For many years Cunard was obsessed with establishing a US-flag cruise line. At one point the company investigated if the Cunard Countess and the Cunard Princess could somehow be reflagged in the United States, on the proviso that Cunard would build new ships in America, and then have the new ships replace them. The US was keen to revive its long-gone passenger shipbuilding industry so 1988 and 1989 saw Cunard deal with Tampa Shipyards Inc. on several designs for different US-flagged cruise ships with the initial 1,358-passenger capacity being increased to 1,500 and the initial ‘Tampa Ship’ project becoming the ‘Eagle’ project.
In 1988 Cunard began negotiations on a joint venture proposal with Hyatt to establish a Hawaiian venture. At that time the growing cruise market in Hawaii was serviced by American Hawaii Cruises (with its two ships: the Independence and the Constitution) and a new entrant Aloha Pacific Cruises and its one future ship, the Monterey. Cunard and Hyatt considered AHC and APC to have poor reputations and limited appeal and believed that the potential for efficient sized, modern, mid-ranged cruise ships in the market was something to take advantage of. In their early discussions with Hyatt, Cunard proposed to include Hyatt with their $215 million 40,000-ton ‘The Tampa Ship’. This version of the ‘Tampa’ was based externally on the new Seaward (1988) from Norwegian Cruise Line, with one less deck to avoid the need for costly aluminium but with additional passenger accommodation.
Hyatt rejected this “substantially inferior Seaward” design so Cunard and Hyatt developed a new design (‘Eagle’) for two US-built, four-star, 40,000-ton, 21.5-knot ships carrying 1,542-passengers that would enter service in 1992 and 1993 for year-round operation in the Hawaiian Islands competing against American Hawaii Cruises and its two ageing ships and Aloha Pacific Cruises and its heavily rebuilt the Monterey. Cunard would provide worldwide marketing, sales and order processing, perform passenger service functions, provide accounting services, perform purchasing functions and hire and train the staff required for the project. For its part Hyatt would provide sales support, purchasing support, provide promotional (in-hotel) support and hire and train passenger service staff. The Eagle Project had to overcome several hurdles not least the cost of building US-flag cruise ships, the use of US union labour, the possible lack of interest of Hawaii in attracting more cruise ships, limited berth facilities in the region, US Coast Guard regulations and Hawaii intra-state regulations including tough pollution regulations.
To perhaps force the hand of Cunard and Hyatt, the American yard announced in November 1989 that negotiations for two medium-sized cruise ships for the protected Hawaiian trade, in a deal worth almost $500 million, was close to being signed.
Despite designs for ‘Eagle’ progressing, no contract was signed and a year later Cunard and Hyatt approached American Hawaii Cruises directly in the hope of incorporating that operation direct into their proposed new Hawaiian venture with Cunard taking over management of the Independence and the Constitution. No deal could be made. In 1993 American Hawaii Cruises was close to bankruptcy and Cunard tried again to acquire the company thinking that an acquisition would bring it closer to the Asian market, enable Cunard to increase sales in Australia and Japan and give Cunard the monopoly in the Hawaii cruise trade but it was eventually deterred as getting involved in a bankruptcy could be messy for Cunard. The two American Hawaii ships needed extensive investment and Hawaii was in a major tourist recession by this time. American Hawaii was eventually purchased by Delta Queen Steamboat Co. in June 1993.
In May 1989 Aloha Pacific Cruises was experiencing financial difficulties and the Monterey was facing repossession by the yard Wartsila in Finland. Cunard had the opportunity to purchase the Monterey and use that ship with Hyatt to begin its Hawaiian venture. The Monterey would give the companies an initial step into the market and the benefits of using the Monterey as a training vessel would be valuable in the start up of ‘Eagle’. The problem of taking on the Monterey was what to do with her once the ‘Eagle’ ships had entered service. An inspection by a Cunard executive reported that he found her in “excellent condition” and good for another 20 years. Cunard thought her ideal for the Australian market given her suitability in terms of recognition in the market, the fact she was built for heavy seas and the capability of 25 knots.
Cunard and Hyatt were so keen to work with each other they looked into a hotel partnership together when all hopes of establishing a cruise venture sank without trace.
