'm fishing for more info......

[tlmlb]

I knew as soon as Watters, Del Rio and the money men behind them scooped up the pieces of Ren that this would be happen...next step will be that Apollo will pretty up the financials for either a sale to a third party or they will take it public to maximize shareholder value........how will they pretty it up??...cutting costs (and thus the experience) and raising prices...mark my words you heard it here first...all the folks in this venture are in to make the most money they can....don't be folled its their passion...their passion is the cash!

[fjdelrio]

While I sincerely appreciate the confidence you had in Joe and I in making Oceania a success, you are wrong my friend on how our new partners will add value.

 

We will NOT cut costs as we are already extremely effecient. Therefore, the "O" experience will not suffer. On the contrary, with added financial strength we will have the means to improve every aspect of our operation.

We will NOT raise prices any more or any less than we would have had we stayed independent. Prices do rise MODESTLY every year because inflation is alive and well.

 

Value will be created through the addition of new vessels like the ones we announced ordering last week. The financials get "prettier" by delivering to our guests an outstanding product at an attractive price/value proposition that keeps our current ships and our future new builds FULL with happy cruisers.

 

No one likes a cynic. Your predictions are wrong, unwarranted and irresponsible.

 

Happy Sailing.

 

FDR

[meow!]

We will NOT cut costs as we are already extremely effecient. Therefore, the "O" experience will not suffer. On the contrary, with added financial strength we will have the means to improve every aspect of our operation.

We will NOT raise prices any more or any less than we would have had we stayed independent. Prices do rise MODESTLY every year because inflation is alive and well.FDR

It is reassuring to read the above two points. We liked the Mediterranean cruise we had in April, 2004. It was $3,200 per person including airfare for two weeks. Now we are booking one for the Eastern Mediterranean for Autumn, 2008, at $4,200 for 12 days (same category). That has been quite an increase, though we understand that the market decides the price.

 

One point I am curious about, why wouldn't you and your partner remain sole owners of a highly profitable, albeit small cruise line with economically leased ships and be your own bosses, instead of becoming minor share holders in a big corporation, even if they allow you to continue to run things for the time being? I would think the former is more fulfilling than the latter!

[fjdelrio]

The cruise industry is a capital intensive business meaning one needs vast amounts of capital to grow. Even as profitable as we are, Oceania, like any cruise line, needs capital to be able add new ships to the fleet.

 

As you may know, last week we announced the order of two $500 million new ships. That's a billion dollars in new ships. To be able to order ships of this quality and cost, we needed hundreds of millions of dollars in new capital that my existing partners simply could not fund. The partnership with Apollo gives us access to capital and the capital markets which will allow us to continue to grow and succeed.

 

BTW, last November we purchased our existing 3 ships at a cost of $375 million.

 

Hope this answers your question.

 

FDR

[meow!]

Thank you kindly for your reply!

[tlmlb]

Mr. Del Rio,

 

A little cynicism is healthy, especially after what happened at Ren... as I seem to remember either you or Watters bailed when the writing was on the wall that ren was sinking fast... you guys go away, come back and pick up the pieces, and make the dough... which is fine.... hope you learned a little along the way... i am sure you have....many sharks in the water that i see... but opportunity knocks loud doesn't it?

 

you don't fool me.....just don't try to fool other with the obvious cheerleaders employed on this site.

 

p.s. i know they are your initials, but signing stuff "FDR" that is just an "oh really?!"

[mike35]

I find it sad that "tlmlb" never has anything positive to add on this board. I'm an Oceania "cheerleader" who, I'm certain, joins many (if not all) of the other posters on this board as true not employed fans of Oceania. Whatever happened in the past is history. Oceania is a true joy of a cruise line; otherwise, why would there be so many repeat customers? I find Mr. Del Rio's leadership, experience, and obvious enthusiasm to be a model in the cruise industry, and I wish him well in his continued endeavors to provide a quality product while realizing an excellent return on his investment.

 

Please, "FDR", continue to provide informative feedback on Cruise Critic. Your willingness to listen to constructive criticism and provide meaningful responses are hallmarks of true leadership.

 

Mike

[surfklutz]

Mr. Del Rio,

 

A little cynicism is healthy, especially after what happened at Ren... as I seem to remember either you or Watters bailed when the writing was on the wall that ren was sinking fast... you guys go away, come back and pick up the pieces, and make the dough... which is fine.... hope you learned a little along the way... i am sure you have....many sharks in the water that i see... but opportunity knocks loud doesn't it?

 

you don't fool me.....just don't try to fool other with the obvious cheerleaders employed on this site.

 

p.s. i know they are your initials, but signing stuff "FDR" that is just an "oh really?!"

 

Applause!

[shoshona2]

Mike, that was very well said!!! I fully agree with everything you said. It is a shame that "timlb" always posts on this board just to show how nasty a person can be.

