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In April, Colin Veitch, chief executive of NCL Corp., donned a hard-hat at Aker Yards shipyard in Nazaire, France, to join a festive ceremony as work began on the first of Norwegian Cruise Line's new F3 ships.''Today as we lay the keel for this groundbreaking new ship, we are one step closer to revolutionizing cruising as we know it,'' Veitch declared.
Fast forward six months: The French shipyard and the Miami-based cruise line are in a bitter contract dispute over the cost of construction of the first of two F3 ships, which will carry up to 4,200 passengers each.
The contract dispute is the latest in a series of woes for loss-ridden NCL, whose ownership changed this year when Apollo Management, the New York private equity giant, acquired a 50-percent stake and control of the board from Star Cruises of Kuala Lumpur, Malaysia, which still owns 50 percent.
NCL originally agreed to buy two 150,000-ton F3 vessels in September 2006, with each costing 735 million euros, about $940 million at the time. It had an option for a third ship at 700 million euros but let the option expire last year.
At current exchange rates, the price for the F3 vessels is about $989 million each. However, according to Seatrade Insider, industry officials say change orders made to the ship since the original pact have driven up the price significantly. The fate of the first F3 ship -- which is now about 25 percent built -- is the buzz of the cruise industry. Pretty much the only ones not talking about it -- at least publicly -- are NCL officials.
NCL officials declined to discuss the status of the F3 project, saying it ''will not comment on commercial or legal disputes.'' Apollo officials also declined to comment....
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