Why should we Bail out the Cruise industry?

[audreyh1]

Is someone seriously proposing to bail out the international cruise industry?

 

[CaptTom]

Is someone seriously proposing to bail out the international cruise industry?

If we tell you who, then it becomes political and they shut down the thread.

It's a sad state of affairs we've come to, when elected officials can count on us to keep each other silent about what they're up to.

 

[RetiredAt55.5]

If we tell you who, then it becomes political and they shut down the thread.

It's a sad state of affairs we've come to, when elected officials can count on us to keep each other silent about what they're up to.

I think audreyh1 could make an educated guess and plug that guess into google "X wants bail out cruise industry", replacing X with the person's last name.

 

[audreyh1]

I heard a certain comment a while back. I just wondered why people were still talking about this.

 

[Freedom56]

The cruise industry is important to the South Florida economy. It's not only about the revenue generated by the cruise ships but the airlines that fly passengers to Ft Lauderdale and Miami. Those passengers also stay at hotels in Florida prior to or after their cruise. The massive ships are loaded with food and beverages from Florida businesses using local trucking companies.

That being said, this industry will have to get creative with ships that nobody will sail on after this passes. They might want to consider converting some of them to floating hotels

 

[Sunset]

The cruise industry is important to the South Florida economy. It's not only about the revenue generated by the cruise ships but the airlines that fly passengers to Ft Lauderdale and Miami. Those passengers also stay at hotels in Florida prior to or after their cruise. The massive ships are loaded with food and beverages from Florida businesses using local trucking companies.

That being said, this industry will have to get creative with ships that nobody will sail on after this passes. They might want to consider converting some of them to floating hotels

I'm sure people will sail on cruise ships after this.

It would be great if the cruise ships increased food safety even more.
Took an entire day between each sailing to sterilize each room.
Installed hepa filters in the air system.

But people will still go as the incidence of sickness is normally small, and this covid-19 stands out only because of countries banning the ships, or refusing them to depart.

Airplanes should also sterilize the plane between flights.

 

[RetiredAt55.5]

That being said, this industry will have to get creative with ships that nobody will sail on after this passes. They might want to consider converting some of them to floating hotels

Maybe we should load them up with senior citizens and take them out of harm's way before we open up the economy.

Everyone (crew and seniors) would have to be isolated and pass 2 tests before being allowed to board.

At least short term, that also bails out the industry.

Realistically, they probably don't have nearly the capacity that would be needed for everyone. Well, it could be a lottery system to get a ticket.

 

[RetiredAt55.5]

I'm sure my cruise plan for seniors would go swell. What could go wrong?

 

[davebarnes]

I'm sure my cruise plan for seniors would go swell. What could go wrong?

#BoomerRemover
Oh, is that wrong?

 

[athena53]

Airplanes should also sterilize the plane between flights.

Bite your tongue. Here's how LATAM did this 2 weeks ago on my flight from Lima, Peru to La Paz, Bolivia: shortly after we'd all boarded but while we were still on the ground, I noticed that the air coming out of the vents was moist and steamy. It smelled a bit like room deodorizer. Midway through the flight they announced that "for your safety" they'd misted the plane with some sort of disinfectant.

I was furious. Nothing I could do at that point, of course. I have no known allergies or breathing problems and I feel even worse for the flight attendants. I've previously been on flights between London and India where they come through with aerosols, purportedly to protect us against insects coming into the country, and I always put a cloth over my mouth and nose. Who knows what they've got us inhaling?

To get back to the cruise ship subject, I can't see them allowing a one-day turnover. It would play havoc with the schedules for the 7-day cruises, which now begin and end on weekends. I suppose they could turn them into 6-day cruises but that would cut into their revenues.

 

[CRLLS]

I would put part of the 2 trillion package into identifying any ship that anyone identified as being covid-19 positive having sail on the last 4 months. Use those ships as the hospital ships. Let the public know the ships that have had no linked illness.

After being used as hospital ships and a thorough cleaning, let the ships stay empty for a month before being put into passenger service.

