Festival Cruises News

Inchcape Shipping Services (ISS) said it is embarking on a plan to develop its cruise business with the appointment of Grant Holmes as Vice President, Cruise Solutions. Based out of Dubai, the new position will see Grant leading a dedicated focus on cruise business development and activities around the world, leveraging ISS’ global reach with its offices network. With over 16 years cruise industry experience, Holmes directed operations at First Choice Cruises from its inception in 1999 and was a Director at Festival Cruises managing global shore excursions…

The Peninsular and Oriental Steam Navigation Co. (P&O) and Festival Cruises have agreed, subject to contract, to join together in the expansion of the global cruise business. Festival will join P&O Cruises, Princess Cruises and Germany's Aida Cruises, positioning it as the world's most international cruise company. Included in the merger is Festival's existing fleet of four vessels, a newbuilding program, which is currently underway in France and its pan-European sales and marketing network of subsidiaries in 10 countries. P&O is expected to merge with Festival through a mixture of cash and shares, which will depend partly on future results. With strong profits, this would have a value of up to $400 million.

Citing, among other factors, a lackluster market for cruise shares on the U.S. stock exchange, P&O said it and Festival Cruises decided not to pursue the merger of their cruises businesses due to the continuing low valuations of cruise companies in the United States. The groups announced in May a deal to combine businesses as part of Peninsular and Oriental Steam Navigation cruises division in a deal worth up to $600 million. P&O runs Princess Cruises in the U.S., the U.K.’s P&O Cruises, and Aida Cruises of Germany. It plans to demerge these businesses from its core shipping and ports business later this year. Privately owned Festival said it would push ahead with expansion plans that include the delivery in 2001 and 2002 of two new ships under construction.

Royal Olympic Cruise Lines (ROCL) has elected George Stathopoulos to the position of acting CEO. At the same time, Stathopoulos maintains responsibility for the Company's worldwide marketing and sales efforts. The Company also appointed George Kassapis to the position of CFO. The appointment of George Stathopoulos to the top management post of the Company enables Dr. Stelios Kiliaris, who has served as CEO since December 1999, to fully resume his position as managing director of the major shareholder, Louis Cruise Lines Ltd. (LCL). He remains on the Board of ROCL and continues as a member of its Executive Committee. Involved in various aspects of the cruise industry for 24 years…

Maritime Telecommunications Network, Inc. (MTN) signed a five-year agreement with Festival Cruises, Inc., effectively equipping the company's next two newbuilds, European Vision and European Dream, scheduled to be delivered from Chantiers de l'Atlantique in France, in 2001 and 2002, with MTN's telecommunications technology. MTN will provide onboard telecommunications services via C-band service, providing voice, fax and data capabilities. Additionally, MTN's complete maritime solution includes, but is not limited to providing phone cards, Internet access, Automated Teller Machines (ATM's), Ocean Routes and Weather News. David Kagan, president and chief operating officer of MTN…

The MS Mistral cruise ship carrying 1,139 passengers has run aground off the Caribbean island of Nevis. "The passengers are still aboard, and they are in good shape," a member of the Coast Guard for Saint Kitts and Nevis said, adding few other details were immediately unavailable. The 47,000-ton ship, built in 1999 and operated by Festival Cruises of Greece, caters to Europeans and regularly travels the Greek Islands and the Caribbean. The ship carries a crew of about 500. - (Reuters)

A small cruise ship, the Orient Queen, has been chartered by the U.S. government to evacuate Americans from war-torn Lebanon and ferry them about 130 miles to the nearby island of Cyprus, the Pentagon announced July 17th. The Lebanese owned cruise ship, which can carry up to 750 passengers, is expected to arrive in Beirut on Tuesday and will be escorted in its evacuation mission by a U.S. Navy guided missile destroyer, the USS Gonzalez. The cruise ship is expected to make its initial evacuation crossing from Beirut to Cyprus later Tuesday. Sources said the ship probably would take the evacuees to the southern coastal port of Larnaca, which is only a few miles from Larnaca International Airport, the island's main international gateway.

Vacationers who booked a cruise on the luxury liner used by world leaders during last month's G8 summit were disappointed when the ship broke down at the weekend. European Vision had to stop in Genoa on Sunday to allow 1,500 passengers to disembark after an engine problem, a spokeswoman for Festival Cruises said. The 58,600-ton floating luxury resort, which includes Turkish baths, was home for two nights to world leaders such as French President Jacques Chirac and British Prime Minister Tony Blair during the Group of Eight summit last month. Passengers, who were on a seven-day cruise, were reimbursed and offered a 50 percent discount on future cruises with the company.

The growing uptake of integral electric-driven, podded propulsors in the most capital-intensive sector of the cruise shipping industry, has forever altered the established position of conventional propulsion systems in an important segment of the market. Having established a foothold in the offshore sector, the concept will no doubt find increasing application with the next upswing in investment by the offshore oil and gas industry. Once conservatism has been overcome in various quarters of the shipping business, and once the net acquisition costs of such systems reach more acceptable levels for a broader band of the shipowning community, usage of the technology will no doubt spread to other spheres.