Impact on Carnival?

[kate1970]

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.

 

 

This is the second accident in just over a year for Costa resulting in death as a result of hitting something. Probably a coincidence, possibly a training issue with staff/officers, who knows. But there are enough other cruise lines in this world that I won't be needing to cruise Costa - or Carnival for that matter. Too bad most people probably don't realize Costa and Carnival are owned by the same company.

[bazzaw]

Too bad most people probably don't realize Costa and Carnival are owned by the same company.

 

I think that it is a little "unfair" to link Carnival to Costa in this way . Certainly, Carnival Corporation owns Costa - but they do not manage or operate Costa. They also own Cunard - and I am certain that Coasta and Cunard are managed and operated in entirely different ways. Their only point of commonality is that they are required to operate at a profit in the cruising industry.

 

 

Barry

[Spaniel Lover]

There's no doubt that CCL stock will take a hit tomorrow.

 

You go ahead and watch your computer monitor all day long tomorrow, and see if CCL's stock price moves at all. Have fun!

 

Carnival Corporation is traded on the New York Stock Exchange, which will be observing a holiday tomorrow. The stock will not trade until Tuesday.

 

So, while there was "no doubt that CCL stock will take a hit tomorrow" in your mind, reality is actually a little different!

[Boy Blue]

I think that it is a little "unfair" to link Carnival to Costa in this way . Certainly, Carnival Corporation owns Costa - but they do not manage or operate Costa. They also own Cunard - and I am certain that Coasta and Cunard are managed and operated in entirely different ways. Their only point of commonality is that they are required to operate at a profit in the cruising industry.

 

 

Barry

 

 

Barry dont you worry, travelling cunard this would never ever happen to you

[Cruising89143]

This is the second accident in just over a year for Costa resulting in death as a result of hitting something. Probably a coincidence, possibly a training issue with staff/officers, who knows. But there are enough other cruise lines in this world that I won't be needing to cruise Costa - or Carnival for that matter. Too bad most people probably don't realize Costa and Carnival are owned by the same company.

 

In time that will come out and depending on how the corporation as a whole handles this event will depend on their future. Right now Costa is not looking too good but it may be too early. Once things settle down, the investigation takes place and more passengers come forward will determine a lot.

 

From reading the first hand account here on CC by the passsenger on board, sounds as though Costa and Carnival Corporation dropped the ball big time on helping the passengers with basic essentials. No excuse for that.

[Freecall]

 

Carnival Corporation is traded on the New York Stock Exchange, which will be observing a holiday tomorrow. The stock will not trade until Tuesday.

 

 

Oh yes it will!

 

CCL stock is traded on the London Exchange so you will know what the situation is long before the NSE opens on Tuesday.

 

You are obviously not a stockholder.

 

.

[writer100]

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

 

That's mathematically not true.Their chances of future disasters is the same as it was before this incident.Unless you can isolate a trait peculiar to Costa ships or crew that make them more likely to be involved in such incidents than say, HAL. Think of a roulette wheel. The odds of a number repeating on the next spin of the wheel are exactly the same as they were before that number appeared.

[Boy Blue]

That's mathematically not true.Their chances of future disasters is the same as it was before this incident.Unless you can isolate a trait peculiar to Costa ships or crew that make them more likely to be involved in such incidents than say, HAL. Think of a roulette wheel. The odds of a number repeating on the next spin of the wheel are exactly the same as they were before that number appeared.

 

 

Sorry I disagree

[Freecall]

Sorry I disagree

 

I don't follow.

 

Whatever the cause of this tragic incident, we know that after a grounding the ship became unstable in some way and capsized with the consequences we all know.

 

Unless Costa decide to take their other 5 Concordia Class ships out of service there is no reason to think that given the same circumstances the same thing would not happen to those, essentially identical, ships.

 

.

[lindros2]

That's mathematically not true.Their chances of future disasters is the same as it was before this incident.Unless you can isolate a trait peculiar to Costa ships or crew that make them more likely to be involved in such incidents than say, HAL. Think of a roulette wheel. The odds of a number repeating on the next spin of the wheel are exactly the same as they were before that number appeared.

 

This is the correct response. The previous comment (that Costa will be safer) draws upon "conjunction fallacy."

 

For more detail, see:

 

1. http://www.vanityfair.com/culture/features/2011/12/michael-lewis-201112

and

2. http://www.vanityfair.com/business/features/2011/12/kahneman-quiz-201112

[lindros2]

I have been on Concordia, they also did the muster drill in Savona wen I was onboard in 09. They have 24 hours to do it from the time you board.

 

One of the syndicated articles said that the cruise departed (started) 09 January.

 

That appears to be untrue.

[AirStang7]

Norwegian blew up a boiler, killed 8 crewmen and scrapped a classic ocean liner. They're still in business and doing well. People tend to have short memories and attention spans. The election is what a lot of folks will go back to, and for people not in the US, it'll be the Olympics. This is just a sideshow to the general public.

[Tutankhamen]

POSTED the following in another thread:

Greetings my fellow posters,

 

After spending the better part of a cold brisk morning investigating past cruise accidents on various lines and the affect on their stock, I feel confident in offering the following prediction.

 

CCL will open anywhere from 5%-10% lower. It will flirt with the high 29's but eventually settle above 30. Buying this stock at 30 would be like getting a 10% discount. Certainly this is not taking into account any more unforeseen news regarding Carnival or any of its subsidiaries.

