Only a few days after Carnival Corporation CEO Arnold Donald said there would definitely “be an acceleration of retirement of ships,” financial documents revealed that at least six ships will be leaving the fleet in the coming days.
In addition to the ships which already are definitely leaving the fleet, Carnival has indicated that there are negotiations in place which could see more vessels exiting as well.
Which Ships Will Carnival Be Getting Rid Of?
The topic of older ships and their potential fates came up during the executive’s extensive chat with Brian Kelly — founder and CEO of The Points Guy — during a webinar hosted by the site. In discussing the Carnival Cruise Line fleet, Kelly specifically asked if perhaps the Fantasy-class ships, being the oldest, might be phased out.
“First of all, a lot of people love those Fantasy-class ships,” pointed out Donald.
For those perhaps not familiar with the ships, they include the Carnival Fantasy (built in 1990), Ecstasy (1991), Sensation (1993), Fascination (1994), Imagination (1995), Inspiration (1996), Elation (1998) and Paradise (1998). This is actually the largest collection of ships, by class, in the fleet.
“They book well and they sail well, and we always keep them fresh,” elaborated the CEO of the vessels. “You don’t want any ship out there that isn’t aligned with guest expectations, so you have to keep the ship fresh.”
“Having said that,” he continued, “absolutely, there will be an acceleration of retirement of ships. There’s no question about that. I’d go so far as to say it’s highly probable you’re going to see some ships actually scrapped as opposed to just moving to secondary or tertiary markets.”
A few days later, as Carnival prepared to disclose their earnings for the second quarter of 2020, we got a bit more information regarding the situation.
A preliminary statement read, in part, “In connection with its capacity optimization strategy, the company intends to accelerate the remove of ships in fiscal 2020, which were previously expected to be sold over the ensuing years. The company already has preliminary agreements for the disposal of six ships which are expected to leave the fleet in the next 90 days and is currently working toward additional agreements.”
Fewer Ships Will Be Needed For the Initial Return
Even before news broke about the fleet reduction, Donald spoke at the webinar about conditions leading up to the decision. “When we start up again, every destination is not going to start at the same time,” Donald pointed out. “In the beginning, there will be fewer ships — by a lot — starting out than there were when we shut down, because all of the destinations won’t be open. They’re going to open up in their own time with their own rules and regulations.”
Each port visited by cruise ships will have their own rules and regulations in place before welcoming passengers back to their shores.
As a result, he previewed, “It’s going to take us some time to get back to the levels that we were at before.”
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Tags: Carnival Corporation
