Norwegian Cruise Line

Last updated

Norwegian Cruise Line
Company type Subsidiary
Industry Tourism
Founded1966;58 years ago (1966)
In Norway
Headquarters Miami, Florida, U.S.
Area served
Worldwide
Key people
Harry Sommer (CEO)
Products Cruises
Revenue$6.06 billion (2018) [1]
Parent Norwegian Cruise Line Holdings
Website ncl.com

Norwegian Cruise Line (NCL), also known in short as Norwegian, is an American cruise line founded in Norway in 1966, incorporated in Bermuda and headquartered in Miami. [2] It is the fourth-largest cruise line in the world by passengers, controlling about 8.6% of the total worldwide share of the cruise market by passengers as of 2021. [3] It is wholly owned by parent company Norwegian Cruise Line Holdings.

Contents

History

Norwegian Caribbean Line's first ship Sunward Sunward at Pier A (7562495404).jpg
Norwegian Caribbean Line's first ship Sunward

The cruise line was founded in 1966 by Norwegian Knut Kloster and Israeli Ted Arison, with the 8,666-ton, 140 m long cruise ship/car ferry, Sunward, [4] which in 1966 operated as a car ferry between Southampton UK and Gibraltar, for that one short season only. The Sunward was first managed under the Arison Shipping Company, and marketed as Ensign Cruises. [5] Arison soon left to form Carnival Cruise Lines, while Kloster acquired additional ships for Caribbean service, with the line renamed and marketed as Norwegian Caribbean Lines.

Norwegian Caribbean Lines

Norwegian pioneered many firsts in the cruise industry, such as the first exclusive private island, Great Stirrup Cay in the Bahamas,[ further explanation needed ] the first combined air-sea program (marketed as "Cloud 9 Cruises"), which combined low-cost air fares with the cruise, Freestyle Cruising, which is a form of relaxed and informal cruising, and first shipline to develop new ports in the Caribbean, such as Ocho Rios in Jamaica.

First new builds

Starward and sister Skyward were the first purpose-built ships for NCL "Skyward" - Miami, 1980.JPG
Starward and sister Skyward were the first purpose-built ships for NCL

Norwegians's second and third ship, the Starward and Skyward , were the first newly built ships designed for the cruise line. [5] Like the original Sunward of 1966, they had the capability to carry automobiles through a well-concealed stern door. Later, this area was turned into cabins and a two-deck movie theater, later to be used as a casino. Norwegian was responsible for many of the cruise innovations that have now become standard throughout the industry.

Norwegian would order two additional ships, that would be their first true cruise ships without any car carrying capacity. This would be the Southward in 1971, and an intended identical sister the Seaward, that would never be delivered to the line, and would be completed for P&O Cruises instead. [5] The line would sell its original ship the Sunward in 1973, being too small and inadequate for the modern cruise market. They would purchase the former Cunard Adventurer in 1977, refitting her with the trademark NCL funnels, and renamed Sunward II . [6]

SS Norway

SS Norway arriving at Southampton SS Norway on "maiden" voyage.jpg
SS Norway arriving at Southampton

Norwegian made headlines with the acquisition of the liner SS France in 1979, rebuilding the liner as a cruise ship and renaming her Norway. [7] The conversion cost more than US$100million. [8] At 1,000 ft (305 m) long and displacing 52,000 tons, the Norway was at the time significantly larger than any existing cruise ship, and exploited the extra space available by adding a greater-than-usual variety of onboard entertainment. Her success paved the way for a new era of giant cruise ships.

Further newbuilds and acquisitions

Norwegian Dream (former Dreamward) Norwegian Dream1.jpg
Norwegian Dream (former Dreamward)

With an aging, small ship fleet by the late 1980s compared to the larger modern ships being built for competitors Carnival and Royal Caribbean, Norwegian attempted to catch up with an order of a new ship in 1987, the new Seaward , NCL's first new build since 1971. [9] Norwegian parent company Kloster would transfer two of the recently acquired Royal Viking Line ships to Norwegian, which became the Westward and Sunward (III). [10] Kloster would acquire Royal Cruise Line in 1989–90, [11] and would eventually transfer the Westward to their fleet. Norwegian would also continue with further orders of new ships in the early 1990s, not competing with large-sized cruise ship building trend of competitors, but with the smaller with the Dreamward and Windward to offer better flexibility with itineraries. [12]

