Dear friends of CruiseReviews.com,

the battle for P&O Princess Cruise continues. Carnival and P&O Princess have exchanged / published additional letters, again outlining and further strengthening their positions. I really don’t want to bore those of you who are interested in cruising only – and not in “battles” like this one – and therefore I have decided to publish shortened versions of the companies’ releases only. Links to the full texts are included for those of you who are interested.

Here’s the news from “Cruising & Beyond”:

On January 8^th, Carnival Corporation published the following press release:

On 6^th January 2002, Carnival Corporation sent the following letter to the board of P&O Princess, requesting a meeting with P&O Princess and its advisors. This request having been declined, Carnival now considers that its letter should be made public, and encourages P&O Princess Shareholders to urge their board to reconsider Carnival's request for a meeting, in the interests of maximizing shareholder value. [The following is a shortened version of Carnival’s letter – editor’s note]:

For those of you who are interested in the full press release and letter, it is available for download from Carnival’s website:

http://62.169.137.177/sysmanage/system/data/datFiles/press9.pdf

In a letter to shareholders dated January 11^th, P&O Princess made the following statements:

Again, here’s a link to the full letter for those of you who are interested:

http://www.poprincess.com/files/finalRCPletter.pdf

Royal Caribbean Cruises Ltd. has provided a business update to analysts and investors. This is the third update the company has provided to analysts and investors in an effort to keep them informed about the impact of September 11^th. The following comments were made on January 8^th’s conference call.

Prior to September 11^th, Royal Caribbean's booked ticket revenue for the first quarter of 2002 was 33% ahead of bookings for the first quarter of 2001 at the same time last year. Following September 11^th, there was a substantial drop in bookings and an increase in cancellations. After the initial trauma, bookings gradually improved, prompted initially by substantial discounts. Starting in mid-November, pricing began to recover and discounts have been falling.

New bookings over the last 10 weeks of 2001 were up 46% over the prior year and cancellations have returned to normal levels. Booking patterns, which shifted to closer-in sailing dates following September 11^th, are also beginning to return to pre- September 11^th patterns. During the call, the company took the unusual step of disclosing booking and discount information. Year-end weekly data showed that booking volumes for the first quarter sailings were running 33% ahead of last year, with discount levels on new bookings about 7% higher.

As of December 28^th, 2001, load factors were lower by 3, 8, 3 and 2 percentage points for the next four quarters, respectively, when compared to the prior year. The company's capacity is increasing 23.3% for the first quarter of 2002 and 15.3% for the full year.

Based upon recent booking trends, management currently estimates that net yields for the first quarter of 2002 will be down 10%-15% from 2001 and improve in each quarter thereafter. The wave period, traditionally the time of the cruise industry's highest booking levels, starts this week. The strength of bookings during this year's wave period will be an important factor in determining 2002 net revenue yields.

Richard Fain, chairman and chief executive officer of Royal Caribbean Cruises Ltd., stated that “the ongoing recovery in booking trends is especially encouraging when coupled with the steady drop in discounting levels over the last two months. This improving situation gives us increased confidence in our ability to build on this solid base and deliver long-term value to our shareholders.”

“The agreed combination with P&O Princess will allow us to further accelerate these returns to shareholders. We believe the combination is in the best interest of both companies' shareholders, and are looking forward to the consummation of the merger.”

Twin Ultra-luxury mega yachts “SeaDream I and II,” originally introduced as the “Sea Goddess I and II,” will introduce seven-day, summer Mediterranean and winter Caribbean sailings in May for travelers desiring free-form seagoing holidays. The Twin mega yachts are operated by Florida headquartered SeaDream Yacht Club .

“SeaDream II” is now being completely redesigned and refitted at Lloyd Werft's shipyard in Bremerhaven, Germany. She will sail January 16^th to Florida to be unveiled in Miami early next month and then begin her Caribbean season. “SeaDream I,” operating in the Caribbean now, will go into the same European dry dock in April for the same work. Beginning in May both yachts will begin operating their Mediterranean season.

“SeaDream I and II” will be based in Nice for Mediterranean sailings and St. Thomas for the Caribbean. Both will be based in Miami in November and December for a ten week stint.

In the Mediterranean the twin yachts will call on such ports as Rome, Barcelona, Lisbon, Seville, Livorno (Florence), Monte Carlo, Portofino, Cannes and St. Tropez as well as a variety of lesser known, off-beat coastal towns and small harbors. In the Caribbean, where the yachts will sail out of St. Thomas and will call on ports in the British Virgin Islands and the Grenadines. For the Miami-based sailings, ports will include Nassau, San Salvador, Rose Island and Key West.

Larry Pimentel, chairman and CEO for SeaDream Yacht Club, said, “Our handsome twins will provide a true yachting experience. It will be totally different from a cruise line experience. “

“Yachting features an open and unstructured ambience and provides guests the ability to fulfill their own dreams at their own pace,” he said. “No clocks, no crowds, no lines, no stress. We are a yacht company, not a cruise line.”

Highlighting the SeaDream yachting experience, Pimentel cited several points of difference from cruise lines:

Flexible Schedules and Itineraries – “Our yachts will depart their first port and arrive at their last port as scheduled. But arrivals and departures at intermediate ports are not necessarily cast in stone and run by a strict timetable. Our Captains have the authority to adjust for local opportunities. If they want to visit a small island fish market so the chef can pick up the catch of the day, that's fine. If the weather and the snorkeling are perfect in a small secluded bay and guests want to remain there a few more hours enjoying water sports with the yacht's water toys, that's fine.”

