With reference to the article on Page A-16 in the February 4, 2002 issue of the Wall Street Journal, it should be no surprise as to the demise of American Classic Voyages." It is doubtful if any lender, except the United States Government would be so foolish as to extend or guarantee a loan to this cruise line. While the hull and general installation work on the two proposed vessels was being performed by Ingalls Shipbuilding, much of the interior was to be fabricated in Europe.
In recent times there have been unsuccessful efforts by Congress to amend or eliminate the Passenger Vessel Act of 1886. Such considerations have not borne fruit because the foreign flagged cruise lines have not lobbied for such changes and really are opposed to deletion of "Cabotage".. They are afraid of losing the corporate income tax exemption they now enjoy under IRS Section 883. They are also concerned that as part of any deal Congress might require the foreign flagged cruise lines hiring more American citizens, especially officers.
This is as the result of an article in the opinion section of 2/4/02 edition of the Wall Street Journal. I am not including the title of the article on page A-16 since the amusing title may be copyrighted.