Premier: Don't Fear Our Financials

By
|

MIAMI -- Premier Cruises is not under the gun financially, and agents should not fear booking the line, chief executive officer Jon Erik Nygaard told Travel Weekly.

Nygaard, a former Norwegian ferry executive who joined Premier after a management shake up last month, confirmed that the line had a "disappointing first quarter" and is seeking to raise $20 million of new equity. But he said agents have "no reason, I repeat no reason, to be afraid of our financials."

Nygaard's comments followed Standard & Poor's placement of the line on a CreditWatch.

Meanwhile, as reported, the Coast Guard on June 1 revoked the operating permit for Premier's Big Red Boat, forcing the cancellation of a cruise that day. The revocation was the result of the line's failing to meet a deadline for filing paperwork required under Safety of Life at Sea regulations. The Port Canaveral, Fla.-based ship was cleared by the Coast Guard to sail on June 5, Premier said.

The ship accounted for almost half the line's operating profit in the first quarter of 1998, said bond analyst John Maxwell of Societe Generale Securities Corp., which issued a report on Premier warning of "rough seas ahead." Maxwell said the line's biggest challenge might be in "assuring agents they are fine."

Nygaard said the line is developing a new business plan and is looking, among other things, to increase its fares.

Comments

From Our Partners

2020 Elite Island Webinar
More Family Fun in St. Lucia @ St. James’s Club Morgan Bay
Register Now
HAL_AlaskaCruising_Hero
Capitalizing on a Peak Year for Alaska Cruising
Read More
2020 Expo 2020 Feb
The World’s Greatest Show - EXPO 2020, DUBAI & ABU DHABI
Register Now

JDS Travel News JDS Viewpoints JDS Africa/MI