Crystal Cruises suspends operations due to Genting HK insolvency

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Crystal Cruises ocean cruise ships suspend operations until April 2022 (Crystal)

Posted on January 19, 2022 9:17 PM by

The Maritime Executive

Luxury cruise line Crystal Cruises has become the latest victim of the insolvency of its parent company Genting Hong Kong. Late in the day, the cruise line which was acquired by Genting Hong Kong in 2016 sent an email saying it would suspend operations of its three cruise ships until April 2022, saying management would use the time to access the current situation and develop the future. plans.

“This was an extremely difficult but prudent decision given the current business environment and recent developments with our parent company, Genting Hong Kong,” said Crystal Cruises Chairman Jack Anderson. He said in his statement that the company looks forward to welcoming back its valued guests when it resumes operations.

The company’s two largest cruise ships, the crystal symphony and Crystal Serenity, are both currently in the Caribbean. The company said it will end its current cruises, disembarking passengers in Florida this weekend and in Aruba on Jan. 30. The third cruise ship, the smallest luxury expedition ship crystal effort, which just entered service in July 2021, is currently sailing in Antarctica and is due to return to Ushuaia, Argentina on February 4.

Crystal said it would suspend operations of the three ocean-going cruise ships until the end of April 2022. The company also extended the winter shutdown of its European river cruise ships saying they would resume service in May 2022. .

“The suspension of operations will provide Crystal’s management team with an opportunity to assess the current state of affairs and consider various options moving forward,” the company said in a notice posted on its website. website.

The decision came after major travel companies today advised customers to suspend future payments to the cruise line. Travel advisers were advising customers that Genting Hong Kong had applied for possible liquidation of the company yesterday stating that it expected to run out of cash to continue operations by the end of January. Genting Hong Kong said it plans to continue operations of its Asian cruise line Dream Cruises. They did, however, warn in their filing that they expect the majority of their business to cease and some assets may be sold as they explore maximizing values ​​and the potential organization of the Hong Kong parent company. .

Crystal Cruises began operations in 1990 as an investment of Japan’s NYK Line with American management. The first cruise ship, the crystal harmony, was built by Mitsubishi in Japan and later joined by a second similar cruise ship built in Finland. NYK maintained the business as a prestige operation often reported to be operating at a financial loss. A newer and larger cruise ship was built in France and introduced in 2003 while the original ship was transferred to NYK cruise operations in Japan. Crystal had recently sought to become a broader luxury brand, introducing yacht cruises, luxury air charters and ocean residence projects on a new generation of cruise ships that would have been built by MV Werften.

Crystal scaled back its expansion, canceling ocean residence plans and working on redesigning its future ocean cruise ships. Plans called for a sister ship to crystal effort, but the first expedition cruise ship went over budget and fell behind schedule, not completing until 2021 after the German state granted the shipyard the first loans.

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