Fairline Boats purchased

[MapisM]

Both Russian Investors are passionate boat owners. How refreshing to hear that.

I sympathize with that, P.
But I'm afraid it might be the only reason why FL (and also other boat builders for that matter: in a sense, my reasoning applies also to Ferretti Group - no less! ), yet again, found some buyers.
And such reason, appealing as it looks, obviously is not enough in perspective, because even the richest billionaire with more money than sense sooner or later reaches the point when he doesn't want (or can!) burn his money on a daily basis anymore.
Just think about this: would a company exactly in the same situation as FL, but producing coffins rather than luxury boats, have found some Russian investors? 'course not. It would have already been closed years ago.
Imho, the only realistic hope FL had for surviving was by entering a bigger group, willing to use the brand for a specific segment of their range.
As an example, think of what Ferretti did when they purchased the once well respected but by then bankrupt Mochi yard: Mochi used to build boats which were in direct competition with the Ferretti range, but they used the brand instead for creating a new segment that didn't yet exist.
Princess could have done that with FL, creating a long range cruisers line, for instance.
Or Azimut, even better - possibly branding the whole Magellano line as FL. Though this bus is now missed, obviously.

All that said, I sincerely hope to be completely wrong, and I wish FL to achieve results worth half of your optimism.
That would be more than enough for them to be successful! :encouragement:

 

[Nick_H]

Dangerous strategy that because we all know that accommodation sells boats at boat shows. Apart from that, being a 'good sea boat' is an almost unprovable selling point and other marques like Princess are already in that territory. However it is interesting to talk to foreign boat owners about their opinion of British motorboats. I've heard it said more than once that British built motorboats have good sea hulls because of the shit weather we have here so maybe there is something in your suggestion

. I agree that accommodation sells at boat shows, but that means competing head to head with Sunseeker, Princess, Azimut, Ferretti, Sealine, Prestige etc. Most of those companies are starting from a better position that Fairline, so that's a big ask.

I think Fairline have to do something different, and they do have a reputation for building good sea boats, and it's always easier to build on an existing strength/perception than to start along a new path. Also, good hulls are more important on small and mid-sized boats, because big boats can just bash their way through most conditions anyway, so that would seem to lend itself to the Fairline size limitation of having an inland site.

Anyway, it was only an idea, and the new MD seems to have both technical and marketing expertise gained in the industry, so is far better placed than me to decide on a strategy to differentiate Fairline, and it will be interesting to see which way they go

 

[henryf]

Out of interest, what do you mean by floor plates? Are they related to resin infusion?

I'm surprised you've picked out the Fairline hulls for criticism, as I though they had a solid reputation. You may mean that they don't allow the same internal volume as others, but I'd have though a possible niche marketing angle for Fairline is to build on their reputation as being very good sea boats, rather than chasing internal space at all costs, as most of the other brands seem to be doing.

My understanding is at these days the hull designer also designs in the floor of the lower deck & floor of the main deck / roof of the lower deck. It is at this point where internal volume, head heights and flat floors are decided. Get it wrong and you have lots of steps, limited head height and angled floors.

By all accounts resin infusion seems to allow improved space inside but it could also be the integration of the floors into the hull so they are a structural element.

I'm not aware that the current leaders are seen as bad sea boats. Far from it. Today's buyer insists on both.

I don't doubt that there might be room for some niche market designs be they trawler style, catamaran or whatever. I've never quite seen the logic behind full displacement which only offers single figure speeds. Similar speeds even in a planing boat produce a not dissimilar economy but the planing capability allows you to outrun the worst of the weather. The other day we were reduced to 16 knots but it was a lot better than being in the swell for twice the time at 8 knots and I'm not sure the ride would have been any better.

Your point about Fairline managing to compete against other brand who have already sorted out their designs is a valid one. The only possible avenue in my humble opinion is price.

Henry

 

[Deleted User YDKXO]

Princess could have done that with FL, creating a long range cruisers line, for instance.

Maybe you remember that both Fairline and Princess were once owned by the same owner, Graham Beck, so that thought occurred to me too. Maybe it would have been worth Princess buying the assets now simply to have taken Fairline out of the market?

 

[Nick_H]

I'm not aware that the current leaders are seen as bad sea boats. Far from it. Today's buyer insists on both.

Well, all boats are a compromise between internal volume and sea keeping of course, and I'd say that each of the companies I mentioned have sacrificed sea keeping to some extent to get more volume inside. Their boats are certainly taller and fuller near the bows than they used to be. Even hi-lo platforms sacrifice sea keeping a bit, because the builder can't continue the hull under the platform

 

[Deleted User YDKXO]

Well, all boats are a compromise between internal volume and sea keeping of course, and I'd say that each of the companies I mentioned have sacrificed sea keeping to some extent to get more volume inside. Their boats are certainly taller and fuller near the bows than they used to be. Even hi-lo platforms sacrifice sea keeping a bit, because the builder can't continue the hull under the platform

These are very good points. I've often wondered whether the seakeeping of modern planing hulled boats has improved at all in the last 25yrs or so. It would make an excellent MBY feature to take a classic from the 1980's, say the original Princess 45, which was renowned for it's seakeeping and compare it to the equivalent modern Princess today or, say, a Turbo 36 compared with the equivalent Fairline. I'm not so sure that the modern boats would come out on top and maybe for that reason, MBY wouldn't do the feature

 

[benjenbav]

I've heard it said more than once that British built motorboats have good sea hulls because of the shit weather we have here so maybe there is something in your suggestion

A QED sort of selling point in that there aren't rafts of stories of UK built boats sinking and the rubbish weather is there for all to see, so the hulls must be good, innit?

