ENCORE: Cruise Ship Wars | A Shot Across the Bow | 3
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What is the main topic discussed in this episode?
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It's 1986 in Oslo, Norway. Norwegian Cruise Line co-founder Knut Kloster sits at his desk in company headquarters. He's poring over designs for his new cruise ship. He's named it the Phoenix. And it's less of a cruise ship and more of a cruise city. It will far and away be the largest cruise ship ever built, carrying over 5,000 passengers and nearly 2,000 crew members. He's already drafted mock brochures that boast it's a ship with a skyline. Canute looks up at the sound of knocking on his door. Come in. The door opens and his brother, Einar, walks in. Canute grins. Perfect timing. I just got the new designs for the Phoenix. Canute flips the designs around so his brother can see them and pounds his index finger on the pages.
What significant event occurs in 1986 for Norwegian Cruise Line?
Can you tell what this is? Canute, I... It's a beach. A real beach on board a cruise ship. Can you believe it? We're going to import sand, have real palm trees, and the quote-unquote ocean is going to be so big that passengers will be able to paddle around in little boats on it. Can you believe it? There will be boats on a boat. How incredible is that? Canute, the board sent me to talk to you. We've decided that the time is right to go public. Carnival's going public. They're going to get an influx of capital, and this is the only way we can keep up. Yes, I know. We've discussed it several times. Right. So as you know, when a company goes public, investors scrutinize a company's bottom line. Yes, I know the process for a company going public.
Why are you talking to me like I'm a six-year-old? Okay, if you understand, then why are you still commissioning new designs for the Phoenix? That's not what investors want to see right now. Because it's the future of cruising. It's a billion-dollar moonshot. That's not keeping an eye on the bottom line. Kloster is visibly taken back. But part of what makes us an attractive company is that we are visionaries. And the Phoenix will reinvent cruising as we know it. It will be the biggest cruise ship in the world. Yes, but we already own the biggest cruise ship in the world, and it's an albatross around our neck. Seven years ago, Norwegian Cruise Line bought an old ocean liner and converted her into the largest cruise ship in the world.
The ship's launch generated millions of dollars in free press, and the company thought the investment was worth it. But it suffered from several mechanical failures, including complete power outages that have left the ship stranded at sea more than once. Any free publicity it earned has been outspent on constant repairs and time out of commission. Cluster shakes his head. But this will be different. We will be building the ship ourselves, not converting an ocean liner. Everything will be top of the line. Canute, this isn't a debate. We need to cancel the Phoenix. If you cancel the Phoenix... Then I'm leaving. Aenar stares back at his brother, not saying a word. But his meaning is clear. Kloster's mouth gapes open.
He didn't think Aenar would actually call his bluff. I founded this company. You can't push me out. No one's pushing you out. We're pushing the Phoenix out. If you want to follow it, that's your folly. You're going to be sorry about this. Canute rolls up the plans for his dream ship and carefully packs them into a plastic tube and strides out of the office. Einar watches him go. He feels a twinge of guilt that he gave his brother an ultimatum. But Norwegian Cruise Line is competing with Carnival to make a good impression with investors and launch a successful IPO. Einar will do whatever it takes to make sure Norwegian comes out on top the cruise industry has entered its cutthroat era.
Itse asiassa. Itse asiassa. Itse asiassa. Itse asiassa. Itse asiassa.
I heard a rumour that the CIA poisoned my grandad. Gordon Banks, the world's number one goalkeeper. It happened in Mexico, supposedly, at the World Cup in 1970.
Sounds crazy? I'm an investigative journalist on the hunt for evidence.
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Chapters
4 chapters
1
What is the main topic discussed in this episode?
0:00–1:06
2
What significant event occurs in 1986 for Norwegian Cruise Line?
1:06–6:32
3
How does Carnival Cruise Line prepare for its IPO in 1987?
6:32–17:32
4
What challenges does Norwegian Cruise Line face during its IPO preparation?
17:32–47:18