Costa go broke

[lynsteve]

Anyone think Costa will now go under, as in broke, bankrupt, out of business??

 

Stevo

[guernseyguy]

Anyone think Costa will now go under, as in broke, bankrupt, out of business??

 

Stevo

No. It's owned by a large, successful, profitable corporation, Carnival Corp & Plc - and it's their largest European brand - so its not going away.

[tntornadox]

There is another topic on this already and the short answer is no, they won't be going anywhere.

[Dodgy Cruises]

The power of the Internet is greater than any lawsuit could be gleemed. I think from figures we shall see the full force of the Internet social effect with this. Carnival, which is Costas owner will probably go bust. Think if and when those 3,000 people on the ship will post negitive feedback about their voyage (and also the 3,000 relatives!). Before booking, people should check it is NOT Costa or anything connected to http://www.carnival.com as their money would be in a unpredictable situation.

[Aus Traveller]

The power of the Internet is greater than any lawsuit could be gleemed. I think from figures we shall see the full force of the Internet social effect with this. Carnival, which is Costas owner will probably go bust. Think if and when those 3,000 people on the ship will post negitive feedback about their voyage (and also the 3,000 relatives!). Before booking, people should check it is NOT Costa or anything connected to www.carnival.com as their money would be in a unpredictable situation.

Compared with the assets of Carnival Corp, the losses as a result of this tragedy are peanuts. They are not at any risk of going broke.

[Cruise Cat]

The stock price dip you saw earlier this week will be the worst it gets. The ship will either be raised intact after the fuel is off loaded and then refurbished, renamed, and sold to one of Carnival's brands in the far east where not as many even heard of this incident, or she will have to be broken up to be removed (the current salvage company, Titan, won't get paid if they cannot remove intact). Insurance will cover most and the increased premiums and other costs will be spread out to not have much impact. Lawsuits will have to be fought over in Italy and will be settled via the restrictive contracts everyone signed.

[lachera]

The stock price dip you saw earlier this week will be the worst it gets. The ship will either be raised intact after the fuel is off loaded and then refurbished, renamed, and sold to one of Carnival's brands in the far east where not as many even heard of this incident, or she will have to be broken up to be removed (the current salvage company, Titan, won't get paid if they cannot remove intact). Insurance will cover most and the increased premiums and other costs will be spread out to not have much impact. Lawsuits will have to be fought over in Italy and will be settled via the restrictive contracts everyone signed.

 

 

This is the positive hypotesis if everything goes well. If salvaging the ship goes wrong and a top tourist area gets seriously polluted, damage claims by privates and public subject alike could seriously hit Costa. And they have not signed a restrictive contract.

[Esprit]

What a stupid question. It's the largest cruise line in the Med' and a subsidiary of the largest cruise company in the world.

 

Europeans are turning to cruising in vast numbers and the market available to tap into is huge. In terms of growth Europe is about 8 years behind the US.

 

OK there are current financial difficulties in the Eurozone and perhaps one less ship wont be too bad after all, but to suggest Costa will go out of business is ludicrous as a result of this tragedy

[rols]

The stock price dip you saw earlier this week will be the worst it gets. The ship will either be raised intact after the fuel is off loaded and then refurbished, renamed, and sold to one of Carnival's brands in the far east where not as many even heard of this incident

 

The Far East isn't that far you know, we have TV and newspapers and internet and all sorts of other wonderful things. The Concordia disaster has been playing nightly on the news and of course is plastered all over CNN, which runs worldwide. It's very big news.

 

I don't think there will be a corner of the world people don't know about this incident .. if the world had corners.

[KirkNC]

No more than BP did.

[CruisinGerman]

If the insurance doesn't pay up to Carnival because of the Captain's negligence, Carnival could try to put Costa through receivership or liquidation -- this would streamline all of the lawsuits to be filed.

 

Or Carnival could simply absorb all of the losses and absorb the ships across its other lines if it feels that the Costa name is now worthless.

 

However, more realistically, I think Carnival and Costa will absorb all losses and compensation due them, and Costa will come back with a new marketing campaign about the "new", "safer" Costa, and in the long run everything will be fine. Costa has a long-standing name in Europe -- many of its ships are near new, and it is nearly as large as RCCL.

 

Costa cannot just disappear -- who would compete with MSC and the very many RCCL ships that homeport in Europe in and out of season?

 

Kind regards,

 

Gunther and Uta

[bunnyman]

In watching the news yesterday and today, and seeing that video of the Concordia crew member at the muster station telling passengers to go back to their cabins while the officers were delaying a formal evacuation knowing that the ship was already taking on water, was quite a shock. That's also going to go towards evidence in eventual court cases that undoubtedly will start to spring up that blame not only the ship's captain but the entire Costa company for negligence. Yes, while Costa is small peanuts in the overall Carnival PLC world, I did see that Costa accounts for about 1/8 of the holding company’s revenues. I’d be a little concerned once the lawsuits start flowing about what actions Carnival PLC takes to protect itself financially, as bankruptcy is often a tool used for protection against suits. I had a future cruise certificate for Carnival Cruise Lines sitting in my drawer with 2 years left to expiry that I cancelled. I’m a little worried holding it should the ultimately seek bankruptcy protection for the legal exposure, as I imagine that these would be worthless as another unsecured creditor.