Overnighting in Key Ports – “Most cruise ships arrive at ports of call at about 8 a.m. and sail at 5 or 6 p.m. the same day. We will overnight at such ports as Monte Carlo and St. Tropez, for example. The action in these ports doesn't even get started until late in the evening. Why force guests to miss it?”

Raid the Pantry – “SeaDream guests will enjoy the pleasures of the table in an indoor Dining Salon and outdoor Topside Restaurant, or from room service. They can also raid the pantry 24 hours a day for cookies and milk or make them themselves a customized Dagwood sandwich -- just as they can at home.”

Officers and Staff Lead Guests on Personal off-Ship Experiences – “Visit small town pastry shops with the chef, go snorkeling with the Captain or hiking biking or golfing with the officers. After all, they know these sailing regions like the backs of their hands.”

No Tux for Guys, No Gala Gowns for Gals – “Yachting is a casual affair and so is the dress. The fact is, there is no dress code.”

“The key word to our yachting experience is unstructured. Think of it as a free-form holiday. It's all about personal choice,” Pimentel concluded.

Outdoor features of “SeaDream I and II” include: private alcoves for sunning on double sun beds, a private massage tent on deck, a large screen golf simulator that can also be used to watch sports events or movies under the stars, captain's chairs with mounted binoculars, a water sports Marina at the stern where guests can enjoy kayaking, water skiing, tubing, boarding, wave running, snorkeling and sunfish sailing. Tai chi, yoga and aerobics are also included.

Among indoor features are: an Asian-style spa with a Thalassotherapy tub into which warm sea water is filtered and pumped, a health club with elliptical treadmills mounted with flat screen TVs, free weights, and recumbent bikes. A personal trainer is available. There is also the Main Lounge with a 61-inch, flat screen viewer, piano bar and casino and a library with books, CDs, DVDs and PC outlets.

There are 55 guest accommodations on the SeaDream yachts with 54 Yacht Club Staterooms of 195 square feet. Sixteen of these are convertible to Commodore Club Staterooms of 390 square feet with his and her bathroom facilities and a dining area accommodating four. There is also a 450 square foot Owner's Suite with a bedroom and bathroom with a tub and separate shower with a view of the sea, plus living room and dining area and a guest bathroom. “SeaDream I and II” will accommodate from 47 to 55 couples based on how the staterooms are configured. Staff and crew numbers 89.

All guest accommodations will feature multiple jet, massage showers, lighted magnifying mirrors, an entertainment center with a flat screen TV, CD and DVD systems with an extensive selection of movies and other offerings, a personal jukebox with more than 100 digital music programs. All accommodations are Internet-ready.

SeaDream is also introducing what it terms “Yacht-Simple Pricing” that Pimentel says is “unstructured, uncluttered, uncomplicated and unusual. It avoids the frequent cruise industry morass that resembles the taxman's handbook.”

SeaDream Yacht Club has also unveiled a unique and innovative sales strategy: SeaDream will select approximately 350 Authorised Yacht Distributors worldwide. Each of those – among them travel agencies, tour operators and incentive organizers – will have to pay an annual, non-refundable fee and they will also have to agree to sell yachting vacations for a minimum of US$ 65,000 per year, but they will receive a commission of 20% on the recommended cruise fares. AYD bookings will be possible online only. Regular sales through travel agents are also featured, however.

SeaDream Yacht Club is the new yachting venture by Norwegian entrepreneur Atle Brynestad who founded Seabourn Cruise Line and Larry Pimentel, who was president of Seabourn under Brynestad and later president and CEO of the merged Cunard and Seabourn. Pimentel is chairman and CEO of Coconut Grove, Fla.-headquartered SeaDream Yacht Club and a co-owner. Brynestad and Pimentel have brought together a small group of colleagues, most of whom were with them earlier at Seabourn and Cunard. Aboard the yachts the officers are Scandinavian and the staff and crew is international. Almost all officers and crewmembers have been sailing on their particular yacht for several years. The yachts are also ideal for small meetings and incentive groups and are available for full charter.

In 2002, Radisson Seven Seas Cruises will introduce new itineraries and services throughout its fleet - and begin to take bookings for the 700-guest, all balcony-suite “Seven Seas Voyager,” whose maiden voyage is scheduled for April 1^st, 2003. Also new in 2002, the “Paul Gauguin” and “Radisson Diamond” will offer butler service in top suites; the “Seven Seas Mariner” will sail her first Europe season; the “Seven Seas Navigator” will offer a 68-night “Circle South Pacific” voyage; and “Song of Flower” will ply a southern transatlantic route en route to spending her winter 2002/03 season in South America.

Rounding out 2002 with special theme cruises, the “Seven Seas Mariner” will entertain guests with Jazz and Big Band orchestras, a tribute to the Beatles and a Waterford Wedgwood program. The “Club Mariner” children's program will be added to the vessel's shipboard programming in the Baltic, while the “Seven Seas Navigator” will continue with “Club Mariner” offerings during her May – September Alaska sailings.

In March 2003, the 700-guest “Seven Seas Voyager” will join the fleet, offering inaugural cruises in Western Europe and the Baltic. Bookings will be opened in Summer 2002. The “Voyager,” the world's second all balcony-suite vessel, will be a sister ship to, but not an identical twin of, the “Seven Seas Mariner.” The new vessel will have an exceptionally high space ratio, with every guest enjoying a minimum of 301 square feet of living space plus balcony. Four main dining venues will be featured including the 110-seat Le Cordon Bleu-directed Signatures. The ship will also feature some of the more popular elements of the “Seven Seas Navigator's” celebrated design including ultra-spacious marble bathrooms with separate showers and full bathtubs.

