Costa Crash Cause: Human Error Cited

Monday, January 16, 2012
While it could be months if not years before the full details of the crash and capsizing of the Costa Concordia are fully revealed and understood, early indications point to human error, specifically an “unapproved, unauthorized maneuver” to divert from its programmed course by the captain, according to a report in the New York Times, citing Pier Luigi Foschi's, the chairman and chief executive of Costa Cruises, comments at a press conference on Monday, January 16, 2012, in Genoa.
To date, at least six were killed in the mishap and more than a dozen remain missing.
The Italian cruise ship company – who's parent company is Carnival Corporation – was quick to point out the potential fault of Captain Francesco Schettino, who remains in custody with Italian police  for questioning on charges of manslaughter, failure to offer assistance and abandonment of the ship. In a press statement issued Sunday, January 15, the company said:  “While the investigation is ongoing, preliminary indications are that there may have been significant human error on the part of the ship’s Master, Captain Francesco Schettino, which resulted in these grave consequences.  The route of the vessel appears to have been too close to the shore, and the Captain’s judgment in handling the emergency appears to have not followed standard Costa procedures.”
Captain Schettino joined Costa Crociere in 2002 as a Safety Officer and was appointed Captain in 2006, after acting as Staff Captain as well. As all Costa Masters, he has been constantly trained passing all tests. 
 
Carnival Assesses Financial Damage
Carnival Corporation & plc – parent company of Costa Cruises and as a publicly traded company – is required to release financial impact statements in the aftermath of the wreck.
"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. 
 

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