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Wednesday, May 16, 2007

NCL decision to move Pride of Hawaii to Europe justified by larger Q1 loss

Norwegian Cruise Line just announced a wider first-quarter loss, $60.8 million versus $28.8 million a year earlier, that completes the picture surrounding the line's April decision to move Pride of Hawaii away from the islands and to the Mediterranean. At that time, NCL acknowledged the cause to be "downward pricing pressure in the Hawaii cruise market" caused by NCL's own capacity surge and new Hawaii competition from other lines sailing from the US west coast.

It is now surely a cruise buyer's market for those looking to sail to Hawaii, the Caribbean, and even Alaska to come extent.

Along with NCL's Pride of America and Pride of Aloha, Pride of Hawaii is one of only three vessels allowed to sail inter-island Hawaii cruises due to being US-flagged, whereas everyone else's foreign-flagged vessels must call at an inconvenient foreign port somewhere on their Hawaiian itineraries due to US federal laws.

In search of better pricing, Pride of Hawaii will be pulled out of service in February 2008, renamed Norwegian Jade, repainted, and switched into Mediterranean cruise service as part of the regular Norwegian fleet.

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