The all-balcony suite, 700-guest “Seven Seas Mariner” will cross the Atlantic for her first Europe season with a 13-night Ft. Lauderdale to Barcelona voyage on April 26^th, 2002. Guests will swing the nights away to the Big Band tunes of the legendary Tommy Dorsey Orchestra, led by Buddy Morrow, one of the all-time great trombonists. Guests may also opt to learn French cooking while aboard this designated Le Cordon Bleu voyage. Classe Culinaire des Croísières workshops will be offered to a maximum of 32 guests.

The “Seven Seas Mariner” will make her inaugural port calls in the Western Mediterranean in June, September, October and November, and in the Baltic in July and August. Among her 21 seven- to 11-night voyages is a first-ever 11-night “Land of the Midnight Sun” Hamburg to Kiel, North Cape cruise on July 1^st.

For the first time in two years, the twin-hull, 350-guest “Radisson Diamond” will return to the Baltic with 10- to 12-night voyages May to August. August through October, the “Diamond” will offer seven convenient seven-night voyages between Rome, Nice and Venice.

Inaugurating a new itinerary, the all-suite 490-guest “Seven Seas Navigator” will depart San Francisco on September 15^th for an exotic 68-night "Circle South Pacific" voyage to Ft. Lauderdale calling at Hawaii, Christmas Island, Samoa, Tonga, Fiji, New Caledonia, Australia, New Zealand, Cook Islands, French Polynesia, Pitcairn Island, Easter Island, Peru, Ecuador, Cayman Islands and Key West. Segments of 12- to 56-nights are also available.

New for the 180-guest “Song of Flower” in 2002 – after her summer Mediterranean and Baltic season - will be a November Transatlantic crossing to Manaus, Brazil. Winter 2002/2003 will be spent exploring South America and the Amazon River – the first time the cruise line has positioned one of its ships in South America for an entire season.

With multi-generational family vacations growing in popularity, Radisson Seven Seas will bring the “Club Mariner” children's program – a solid success story when introduced in Alaska in 2001 - to the “Seven Seas Mariner” in the Baltic in July and August. The program will continue in Summer 2002 on the “Seven Seas Navigator” in Alaska.

In 2002, the 320-guest “Paul Gauguin” and the “Radisson Diamond” will add yet one more luxury amenity to their rosters: butlers. The butler service will be offered on the “Paul Gauguin” in the Owners Suite, Grand Suites, and Deluxe Ocean View “A” and “B” category suites, and on the “Radisson Diamond” in the Master Suites. Butler service is already offered on the “Seven Seas Mariner” and “Seven Seas Navigator.”

Renowned for its attention to detail and friendly, yet polished, service, Crystal Cruises has applied a similar focus to its most recent enhancement of the luxurious “Crystal Symphony.” In early December, the 50,000 gt, 940-guest floating hotel emerged from her renovation with a new look. In addition to several contemporary design updates throughout the luxury vessel, many of her public areas, as well as the two 982-square-foot Crystal Penthouses, were completely remodeled during the scheduled fall drydock.

“Our refurbishment strategy is always guided by our commitment to product quality, service and innovation,” says Gregg L. Michel, president, Crystal Cruises. “To maintain, and to further enhance Crystal Cruises' leadership position in the luxury market, we strive for innovation in design, function and product delivery.”

One of several popular dining venues, the ship's Asian specialty restaurant, Jade Garden, was remodeled from floor to ceiling with new paneling, carpet, furniture, framed artwork and lighting. Geometric patterns in crisp colors, such as royal blue, maroon, gold and jade contrast with the cream, yellow, and taupe-hued background of the dining chairs and carpet. Blonde wood, atmospheric lighting and bamboo-framed Asian artwork and more modern pieces with brushed gold, create a sophisticated backdrop to the unique dining experience. New menu covers and sleek outfits for the service staff will complete the new look in early 2002.

The Crystal Cove and Plaza, the central lobby area and gathering place aboard “Crystal Symphony,” was completely outfitted with new furnishings. Working with the gray tones in the two-story atrium, while complementing the turquoise shades in the adjacent Crystal Dining Room, the new scheme showcases rich blue and lavender patterns, turquoises and grays. Italian sofas and armchairs, with modern leather accent pieces update the look. A specially-designed patterned carpet in greens, purples, and gray runs through the Crystal Cove, while the Crystal Plaza features a large, custom-designed hand-woven area rug. Sheer silver drapery and jacquard curtains in gray-green and metallic lavender frame the expansive windows. To enhance the room's residential feel, the curtains can be drawn at night.

Each of “Crystal Symphony's” two Crystal Penthouses, the luxury line's most lavish accommodations on its coveted Penthouse Deck, has been transformed from floor to ceiling. Like the Crystal Penthouses aboard “Crystal Harmony,” the spacious suites were completely renovated to replicate the drawing room, master suite and bath of a discerning world traveler's private residence. The hand-tufted entrance carpet and elegantly upholstered walls immediately convey elegance. The living room features a mix of sophisticated dark wood dining, cocktail and end tables and upholstered silk and satin sofas, accent chairs and fringed pillows. While the most pervasive color is gold, the two Crystal Penthouses are distinguished by a soft accent color of rust or blue. The entertainment center houses state-of-the-art audio visual equipment, including a new, large 35-inch flat-screen color television, DVD and new CD and stereo components. Wheat-colored Axminster carpeting, residential lighting and new frames on both original artwork and classic prints add to the comfortable, yet sumptuous, ambiance. Balloon shades, framed mirrors and subtle lighting, with dimmers, embellish the marble master bath. Fine bed linens and bath towels augment the new decor.

