Ctrip and Royal Caribbean to close SkySea jv

SkySea Golden Era to go to Marella Cruises and be renamed Marella Explorer 2 SkySea Golden Era to go to Marella Cruises and be renamed Marella Explorer 2

China's Ctrip and Royal Caribbean Cruises Ltd are ending their China joint venture SkySea Cruise Line. TUI AG's Marella Cruises has agreed to purchase Golden Era, with delivery expected in December.

After the sale of Golden Era, SkySea is expected to wind down its business operations before the end of 2018. The companies think favourable business conditions in China and elsewhere will allow them to absorb most SkySea employees into available positions at RCL and Ctrip.

Through its Royal Caribbean International brand, RCL will continue to serve the Chinese market with the largest fleet deployment in the region and a strong collaborative relationship with Ctrip.

Royal Caribbean expects the impact of the transaction to fall in a range of 12 cents to 15 cents a share in 2018. The loss will be excluded from 2018 adjusted net income.

Besides owning Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises, RCL is a 50% owner of TUI Cruises, a 49% shareholder in Pullmantur and, currently, it has a 36% stake in SkySea Cruises. These brands operate a combined total of 49 ships with an additional 13 on order.

 

Posted 20 March 2018

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Mary Bond

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