NCL casts doubts over its F3 project

Reports are emerging that there are signs of a significant dispute between Norwegian Cruise Line and Aker Yards France, the shipyard that’s building NCL’s innovative new F3 series of ships. The dispute, according to the report, could cause major delay in the delivery of the first of two as-yet-unnamed ships. The 150,000 gt, 4,200-passenger F3 is considered one of the most innovative designs ever with features that include “new wave” staterooms; nightlife options that mimic Miami’s ultra-exclusive South Beach clubs; the first at-sea Ice Bar; and Spice H20, a combo pool deck, dining venue and outdoor theatre. All outside cabins come with balconies.

The first F3 ship was slated for delivery in March 2010; the second scheduled to launch that October. The keel laying of the first vessel took place on April 24th.

The design and building process for NCL’s F3 has been more complicated than most newbuild projects which is partly due to the ship’s innovations. But there were others, and this is perhaps what’s led to the dispute. The order was originally placed by Star Cruises, NCL’s parent company, for the two ships (with an option for a third). Then it was announced that the ships would be moved over to NCL. Subsequently, in a major move in August 2007, Star Cruises essentially sold half of NCL to Apollo Management, LP, a private equity group. Apollo, however, had its own ideas about design and features for the new ships which necessitated going back to the drawing board. That becomes frustrating to shipbuilders and expensive for cruise lines.

Industry sources have stated that it’s quite possible that Apollo has got cold feet and, quite possibly, is willing to take a loss on the project by paying a $200 penalty, rather than having to go through with the first F3, priced at $1 billion or more.