Saturday, March 8, 2008

Things Not Looking Good for NCL

At a time when most cruise lines are expanding and bringing bigger and better ships to feed a growing market, NCL is downsizing. It has been mentioned recently about 2 of the 3 U.S. flagged ships in Norwegians fleet are being transferred to foreign flags, one of which will be transferred to operate in Europe. The United States has been working on interpretation of a 120 year old law that could have helped the U.S. flagged ships while also hurting foreign flagged ships at the same time. And with the problems with the U.S. economy lately, this is just another example. The cruise industry has been doing well lately considering the problems with the economy, but could this change? If we see other cruise lines starting to lay off like NCL has done, it could just be. I predict that things are going to slow down but not as bad as some may think. It will be interesting to see how cruise prices will be effected. Cruise lines are feeling the gas crunch just like everyone else, but if people cant afford to take a vacation, gas could become the least of their worries.

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