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  #11  
Old July 25th, 2012, 12:49 PM posted to rec.travel.cruises
Tom K
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Posts: 2,578
Default wrecked ship

On 7/25/12 5:22 AM, Jaap wrote:
the ship will be scrapped, after raising it (for over 100 million Euro) the cost to refurbish would add to a price higher than building a new ship.


Ignore the cost to raise it. That has to be paid. That's a sunk cost.
You don't build that in the financial model.

If they actually need a ship, then you compare the money they would
receive with scrapping this ship along with the cost to construct a new
ship vs. the cost to refurbish this hull. And if there is a major
timeline difference, you can build in sales figures for the 2 scenarios
(like if one option finishes a year sooner, you can build in a year of
cruise sales the other scenario doesn't have).

That should be your true cost differential.

As far as superstition, they would likely divert it to a different
division and give it a new name. They've had ships catch fire and
reused the ship.
  #12  
Old July 26th, 2012, 12:47 AM posted to rec.travel.cruises
Charles[_1_]
external usenet poster
 
Posts: 3,112
Default wrecked ship

In article , Tom K
wrote:

On 7/25/12 5:22 AM, Jaap wrote:
the ship will be scrapped, after raising it (for over 100 million Euro)
the cost to refurbish would add to a price higher than building a new
ship.


Ignore the cost to raise it. That has to be paid. That's a sunk cost.
You don't build that in the financial model.

If they actually need a ship, then you compare the money they would
receive with scrapping this ship along with the cost to construct a new
ship vs. the cost to refurbish this hull. And if there is a major
timeline difference, you can build in sales figures for the 2 scenarios
(like if one option finishes a year sooner, you can build in a year of
cruise sales the other scenario doesn't have).

That should be your true cost differential.

As far as superstition, they would likely divert it to a different
division and give it a new name. They've had ships catch fire and
reused the ship.


Costa's President said several months ago that Concordia will be
scrapped.

--
Charles
 




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