[frito58]

I guess only time will tell on their bookings, not sure I would jump on one of their ships if this is the screening process they use for hiring Capt. and officers. Just sayin.

 

But I doubt it they have big Bucks behind them and few big sales would get people back onboard.

[glrounds]

Anyone think Costa will now go under, as in broke, bankrupt, out of business??

 

Stevo

 

The COSTA CONCORDIA represents approximately 1.5% of Carnival Corp.'s (CCL&plc) REVENUES. Big Pockets.

 

Essentially since the close of the NYSE yesterday, 1/19, CCL&plc is OFF 6.9% since the incident.

 

The first day CCL's stock plummeted almost 20%, but the cooler heads bought-in knowing fully well what was going to happen after the panic sellers went home. The stock recovered a lot the same day and has steadily gained back, at least through yesterday, to a the down position above.

 

FWIW, in the same time period RCL is off 5.3% and they didn't lose any ships.

 

[Cruise ship fan]

Well think about it, if White Star Line didn't go bankrupt from the Titanic (rather then the great depression), either will Costa by losing the Concordia.

 

Also the internet will not make the situation any different because the passengers for the Titanic were mostly from Europe and America. So the news papers would of easily reported this and everyone would of known about it. Now with Costa passengers come from all over the world and the news of the Concordia has been on TV and the internet (todays newspapers) So the situation is exactly the same.

 

I highly doubt that because of this accident people will stop cruising with Carnivals other brands. One reason for this is they have no idea which lines Carnival actually owns and a doubt many people will be even bothered to research a company. Another reason is that many of Carnivals brand are historic names, Cunard, P&O, Princess (because of the love boat), its highly unlikely that people will link these brands to Costa.

[24butterfly]

The power of the Internet is greater than any lawsuit could be gleemed. I think from figures we shall see the full force of the Internet social effect with this. Carnival, which is Costas owner will probably go bust. Think if and when those 3,000 people on the ship will post negitive feedback about their voyage (and also the 3,000 relatives!). Before booking, people should check it is NOT Costa or anything connected to http://www.carnival.com as their money would be in a unpredictable situation.

 

Then u will only go Celebrity, Royal Caribbean, Azamara, Oceana and the cheap one I can't think of the name. They won't go broke. Carnival owns most of the cruise lines except for a few European ones--Paul Deilman (? If I'm spelling that right), Paul Gaughin, P&O.

[Cruise ship fan]

Carnival owns most of the cruise lines except for a few European ones--Paul Deilman (? If I'm spelling that right), Paul Gaughin, P&O.

 

Carnival only owns 10 lines now. Even though most people believe its 11. This is because of the recent closure of Ocean Village. Also P&O is a Carnival brand.

 

The lines are:

 

Carnival

Holland America

Cunard

Seabourn

Costa

P&O

P&O Australia (Separate line to the UK P&O)

Princess

AIDA

Ibero

 

Note: P&O, P&O Australia and Princess are still run separately to Carnival.

[Cruise ship fan]

With a bit of research I found that sales have not changed since before the incident occured. So rest assured not much will happen to Carnival apart from increased safety. Costa may have a few changes but nothing too major.

[mainelycruising]

The stock price dip you saw earlier this week will be the worst it gets. The ship will either be raised intact after the fuel is off loaded and then refurbished, renamed, and sold to one of Carnival's brands in the far east where not as many even heard of this incident, or she will have to be broken up to be removed (the current salvage company, Titan, won't get paid if they cannot remove intact). Insurance will cover most and the increased premiums and other costs will be spread out to not have much impact. Lawsuits will have to be fought over in Italy and will be settled via the restrictive contracts everyone signed.

 

The ship will be owned by the insurers. The salvage companies are already circling the wreckage...............it will never sail for Costa again.

[bahrain_not_dubai!]

On the other hand, think of it like this- what major (not niche, upper premium or luxury) cruise lines do Carnival NOT own?

 

 

Royal Caribbean International

Celebrity Cruises

Pullmantur Cruises

Norwegian Cruise Line

MSC Cruises

Disney Cruise Line

Star Cruises

Thomson Cruises

 

Now if you look at the above lines simply as holding companies, and not brands you will get the following- the three in bold are the only company to own more than 5 ships for a mass market audience, and they hold the vast majority of what remains in the cruising market.

 

Royal Caribbean Cruises Ltd.

Star Cruises/Ambassador Holdings

Mediterranean Shipping Company

The Walt Disney Company

TUI

 

That to me is about it- all other MAJOR lines, selling to a mass-market passenger base are owned by Carnival Corporation. They have a 49.5% market share for a reason.

 

Another way to look at it is Costa Cruises' brand strength is what Carnival's is in the US, or P&O/Cunard's in the UK. Do you really think any of these brands, especially Carnival Cruise Lines, would go broke if they lost a sole ship?

 

The answer is no. Costa Cruises would need something far stronger to break it.

[See_again]

...by daily passenger capacity/berth at the end of 2010

 

Carnival Cruise Line 78004

Royal Caribbean 74355

Princess 51260

Costa 44777

NCL/NCL America 41181

MSC 36685

Holland America 30132

Celebrity Cr/Expl 27794

AIDA 22083

P&O Cruises 16411

 

Just to give you an impression how big the various cruise lines are. For example AIDA begans operation in 1996 with a single ship and 15 years later ranks on 9th place. In Europe the cruise market is the fastest growing market of all kinds of travelling.