 

[MapisM]

Maybe you remember that both Fairline and Princess were once owned by the same owner, Graham Beck, so that thought occurred to me too.
Maybe it would have been worth Princess buying the assets now simply to have taken Fairline out of the market?

Good point, no idea about why they didn't consider that option. Maybe they just didn't think to ask us here in the forum...
Re. forking out some cash to take FL out of the market, sounds like the British lobster approach that I learned from petem.
Regardless, I suppose FL is way down the list of competitors Princess is concerned about nowadays - and rightly so.

 

[Deleted User YDKXO]

A QED sort of selling point in that there aren't rafts of stories of UK built boats sinking and the rubbish weather is there for all to see, so the hulls must be good, innit?

Yeah but all British boats catch fire so there is a downside to British boats as well

 

[Deleted User YDKXO]

Re. forking out some cash to take FL out of the market, sounds like the British lobster approach that I learned from petem.
.

Yeah I know, it was a very Anglo Saxon suggestion

 

[benjenbav]

Yeah but all British boats catch fire so there is a downside to British boats as well

Strange when you think about our non-inflammable national character.

 

[crustysailor321]

So who are these mysterious Russian buyers anyway? Any ideas? Some rich oligarch with good connections to Putin?

 

[petem]

So who are these mysterious Russian buyers anyway? Any ideas? Some rich oligarch with good connections to Putin?

Let's hope so, seems to be lots of dosh sloshing around Putin's coffers.

 

[PowerYachtBlog]

Good point, no idea about why they didn't consider that option. Maybe they just didn't think to ask us here in the forum...
Re. forking out some cash to take FL out of the market, sounds like the British lobster approach that I learned from petem.
Regardless, I suppose FL is way down the list of competitors Princess is concerned about nowadays - and rightly so.

Very spot on on the last paragraph.

Also re your suggestion about Azimut buying Fairline and rebranding the Magellano, I think those days of brand building are sadly gone.
Nowadays is better to start from scratch and put a model style under a new brand.
You can also see that for example Azimut rebrand Atlantis to Azimut two years ago.
Logistic it makes much sense nowadays since the new Joe boat buyer knows only two brands Azimut and Sunseeker. The others need a bit of experience.

 

[petem]

As an example, think of what Ferretti did when they purchased the once well respected but by then bankrupt Mochi yard: Mochi used to build boats which were in direct competition with the Ferretti range, but they used the brand instead for creating a new segment that didn't yet exist.
Princess could have done that with FL, creating a long range cruisers line, for instance.
Or Azimut, even better - possibly branding the whole Magellano line as FL. Though this bus is now missed, obviously.

I think that using FL as a long range cruising brand would just be confusing. I assume Azimut are doing with with the Magellano branding (these might be my new favourite boats).

 

[petem]

Regardless, I suppose FL is way down the list of competitors Princess is concerned about nowadays - and rightly so.

Its easy to say that, and you're right in a way, but FL Yachts are in an enviable position. They have:

1) an established dealer network
2) no debt
3) a 'cut to the core' cherry picked workforce
4) a new lease on their old purpose built premises (I believe their old lease was crippling)
5) no money on the balance sheet for dozens of designs, not all of which will sell well
6) tools purchased from the administrator at used values
7) selected maintenance and license contracts novated as required
8) a couple of recent designs (T53 and Sq53) in the bag
9) deposits held with dealers
10) owners and backers that are passionate about the boating and the brand and at the start of the journey rather than the end of it (a la Princess)

From what their new MD says, they only need to build 15 boats in year one to survive. Whilst it's going to be a challenging couple of years, in particular finding the money for new designs, I think there is cause for some hope.

 

[Whitelighter]

It's a pity the T53 (and I guess without serious work the S53) are so universally unpopular.

 

[ari]

10) owners and backers that are passionate about the boating and the brand and at the start of the journey rather than the end of it (a la Princess)

Bit confused by this one. How do you mean?

 

[petem]

Bit confused by this one. How do you mean?

Purely conjecture that Princesses owners must be losing patience when burning £1m a month.

 

[MapisM]

Its easy to say that, and you're right in a way, but FL Yachts are in an enviable position.

I agree P, it was easy to say what I said, and sorry if it sounded harsh. But that doesn't make it wrong, I'm afraid.
Besides, without even starting to argue with your list, I don't think there are many builders (and workers, suppliers, clients, etc.) in the industry that are really envious of FL position... :ambivalence: