Date Published:
03/12/2012 The woes at Costa Cruise lines have hit hard. The Costa Concordia sank in January, and the Costa Allegro had a fire in the Indian Ocean that left it adrift without power and needed to be towed to the Seychelles Islands.
Carnival in early March announced a Q1 loss of $139 Million. In the same quarter the year earlier Carnival earned a 152 Million. The net difference is $291 million dollars.
Risk Management Perspective:
There are many ways, before each of the two accidents, and potentially during them, that the cruise line could have mitigated some of the costs and impacts of this disaster. That they did not will impact them greatly. It is likely the bad news isn’t over yet.
Industry Group:
Large Enterprises
Industry:
Large Enterprises/Conglomerates
Country:
United States
Risk Class:
Financial
Risk Type:
Financial Operations - Costs