Additional Drydock Enhancements:

The Lido Cafe – one of the ship's casual dining venues with indoor and outdoor seating with extensive breakfast and lunch buffet service – sports newly upholstered chairs in sky blue and violet, a slate tiled floor, carpet and window treatments.
The Crystal Spa & Salon boasts new steam room and sauna facilities.
Also during drydock, Crystal Cruises complements the ongoing year-round maintenance of the ship and soft goods with more intensive refurbishment.  This includes heavy-duty cleaning or replacement of carpets and soft furnishings in all staterooms, re-grouting bathrooms and painting verandahs; sanding and varnishing all dance floors and stages; off loading deck cushions for dry cleaning; installing new teak decking; having teams of French polishers come aboard to refine all marble surfaces; and scouring all housekeeping pantries, galley store rooms and provisioning areas.

Overseeing the project was noted ship architect Robert Tillberg and his Tillberg Design U.S. office in Ft. Lauderdale, Florida, who have specialized in cruise ship interior design for over 40 years. The refurbishment was completed at Lisnave Drydock in Lisbon, Portugal. The 10-day drydock for the 50,000 gt, 940-guest “Crystal Symphony” began on November 16^th, 2001.

Star Cruises has announced that following a charter “SuperStar Capricorn” was reintroduced to the fleet and Thailand market when she arrived in Laem Chabang. SuperStar Capricorn commenced cruises on 4^th January 2002 and will assume “SuperStar Aries’” itineraries until April 2002.

At 28,388 gt, “SuperStar Capricorn” has 435 cabins with a lower berth capacity for 701 passengers. Her facilities include two swimming pools, five food and beverage outlets, a show lounge, a karaoke lounge with seven private rooms, basketball court, fitness center complete with gymnasium, reading and library rooms and many more. Passengers can expect the same level of service and standards from Star Cruises onboard the “SuperStar Capricorn.”

“SuperStar Capricorn” is the seventh Star Cruises ship to call in Thailand to date. The others were “Star Pisces,” “Star Aquarius,” “SuperStar Leo,” “SuperStar Virgo,” “SuperStar Gemini” and “SuperStar Aries.” In Laem Chabang in particular, “SuperStar Capricorn” is the fourth ship after “Star Aquarius” and “SuperStar Leo” en route to Hong Kong, and “SuperStar Aries.”

“’SuperStar Capricorn’ is an elegant ship that will appeal to the Thailand market. The deployment of ‘SuperStar Capricorn’ to Laem Chabang underlines our commitment to developing the cruise market of Thailand,” said Mr. Chong Chee Tut, Star Cruises' Chief Operating Officer.

Princess Cruises continues to innovate the onboard experience with the introduction of Princess Kids, an expanded children's program, set to debut this month. Providing new, specifically tailored activities for three age groups as well as complimentary in-port programming and lunch service, Princess Kids will also include unique learning opportunities for all children through an exclusive partnership with the California Science Center and the use of award-winning educational materials provided by the National Wildlife Federation.

“Families have discovered that cruising is the ideal vacation, providing a destination that meets the individual interests and needs of both adults and children,” said Dean Brown, Princess' executive vice president of customer service and sales. “As the number of youngsters participating in our program continues to increase, we feel it is important to develop even more customized activities that are both fun and educational for them.”

The new Princess Kids program includes Princess Pelicans (ages 3-7), Princess Pirateers (ages 8-12) and Off Limits (ages 13-17). Princess' Youth Centers will now offer a full schedule of activities for participating youngsters on ports days, as well as a complimentary dining room lunch. The in-port program runs from 8 a.m. to 5 p.m. and eliminates the previous port-day kidsitting charges. Group babysitting services for children ages 3-12 will continue to be available each night from 10 p.m. – 1 a.m. in the Youth Center for US$ 5 per hour per child.

Princess Kids will feature special activities from a number of renowned organizations, including the following:

California Science Center – In a cruise industry exclusive, this respected Los Angeles institution will provide educators and entertaining hands-on activities for children aboard Princess ships. The program debuts with “Sea Princess” and “Star Princess” Mexican Riviera sailings. Science Center staff will enthrall young passengers with award-winning science programs geared toward their particular ship's destination. Stargazing, ocean and coral reef habitat studies, building and racing sailboats, launching rockets, and squid dissection are just some of the new activities available.

National Wildlife Federation – Youth staff on all Princess ships will use NWF's fun and educational NatureLink activities to engage kids in learning about the wonders of wildlife and their habitats. Kids will receive activity books and other learning materials so they can continue their nature explorations when they get back home. NatureLink is designed to connect young people with the natural world and foster awareness and stewardship of their environment. NWF is the nation's largest conservation education organization inspiring people to protect nature, wildlife and the world we share.

In addition to the activities offered by Princess Kids' partners, the program will also feature fun and informative special events with onboard guests. Kids may go stargazing with an expert astronomer or draw with a famous animator – further expanding their cruise experience. These new options complement Princess' respected Junior Ranger program in Alaska and the Save our Seas environmental program, which is operated fleet-wide.

As part of the Princess Kids program, junior cruisers will also be able to participate in two special dinner evenings designed for each age group. Younger passengers will enjoy dining with their newfound friends and counselors in one of their ship's many eateries. For teens, one of the two evenings will feature a special get-together in one of the main dining rooms, complete with photographs and a group night out to see one of Princess' many award-winning stage productions.

Teens can also take advantage of Princess' new Teen Spa program, featuring an exclusive selection of specialized spa packages developed especially for younger passengers. Offerings include a range of fun ways for teens to feel pampered, including everything from manicures and mini-facials to “hip and trendy” treatments such as henna tattoos, body and hair glitter, face paint and body art. Special packages even allow teens to share the spa experience with a friend or enjoy mother/daughter time.

