Impact on Carnival?

[SelectSys]

Just curious to know what the impact of this accident will be on the parent and the other lines of the Carnival family.

[YII]

You will most probably won't see it. The company financials might look different for a while internally. AirFrance lost 200+ passengers couple of years ago on that Rio - Paris flight and they do well.

[kkorman]

There will be a big financial loss and the negativity that will steer new cruisers fom cruising. Obviously there will be a plunge of CCL stock on Tuesday.

[BBTT]

would you sail costa after reading all this latest news ?????=your answer At least at this point acording to US news reports I just watched only 40 are unaccounted for and seems there could still be people alive inside-3 deaths reported-PRAYERS TO ALL INVOLVED-GOD BLESS AND BE WITH YOU-What a tragedy

[YII]

I would.

 

Did you fly with AA/DL/UA after 9/11 ? I did and millions others did the same.

[Iluvcruising2]

It all depends how Costa handles this tragedy.

[ericrz]

I would.

 

Did you fly with AA/DL/UA after 9/11 ? I did and millions others did the same.

 

That isn't anywhere near the same circumstance. AA/DL/UA were attacked by terrorists. That was a malicious act that the airlines could not be expected to anticipate (that point is arguable, I know.)

 

This incident with the Concordia is a routine cruise, no evidence of sabotage or terrorism. I know all the details will take months to be discovered, but it's hard to see how this is anything other than negligence.

 

I've taken five cruises; between this incident and the incident last year in Sharm-el-Shiekh, right now I wouldn't take a Costa cruise if it were free.

[mechcc]

, right now I wouldn't take a Costa cruise if it were free.

 

Neither would I.

[gerryl12]

I would think that the insurance rates could be affected a little.

I don't think that you will even notice the difference on the financials as the costs will be spread out over years to come.

As for loss of customers, in the short term some people will be aprehensive about cruising but overall there will be very little difference.

[YII]

Neither would I.

 

Can you please elaborate why ?

[RobKabob]

In the short term, Costa could lose up to 6% of their revenue just by having one ship out of service (16 ships, down to 15). Add in the loss of the vessel itself which there have been various estimates of $300 million to $500 million and also depending on insurance coverage. There will likely be litigation but I would imagine the contract of carriage and European law could limit those losses. What will be hard to predict is how the brand will be damaged and how long that could last. I always heard slightly negative things about Costa, that they were a little down market but now they may have a whole safety issue.

 

As others have pointed out, we will see how the market reacts on Tuesday, but this could lead to a few percentage point loss for Carnival in the first quarter.

[jody]

I sailed on Louis Cruise Line a year after the Sea Diamond sank (on a cruise that also stopped in Santorini where it sank). What were the chances of the same thing happening again? While immediate bookings might be down, I'm sure people will continue to sail Costa.

 

I would think that the CCL stock price will likely take a hit once the markets open.

[Mjflowers]

There will be a big financial loss and the negativity that will steer new cruisers fom cruising. Obviously there will be a plunge of CCL stock on Tuesday.

 

Looks like the right time to do a short sell.

[bazzaw]

This incident has brought fully home to me the concept of all ship's announcements being made in 5 different languages. Thanks - but I will pass on that.

 

 

Barry

[JLC@SD]

There will be a big financial loss and the negativity that will steer new cruisers fom cruising. Obviously there will be a plunge of CCL stock on Tuesday.

 

Looks like the right time to do a short sell.

 

Carnival can probably survive a "loss" to 1% of their total "assets". Other market conditions will affect the stock more than this.... I am hanging on to my CCL.

 

Carnival Corporation & plc comprises eleven individual cruise line brands, operating a combined fleet of over 100 ships, totalling over 190,000 lower berths, and with new ships on order.

[Boy Blue]

I will sail Costa, they will be safer now than they were before.

[Capricruiser]

There's no way I'm going to give up cruising, on Costa or any other line. Travel accidents happen, and cruise ships are no different.

