Fire-Damaged Insignia Out of Service for Nine Weeks

Oceania Cruises’ Insignia, which was damaged in an engine room fire on Dec. 11, will not return to service until March 22, parent company Norwegian Cruise Line Holdings Ltd. announced on Dec. 23.

The nine-week repair schedule forced the line to cancel the first three legs of its highly anticipated “Around the World in 180 Days” voyage, which was supposed to depart from Miami on Jan. 10 but now will start March 22 in Singapore. The company previously cancelled a 24-night cruise departing Dec. 17.

“The timing of repairs has unfortunately required the cancellation of Insignia’s holiday voyage along with the modification of the World Cruise,” said Kevin Sheehan, president and CEO of Norwegian Cruise Holdings. “We understand how disappointing this news must be to our valued guests and we extend our sincere appreciation for their cooperation and understanding.”

The fire broke out while the ship was docked in St. Lucia, killing three workers. The 656 passengers disembarked and were flown to Miami. The cause is being investigated by the Marshall Islands, the flag state of the ship, with assistance from the U.S. Coast Guard and National transportation Safety Board.

Norwegian Cruise Holdings expects a financial impact of 5 cents per share on fourth-quarter 2014 and first-quarter 2015 earnings, net of insurance proceeds. The company reiterated its prior full-year 2014 guidance of $2.28 to $2.32 earnings per share. The guidance excludes the results of the acquisition of Prestige Cruises International Inc., Oceania’s parent, which closed in the fourth quarter of 2014 and also excludes the financial impacts from this incident.

The cruise cancellation is especially disappointing given that the 180-day World Cruise was the first of three scheduled for the Insignia — and it sold out in just eight hours. The “Around the World in 180 Days” cruise was scheduled to visit 89 ports in 44 countries on five continents. It is notable for being about 80 days longer than a traditional World Cruise.

Two more are scheduled and will depart July 8, 2015, and Jan. 4, 2016.

Source: Travel Pulse