Norwegian Cruise Line

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Norwegian Cruise Line Holdings Ltd. is an American-Bermudian company operating cruise ships, headquartered in unincorporated Miami-Dade County, Florida. It began operations in 1966 under the name Norwegian Caribbean Line. The company is best known for its Freestyle Cruising concept, which means that there are no set times or seating arrangements for meals, nor is formal attire required. Norwegian is a publicly traded company listed on NASDAQ, with major shareholders including Apollo Global Management (15.8%), Genting Group (11.1%), and TPG Capital (2.3%) as of 20 March 2017. Norwegian Cruise Line controls approximately 8% of the total worldwide share of the cruise market.

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History

The cruise line was founded as Norwegian Caribbean Line in 1966 by Knut Kloster and Ted Arison, with the 8,666-ton, 140m cruise ship/car ferry, Sunward, which in 1966 operated as a car-ferry between Southampton UK and Gibraltar, for that one, short season only. Arison soon left to form Carnival Cruise Lines, while Kloster acquired additional ships for Caribbean service. Norwegian pioneered many firsts in the cruise industry like: the first Out Island Cruise, the first combined air-sea program (marketed as "Cloud 9 Cruises") which combined low cost air fares with the cruise, first shipline to develop new ports in the Caribbean, like Ocho Rios in Jamaica. Like the original Sunward of 1966, Norwegians's second ship, the Starward had the capability to carry automobiles through a well concealed stern door. Later, this area was turned into cabins and a two deck movie theater, which is now a casino. Norwegian was responsible for many of the cruise innovations that have now become standard throughout the industry.

Norwegian made headlines with the acquisition of the France in 1979, rebuilding the liner as a cruise ship and renaming her Norway. The conversion cost more than $100 million USD. The Norway was at the time significantly larger than any existing cruise ship, and exploited the extra space available by adding a greater than usual variety of onboard entertainment. Her success paved the way for a new era of giant cruise ships. A boiler explosion in May 2003 forced Norwegian to withdraw the Norway from service, later being laid up in Bremerhaven, Germany until 2005 when she was towed to Port Klang Malaysia with the claimed intent to use her as an anchored casino or slow overnight casino cruises on her remaining boilers. Instead, she was sold for scrap and renamed the SS Blue Lady and later beached at Alang, Gujarat, India in August 2006 with claims that she had not been cleaned of toxic materials. On September 11, 2007, the India Supreme Court issued an order permitting her to be broken-up at Alang, despite the presence of large amounts of hazardous asbestos remaining on board.

Norwegian has expanded to other parts of the world, including Alaska, Europe, Bermuda, and Hawaii. Between 1997 and 2001 the company also operated cruises out of Australia under the name Norwegian Capricorn Line.

Its subsidiary Orient Lines, founded in 1991 to run the Marco Polo, was acquired in 1998. Norwegian itself was acquired by the Star Cruises, subsidiary of Malaysia-based Genting Group, in 2000. In 2007 Star Cruises sold the Marco Polo to Transocean Tours, to be delivered in early 2008. Orient Lines will cease trading when the ship is delivered to its new owners.

In 2002, Norwegian purchased the half-complete hull of the first Project America ship, at the time under construction at Ingalls Shipbuilding in Pascagoula, Mississippi, US, which was towed to Germany to be completed at the Lloyd Werft shipyard. Subsequently Norwegian acquired the rights to move two ships built entirely outside the United States under the US flag, making it possible to start a US-flagged operation under the brand name NCL America. In 2003 the company announced the purchase of the famed American-flagged liners SS United States and SS Independence. In their July 2007 fiscal report, Norwegian noted the sale of the Independence, renamed SS Oceanic some time before. On July 1, 2010, the SS United States Conservancy struck a deal to buy the SS United States for $3 million. On February 1, 2011, the ownership was officially transferred to the SS United States Conservancy.

In August 2007, Star Cruises sold 50% of Norwegian for $1 billion to US-based Apollo Management (owners of Oceania Cruises) in order to strengthen Norwegian's financial position. Subsequently Norwegian reported in February 2008 that the Pride of Aloha, one of the two remaining NCL America ships, would be withdrawn from service in May of the same year. Initial reports suggested she would be transferred to the fleet of Star Cruises, but it was later announced that she would return to the Norwegian international fleet as the Norwegian Sky, while the Norwegian Majesty and Norwegian Dream would be sold to Louis Cruise Lines. The sale of the Norwegian Dream was subsequently canceled. It was announced in September 2012 that the Norwegian Dream will become the Superstar Gemini for Star Cruises, she will start service in January 2013.

On June 1, 2012, Norwegian announced the signing of a memorandum of agreement to exercise its option to purchase Norwegian Sky. The purchase price was approximately $260 million, financing is being provided by the seller.

In January 2013, Norwegian Cruise Lines filed for an IPO. As of 30 June 2014, Apollo Management only has a 20% stake and the Genting-Group-owned Star Cruises only had a 28% stake in the cruise line. In September 2014, Norwegian Cruise Line announced that it had purchased Prestige Cruise Holdings, the parent company of both Oceania Cruises and Regent Seven Seas Cruises in cash and stock for a total transaction consideration of $3.025 billion, including the assumption of debt.

On 11 March 2014, Norwegian announced that it was canceling all future port calls at Tunisia following an incident where the country forbade Israeli nationals from disembarking.

On 9 January 2015, it was announced that Kevin Sheehan, President and CEO, had been succeeded by Frank Del Rio, co-founder of Oceania Cruises.

On October 17, 2012, Meyer Werft and Norwegian reached a second agreement for the construction of two new vessels. Slated for delivery in October 2015 and 2017, respectively. The project was under the code name "Breakaway Plus Class" and it is expected for the vessels to be 163,000 tons and hold 4,200 passengers. The Norwegian Escape entered service in November 2015 and weighs 164,600 tons. Norwegian is expected to confirm its option for the 2017 vessel soon. Two more vessels were ordered on July 14, 2014, they will enter service in 2018 and 2019 and will be slightly bigger at 164,000 GT.

On February 29, 2016, Norwegian Cruise Line announced the name of the vessel that would start service in 2017. The name will be Norwegian Joy and it will be designed for the Chinese market.

In May 2017, the Norwegian Sky was the first Norwegian vessel to ever visit Cuba. The Norwegian Sky makes weekly trips from Miami to Havana, Cuba, making Norwegian the only line sailing that route weekly.

On May 2, 2017, Norwegian Cruise Line announced a new PortMiami Terminal.

In 2018, the Norwegian Bliss built by Meyer Werft will be sailing for Alaska while in 2019, the fourth ship in the class will be designed like the Norwegian Joy, specifically for the Chinese market and it is to be built by also Meyer Werft.

Between 2022 and 2025 Fincantieri will deliver four ships. Two optional ships could get delivered until 2027.

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