Ultra Voyager Delay?

[mojo4trav]

Royal Caribbean extends option to order vessel

August 18, 2004 1:49:00 PM ET

 

OSLO, Aug 18 (Reuters) - Royal Caribbean Cruises (RCL), the world's number two cruise group, won a one-month extension on Wednesday to decide on an option to order a new ship from a Finnish yard.

 

The option at the Finnish Masa Yards unit of Norwegian shipyard group Aker Yards , which had been due to expire on Aug. 31, would be extended to Sept. 30, Royal Caribbean said in a statement.

 

The delay gives Royal Caribbean more time to assess the long-term prospects for the cruise market. Earlier on Wednesday, the group reiterated a strong outlook for 2004 with the chance of record earnings.

 

The vessel would be of the so-called Ultra Voyager class. © 2004 Reuters

 

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Is this the option for a second ship or the entire project altogether? Anyone know?

[cruisinfanatic]

This is for a second ultra voyager.

[mojo4trav]

This is for a second ultra voyager.

Whew! :D

[Vodad]

What is the Ultra Voayager. When will thw first one be ready?

[desertheat]

First ultra voyager is due May 2006.

[BirmanCrazy]

Have they actually started on making the Ultra Voyager yet? Has the Keel been layed?

[bUU]

Keep in mind that they're not delaying the ship, at this point, but rather just delaying the decision. In business, it is almost always better to decide to spend money later rather than earlier.

[Sea Island Lady]

These threads are going to beat out the "Discount" threads before long! LOL :D

[birdmom40]

how big will this ship be????

birdmomn40

[Globaliser]

Keep in mind that they're not delaying the ship, at this point, but rather just delaying the decision. In business, it is almost always better to decide to spend money later rather than earlier.

There is (apparently well-informed) media speculation that the short length of the extension means that RCI is actually on the verge of converting the option into a firm order. It wouldn't be like the company to have only one ship of its type in the fleet.

 

Also, I'm not sure that deferring the option will make much difference to when RCI has to spend much money. They would surely only place a deposit at this time with the bulk of the payment coming on delivery, which won't move very far if at all.

how big will this ship be????

160,000 tons, 18 decks. See here and here (amongst other places).

[bUU]

In business, it is almost always better to decide to spend money later rather than earlier

I'm not sure that deferring the option will make much difference to when RCI has to spend much money

Yes, sorry, my statement could have been read either way. What I was saying it was better to do later was "to decide to spend money". I wasn't saying that it was better to "spend money" later (although, of course it is, but in this case, as you pointedout, is irrelevant).

 

English is so imprecise! :D

[mojo4trav]

I should have looked around a little more on the net, because here is the release from PR Newswire. It sounds like they are, in fact, referring to the second ship. The first is under construction (or will be soon) and will move forward for an '06 launch. Curiously, wasn't there a young man who lived near or visited the shipyard during the construction of one of the Voyager class ships and reported his findings to us here? Perhaps if he is still a CC member he can give us an update!

 

***

 

Royal Caribbean Cruises Ltd. Receives Extension on Option for Second Ultra Voyager Ship

August 18, 2004 10:56:00 AM ET

 

 

 

MIAMI, Aug. 18 /PRNewswire-FirstCall/ -- Royal Caribbean Cruises Ltd. (NYSE: RCL; Oslo) today announced it has received an extension regarding its option to purchase a second Ultra Voyager ship. The option involves a ship scheduled for delivery in 2007.

 

Royal Caribbean and Kvaerner Masa-Yards, of Finland, builder of the first Ultra Voyager ship, agreed to extend the option to September 30, 2004. The option was to have expired on August 31, 2004.

 

The first Ultra Voyager ship, ordered on September 19, 2003, for delivery in May 2006, will be operated by the Royal Caribbean International brand. Roughly 15 percent larger than its Voyager-class ships, the Ultra Voyager will stand 18 stories high and cruise at approximately 22 knots. At 100 percent occupancy, it will carry 3,600 guests and 1,400 crew.

 

Royal Caribbean Cruises Ltd. is a global cruise vacation company that operates Royal Caribbean International and Celebrity Cruises, with a combined total of 29 ships in service and one under construction. The company also offers unique cruisetour vacations in Alaska, Canada and Europe. Additional information can be found on http://www.royalcaribbean.com, http://www.celebrity.com or http://www.rclinvestor.com . © 2004 PRNewswire