Norwegian Cruise Line cancels order for new ship

[mercedes]

Norwegian Cruise Line has canceled an order for a major new ship placed more than a year ago when the economy was stronger.

The 11-ship line today announced it has reached an agreement with shipyard STX Europe to build just one 4,200-passenger vessel for delivery in 2010 instead of the two originally ordered.

Code-named F3, the project had called for two ships of 150,000 tons -- more than 60% bigger than existing NCL vessels -- and was designed to usher in a new era at the line. NCL already had announced plans for groundbreaking new public spaces and cabin configurations on the vessels.

"STX France Cruise is now building one F3 ship at 150,000-tons with a total of 4,200 passenger berths," NCL says in a statement. "This will mean a continuation of the original hull which is currently in the early phases of construction, with delivery set for late May 2010, as originally scheduled."

The planned second vessel, currently only in the preparatory stages, will not be built, the line says. Further terms of the agreement were not disclosed.

Reports of trouble with the deal for the two ships first surfaced months ago. NCL hasn't said why it wanted to cancel the order, but like other lines it has struggled with slowing bookings and slumping ticket prices this year as the economy has nosedived. NCL also is operating under new owners, Apollo Management, who have been scrutinizing every aspect of its business.

Industry watcher Seatrade Insider says NCL will pay a steep penalty of 100 million euros to alter its contract with the shipyard.

[TheSkipper]

Norwegian Cruise Line has canceled an order for a major new ship placed more than a year ago when the economy was stronger.

The 11-ship line today announced it has reached an agreement with shipyard STX Europe to build just one 4,200-passenger vessel for delivery in 2010 instead of the two originally ordered.

Code-named F3, the project had called for two ships of 150,000 tons -- more than 60% bigger than existing NCL vessels -- and was designed to usher in a new era at the line. NCL already had announced plans for groundbreaking new public spaces and cabin configurations on the vessels.

"STX France Cruise is now building one F3 ship at 150,000-tons with a total of 4,200 passenger berths," NCL says in a statement. "This will mean a continuation of the original hull which is currently in the early phases of construction, with delivery set for late May 2010, as originally scheduled."

The planned second vessel, currently only in the preparatory stages, will not be built, the line says. Further terms of the agreement were not disclosed.

Reports of trouble with the deal for the two ships first surfaced months ago. NCL hasn't said why it wanted to cancel the order, but like other lines it has struggled with slowing bookings and slumping ticket prices this year as the economy has nosedived. NCL also is operating under new owners, Apollo Management, who have been scrutinizing every aspect of its business.

Industry watcher Seatrade Insider says NCL will pay a steep penalty of 100 million euros to alter its contract with the shipyard.

That's a heck of a penalty!! But with the world economy where it is, probably a smart move.