Double Feature

By strict economic standards, building modern passenger ships to ply the Atlantic makes little sense. A luxury liner costs upwards of $50 million; a utilitarian jet costs one-tenth as much, can carry 15% more passengers over the same distance in the same amount of time. Moreover, the airlines have captured four-fifths of the Atlantic business, and several shipping companies are in trouble. These cold facts do not, however, chill the warmly sentimental directors of the state-run Italian Line. In the greatest investment in money and tonnage ever made by a shipping company in a single year, the line is introducing not just one luxury liner but two. Last week, after an eight-day trip from Genoa, the 45,900-ton Michelangelo glided into Manhattan on its maiden voyage; late in July its twin, the Raffaello, will go into service on the 4,700-nautical-mile run between the Italian Riviera and New York.

Props & Profits. The Michelangelo is eleven decks high and one-sixth of a mile long, has more swimming pools than any other ship (three each for adults and children--all outdoors and heated) and more art than several substantial museums. It has 30 bars, lounges and public galleries, and in its ample pantries carries 23,000 liters of wine, 3,500 liters of champagne and Asti Spumante and 330 Ibs. of Iranian caviar. The ship also carries, however, a technical flaw common to many new ships: strong vibrations caused by slight faults in the propellers, which will be replaced when it returns to Genoa.

This high living may be a bit too rich for the Italian Line, which depends on an annual subsidy of some $20 million from the government. Even if booked solid, charged Italian Air Force General Giuseppe Valle, the twin ships will lose $80,000 on every voyage. Italian Line's director general Giuseppe Ali says that each vessel will run an "operational" profit when filled to 60% of its 1,700-passenger capacity, but his figures do not count amortizing the $60 million cost of each ship. Still, argues Ali: "We must not be viewed only as producers of revenue but also as supporters of touristic development."

Younger & Bigger. The Italian government expects that the twin ships will lure tens of thousands of tourists to Italy, and that 70% of the voyagers will be dollar-dispensing Americans. By introducing two ships at once and simultaneously retiring the older Vulcania and Saturnia, the line reduced from 15 years to seven years the average age of its fleet on the competitive "Southern Atlantic" route, increased its capacity by 30%. Equally important, the twins created work for the Genoa and Trieste shipyards and the Italsider steel complex--all of which are owned by the Italian Line's parent, the IRI monopoly that is Italy's biggest enterprise.

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