Norwegian to keep Fanning Island calls for now

By Kelly Yamanouchi
Advertiser Staff Writer

Norwegian Cruise Line will continue its stops at Fanning Island in spite of an exemption that allows it to sail in Hawai'i without a call at a foreign port, according to the company.

The cruise line has been developing plans for additional Hawai'i cruises following last month's final approval of federal legislation spearheaded by Hawai'i Sen. Dan Inouye. The legislation exempts three Norwegian ships from the Passenger Vessel Services Act that requires foreign-built vessels cruising among the Islands to stop in a foreign country.

Norwegian has been visiting Fanning Island in the Republic of Kiribati on its Hawai'i cruises to meet the act's requirement. But under the new provision, Norwegian could fly the U.S. flag on ships operating in the Islands and avoid the foreign stops, giving the cruise line an advantage over its competitors.

Despite that, Norwegian plans to keep its Fanning Island stops, which may be part of a planned expansion of 10- or 11-day cruises in Hawai'i, the company said.

The Inouye-backed legislation allows Norwegian to fly U.S. flags on three ships. The first will be introduced in early summer of 2004 for seven-day cruises. Norwegian signed a contract last month for the ship, originally meant for the now-defunct Project America, to be completed by German shipbuilder Lloyd Werft for $350 million.

Project America, an arrangement also led by Inouye to spur U.S. shipbuilding, would have allowed American Classic Voyages to construct ships in American shipyards for Hawai'i cruises. The project failed when American Classic filed for bankruptcy and shut down in late 2001.

For its second ship, Norwegian will put a U.S. flag on an existing vessel. That ship may sail three- or four-day itineraries paired with hotel stays before or after the cruises, according to Norwegian spokeswoman Susan Robison.

For its third ship, Norwegian's plans call for constructing a vessel by taking parts of another ship that was also originally part of Project America.

Norwegian expects later this month to announce a detailed cruise schedule for next year, but company chief executive Colin Veitch unveiled some of his plans for Hawai'i at an industry convention in Miami this week.

Norwegian will develop a brand name for the Hawai'i cruises reflecting their U.S.-flag status, according to company executives.

Reach Kelly Yamanouchi at 535-2470, or kyamanouchi@honoluluadvertiser.com.