Hans Birkholz is CEO of Windstar Cruises and president and CEO of its parent company, Ambassadors International, which filed for Chapter 11 on April 1 and agreed to sell Windstar to Whippoorwill Associates, a private investment firm. Cruise Editor Donna Tunney talked with Birkholz about the future of Windstar.
Q: The sale of Windstar Cruises to Whippoorwill is expected to take about 45 days. What do agents need to know?A:
We are continuing to operate normally. We're paying our vendors, we're paying commissions to our travel partners. All cruises will go as scheduled. This is a very positive step for the company.
Q: Should travel agents feel comfortable about continuing to book Windstar Cruises?
A: Yes. Our customer programs and policies remain in place. As we explain what the process is all about, and once agents understand a little more thoroughly than they did on April 1, things will be OK. They'll be fine.
We welcome a dialogue with people about any concerns they might have.
Q: Some agents have said they will take a wait-and-see approach to selling Windstar. What's your reaction to that?
A: I think that there are those agents saying that, but others have confidence in us and will continue to book us. It's a matter of working with those agents and understanding their concerns. ...
Since [the announcement] we've had very positive feedback from guests. Most people in America have traveled on a company that's going through a bankruptcy process. Most of the airlines have gone through it, and people continued to receive the product they paid for. We're no different. All I can tell you is that our agent bookings are up over this time last year by double digits.
Q: Access America took Windstar off its protected supplier list in 2009. Is that an obstacle for bookings?
A: I don't think so. When a client uses a credit card they have credit card protection.
Q: Will you maintain a position with Windstar?
A: I will remain CEO. The entire management team will remain in place. Whippoorwill is excited about the things we've been doing the last few months, and they want us to continue to do that.
Q: Whippoorwill lent Windstar $10 million a year ago. How has that money been spent?
A: We've used the money to do ship enhancements and refurbishments, and for working capital. Our ships are all in good shape.
Q: Is Whippoorwill committed to operating the line long term?
A: Yes. They're also putting in additional financing, $10 million, and that's part of the purchase price. They believe in the business. This is a way for them to take a bigger position than they had.
Q: What role does bankruptcy court play?
A: Their role is to make sure that ... the company is receiving fair value for the assets. ... Qualifying bidders will also have an opportunity to submit higher and better offers ... through a court-supervised, competitive bidding process.
Q: What will the company do now to reach out to agents and reassure them about the future of Windstar?
A: Clearly the best form of communication we can have is to pick up the phone and talk to them. The key leaders in the company have to go out and meet and talk to travel agents about what's going on and explain how this is a positive move for the company.
We know that people love our product.