Cruise West's Spirit of Nantucket, later Spirit of America,
seen docked in Bar Harbor, Maine in September 2007.
Photo © Aaron Saunders
On Wednesday, Seattle-based Cruise West posted a notice on its website stating that it had suspended all future cruise bookings. At the same time, passengers aboard Spirit of Oceanus discovered that their world cruise, which began back in April and was due to last until February 2011, wouldn't be sailing any further than St. John's, Newfoundland.
One hundred and twenty passengers were left to fend for themselves in a city no one expected to disembark in.
The line is mum on what exactly has happened; it refuses to answer any media inquiries at this time. Instead, it states it is continuing to "work towards a restructuring of the company and its operations." The prepared statement goes on to explain that during this period "assets may be sold and other steps are being pursued towards a restructure."
While the company hasn't outright confirmed it, Spirit of Oceanus was most likely seized by creditors. A similar set of circumstances befell airline Mexicana last month before its eventual collapse. To compound matters, the Seattle Times reports that Cruise West has laid off 65 employees and shuttered its Seattle offices.
The line says that it intends to operate voyages aboard Spirit of Endeavor and Spirit of '98 through next month, but offers little details on how it intends to make this happen. Given the suspension of future reservations, coupled with the amount of passengers that will be due refunds in the coming days, this seems highly unlikely. Passengers booked on October 2010 voyages on either of these vessels would be wise to contact their travel agent or review their insurance policy.
How did this happen? Like many lines, Cruise West had been hit hard by the recession. Their real problems, however, began in 2007 and 2008 with a series of embarrassing groundings that resulted in an investigation being launched by the US Coast Guard. In November 2007, the Spirit of Nantucket struck an underwater object and had to be run aground to prevent her from sinking completely. In July 2008, the same ship - now named Spirit of Glacier Bay - ran aground near Glacier Bay, Alaska.
Once again, all passengers had to be evacuated.
2010 saw Spirit of Glacier Bay renamed Spirit of America. Having trouble keeping it all straight? Whether a result of the continued groundings or not, the constant re-branding of the line and its vessels only served to bewilder potential passengers, and the line was reportedly struggling to fill its ships.
What can you do if you're booked on a future Cruise West sailing? If you paid by credit card, a quick call to your card issuer can get the ball rolling since the line will be unable to provide services paid for. Alternately, if you purchased trip cancellation or interruption insurance - particularly important for those guests who were removed from the Spirit of Oceanus in Newfoundland - you should contact your insurance provider immediately.
Apparently, Cruise West had been offering a small discount to passengers who chose to pay for their voyages by personal cheque. While the line advises those guests to send an email to info@cruisewest.com if they were affected, it should be noted that paying by cheque is never desirable. It leaves you with very little recourse should the unforeseen happen, particularly if your travel insurance won't cover you. Passengers of any line should always try to pay via credit card whenever possible.
We will keep you updated as more information on this situation becomes available.
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