The line would continue to acquire second hand ships in the mid-1990s, with the addition of the Leeward in 1995. In 1996 the Crown Odyssey, which was part of NCL's subsidiary line Royal Cruise Line, was transferred and became the Norwegian Crown. [12] In 1997 Norwegian acquired Majesty Cruise Line, and added their two ships, which became the Norwegian Majesty and Norwegian Dynasty . [13] During this time Norwegian would rename all its ships with the "Norwegian" prefix (excluding SS Norway), and change its livery for the second time to a dark blue funnel with gold NCL logo. [13]

Norwegian has expanded to other parts of the world, including Alaska, Europe, Bermuda, and Hawaii. Between 1997 and 2001, the company also operated cruises out of Australia under the name Norwegian Capricorn Line and acquired Orient Lines in 1998. [14]

Acquisition by Star Cruises & Freestyle Cruising

Norwegian was sold by Kloster to Star Cruises in 2000, a subsidiary of Genting Hong Kong, part of the Malaysia-based Genting Group. [15] Under the new ownership a new concept was introduced with the newly completed ship, Norwegian Sky , freestyle cruising. This concept freed passengers from fixed formal dining times, instead there was relaxed attire, several distinct dining options, relaxed disembarkation and more lounges, bars, theatres and other entertainment and activity options, a change that would have a ripple effect across the cruise industry. [16]

Fleet Modernization

The Norwegian Star - first new build under Star Cruises ownership Norwegian Star in Warnemunde.JPG
The Norwegian Star – first new build under Star Cruises ownership

With the financial backing of Star Cruises, the struggling Norwegian Cruise Line was able to begin to replace much of its older and second hand fleet with new ships. [12] In addition to the Norwegian Sun , Star Cruises had ships already on order for their own fleet at Meyer Werft, which would be transferred to Norwegian during construction, with the first two debuting as the Norwegian Star in 2001 and Norwegian Dawn in 2002. [16] These would be followed by an accelerated new build program, adding four more new ships over a five-year period. [17]

NCL America

In 2002, Norwegian purchased the half-complete hull of the first Project America ship, at the time under construction at Ingalls Shipbuilding in Pascagoula, Mississippi, US, which was towed to Germany to be completed at the Lloyd Werft shipyard. [16] Subsequently, Norwegian acquired the rights to move two ships built entirely outside the United States under the US flag, making it possible to start a US-flagged operation under the brand name NCL America. [18] [19] In 2003, the company announced the purchase of the American-flagged liners United States and Independence. In their July 2007 fiscal report, Norwegian noted the sale of Independence, renamed SS Oceanic some time before. On July 1, 2010, the SS United States Conservancy struck a deal to buy SS United States for $3 million. [20] On February 1, 2011, the ownership was officially transferred to the SS United States Conservancy. [21]

Departure of SS Norway

A boiler explosion in May 2003 forced Norwegian to withdraw the Norway from service, later being laid up in Bremerhaven, Germany, until 2005, when she was towed to Port Klang Malaysia with the claimed intent to use her as an anchored casino or slow overnight casino cruises on her remaining boilers. Instead, she was sold for scrap and renamed the Blue Lady [22] and later beached at Alang, Gujarat, India, in August 2006 with claims that she had not been cleaned of toxic materials. [23] On September 11, 2007, the India Supreme Court issued an order permitting her to be broken up at Alang, despite the presence of large amounts of hazardous asbestos remaining on board. [24] [25]

Apollo Management and reorganisation

In August 2007, Star Cruises sold 50% of Norwegian for $1 billion to US-based Apollo Management to strengthen Norwegian's financial position. [26] In 2007, Star Cruises sold Orient Line's Marco Polo to Transocean Tours, [27] and Orient Lines ceased operations in early 2008. [28]

Following an initial public offering and corporate reorganisation in 2013, Norwegian was made a wholly owned subsidiary of Norwegian Cruise Line Holdings (NCLH), [29] [30] while Norwegian's previous owners Genting Hong Kong, Apollo Management and TPG Capital exchanged their stakes in Norwegian for shares in the newly listed NCLH. [31]

Further new builds and fleet changes

Norwegian reported in February 2008 that the Pride of Aloha, one of the two remaining NCL America ships, would be withdrawn from service in May of the same year. Initial reports suggested she would be transferred to the fleet of Star Cruises, [32] but it was later announced that she would return to the Norwegian international fleet as the Norwegian Sky, [33] while the Norwegian Majesty and Norwegian Dream would be sold to Louis Cruise Lines. [34]

Norwegian Epic

Two ships in this Epic class were ordered by NCL in November 2006, with an option for a third vessel that was not exercised. A dispute between NCL and STX initially resulted in the construction of both ships being placed on hold until a new agreement was reached. [16] The agreement called for completion of the first ship; the second ship was cancelled in 2008. [35] The sole remaining ship, Norwegian Epic , was delivered to NCL on 17 June 2010.

