Royal Caribbean Close to Ordering More New Ships

Royal Caribbean Close to Ordering More New Ships

Royal Caribbean Cruises Ltd. Chairman Richard Fain said the company is close to ordering more new ships for the Royal Caribbean International brand. He also denied rumors that the company is looking to sell its Azamara Club Cruises brand or the brand’s ships.

During a conference call with analysts announcing fourth-quarter earnings, Fain said the company is “working intensively on a new design,” perhaps of a new class of ships, but won’t formally announce a newbuild order “until all components are in place.” The new ships will incorporate the operating efficiencies and innovative guest amenities that the company has developed over recent years, he said. “While we look forward to a period of slower growth we do not intend to stagnate,” he said. “We feel the time may be right for such a move.”

One analyst asked Fain if rumors are true that RCCL is looking to sell either the Azamara brand or its two 694-passenger ships. “I’m not interested in selling the brand or the ships,” Fain said. “Azamara actually had probably the biggest increase in the fleet in terms of both passenger satisfaction and pricing, percentage wise. We’re not in the market to sell the ships or the brand.”

Another analyst asked whether Royal Caribbean was reevaluating Mexico as a destination for its ships. Several cruise lines this week cancelled calls at Mazatlan, on the Pacific Coast, due to reports of crime against cruise passengers. Royal Caribbean International President and CEO Adam Goldstein said Mariner of the Seas has been moved out of Los Angeles and will cruise in Brazil, Europe and from Galveston this year. “After that we won’t have any regular capacity in the West Coast of Mexico in the foreseeable future,” he said.

Goldstein added that there should be a distinction between the East and West Coast of Mexico. “In the Gulf of Mexico, we’re frequently going to Cozumel and Costa Maya and other ports, and we are seeing good demand,” he said. “Our biggest and new ships are going to those ports on a regular basis, and we don’t feel there are any obstacles.