Concordia Disaster to Cost Owners More than $2b

Posted by Eric Haun
Tuesday, July 08, 2014
Photo courtesy of the Parbuckling Project

The Costa Concordia disaster, when the cruise liner capsized off Italy more than two years ago, will likely end up costing the ship's owners just over $2 billion (1.5 billion euros), a company executive told a German newspaper.

"So far, our costs are at 1 billion euros. But that does not include 100 million for the ship to be broken up for scrap and the cost of repairing damage to Giglio island," Michael Thamm, chief executive of Costa Crociere - a unit of Carnival Corp and operator of the ship - told weekly Bild am Sonntag.

The disaster dealt a blow to the image of Carnival, the world's largest cruise operator, which in March forecast an annual profit below analysts' estimates as it cut prices and spent more on advertising to attract customers.

Luxury liner Costa Concordia hit rocks as it sailed close to the island of Giglio off Tuscany in January 2012, killing 32 people and setting off a chaotic evacuation of crew and passengers, some of whom jumped into the sea and swam ashore.

The hulk of the 290-metre ship was righted and secured in a complex operation last September and, with the arrival of calm summer weather, is due to be towed to Genoa to be broken up for scrap in the coming days.

"If everything goes well, we can complete this unprecedented salvage project this month," Thamm told Bild am Sonntag in an interview published on Sunday, adding he expected recycling of the ship to take almost two years.

Thamm said Costa Crociere managed to retain 95 percent of its customers following the ship's sinking, thanks in part to "significant" discounts. Some 50 to 60 percent of Costa Concordia's surviving passengers have since taken another cruise with the company, he added.

($1 = 0.7331 Euros)

(Reporting by Maria Sheahan, editing by William Hardy)

Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

ST Engineering Rejigs Top Deck

Singapore Technologies Engineering Ltd (ST Engineering) today announced the appointment of senior management personnel to new key management positions in the

MHI Receives "Best IR Award"

Mitsubishi Heavy Industries, Ltd. (MHI) has received one of this year's "Best IR Awards" presented annually by the Japan Investor Relations Association (JIRA).

Houston Port Commission Approves budget

The Fiscal Year 2015 Operating and Capital Budget was approved Thursday during a special meeting of the Port Commission of the Port of Houston Authority.   Projections

News

USCG Assist Duck Hunters Near Harrington Beach Park

The Coast Guard and the Port Washington and Cedar Grove Fire Departments came to the assistance of two duck hunters on Lake Michigan Friday. The names of those involved are not being released.

Sapurakencana Wins 3 Petronas Oil blocks

SapuraKencana Petroleum Berhad today announced that it has entered into Sale and Purchase Agreements to acquire the entire interest of PETRONAS in 3 blocks offshore

Kemp Succeeds Semple at Wood Group

Wood Group announced following changes to its senior management team. Alan Semple, chief financial officer (CFO) has advised the board that he intends to

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Pipelines Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3157 sec (3 req/sec)