Page 32: of Maritime Reporter Magazine (August 2001)

U.S. Report

America's Cruise

Line Faces Delivery

Delays, Job Cuts

As part of a comprehensive cost reduction program, American Classic

Voyages (AMCV) announced in June that it would eliminate 70 full-time posi- tions form its shore-based staff of 470 full-time personnel. The cuts are also attributed to the fact that the company, which previously held offices in Chica- go, 111. and New Orleans, La., decided to combine its subsidiaries under one main location in Sunrise, Fla. "Although this was a difficult deci- sion, we need to be leaner and more effi- cient to ensure continued success,

Whether it's routine maintenance, extensive repairs or emergency service, we can handle all your ship repair needs. Virtually every needed ship repair capability is available in-house, supported by skilled craftsmen that are motivated to minimize your out-of-service time.

Newport News is ready to support your repair—anytime, anywhere.

NEWPORT NEWS

SHIPBUILDING

World's Most Advanced Shipbuilder www.nns.com

Circle 266 on Reader Service Card 30 www. maritimereporterinfo. com www.maritimereporterinfo.com

Phil Calian

Rod McLeod

AMCV CEO Phil

Calian said.

Calian was quick to point out that aggressive sales and marketing efforts have driven demand for AMCV's Hawaii cruises of more than 2,800 net bookings per week for the past eight weeks, a 70 percent increase compared to 1,650 net bookings per week average achieved from Janu- ary through mid-

April. AMCV also reported that its two vessels that are cur- rently operating Hawaiian itineraries,

S.S. Independence and ms Patriot, are forecast to sail with a combined load factor of 110 percent and 96 percent, respectively for the summer vacation season.

Hopefully, the company, whose finan- cial performance was recently impacted by both a broad national economic decline and competitive pricing in the leisure industry, will be able to keep these numbers going when it launches its two additional Hawaiian cruise ves- sels, which are scheduled for delivery sometime during 2003. As reported in the July 2001 edition of MR/EN, (see "Voyage Cancellations, Late Deliveries

Continue to Plague Cruise Industry" on page 23), AMCV's president and COO

Rod McLeod admitted at a press con- ference in New York City that, "while the vessels were about 20 percent com- plete, AMCV is still looking at a delay of about four to nine months."

Currently being constructed at Litton

Ingalls Shipbuilding in Pascagoula,

Miss., the vessels are expected to reju- venate U.S. cruise ship building. How- ever, the production process at the yard has fallen behind, pushing the original delivery date of January 2003, to an indefinite month during that year.

An AMCV spokesperson acknowl- edged the difficulties that the company has been having with Litton Ingalls, cit- ing claims from the shipyard for certain interior finish work, which could involve both time delays and interior costs. "We believe these claims are unwarranted and will fully protect our interests under the fixed price contract," the spokesperson said. "We are con- cerned about the shipyard's progress in its steel fabrication and hull erection, and are closely monitoring this situa- tion." — Regina P. Ciardiello

Maritime Reporter & Engineering News