New CEO named at cruise group
A longtime veteran of the cruise-ship industry is on his way out at Seattle-based Majestic America Line and Windstar Cruises.
California parent company Ambassadors International said late Thursday that David Giersdorf, 51, will resign Dec. 31 as president of its cruise group. Joe Ueberroth, Ambassadors’ chairman and chief executive, will immediately take over as interim president.
The management shake-up comes as Majestic America scrambles to fix a problem with one of its ships and as questions emerge about consumers’ ability to spend on such discretionary items as cruise vacations amid the slowdown in the U.S. housing market.
Ambassadors did not give a reason for Giersdorf’s resignation and company officials could not be reached Friday.
Wall Street seemed to dislike the uncertainty, sending shares of Ambassadors down $1.81 Friday to $21.15.
James Bellessa, who follows Ambassadors for D.A. Davidson in Great Falls, Mont., said he’s concerned about the cruise lines’ prospects without a “seasoned” veteran in charge, especially in a difficult economy. He rates the stock “neutral.”
Is Giersdorf’s “departure a signal that something’s broken?” Bellessa asked. “The company only gives limited disclosure and guidance, so it’s hard to really know what’s happening.”
Earlier this month, Majestic America canceled a couple of weeklong voyages from Portland aboard Empress of the North because of a problem with the ship’s propulsion system. On Wednesday, it canceled an additional nine voyages, saying Empress would go into dry dock earlier than planned to complete work on the propulsion system, then resume service March 22, as scheduled.
In the meantime, Majestic hopes to rebook passengers on another ship, Queen of the West, which also sails from Portland along the Columbia River.
Empress is the same ship that ran aground in May off the Alaskan coast near Juneau. Ambassadors estimated an overall negative impact of $6.2 million, mainly from canceled cruises, repair costs and other expenses.
Ambassadors, an event and travel-services provider once based in Spokane, acquired Empress and sister ship Queen of the West when it bought American West Steamboat in January 2006.
Over the next few months, Ambassadors went on to acquire five more ships for its Majestic America Line, specializing in cruises along the inland and coastal waters of North America. In April of this year, it bought Windstar Cruises from Carnival, giving it three more ships and an entry into the international luxury-cruise market.
Giersdorf, who previously oversaw sales and marketing at Holland America Line, took the helm of Ambassadors’ cruise group in late 2005.
In a statement, Ueberroth credited Giersdorf with enabling the company to “accomplish an extraordinary amount in a short period of time.”
Giersdorf stated that he would continue to work with Ueberroth to ensure “a very successful transition.”
Amy Martinez: 206-464-2923 or amartinez@seattletimes.com. Times researcher David Turim contributed to this story.