Breakaway class

The first two Breakaway-class ships entered service in 2013 and 2014 as Norwegian Breakaway and Norwegian Getaway. On October 17, 2012, Meyer Werft and Norwegian reached a second agreement for the construction of two new vessels, [36] slated for delivery in October 2015 and 2017, respectively. The project was under the code name "Breakaway Plus Class", with the vessels expected to be 163,000 gross tons and hold 4,200 passengers. The Norwegian Escape entered service in November 2015 and Norwegian Joy in 2017. [37] Two more vessels were ordered on July 14, 2014, and they entered service in 2018 and 2019 as the Norwegian Bliss and Norwegian Encore, respectively. [38] Dream Cruises ordered two modified Breakaway Class ships in 2015, they were launched in 2016 and 2017 as Genting Dream and World Dream.

The sale of the Norwegian Dream was subsequently cancelled. [39] The Norwegian Dream became the Superstar Gemini for Star Cruises, from January 2013. [40]

On June 1, 2012, Norwegian announced the signing of a memorandum of agreement to exercise its option to purchase Norwegian Sky. The purchase price was roughly $260 million, financing being provided by the seller. [41]

In December 2016, Norwegian Cruise Line announced it had reached an agreement with the Cuban government. [42] In May 2017, the Norwegian Sky was the first Norwegian Cruise Line vessel to ever visit Cuba. The Norwegian Sky made weekly trips from Miami to Havana, making Norwegian the only line sailing that route weekly. [43] Norwegian continued operating Cuban routes until June 2019, when they came to a halt following new restrictions from the Trump Administration. [44]

Project Leonardo

In February 2016, Norwegian ordered 4 new ships from Fincantieri under the codename Project Leonardo, to be delivered in 2022–2025. These ships would have around 140,000 gross tonnage. In July 2018, NCL confirmed that they had ordered 2 more ships to be delivered in 2026–27. On December 9, 2019, the keel of the first ship was laid down and named Norwegian Prima. It was launched in August 2021 and commenced sailing in the same month of 2022. The second ship was named Norwegian Viva in early 2022 and expected to be completed by 2023.

On May 2, 2017, Norwegian Cruise Line announced a new PortMiami Terminal. [45] The construction began on May 1, 2018, and was completed in fall 2019. [46] [47] In December 2018, Norwegian revealed plans to build a new pier in Alaska's Icy Strait Point. [48]

COVID-19 pandemic

In March 2020, the Miami New Times reported that managers at Norwegian had prepared a set of responses intended to convince customers wary of the ongoing COVID-19 pandemic to book cruises, including "blatantly false" claims that the coronavirus "can only survive in cold temperatures, so the Caribbean is a fantastic choice for your next cruise", that "scientists and medical professionals have confirmed that the warm weather of the spring will be the end of the coronavirus", and that the virus "cannot live in the amazingly warm and tropical temperatures that your cruise will be sailing to." [49] [50] [51] [52] [53]

On March 14, 2020, the U.S. Centers for Disease Control and Prevention (CDC) issued a No Sail Order for cruise ships. Concurrently Norwegian Cruise Line Holdings implemented a suspension of all cruise voyages across its three brands (Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises), with all 28 ships in port or at anchor and all passengers disembarked by March 28, 2020. This suspension has subsequently been extended through June 30, 2020. [54] :S-1

On May 5, 2020, in a filing with the Securities and Exchange Commission, Norwegian Cruise Line Holdings (NCLH) said there is “substantial doubt” about its ability to continue as a “going concern” as it faces a liquidity crisis over the next twelve months. [54] :S-6

By the next day, NCLH was able to secure over $2.2 billion of additional liquidity in oversubscribed capital markets transactions, but at a price: (1) $400 million in common stock at $11 per share; (2) $675 million in senior secured notes due 2024 at a 12.25% interest rate; (3) $750 million in exchangeable notes due 2024 at 6% interest rate, and exchangeable at any time into common shares at $13.75; and (4) $400 million private investment from a global private equity firm. [55] [56] On May 7, 2020, NCLH CEO declared that the company has secured enough liquidity to get through potentially 18 months of zero revenues and may resume cruising later in 2020. [57] [58]

In anticipation of sailing again, Norwegian is implementing new health and safety measures, including installing H13 HEPA air filters. [59] The company is also working with the CDC and the new color-coding system to indicate each ship's COVID-19 status, and to repatriate Norwegian crews still stuck aboard their vessel. [60]

Even though the company lost $4 billion and furloughed 20 percent of its staff, it doubled the salary of its chief executive, Frank Del Rio, to $36.4 million. [61]

Fleet

As of April 2024, Norwegian Cruise Line operates 19 cruise ships, with eight on order. It has also previously owned or operated 19 other ships. All its ships are flagged to the Bahamas, except for the Pride of America , which operates cruises within the United States and is flagged and registered in the US, as well as being owned by a US-registered subsidiary, NCL America.