[Boy Blue]

There's no way I'm going to give up cruising, on Costa or any other line. Travel accidents happen, and cruise ships are no different.

 

 

Well said Capri

[JezzaC]

There's no way I'm going to give up cruising, on Costa or any other line. Travel accidents happen, and cruise ships are no different.

 

Well this wasn't accident. The ship was miles away from it's course. This is just bad seamanship and neglecting passenger safety. Hopefully that isn't a policy in all Costa Cruise ships.

[pully8]

Just curious to know what the impact of this accident will be on the parent and the other lines of the Carnival family.

http://en.wikipedia.org/wiki/Carnival_Corporation_%26_plc these figures are now out of date but financially it will have minimal effect.

 

prospestive customers might look a bit closer at safety issues/procedures on the cruise ships?

 

basically business as usual.

 

we would prefer smaller more intimate cruises. we like river cruises. would consider smaller ocean cruises but would examine safety issues/staff training etc closely.

 

depends what market it works in. its affordable for the masses and ok if things go as planned. if not... well those pictures will live in many peoples memories for along time.

[Oh Yes]

Well this wasn't accident. The ship was miles away from it's course. This is just bad seamanship and neglecting passenger safety. Hopefully that isn't a policy in all Costa Cruise ships.

 

and what Judge have sentenced this?

[sirobin171]

I have sailed from Rome on the Costa Concordia. I did not come away noticing anything different in safety than any of the other cruises I have taken on Carnival, Royal, or NCL, with the exception that we too boarded and then sailed without a muster drill until the next day in Savona. This was in my opinion the nicest ship in Carnivals fleet of brands. Sad to see her laying on her side, i have many great memories from that cruise. If by some miracle, the do actually repIr her, I will go on her again. Costa has had a couple of un-lucky situations that I am sure Carnival will now address in a new safety initiatives. Sort of now the mothership is stepping in type initiatives. Yes I do believe these images on all the news networks today are powerfull. Repeat cruisers will continue to sail, but i am positive those images changed some potential new customers minds. As far as costs, Carnival has insurance for accidents, so this shouldnt costs Carnival much as far as the loss of Hardware, but Costa is going to be in court for a long time over the loss of life and other people issues. I would guess Carnival will settle allot of these things to make them go away. I would guess its going to cost them around $100 mill to make all this right (Settlements, salvage, attorneys, etc etc). Insurance will cover the rest. Yes I believe CCL will see at least a 2% stock price drop on Tuesday. Then it will keep going down for a period of time tied to the news coverage. Real investors will hold though, this is a successful, profitable company and will go back up. if you don't own CCL wait till you see at least a 5-10% discount and buy. My thoughts are with the victims and the proud people who im sure ar every sad and humbled at Costa and Carnival right now.

[JezzaC]

and what Judge have sentenced this?

 

Well what else can you say after hearing first comments from the passengers and authorities?

 

Ship was miles away from it is right course before the crash.

 

When the crash happend personnel told passengers it is just a technical fault and same went on nearly 45 minutes.

 

Some of the personnel told passengers go their cabins and another ones to muster stations.

 

According Italian authorities captain didn't make mayday call.

 

Personnel didn't know how to operate safety boats.

 

And captain abandoded ship before all passengers were safe.

 

To me those things sound bad seamanship and neglecting passenger safety. Lets just hope that isn't policy in all Costa Cruise ships.

[lindros2]

This could cause a "reset" in the industry. Carnival's impact will depend how much they distant themselves from the Costa brand.

 

The accident is STILL shady in my mind - sailing the wrong route, too close to land, and captain abandoning ship.

 

That smells of something suspicious (not to use sabotage or terrorism lightly, but Italy *is* in trouble and using the Egypt Air example, captains have been known to do this in the past).

 

The fact that they did not do muster drills on time, had poor emergency procedures, and screwed the passengers with no clothes or money - will greatly hurt Costa.

[lindros2]

Carnival can probably survive a "loss" to 1% of their total "assets".

 

I suppose the loss of lives and irreparable damage to brand won't impact assets.