Disney Announces Expansion of Successful Cruise Business

[MandaBella]

SOURCE: http://news.moneycentral.msn.com/pro...222&ID=6520917

The Walt Disney Company DIS plans to expand its successful cruise business by adding two new ocean liners, President and CEO Bob Iger announced today. Scheduled to launch in 2011 and 2012, the ships will more than double the passenger capacity for Disney Cruise Line to meet the sustained demand for Disney's family cruise vacations.

The company signed a letter of intent with Meyer Werft shipyard, based in Papenburg, Germany, to negotiate a contract to build the 122,000-ton new cruise liners, which will be two decks taller than the existing 83,000-ton ships, the Disney Magic and the Disney Wonder. Each ship will have 1,250 staterooms. Specific design plans and itineraries for the yet-unnamed ships are still in development and will be unveiled at a later date.

"Since our maiden voyage in 1998, Disney Cruise Line has been a huge success for our guests and for our shareholders alike," Iger said. "It has brought our unparalleled family vacation experience to the high seas, and has also generated high margins and double digit returns on invested capital. We're excited to announce the expansion of our fleet, which is a logical next step in what is a real growth business for us."

Disney Cruise Line established the family market within the cruise industry when the business launched in 1998. The first two ships were purpose built for families to reconnect and recharge while creating vacation memories that will last a lifetime. From a theater featuring live musical spectaculars to a luxurious spa for adults and nearly an entire deck dedicated to children's activities, the ships offer something for every member of the family. Disney Cruise Line continues to grow by attracting passengers who say they would not have cruised if it hadn't been for the Disney brand.

"Focusing on families has been smart business for us," said Jay Rasulo, Chairman of Walt Disney Parks and Resorts. "More than 95 percent of Disney Cruise Line guests rate their cruise experience as excellent or very good. Families know they can trust us to provide a quality, immersive Disney experience. As a result, Disney Cruise Line continually sets sail with the highest load factors in the industry of nearly 150 percent."

Similar to the original Disney Cruise Line ships, the new ships will be a modern interpretation of classic ocean liners of the 1930s. Disney Imagineers drew their inspiration from the original trans-Atlantic ships that featured a dramatic black hull with two funnels and porthole windows. The profile of the ships, with its gentle curves at the stern combined with sleek angles at the bow, are reminiscent of the art deco designs of the era. To add whimsy to the classic design, the Disney ships have the same exterior color palette as Mickey Mouse with black, white, red and yellow. The new ships will feature elegant, detailed Disney scrollwork at the bow and will evoke images of the glamour of the golden age of cruising.

Tom McAlpin, the President of Disney Cruise Line, said, "This is an exciting time for Disney Cruise Line, and we are looking forward to working with Meyer Werft to blend our innovation and creativity with their fine craftsmanship. Meyer Werft has a long tradition of building magnificent ships. We are confident that the result will be ships that take the immersive Disney family-focused cruise experience to an entirely new level."

New itineraries

Disney Cruise Line, which traditionally offers 3-, 4- and 7-night Caribbean cruises, has also enjoyed strong demand for new itineraries. Trips to the Mediterranean and to the West Coast have recently set booking records within the company and booked 30-50 percent faster than the existing itineraries at higher prices.

"With a larger fleet, we'll have greater flexibility to offer a variety of itineraries," Rasulo said. "This is a business that our guests love, and we're pleased to give them more options to explore the world with Disney with two new ships."

To learn more about Disney Cruise Line or to book a vacation, guests can contact their travel agent, visit www.disneycruise.com or call Disney Cruise Line at (888) DCL-2500. Travel agents can call Disney Cruise Line at (888) 325-2500 or visit www.disneytravelagents.com.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of our views and assumptions regarding future events and business performance as of the time the statements are made and we do not undertake any obligation to update these statements. Actual results may differ materially from those expressed or implied. Such differences may result from actions taken by the Company as well as from developments beyond the Company's control; including adverse weather conditions or natural disasters; health concerns; international, political or military developments; and changes in domestic and global economic conditions, competitive conditions and consumer preferences. Additional factors are set forth in the Company's Annual Report on Form 10-K for the year ended September 30, 2006 Item 1A, "Risk Factors." Contact Information: The Walt Disney Company Zenia Mucha, 818-560-5300 or Walt Disney Parks and Resorts Leslie Goodman/Lisa Haines, 818-560-4107 or Disney Cruise Line Rena Langley, 407-566-3648

Copyright 2007 BusinessWire

[Summer Sun]

The Disney Fantasy and Disney Wishes...to add to the Disney Magic and Disney Wonder...very cool...

[disneydame2004]

Wow! People have been waiting to hear about ONE new ship, and they give us TWO! At least one will probably be west-coast based.

Love your name ideas, Paul!

[MandaBella]

Wow! People have been waiting to hear about ONE new ship, and they give us TWO! At least one will probably be west-coast based.

I know! I couldn't believe they announced TWO either!

I'd love the idea of DCL in the Mediterranean.

[moulds]

Kant wait till those get into the sea and start cruisin.

[iwannabeminnie]

I like the sound of Alaska. I wish they would put Alaska on the itinerary. Please Alaska, please Alaska, please Alaska.

[Timbo]

From Florida Today:

February 23, 2007


Disney doubling cruise fleet

Port Canaveral views expansion of successful line as good news

BY DONNA BALANCIA
FLORIDA TODAY The Walt Disney Co. announced plans Thursday to add two new ocean liners to its Disney Cruise Line fleet, enabling the company to deploy ships to new markets like California and Europe.