Current ships

ShipBuiltIn service for NCLLast
refurbishment
Gross
tonnage
Passengers
(Double Occupancy)
FlagNotesImage
Sun class
Norwegian Sky 19991999-2004,

2008–present

201977,1041,928Civil Ensign of the Bahamas.svg  Bahamas Originally constructed as Costa Olympia but sold to NCL during construction, sailed under NCL America as Pride of Aloha from 2004 to 2008
Norwegian Sky Great Stirrup Cay 75.jpg
Norwegian Sun 20012001–present2018 [62] 78,3091,976Civil Ensign of the Bahamas.svg  Bahamas
Norwegian Sun departing Port of Tallinn 25 May 2012 (cropped).JPG
Dawn class
Norwegian Star 20012001–present201891,7402,348Civil Ensign of the Bahamas.svg  Bahamas Originally ordered as Superstar Libra
Norwegian Star arriving Tallinn 12 July 2013.JPG
Norwegian Dawn 20022002–present2021 [63] 92,2502,340Civil Ensign of the Bahamas.svg  Bahamas Originally ordered as SuperStar Scorpio
Norwegian Dawn - Great Stirrup Cay.jpg
Leo class
Norwegian Spirit 19982004–presentJanuary 2020 [62] 75,9042,018Civil Ensign of the Bahamas.svg  Bahamas Previously SuperStar Leo
Norwegian Cruise Line Norwegian Spirit 07 IMO 9141065 @chesi.JPG
Pride of America class
Pride of America 20052005–presentMarch 201680,4392,186Flag of the United States.svg  United States The only US flagged cruise ship
Pride of America seen from Aloha Tower (4677840953).jpg
Jewel class
Norwegian Jewel 20052005–presentNovember 2018 [64] 93,5022,376Civil Ensign of the Bahamas.svg  Bahamas
Norwegian Jewel Newport September 2010.jpg
Norwegian Jade 20062006–presentMarch 2017 [62] 93,5582,402Civil Ensign of the Bahamas.svg  Bahamas Formerly Pride Of Hawaii, renamed in 2008.
Norwegian jade in Venice.JPG
Norwegian Pearl 20062006–presentFebruary 2017 [65] 93,5302,394Civil Ensign of the Bahamas.svg  Bahamas
Norwegian Pearl.jpg
Norwegian Gem 20072007–presentNovember 201593,5302,394Civil Ensign of the Bahamas.svg  Bahamas
Norwegian gem in Sicily 2008.jpg
Epic class [66]
Norwegian Epic 20102010–presentNovember 2020, [67]

October 2015 [63]

155,8734,100Civil Ensign of the Bahamas.svg  Bahamas The only ship in her class
Rotterdam cruiseschip Norwegian Epic.jpg
Breakaway class
Norwegian Breakaway 20132013–presentApril 2018145,655 [68] 3,963Civil Ensign of the Bahamas.svg  Bahamas
Norwegian Breakaway 10.JPG
Norwegian Getaway 20142014–presentJune 2019145,655 [69] 3,963Civil Ensign of the Bahamas.svg  Bahamas
Norwegian Getaway 18.JPG
Norwegian Escape 20152015–present2021164,6004,266Civil Ensign of the Bahamas.svg  Bahamas 'Breakaway Plus' subclass
2023-03-04 01 NORWEGIAN ESCAPE - IMO 9677076 - Port Canaveral FL USA.jpg
Norwegian Joy 20172017–presentFebruary 2019167,7253,883Civil Ensign of the Bahamas.svg  Bahamas 'Breakaway Plus' subclass
Norwegian Joy nach dem Ausdocken.jpg
Norwegian Bliss 20182018–presentNone168,0284,002Civil Ensign of the Bahamas.svg  Bahamas 'Breakaway Plus' subclass
Norwegian Bliss.jpg
Norwegian Encore 20192019–presentNone169,145 [70] 3,998Civil Ensign of the Bahamas.svg  Bahamas 'Breakaway Plus' subclass. Largest ship in NCL's fleet.
Norwegian Encore Feb 1 2020.jpg
Prima class
Norwegian Prima [71] 2022 [72] [73] 2022–presentNone142,500 [71] 3,099Civil Ensign of the Bahamas.svg  Bahamas
Norwegian Prima Jan 19 2023.jpg
Norwegian Viva [74] 2023 [71] 2023–presentNone142,500 [75] 3,215 [76] Civil Ensign of the Bahamas.svg  Bahamas
Norwegian Viva Mar 1 2024.jpg