Finally, youngsters who participate in Princess Kids events will take home a limited edition member of “Pete's Pals” as a way to learn more about endangered species in the areas in which Princess sails. Each year the line will issue a specially designed plush animal – beginning with “Pelican Pete,” the program's mascot – all of which depict wildlife facing the threat of extinction. In conjunction, kids will learn about the plight of many such creatures, including white pelicans, manatees, sea turtles and panda bears.

The celebrated waters of the Eastern and Western Mediterranean, the Baltic Sea and Norwegian Fjords are the cruising grounds for Festival Cruises’ (the company is marketed as First European Cruises in the U.S.) 2002 program of one to two-week cruises aboard an expanding fleet of five ships sailing regularly from Barcelona, Marseilles, Venice, Genoa and Kiel (European passengers) or Copenhagen (American passengers).

“We are primarily a European cruise line, purposely established as a pan-European operation to attract passengers from all over the continent on cruise vacations in European waters,” said Makis Xenatos, CTC and CEO for First European Cruises. “Up to 20% of our passengers, those that enjoy the special ambience and the opportunity to cruise more deeply immersed in European culture, come from the US,” he explained.

“There's no where else in the world that can offer the rich cruise experience that's available in Europe and we strongly believe that Americans will be opting for these port-intensive voyages that offer a whole lot more than fun in the sun,” Xenatos added.

First European will launch its third new “Premium” ship, the 1,500-passenger “European Stars” in late March, 2002. “European Stars” sails from Barcelona every week from March through December to Marseilles, Genoa, Naples, Messina, Valetta and Palma.

“European Stars” and her sister-ship “European Vision,” launched in June 2001, are state-of-the art vessels with enormous expanses of open-deck space, a choice of four restaurants including a 24-hour café and grill, 132 suites with balconies, a luxurious thalassotherapy health spa, fully-equipped gym, golf simulator, rock climbing wall, volleyball/basketball court, full service business center and conference facility, plus Internet Café. After completing her winter Caribbean program, the “European Vision” sails every week from Venice, May through November, to Dubrovnik, Corfu, Santorini, Rhodes and Piraeus.

The 1,200-passenger “Mistral,” the line's first new build which entered service in 1999, is based this year in Marseilles sailing weekly from June through November on an unusual Western Mediterranean itinerary to Valencia, Valetta, Palermo, Civitavecchia and Genoa. Winter Caribbean cruises sail out of Havana weekly.

The intimate “The Azur,” carrying only 720 passengers is one of few ships small enough to transit the Corinth Canal. She sails year round from Venice on two programs via the canal to mainland Greece and the Greek Islands. The 800-passenger “Flamenco” departs from Genoa on longer cruises to the Canary Islands, Spain and Morocco during winter, spring and fall. In the summer, “Flamenco” is based in Kiel (American passengers embark and disembark in Copenhagen, however) on an alternating schedule of seven-day cruises that can be for a two-week vacation to the Baltic capitals and Norwegian fjords.

“Flamenco” and “The Azur” are labeled “Discovery” products with an emphasis on diverse itineraries and affordably priced fares. The more resort-like facilities aboard the three new larger ships are described as “Premium.”

Piikkio Works Oy has been established as a separate company under Kvaerner Masa-Yards Inc. as a result of transfer of assets. The new company continues the operations of Kvaerner Masa-Yards Piikkio Works, which previously was a separate business unit  within Kvaerner Masa-Yards Inc. The reason for separating the unit into a company is the independent and different nature of Piikkio Works business activities as a builder of prefabricated cabin and bathroom modules.

Mr. Kari Ruusunen, previously manager of the business unit, has been appointed President of Piikkio Works Oy. Mr. Jorma Eloranta, President and CEO of Kvaerner Masa-Yards Inc., is named as Chairman of the Board of the new company. The organization and the business activities of the two factories, in Piikkio and Paimio in Finland, continue as before.

Piikkio Works Oy is specialized in production and installation of ready-to-install modular cabins and bathroom units for traditional passenger ships, luxury cruisers and passenger/car ferries. Piikkio Works is located at Piikkio and Paimio, near the town of Turku, and has a staff of some 300.

The current orderbook, with deliveries until 2004, is strong. It consists of more than 11 000 cabin units for passenger ships being built at shipyards in Germany, Norway and at Kvaerner Masa-Yards' shipyards in Finland.

Princess passengers will have the opportunity to sail back in time to visit tranquil tropical islands that became the sites of some of the most important Pacific Theater battles of World War II. Two special “Regal Princess” sailings revisit these historic areas this year with a 32-day Tokyo to San Francisco voyage on April 27^th and a 22-day Honolulu to Osaka cruise on October 6^th.

“These Pacific Islands itineraries will appeal not only to veterans, who will enjoy the unique opportunity to recall their personal experiences from this dramatic time in our country's history, but also their children, relatives and all history buffs,” said Dean Brown, Princess' executive vice president of customer service and sales. “Both sailings offer an intriguing combination of the past and present by providing a glimpse into WWII through the serene beauty of today's Pacific region.”

The unusual itineraries enable passengers to follow the progress of the war across the Pacific from the sites of early Japanese attacks in U.S. territories to the final battles in Japan. Along the way, passengers will be able to participate in a number of special WWII-themed activities, including veterans' receptions, period films and historical overviews by guest lecturers, including WWII historian Robert Reynolds. In addition, onboard ceremonies honoring the fallen of significant battles at sea will take place as “Regal Princess” sails near the resting places of sunken warships or passes through the waters in which confrontations occurred.

