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Old May 3rd, 2006, 05:48 PM
Rev22:17 Rev22:17 is offline
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Join Date: May 2003
Location: Massachusetts
Posts: 4,770


If you think about it, RCL's best interest is to let celebrity die, then buy the ships for RCL and write off the tax loss.

As a stockholder in the company, I don't see that as the company's best interest at all.

>> 1. As a "premium" cruise line, Celebrity Cruises commands signficiantly higher fares than Royal Caribbean International.

>> 2. Overall, Celebrity Cruies attracts wealthier passengers than Royal Caribbean International, many of whom sepend a LOT more moeny aboard the vessel.

In short, Celebrity Cruises is a cash cow for the company. It does not make sense to dissolve it.

BTW, Celebrity Cruises now has two new ships on order to enter service in 2008 and 2009, resepctively to be named Solstice and Equinox. These ships of 110,000 GRT will carry 2850 passengers -- the largest Celebrity vessels to date. This represents about a 38% growth in the line's total capacity. You don't buy new ships if you intend to let the line wither.

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