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Royal Caribbean & Norwegian Cruise Line Tie Up for Safety Plan

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The cruise industry has been driven to a standstill by the coronavirus-induced crisis. However, the ongoing pandemic has compelled companies to forget rivalries and come together to counter the scenario. Case in point, Royal Caribbean Cruises Ltd. (RCL - Free Report) and Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) have teamed up to develop safety standards.

Former Utah Governor Mike Leavitt and former U.S. Food and Drug Administration Commissioner Scott Gottlieb, are serving as co-chairs of a newly formed group of experts called the "Healthy Sail Panel." The expert panel, which has been working for approximately a month, will provide their initial recommendations by the end of August.

Richard D. Fain, chairman and CEO of Royal Caribbean Group said “Bringing aboard these respected experts to guide us forward demonstrates our commitment to protecting our guests, our crews and the communities we visit.”

The leisure industry has been grappling with the ongoing pandemic with travel warnings and cruise cancellations starting to take a toll on cruise lines. The players are thus offering modified booking and cancellation policies to woo hesitant cruisers to tide over this unprecedented situation.

In the mid-March, the U.S. Centers for Disease Control and Prevention (CDC) issued a no-sail order for all cruise ships. In last month, Norwegian Cruise extended previously announced suspension of global cruise voyages owing to the coronavirus pandemic. The extension of suspension includes all voyages for Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises embarking between Aug 1 and Sep 30. However, cancellations exclude September Seattle-based Alaska voyages. Owing to travel and port restrictions, the company has cancelled select voyages through October 2020, including Canada and New England sailings.

Norwegian Cruise carries a Zacks Rank #3 (Hold), while Royal Caribbean has a Zacks Rank #4 (Sell). Shares of Norwegian Cruise and Royal Caribbean have fallen 72.4% and 62.5%, respectively, compared with the industry’s decline of 48.5%.



 

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