Traveling either westward or eastward through history, these once-in-a-lifetime journeys visit some of the most prominent Pacific battlegrounds. The October 6^th sailing begins in Honolulu, site of the infamous Pearl Harbor attack in 1941. From there passengers will visit the following ports:

Midway – “Regal Princess’” first call is at Midway Atoll, the site of one of the Pacific war's most decisive battles. In 1942 the tide turned for U.S. forces when they destroyed four Japanese aircraft carriers in what became Japan's last major offensive. Today, this U.S. territory is operated by the National Parks Service and is an important bird sanctuary.

Marshall Islands – The next stop is at Majuro Atoll, in the Marshall Islands. This tropical island housed a small Japanese garrison which surrendered to the U.S. in 1944. The U.S. Navy and Air Force used the islands for target practice and bombing runs. Today this most westernized of the Marshall Islands is home to about 20,000 people.

Guadalcanal – “Regal Princess” then travels to the site of one of the fiercest confrontations between the Allied forces and the Japanese Army – Guadalcanal in the Solomon Islands. For more than five months during 1942-3 battles raged for control of this airfield. Eventually the Allies' first major offensive in the Pacific proved successful and the Japanese evacuated the island. The 60th anniversary of the Guadalcanal landing – the first American invasion on enemy-held islands in the Pacific – takes place this year. Passengers will be able to visit the American War Memorial and can plant a tree along the Avenue of Honor in memory of any veteran of a Pacific battle.

Guam – Next up is Guam, which served as a strategic location for both sides during the war. The Japanese landed here just after the attack on Pearl Harbor and occupied the island until U.S. forces recaptured it in 1944 – when it became Admiral Chester Nimitz's headquarters. Today this “metropolis of Micronesia” is a U.S. territory that continues to house significant military forces.

Saipan – The most strategic of the Mariana Islands, Saipan was the key territory protecting the Japanese homeland. U.S. forces captured the island in 1944, offering them a base from which to recapture Guam and launch bombing raids on Tokyo. Today Saipan is part of the U.S. Commonwealth of the Mariana Islands and is a favorite destination of Japanese honeymooners. Passengers will enjoy both sunny beaches and moving memorials, including the American Memorial Park.

Iwo Jima – “Regal Princess” will cruise by Iwo Jima, one of the last, and most famous, battle sites of WWII. A month-long confrontation here in early 1945 provided U.S. aircraft with an important base, and also served as the location of the famed flag-raising photo that became one of the best-known images of the Pacific war. Iwo Jima was returned to Japan in 1968 and today this volcanic island is considered a sacred shrine. “Regal Princess” will circle the largely uninhabited island allowing passengers to see landing beaches as well as Mt. Suribachi, where U.S. Marines raised the American flag.

Okinawa – The ship then sails for the site of one of the bloodiest battles of the war, in which more than 250,000 people fought – and more than half of them perished. American forces took Okinawa after three months of fighting in 1945. The island was returned to Japan in 1972.

Hiroshima – “Regal Princess” makes its next call at the site of the first atomic bomb drop in August 1945. The city, 90 percent of which was leveled by the explosion, has been largely rebuilt except for the Peace Memorial Park, which serves as a reminder of the war's destruction.

Osaka – This historic cruise winds up in the Japanese city of Osaka, which served as an important industrial center and port during the war.

The April 27^th cruise calls at the same historic ports in reverse, replacing Osaka with Tokyo. In addition, this longer voyage will follow the visit to Midway with calls in the tropical paradises of Kauai, Honolulu, Maui and Hilo before heading to its final destination, San Francisco.

RiverBarge Excursions has announced its 2002 “Rare on the River” specially designed trips, discovering even more of America's rivers and inland waterways. Travelers will have the opportunity to experience Mardi Gras in grand fashion, hob nob with thoroughbred owners, explore the mouth of the Mississippi River and celebrate a Cajun Christmas in the upcoming season. “Rare on the River” excursions for 2002 include:

Mardi Gras Mambo – Not for the faint hearted, this 10-day excursion is filled with excitement and revelry. After traveling through the bayous and swamps of Southern Louisiana, the R/B “River Explorer” arrives in New Orleans for Mardi Gras weekend. The barge serves not only as a hotel and sanctuary, but a base of operations for participation in the world famous festival. "Proper" bead-catching techniques are taught by well-trained BargeMates. (February 4^th – 13^th, 2002)

Mouth of Mississippi River – On this New Orleans round-trip excursion, guests can explore the historic Fort Jackson, a citadel which protected the city since 1832. They can also witness Mile Zero at the Head of Passes where the Mississippi opens wide and Pilottown, an isolated community unreachable by land where pilots live and control river traffic. (March 6^th – 13^th, 2002)

Rivers to Rails – On this eight-day excursion along the Ohio River, guests have the opportunity to experience both modes of transportation that shaped America. The Cincinnati round-trip begins with visits to Ripley and a stop in Marietta, where guests can traverse the Hocking River Valley onboard vintage 1920s railcars to see a recreated 1850s village, Robins Crossing and the Hocking Barge Canal. Guests then barge to Portsmouth, coined "America's Hometown," and Huntington, Virginia, to explore the National Coal Heritage Area, the Beckley Exhibition Coal Mine and the New River Gorge, "the Grand Canyon of the East." (June 18^th – 25^th, 2002 and October 1^st – 8^th, 2002)