Future ships

ShipInaugural VoyageGross tonnagePassengersFlagNotesImage
Prima-class
Norwegian Aqua [77] 2025 [71] 156,000  GT [78] 3,571 [76] Prima Plus-class
Unnamed2026 [71] 156,000  GT [78] 3,571 [76]
Unnamed2027 [71] 169,000  GT [78] 3,650 [78]
Unnamed2028 [71] 169,000  GT [78] 3,650 [78]
Unnamed class [79] [80]
Unnamed2030 [81] 200,000  GT 5,000New class of ship comprising the largest vessels ever commissioned for NCL [81]
Unnamed2032 [81] 200,000  GT 5,000
Unnamed2034 [81] 200,000  GT 5,000
Unnamed2036 [81] 200,000  GT 5,000

Previous Ships

ShipBuiltIn service
for NCL
Gross
tonnage
Status as of 2024Image
Sunward 19661966–197310,558Scrapped in 2004 at Chittagong, Bangladesh.
Sunward at Pier A (7562495404) (cropped).jpg
Starward 19681968–199515,781Scrapped in 2018 at Alang, India.
MV Orient Queen in Beirut.jpg
Skyward 19691969–199115,653Scrapped in 2021 at Alang, India.
"Skyward" - Miami, 1980.JPG
Southward 19711971–199416,710Scrapped in 2013 at Aliaga, Turkey.
"Southward" - Miami, 1986.JPG
Sunward II 19711977–199114,194Scrapped in 2014 at Alang, India.
"Sunward II" - Miami, 1980.JPG
Norway 19611979–200376,049Scrapped in 2008 at Alang, India.
SS Norway.jpg
Seaward / Norwegian Sea 19881988–200542,285Scrapped in 2022 in Aliağa, Turkey. [82]
NorwegianSea3-23-04 (cropped).jpg
Westward 19721991–199328,613Sold for scrap in 2022 at Alang, India.
Black Watch cruise ship, Liverpool Cruise Terminal (geograph 4545674).jpg
Sunward 19731991–1992,

1992–1993

28,551Scrapped in 2021 at Aliaga, Turkey.
Boudicca departing Tallinn 7th September 2013.JPG
Dreamward / Norwegian Dream 19921992–200850,764Since 2012 SuperStar Gemini for Star Cruises.
Sold for scrap in 2022
Norwegian Dream1.jpg
Windward / Norwegian Wind 19931993–200751,309Since 2007 SuperStar Aquarius for Star Cruises.
Sold for scrap in 2022
NCLWindSkagway.jpg
Leeward 19801995–199925,611Since 2014 Celestyal Crystal for Celestyal Cruise Lines.
MS Leeward NCL (4172632324) (cropped).jpg
Norwegian Crown 19881996–2000,

2003–2007

43,537Since 2008 Balmoral for Fred Olsen Cruise Lines.
Norwegian Crown (876515432) (cropped).jpg
Norwegian Star 19731997–199828,518Scrapped in 2021 in Alang, India
MS Norwegian Star (4163364643) (cropped).jpg
Norwegian Dynasty 19931997–199924,344Since 2001, Braemar for Fred Olsen Cruise Lines.
Norweigiandynasty cordovaalaska (4305472551) (cropped).jpg
Norwegian Majesty 19921997–200941,662Since 2018 Crown Iris for Mano Maritime.
Norwegian Majesty-5.jpg

Ships which never entered service for NCL

Ships which NCL had options on using but never took up for various reasons.

ShipBuiltGross
tonnage
Status as of 2024Image
Independence 195126,658Wrecked and scrapped in 2010 off Alang, India.
Oceanic Leaving SF (cropped).jpg
SS United States 195238,216Laid up in Philadelphia, Pennsylvania.
SS United States Philly 2012-2.JPG
Seaward 197217,042Sank in 2016 near the port of Laem Chabang, Thailand.
"Southern Cross" - Copenhagen, 1995.jpg

Private islands

Great Stirrup Cay GreatStirrupCayPano (cropped) (cropped).jpg
Great Stirrup Cay

Norwegian owns two private islands in the Caribbean: Harvest Caye in Belize and Great Stirrup Cay in the Bahamas. [83]

Subsidiary Cruise Lines

Norwegian Cruise Line subsidiary lines over the years:

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