Showing posts with label Carnival Splendor. Show all posts
Showing posts with label Carnival Splendor. Show all posts

Wednesday, April 17, 2013

We Are Pleased To Report, In Reversal Of Stance, Carnival Says It Will Pay US For Disabled Ships




Contributed by Curt Anderson
 Carnival Corp. said Monday it will repay the U.S. government an unspecified amount for the costs to taxpayers of responses to disabling accidents on its Triumph and Splendor cruise ships, both of which left thousands of passengers stranded at sea for days.
The world's largest cruise line company said the payments were being made voluntarily to the U.S. Treasury Department and that no government agency had requested reimbursement for either accident.
But Carnival had come under pressure from U.S. Sen. Jay Rockefeller, D-W.Va., who was highly critical last week of Carnival's indirect responses to his inquiries about its willingness to pay.
Rockefeller, chairman of the Senate Commerce Committee, estimated the Coast Guard's costs in dealing with the crippled Triumph earlier this year at nearly $780,000. The 2010 engine fire that left the Splendor adrift off of Mexico, he said, cost the Coast Guard and Navy about $3.4 million. The Navy work in that case included delivering food from the aircraft carrier USS Ronald Reagan.
In both cases, passengers were left in uncomfortable and even squalid conditions before the ships made it back to port.
Carnival's statement did not say if it would pay those amounts or something else. But the company insisted that it never flatly rejected the idea of reimbursement.
"It should be clearly noted that at no point in time has Carnival stated that it would refuse to reimburse federal agencies if they sought remuneration," the company statement said.
Last week, in response to written questions from Rockefeller about repaying the costs, Carnival released letters responding to the senator stating that its policy in such situations is to "honor maritime tradition" requiring assistance to those in need at sea from all maritime interests. Carnival also said in those letters that it frequently participates in rescues at Coast Guard request and strongly defended its safety record.
Rockefeller had labeled that initial response as "shameful" and indicated then that he might hold hearings or propose legislation.
He didn't immediately return messages from The Associated Press seeking comment on Carnival's decision.
The 900-foot Triumph was disabled during a February cruise by an engine room fire in the Gulf of Mexico, leaving thousands of passengers to endure cold food, unsanitary conditions and power outages while the ship was towed to Mobile, Ala. It is still undergoing repairs there.
The 952-foot Splendor was also hobbled by an engine fire in January 2010, leaving its thousands of passengers to endure similar difficult conditions for three days in the Pacific Ocean while it was towed to San Diego. The Splendor is now back in service and cruises out of New York, according to Carnival's web site.
In both cases, Carnival gave passengers refunds, free cruise vouchers and other forms of reimbursement.
Carnival is also dealing with last year's grounding and capsizing of the Costa Concordia off the coast of Italy, which killed 32 people and spawned both criminal investigations and lawsuits. Costa is one of Carnival's six cruise brands.

Thursday, April 4, 2013

Carnival Tells Rockefeller It Won't Pay U.S. For Rescues



New letters from Carnival Corporation to Senator Jay Rockefeller indicate that the cruise line has no intent to reimburse the U.S. Coast Guard and Navy for assistance in the recent Carnival Triumph accident, the 2010 Carnival Splendor incidents, or any future problem where they require help from the U.S. government to aid a distressed vessel.
The senator from West Virginia penned a letter March 14 to Carnival CEO Micky Arison alleging that the U.S. Coast Guard responded to 90 “serious events” involving Carnival ships over five years, and that the Coast Guard and Navy had shelled out $4.2 million to cover the CarnivalTriumph and Carnival Splendor incidents. The senator asked whether Carnival, since it pays “little or nothing in federal taxes,” will reimburse the Coast Guard and Navy.
Without giving a specific “yes” or “no” answer to the question, James Hunn, Carnival’s senior vice president, corporate maritime policy, wrote: “Carnival’s policy is to honor maritime tradition that holds that the duty to render assistance at sea to those in need is a universal obligation of the entire maritime community.”
For example, the Carnival Breeze diverted from its scheduled course on March 25 and helped the Coast Guard respond to two individuals requiring medical help in a small boat off the Florida coast, Hunn wrote.
Of the 90 incidents that Rockefeller cited in his letter to Arison, Hunn replied that only seven — including those involving the CarnivalSplendor, Costa Concordia, Carnival Triumph and four others — amounted to “serious maritime incidents,” as defined by the Code of Federal Regulations.
Hunn dodged the issue of how much Carnival pays in federal taxes, but replied that cruise industry ships that call at U.S. ports “pay hundreds of millions of dollars in annual fees and taxes to federal, state and local government agencies in the form of port head taxes, dock fees, wharfage and other fees.”
Carnival Corp. is the largest cruise company in the world.
In his letter, Hunn notes Carnival’s safety record, outlining remedial steps Carnival and the cruise industry took in the wake of the CarnivalSplendor, Costa Concordia, and Carnival Triumph incidents.
Arison wrote his own, shorter letter to Rockefeller in which the cruise and Miami Heat owner stood his ground.
Arison wrote to Rockefeller that his letter “seems to cover much of the same ground we discussed” at a meeting a year earlier. Arison indicated he thought the Senator had been satisfied with Carnival’s responses at that earlier meeting, although he characterized the meeting in the senator’s offices as involving a “frank discussion.”
“I assure you, as I did during our discussions, that we remain committed to the safety and comfort of our guests and we are proud of our ability to provide millions of people with safe, fun and memorable vacation experiences,” Arison wrote in a letter dated March 29.
Senator Rockefeller, the chairman of the Senate Committee on Commerce, Science and Transportation, wasn't pleased with Carnival's responses to his letter.
"Carnival's response to my detailed inquiry is shameful," Rockefeller told Skift. "It is indisputable that Carnival passengers deserve better emergency response measures than they experienced on the Triumph. I am considering all options to hold the industry to higher passenger safety standards.”
Read the letters in full here.