With 1,250 staterooms, the still-unnamed ships will be significantly larger than Disney's Port Canaveral-based Disney Magic and Disney Wonder, which have 875 and 874 staterooms, respectively. The new ships also will be two decks taller, the company said Thursday.

They are scheduled for service in 2011 and 2012.

"Demand for the cruises has been off the charts," Disney Cruise Line President Tom McAlpin said. "Clearly, our guests want to go to new places, and they want to experience exciting new ships.

"With a larger fleet, we'll have greater flexibility to offer a variety of itineraries," said Jay Rasulo, chairman of Walt Disney Parks and Resorts.

The long-speculated announcement of the additional ships comes prior to two special itineraries. This summer, the Disney Magic will sail European cruises for the first time. In the summer of 2008, it will return to California to offer a Mexican Riviera itinerary from the Port of Los Angeles. The company repositioned the Disney Magic for the first time to California in summer of 2005.

Disney said trips to the Mediterranean and to the West Coast have set booking records within the company.

Disney Cruise Line traditionally offers three-, four- and seven-night cruises from Port Canaveral to the Caribbean.

"No matter where they deploy the new vessels, it is positive for Port Canaveral that Disney's adding two ships," Canaveral Port Authority Chief Executive Officer Stan Payne said. "With four ships, look at all the scenarios. They'll probably keep two ships here. They won't have to move one to the West Coast. They won't have to move one to Europe."

Disney executives had said they had been waiting for the best exchange rate before committing to building new ships. But now is as good as any time, McAlpin said.

"We've been waiting, but when you look at the business, we could wait for five more years," McAlpin said. "The demand is there."

Specific design plans and itineraries for the new ships are still in development.
The 122,000-ton, 1,250-stateroom ships will be built at Meyer Werft shipyard, based in Papenburg, Germany.

Disney Magic and Disney Wonder each weigh 83,000 tons.

"We know the business is doing well, and we could lock in a deal," McAlpin said. "All the shipyards do a fantastic job, but Meyer Werft had slips available, and the price was right. Both the California markets and the European bookings have been successful. There's a depth to demand in a lot of different markets. The beauty of cruise ships is that they're mobile, and what this does is it provides more options for itineraries."

The new ships will be a modern interpretation of the Art Deco-style ocean liners of the 1930s.

Disney said its "Imagineers" drew their inspiration from the original trans-Atlantic ships that featured a black hull with two funnels and porthole windows.

"Since our maiden voyage in 1998, Disney Cruise Line has been a huge success for our guests and for our shareholders alike," said Robert Iger, president and chief executive officer of The Walt Disney Co. "It has brought our unparalleled family vacation experience to the high seas and has also generated high margins and double-digit returns on invested capital. We're excited to announce the expansion of our fleet, which is a logical next step in what is a real growth business for us."

There's more business for Disney than there's capacity for.

"Disney Cruise Line is doing very well," said Mary Waring, owner of MouseSavers.com, a Web site that provides savings information on Disney vacations. "I personally think they're two years late. They probably thought the Euro was going to drop, and now it costs even more. I have a feeling there's a bit of regret. It's four years before the first one will be online."

Waring said the demand for the cruise vacations is a result of strong branding.

"I think people associate the quality of the programs with the cruise line," she said. "And, certainly, people who know the product realize it's a great product for adults and families. A lot of the other cruise lines don't have that part down."

[MandaBella]

I'm also surprised by something else...

Anyone else surprised Disney isn't using the same Italian shipyards this time around, but using a German one?

Those DCL ships, Magic and Wonder, are beautiful ships...especially when in dock next to other cruise line ships. They have that ocean liner look of old during the heyday of the ocean liners, which was intentional I believe.

[Kellie19891992]

Unless that shipyard in Italy is no longer around

[MandaBella]

Unless that shipyard in Italy is no longer around

Fincantieri - Cantieri Navali Italiani S.p.A. is still around and has been around for over 200 years. It is one of the largest shipbuilders in the world.

[MandaBella]

Okay, I heard the reason the Italian shipyards aren't being used again is that they are operating at full capacity through 2008 and possibly longer. So, it looks like a case of the shipyard not being able to take the work from Disney at this time.

[MandaBella]

Okay, to see the two current DCL ships and the two pending ones click here:

http://mms.businesswire.com/bwapps/m...id=88347&vid=5

[dzneynut]

Carnival alone has 20 new ships on order. It's no wonder the Italian shipyards are busy!
So, when's the guessing game begin for the names of the two new ships? Disney Dreams has got to be one of them!

[Timbo]

From FloridaToday.com:
=================================================
April 23, 2007

Disney finalizes contract for new ships

BY DONNA BALANCIA
FLORIDA TODAY

Disney Cruise Line announced Monday that it has finalized a contract to build two new cruise ships with German shipbuilder Meyer Werft shipyard. Specific financial terms were not disclosed.
=================================================
Full story here: http://www.floridatoday.com/apps/pbc.../70423038/1086

[Timbo]

From ShippingTimes.co.uk:
=================================================
Meyer Werft and Disney firm up cruise ships order with signing
Two new 124,000 grt ships confirmed

Disney and Meyer Werft have signed the contract for the two new cruise ships for Disney announced earlier this year.
=================================================
Full details here: http://www.shippingtimes.co.uk/item488_disney.htm