 

It wool be "foolish", for the lack of a better word, for one to believe this most unfortunate accident will not cost the line an enormous amount of money.

 

They will be loosing 1,000's of berths for the unforeseen future. They will need to make whole the 1000's of cruisers directly affected by this incident. They will also need to make substantial considerations to those who have upcoming cruises booked on the Concordia. Not even taking into consideration the public image that will need to be addressed from multiple angles. Damage control alone will come at a cost.

 

The stock will not tank, and will not go under by any stretch of the imagination. It will take a hit and will need time to mend. The Euro and the cost of oil will only contribute to the hit CCL.

 

Just my opinion.

 

Respectfully yours,

 

-Tutankhamen

[2wallace]

This will not affect Carnival Corp in any great financial way. Futures for Mondays open are sitting down just 2.5% and I for one will be buying (they lose more profits in a 1% change in the price of oil).

 

Will it hurt Costa?...Yes, in the short term (not in terms of future bookings on other ships), people do have short memories and they will rebound. The only immediate cost will be in lost earnings from Concordia....As far as lawsuits; these will drag out in the court system for years...

[Tutankhamen]

This will not affect Carnival Corp in any great financial way. Futures for Mondays open are sitting down just 2.5% and I for one will be buying (they lose more profits in a 1% change in the price of oil).

 

Will it hurt Costa?...Yes, in the short term (not in terms of future bookings on other ships), people do have short memories and they will rebound. The only immediate cost will be in lost earnings from Concordia....As far as lawsuits; these will drag out in the court system for years...

 

Mr. 2wallace,

 

Most traders who are worth a hot cent, will concede that predicting how the market will play out day to day, week to week and quarter

to quarter is merely educated guessing at best. I by no means state my opinion or guesses as fact. Just an educated guess at best.

 

Only the hands of time will allow us to see how this affects the stock CCL.

 

One has to be careful when speculating and stating such as fact.

 

Respectfully yours,

 

- Tutankhamen

[2wallace]

Mr. 2wallace,

 

Most traders who are worth a hot cent, will concede that predicting how the market will play out day to day, week to week and quarter

to quarter is merely educated guessing at best. I by no means state my opinion or guesses as fact. Just an educated guess at best.

 

Only the hands of time will allow us to see how this affects the stock CCL.

 

One has to be careful when speculating and stating such as fact.

 

Respectfully yours,

 

- Tutankhamen

 

Most stock trades are an educated guess...this is just mine:D

[Tutankhamen]

Most stock trades are an educated guess...this is just mine:D

Mr. 2Wallace,

 

TOUCHÉ my friend!

 

Respectfully yours,

 

-Tutankhamen

[2wallace]

Mr. 2Wallace,

 

TOUCHÉ my friend!

 

Respectfully yours,

 

-Tutankhamen

 

And Respect to you also. Welcome to Cruise Critic:)

[bluwes]

Neither would I.

 

Can I have yours then

[Teechur]

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.

I would, so if you hear of any "free" cruises, be sure to post.

A year from now, this will be an "exciting story" for survivors to tell, the rest of their lives. The general public will have pretty much forgotten about it. The only ones that will feel lasting effects will be those related to the deceased.

Single car crashes take more lives on a daily basis, worldwide. I've already noticed that reports about this on the news channels are becoming fewer and farther between.

Jus sayin...

[bazzaw]

Single car[/u][/i] crashes take more lives on a daily basis, worldwide. ]

 

Whenever I pass a car going in the opposite direction to me , I am aware that there really is only a split second and a few feet between me and death!!!:eek: One small swerve by either of us, for whatever reason, and .....!!

 

 

Barry

[Teechur]

Whenever I pass a car going in the opposite direction to me , I am aware that there really is only a split second and a few feet between me and death!!!:eek: One small swerve by either of us, for whatever reason, and .....!!

 

 

Barry

Especially during "happy hour" in Oz!:D I've been to Surfer's Paradise and Brisbane a couple of times. Love Australia! Would be my second choice for a home, after U.S.

Cheers!;)

Alex

[guernseyguy]

Can be found here.

 

Carnival Corporation & plc Required Announcement on Financial Impact of Costa Concordia

MIAMI (January 16, 2012) -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) today commented on the financial impact resulting from the grounding of the Costa Concordia.

“At this time, our priority is the safety of our passengers and crew,” said Micky Arison, Carnival Corporation & plc 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. They will remain in our thoughts and prayers,” Arison said.

 

In accordance with financial disclosure requirements, the company provides the following information:

 

The company has insurance coverage for damage to the vessel with a deductible of approximately $30 million as well as insurance for third party personal injury liability subject to an additional deductible of approximately $10 million for this incident. The company self-insures for loss of use of the vessel.

 

A damage assessment review of the vessel is currently being undertaken to determine how long it will be out of service. The vessel is expected to be out of service for the remainder of our current fiscal year if not longer. For the fiscal year ending November 30, the impact to 2012 earnings for loss of use is expected to be approximately $85-$95 million or $0.11-$0.12 per share. In addition, the company anticipates other costs to the business that are not possible to determine at this time.

Carnival Corporation & plc, which is the parent company of Costa Cruises, is traded on both the New York and London Stock Exchanges.

[Freecall]

I see that Carnival stock is trading 18% down in London this morning.

 

:(

 

.

[Paul123]

Carnival share price down 18% 30 minutes after opening time on London Stock Market. Who said it wouldn't affect Carnival's financial situation?