I think this would ease some of the uneasiness. Some people will probably never cruise due to this.

 

[Potstickers]

I'm about as much in favor of bailing out cruise lines that flag ships elsewhere as I am in bailing out a foreign airline. Which is to say, not at all.

 

[BeachOrCity]

No need to bail them out.
The bond holders will own the ships soon enough......
When the virus passes and people are ok with cruising again, someone with capital will buy the “carnival” or other cruise ship “brand” and relaunch paying the bond holders some fraction of the original bond value.
This is how we still have GM.

The govt needs to do organized bankruptcy of many industries right now. Equity gets wiped out, bond holders take haircuts, but the business and purpose for it survive.

 

[YVRRocketSurgery]

No need to bail them out.
The bond holders will own the ships soon enough......
When the virus passes and people are ok with cruising again, someone with capital will buy the “carnival” or other cruise ship “brand” and relaunch paying the bond holders some fraction of the original bond value.
This is how we still have GM.

The govt needs to do organized bankruptcy of many industries right now. Equity gets wiped out, bond holders take haircuts, but the business and purpose for it survive.

+1.

 

[Fermion]

The bond holders should be at the back of the line, in front of shareholders of course, but behind the many many lawsuits that will be filed for people who were trapped on the ships.

Cruising is dead for quite awhile imo.

 

[Go-NoGo]

"Cruise lines, early source of coronavirus infections, out of bailout package"

From the article:

"Like hotels and airlines, cruise companies have seen their business decimated by the coronavirus pandemic and economic shutdowns.

But unlike those industries, major cruise operators don’t locate their headquarters in the United States, so they will not have access to $500 billion in aid for large employers in the massive stimulus bill, the industry’s trade group said Thursday."

https://www.washingtonpost.com/business/2020/03/26/cruise-line-bailout/

 

[COcheesehead]

The bond holders should be at the back of the line, in front of shareholders of course, but behind the many many lawsuits that will be filed for people who were trapped on the ships.

Cruising is dead for quite awhile imo.

If you own the debt, you own them.

 

[brewer12345]

Laughably, these sacks of dung have seen their stocks cruising upward in this pavlovian rally. Another day or two and I might reopen my shorts.

 

[camfused]

I see that Carnival is asking for $6B: https://www.cnn.com/2020/04/01/business/carnival-cruise-debt-coronavirus/index.html

 

[CaptTom]

I see that Carnival is asking for $6B: https://www.cnn.com/2020/04/01/business/carnival-cruise-debt-coronavirus/index.html

Yes, but it doesn't say they're asking taxpayers for it:

The cruise operator announced on Tuesday that it intends to raise $3 billion of secured notes and $1.75 billion of convertible notes — both due in three years — as well as $1.25 billion of new shares.

If you believe the company will recover, go for it. If not, don't.

Seems fair to me.

 

[Lakewood90712]

Aside from patriot issues , this industry is going to retract by over 50 % no mater what any bailout could do. The permanent damage from knowing what close confinement , contageous diseases , and generally older customers is not fixable. I know colateral damage to the airlines. But this industry is going in the dumpster. Dont wase good money on it.

 

[Lakewood90712]

The bond holders should be at the back of the line, in front of shareholders of course, but behind the many many lawsuits that will be filed for people who were trapped on the ships.

Cruising is dead for quite awhile imo.

Just before they file for BK , small shareowners should request conversion of shares held in street name to actual stock certificate , if that is still possable.

Then frame and hang on the wall as a reminder to not buy shares in weak industries.

 

[Teacher Terry]

I totally agree Lake. We cruise once or twice a year for the past 5 years. Don’t know if we will ever take another one.

 

[Sunset]

Just before they file for BK , small shareowners should request conversion of shares held in street name to actual stock certificate , if that is still possable.

Then frame and hang on the wall as a reminder to not buy shares in weak industries.

My grandmother wallpapered the bathroom in stock certificates during the great Depression.

 

[brewer12345]

I imagine I will have the opportunity to buy those bonds at 50 cents on the dollar or less by the end of the year.