USD 85-95 million loss on Italy liner disaster

The Costa Concordia cruiseship lies partially submerged yesterday in the harbour of Giglio island

Carnival Corp, the owner of the luxury liner that ran aground off the Italian coast with the loss of at least six lives, said yesterday the initial cost of the disaster was USD 85-95 million.
The company said its priority was the “safety of our passengers and crew” and expressed condolences to the families of those who had died when the ship grounded and then pitched over to leave it half submerged late Friday.
“A damage assessment review of the vessel is currently being undertaken... The vessel is expected to be out of service for the remainder of our current fiscal year if not longer,” it said in a statement.
“For the fiscal year ending November 30, the impact... for loss of use is expected to be approximately US 85-95 million dollars”
“In addition, the company anticipates other costs to the business that are not possible to determine at this time,” it said.
Carnival Corp is the parent company of Costa Crociere (Cruises), the operator of the ship, and is listed on both the New York and London Stock Exchanges where the stock slumped more than 17 percent in early trade.
The Costa Concordia ran aground off Giglio Island late Friday, with rescue services still working yesterday to search the ship and surrounding waters.
About 15 people, including Italians, Americans and French nationals, are still missing after the massive ship hit rocks and capsized shortly after it began a seven-day Mediterranean cruise.
“It seems that the commander made errors of judgement that had serious consequences,” said a statement Sunday from Costa Crociere, referring to Captain Francesco Schettino.
“His decisions in the management of the emergency did not follow Costa Crociere’s procedures, which are in line with international standards.”