NCL plans big expansion

Wednesday, 04 Sep, 2002 0

Norwegian Cruise Line’s owner Star Cruises is planning a big expansion for the group after reporting a 37-fold increase in first half profits to $23m.

The expansion will take place on two fronts with NCL buying the two unfinished ‘Project America’ ships and Star putting $550m into the vessels and buying two more ships for $450m.

“We believe that the worst is now behind us and the Star Cruises group, in particular NCL, has turned around well in the last two years. We are now looking to further strengthen the NCL brand in the US,” said Star Cruises chairman Tan Sri KT Lim.

Two of the new ships, the first of which will be delivered in 2004, will serve the Chinese market and the other two will operate in North America.

NCL is taking over all the materials and equipment and the work performed to date on the two 2,000-passenger ‘Project America’ vessels under construction in Mississippi. They were originally slated for the now-bankrupt American Classic Voyages.

The estimated price for both incomplete ships is $36m.