Voyage of Discovery – Travelers can return to the gallant days of Lewis and Clark while exploring the Missouri River Valley on the 10-day excursion beginning in St. Louis, America's Gateway to the West, and culminating in Kansas City. Sights include the restored river town of St. Charles, a winery in Hermann, the capital Jefferson City and Parkville, located near Kansas City, for a visit to the Steamboat Arabia Museum. (July 30^th - August 8^th, 2002)

Westward Ho! – Introduced for the 2001 season, this popular excursion will be uncovering even more of the wild and woolly Missouri River in 2002, traveling to Sioux City, Iowa, marking the first time in over 100 years a vessel will take travelers to the Hawkeye state and the navigational head of the Missouri. One trip will take travelers from Kansas City, Missouri, to Sioux City, where passengers will attend a private showing of the Steamboat Arabia Museum, visit the Patee House Museum in St. Joseph, Missouri and see the historical Captain Meriwether Lewis in Brownville, Nebraska. Other highlights include Boys Town in Omaha, Nebraska as well as the Sergeant Floyd towboat and Lewis & Clark Interpretive Center in Sioux City. The following trip takes travelers from Sioux City to Kansas City. On this excursion, guests will also see the DeSoto National Wildlife Refuge in Missouri Valley, Iowa, home to the Steamboat “Bertrand.” (August 8^th – 16^th , 2002 and August 16^th – 22^nd, 2002)

Foliage and Fillies – In mid-October when the trees are entrenched with color, the eight-day round-trip Cincinnati excursion takes guests to the renowned Keeneland Race Course in Kentucky for wagering and cheering on some of the world's greatest thoroughbreds. Other landings include quaint horsey towns in Kentucky, the railroad town of Huntington, West Virginia and the picturesque towns and scenery along the Ohio River Valley. (October 8^th – 15^th, 2002 and October 22^nd – 29^th, 2002)

Christmas Bonfires – A nine-day New Orleans round-trip holiday excursion, complete with all the trimmings. While barging the swamps of Cajun Louisiana to the Mississippi River on Christmas Eve, guests can witness parents preparing the traditional bonfires that guide the way for Le Pere Noel (Father Christmas) while children line the levees anxiously awaiting his arrival. Christmas Dinner is served in New Orleans where guests can experience the Celebration in the Oaks, a spectacular display of lights in City Park. (December 19^th –27^th, 2002)

News Summary:

Germany's Hansa Touristik has found a replacement for its ocean-going cruise ship “Paloma”. That vessel’s owners had sold the former Soviet cruise ferry to China due to an apparently very lucrative offer. The charter contract with Hansa Touristik, which was about to be extended, was therefore terminated. The budget operator has now reportedly completed negotiations to charter the M/S “Switzerland”, currently laid up in Genoa following the collapse of Swiss travel company Reisebüro Mittelthurgau last year. Hansa’s customers are expected to be more than happy with the new ship, as the “Switzerland” is a much better (though older) ship with cabins almost twice the size of those onboard the “Paloma”, one seating for dinner, and more public rooms. Hansa Touristik has also announced that cruise fares will not be increased despite the higher-rated ship. The 15,739 gt M/S “Switzerland” was built in 1955 as the cargo ship “Port Sydney” and was rebuilt as a cruise ship “Daphne” in 1972-74.

Royal Caribbean International has upgraded the benefits for its Crown & Anchor Society members. Past passengers now receive even more perks, additional services and little extras. Passengers are encouraged to get in touch with their travel agents regarding the additional benefits.

Visitors to Celebrity Cruises' web site at www.celebritycruises.com now will find a site with a fresh new design and an improved user experience. “We listened closely to what Internet users said they wanted to find in a travel-oriented web site, and applied those comments to the creation of our new site,” said Celebrity Cruises Senior Vice President of Marketing and Brand Planning Ares Michaelides. “Our redesigned web site is not only more functional and easier to use, but also portrays a warmer, more inviting look and feel, which is consistent with the ambiance onboard every Celebrity ship.” Celebrity's new web site features a variety of options tailored to each site visitor's personal vacation interests; larger images depicting the onboard experience and varied ports of call; special promotions; extensive information about each destination; a Captain's Club (loyalty program) component; personalized tips for group cruise planners; and enhanced cruise booking and transaction capabilities.

Two ferries collided near Dover January 6^th, 2002. Hoverspeed’s InCat 81-class catamaran fast ferry “Diamant” was on her way from Oostende (Belgium) to Dover, when she collided with the cargo ferry “Northern Merchant”, on her way from Dover to Dunkerque (France). The “Northern Merchant” was carrying 59 passengers and 43 crewmembers on board at the time of the collision, while the “Diamant” was carrying a total of 148 people. The incident, which caused minor damage with no reported injuries, occurred in dense fog three miles south east of Dover harbor. After initial assessment the two vessels proceeded onto their ports of destination for further inspection. A closer inspection of the “Diamant” showed heavier damage than expected. The ship will be out of service until the March 22^nd.

Superfast Ferries has inaugurated its new route between Rostock (Germany) and Södertälje (near Stockholm, Sweden). The brand-new cruise ferry “Superfast IX”, delivered several months late by German shipyard Howaldtswerke Deutsche Werft AG (HDW) due to huge problems with her Dutch-built gearbox, departed Rostock for the first time January 10^th, reaching Södertälje 18 hours later. Sister ship “Superfast X” is scheduled to enter service in late February.

