Carnival counts crash cost

A deadly cruiseship crash this weekend will cost owner Carnival Corporation up to $95m.

In a profit warning to the City this morning Carnival says the loss will stem from the 114,147-grt Costa Concordia (built 2006) being out of action for at least the present financial year which ends in November.

Arison.

As TradeWinds reported extensively this weekend lives were lost after the vessel grounded and then capsized off the Italian coast.

Costa has blamed Captain Francesco Schettino for the accident which resulted from “significant human error”.

Micky Arison, CEO of Carnival, which owns Costa Cruises, said: “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.

Carnival explains the ship has insurance cover with a deductible of around $30m and the company has third party personal injury insurance with a $10m deductible. But the loss of use is covered by the company itself.

It explains a survey of the damage is presently underway to figure out how long the ship will not trade for.

While it is too early to say how long repairs will take, Carnival says the loss of the Costa Concordia will leave it between $85m and $95m short in the 2012 fiscal year.

Additional costs are expected but it is too early to place a figure on them, the owner explains.

At least six people have died following Saturday’s accident. A further 14 are missing.

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