Carnival counts costs of Concordia tragedy

Costs being written off its balance sheet are up to $95 million

Carnival Corporation has estimated in a preliminary statement that the January 13 Costa Concordia disaster could cost the company somewhere between $85 million and $95 million. This estimate relates only to the write-off, or “loss of use”, of the vessel. It does not include the probable lawsuits that will be brought against the world’s biggest cruise line by passengers, although these may be delayed until the remaining missing people are accounted for. The cruise industry is also expressing fears that the tragedy may dissuade future customers. So far, 16 passengers and crew are known to have died and another 16 are still missing.
“At this time, our priority is the safety of our passengers and crew,” said Micky Arison, Carnival Corporation’s chairman and CEO. “We are deeply saddened by this tragic event and our hearts go out to everyone affected by the grounding of the Costa Concordia and especially to the families and loved ones of those who lost their lives.”
Meanwhile, Pier Luigi Foschi, Costa Cruises’ chairman and managing director, has told Italian media that company wants to stop captains from having overall power on ships. “[We want] to work with the government so that captains no longer have total power. A more [shared] form of management on the bridge would be better.”
[photo by Roberto Vongher]


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