[tlmlb]

It was Mr. Del Rio who did leave Ren before the bankruptcy not Mr. Watters. I have to say the timing was impeccable... If at first you don't succeed try, try again. Mr. Del Rio is an accountant/CPA/bean counter/ CFO. He has stated that the transaction will give them access to the capital markets they need...sure sounds like public offering / sale to me. Additionally, he says he wrote the press release regarding the sale himself

 

FDR Quote: .....

 

And, we nor Apollo has an ad agency, no lawyer "filtered" anything. I drafted the press release all by myself.

 

NO double talk, no euphimisms, no nuttin!!

 

It is what it is.

 

FDR

 

Company like that has no ad agency?? Accountants drafting press releases? What does Tim Rubacky do as Director of Communications??

 

from the Oceania web site....

 

Frank Del Rio, Chairman & Chief Executive Officer

 

Frank Del Rio is the Chairman & CEO of Oceania Cruises and is responsible for the financial and strategic development of the line. Based in the Miami, Florida headquarters, he oversees Marketing, Sales, Hotel, Marine and Financial activities. Prior to Oceania Cruises, Frank Del Rio played a vital role in the development of Renaissance Cruises, serving as Executive Vice President, Chief Financial Officer and Co-Chief Executive Officer from 1993 to April, 2001.

 

Oceania will be sold again!! probably sooner than later.

[tak2]

I am not connected with Oceania in any way. I have only spoken with a few friends who have been on this line and recommended it. I have not set foot on any of the O ships, nor any of the R ships. Yet, I feel very strongly that FDR has shown what good customer service should be.... listen , and do something about it. This approach has won O much loyal following, unheard of in modern cruise industry. I believe other cruiseline executives must have thought why they haven't done this..... connect with your clients.

[surfklutz]

There are some of us who remain skeptical as to the true character of DelRio based on his history. Connected to the company ....you bet- but to what end?

Tlmlb and I share the same feelings ( and knowledge ). I am hoping for all you fans out there that I am dead wrong.

[LHT28]

Tlmlb and I share the same feelings ( and knowledge ). I am hoping for all you fans out there that I am dead wrong.

 

You both have an agenda when O is concerned.

What happened in the past with Ren it is over and done ...LET IT GO!

 

You both have probably never made any errors in your life so you can be critical of others!

 

MOVE ON!

 

No one is forcing you to sail on Oceania and the rest of us "cheerleaders" will continue to take our chances.

 

Off to put on my bunker gear! :D

[surfklutz]

You both have an agenda when O is concerned.

What happened in the past with Ren it is over and done ...LET IT GO!

 

You both have probably never made any errors in your life so you can be critical of others!

 

MOVE ON!

 

No one is forcing you to sail on Oceania and the rest of us "cheerleaders" will continue to take our chances.

 

Off to put on my bunker gear! :D

 

No agenda here - go - have a great time on Oceania, I hear they are fantastic.....

[tak2]

No agenda here - go - have a great time on Oceania, I hear they are fantastic.....

 

Thank you for good manners.

[LHT28]

No agenda here - go - have a great time on Oceania, I hear they are fantastic.....

 

Thank you ...we have done and we will.

[tlmlb]

other than to get the real story

 

Two years ago I said this would happen and this was not a long term thing for the original investors. Guess what, I was right!

 

I have lived situations like this...new buyer, even says "oh we will leave you alone so long as you keep bringing the numbers" of course changes are already in the pipeline...Apollo would not have bought Oceania without thinking they could sell it at a profit... Del Rio says "oh we are already efficient" If he thinks that areas haven't already been targeted for change to generate more revenue then he needs a reality check.

 

Why do you think Watters has left? He saw the writing on the wall...not willing to relinquish control to someone else's vision...gotta respect him for that at least...

 

Lets see, what is next....maybe not next, but expect a much larger gaming presence on the newbuilds...just a hunch...

[Marra]

I really am starting to get a little nervous about our cruise in May. When we booked the trip, everything was fine. Now with the influx of all these funds and FDR saying that everything will be fine, I'm reading that there are already changes being made. We have paid a lot of money for this cruise and our expectations have been made to be very high. I know that the cruise is only 6 weeks away and what can happen in that period, but we all know a lot can happen in six weeks.

 

I guess my question is, should we all expect to have the same quality of service in May on the Regatta, or should we expect something less because the new owners want to cut costs.

[Windrunner I]

I really am starting to get a little nervous about our cruise in May. When we booked the trip, everything was fine. Now with the influx of all these funds and FDR saying that everything will be fine, I'm reading that there are already changes being made. We have paid a lot of money for this cruise and our expectations have been made to be very high. I know that the cruise is only 6 weeks away and what can happen in that period, but we all know a lot can happen in six weeks.

 

I guess my question is, should we all expect to have the same quality of service in May on the Regatta, or should we expect something less because the new owners want to cut costs.

 

Marra, just curious as to what 'changes' you are reading about. Can you please expound a bit?