In other Superfast news, “Superfast V” was expected to arrive at Lloyd Werft shipyard today, January 15^th, to have her defective gearbox replaced. Delivered by HDW in April, 2001 “Superfast V” has been deployed on the Superfast Ferries’ Ancona (Italy) – Patras (Greece) route, but according to HDW spokesman Dr. Jürgen Rohweder, her gearbox has been lacking 15% in performance. Dr. Rohweder said that Lloyd Werft, the world’s leading shipyard for cruise ship and ferry conversions, has been commissioned with the contract because HDW’s Kiel shipyard is filled to capacity. In order to replace the Dutch gearbox by a German-built unit, the vessel’s hull will have to be opened. For the completion of the work, 70 days have been set. Dr. Rohweder refused to say whether HDW or the Dutch gearbox manufacturer had to pay for the contract which is covered by the yard’s guarantee.

German authorities have ordered all German-registered vessels over 3,000 gt plus all smaller ferries and passenger vessels to install so-called “black boxes” – similar to those found on airplanes – until September, 2002. Ships will also have to feature the AIS ship identification system, transmitting data like identity, position, course, speed and maneuvers underway to other ships equipped with the same system.

The Sunday Times reported January 13^th that P&O Princess Cruises is considering to ask Carnival Corporation for a non-refundable deposit of £500 million. The newspaper said that through the voluntary payment, Carnival could prove that it is indeed interested in a takeover of P&O Princess, and not only interested in disrupting that company’s planned merger with Royal Caribbean Cruises. P&O Princess had earlier stated that Carnival would have to present an upgraded offer until January 18^th. In the meantime Germany’s Bundeskartellamt (Federal Cartel Office) has cleared P&O Princess’ merger with Royal Caribbean Cruises. Britain’s Office of Fair Trading has announced that a decision would be announced on January 29^th, 2002.

Robert L. Kurte reports that in an unusual move, contested by the cruise lines, the town of Yakutat, Alaska has sent bills totaling the amount of US$ 382,833 to seven cruise lines, whose ships sail in nearby Disenchantment Bay in order to view the Hubbard Glacier. The town passed a $1.50 per passenger tax last year, and needless to say the cruise industry objects to it since they are not making a port call at Yakutat.

There might be a future for the two Project America newbuilds from Ingalls Shipbuilding despite the collapse of American Classic Voyages last October. The Wall Street Journal reports that the U.S. Navy might be interested in purchasing the two ships for use as hospital or command & control vessels. Work on the first US-built cruise ships in 50 years was stopped when AMCV declared bankruptcy.

Small ship cruising specialist Captain Cook Cruises has once again proven their commitment to quality, winning the prestigious Fiji Excellence in Tourism Award, in the Cruise Line category. After only five years of operating in Fiji, the cruise company was recognized for their entry into the Fiji cruising scene, the marketing of Fiji through their extensive world wide marketing program and the introduction of new facilities and cruises especially through the recent difficult years. Captain Cook Cruises brings together the best of the Fiji Islands with holiday options ranging from day trips on the tall ship “Ra Marama” to seven-night cruises aboard the M/V “Reef Escape,” to Sailing Safaris on the S/S “Spirit of the Pacific,” and Lunch and Starlight Dinner cruises on “Lady Geraldine.”

During the official keel-laying ceremony at Aker MTW-Werft shipyards in Wismar (Germany), the first section of Aida Cruises’ new 41,200 gt “AIDAaura” was lowered into the yard’s covered building dock January 11^th. Weighing 480 tons, the section was placed on the traditional “lucky penny”. Later the same day, the new vessel’s sister ship “AIDAvita” left Wismar for her first sea trials. “AIDAvita” is scheduled to enter service in May, 2002, “AIDAaura” in spring, 2003.

The Miami Herald January 5^th reported that Carnival Corporation is considering to open a new call center employing up to 500 persons in Miramar, Florida. According to Carnival spokesman Tim Gallagher a decision has not been made, and Gallagher also said that several other locations are also being considered.

Six passengers were removed from Carnival Cruise Lines’ “Carnival Victory” January 6^th, after they had repeatedly reboarded the ship in Miami, carrying several bottles with live bees on board. The bees “were in bottles and they maintained that they were intending to use the bees for medicinal reasons,” said Carnival spokeswoman Jennifer de la Cruz. The ship’s departure was delayed by three hours and it was ultimately decided not to allow the six individuals to take part in the cruise.

For the first time in a decade, a Windstar Cruises vessel has sailed from a U.S. port January 13^th, when the “Wind Surf” departed for her first cruise from Ft. Lauderdale. The former “Club Med 1”, Windstar’s largest sail cruiser, will offer cruises to the Bahamas and Key West from Port Everglades. Windstar is also expected to return to the South Pacific this year with the “Wind Song”, previously based in Tahiti year-round for many years, before Radisson Seven Seas and Renaissance Cruises based their ships there. With the bankruptcy of Renaissance Cruises, Windstar apparently sees new perspectives for basing one of its sail cruisers in Tahiti, again. “Wind Song’s” originally planned cruises would have to be cancelled in order to deploy her in the South Pacific.

In a letter sent to U.S. Virgin Islands Tourism Commissioner Pamela Richards on December 27^th, 2001 Carnival Cruise Lines’ director of port operations, Gordon Buck, cited four incidents since November in which passengers and crew members on board the line’s two ships that call at St. Croix “have been exposed to muggings and robberies.” “Please understand that Carnival is very concerned about safety and security of our guests and crew while visiting any of our destinations,” Buck wrote. “Reports have been filed with the authorities; however, incidents continue to occur.” He continued, “Due to this persistent problem, our Marketing Department has already begun investigating alternative ports to substitute for St. Croix, and I’m sure this is not something which Tourism wants to see for the future.”

Well, that’s it for now. As always, Robert L. Kurte has contributed to this issue. If you have comments or questions regarding this column, please feel free to send me an e-mail!

Raoul Fiebig ( Raoul.Fiebig@gmx.net )