Sun Princess cancels first sailing following £30m revamp

Sun Princess cancels first sailing following £30m revamp

By Hollie-Rae Merrick

Sun Princess cancels first sailing following £30m revampThe first sailing following Sun Princess’s stint in drydock has been cancelled following a switchboard malfunction.

Sun Princess was due to embark on a 14-night Asia cruise ending in Fremantle, Australia, but Princess Cruises has cancelled the sailing following a malfunction in the ship’s switchboard. About 2,000 passengers were due to sail on the ship.

The cruise line said the issue resulted in limited onboard power, which hindered its ability to run hotel operations.

A statement from the line said: “Regretfully, we’ve made the decision to cancel the cruise scheduled to depart today in order to make the necessary repairs.

“The ship will resume service on September 3.

“We’re providing all passengers a full refund and a 100% future cruise credit. Additionally, we’re covering the costs for all return flights home and incidentals. A special team has been sent to Singapore to assist passengers.”

Sun Princess has been in drydock for two weeks, were it gained a new atrium with an International Cafe, a new sushi and seafood venue, an updated Horizon Court buffet and a refreshed Lotus Spa.

The next Sun Princess sailing is scheduled to depart Fremantle on September 3 for a 12-day Asia cruise ending in Singapore on September 15.

Carnival CEO Steps Down and Carnivals Recovery Period.

Arison steps down as CEO of Carnival Corp.; remains chairman

By Tom Stieghorst
Arnold Donald will take over from Micky Arison as CEO of Carnival Corp.Micky Arison will give up the job as CEO of Carnival Corp., but remain chairman of the cruise company his father founded 40 years ago.

Carnival said Arnold Donald, a board member for the past 12 years, will become CEO effective July 3.

“I have been discussing this with the board for sometime now and feel the timing is right to align our company with corporate governance best practices and turn over the reins after 34 years as CEO,” Arison said. “Arnold is an exceptional professional with extensive experience in organizational leadership who will bring a fresh perspective to the company.”

Arnold has been an senior executive at Monsanto Corp., and founded and led Merisant, a company whose products include tabletop sweetener brands Equal and Canderel.

He also is former president and CEO of the Executive Leadership Council, a professional network and leadership forum for African-American executives of Fortune 500 companies.

Carnival Corp.’s Frank talks recovery period for Carnival brand

By Tom Stieghorst
Howard FrankA full recovery at the Carnival Cruise Lines (CCL) brand will take two to three years, Carnival Corp. Vice Chairman Howard Frank said in a call with Wall Street analysts.

In discussing Q2 results, Frank presented an analysis of yields both including CCL and excluding CCL, the way Carnival had previously done for Costa Cruises after the Costa Concordia accident. In answering a later question, however, Frank said the two were different situations and markets.

He said the two- to three-year full recovery period was based on consultants who looked at two negative events outside the cruise industry as models. “Their view is that although we’re a very different industry, it’s likely we will follow the same pattern.”

The impact of the Carnival Triumph and subsequent incidents tied to CCL ships will reduce Carnival Corp.’s 2013 results by about $388 million, Frank said, including $124 million for canceled sailings, $210 million in lower revenue yields, and about $54 million in vessel enhancements and extra marketing.

Frank said the extra marketing would come in three areas: funds directed at travel agents, including cooperative advertising; social media; and possibly more TV ads. In the fall, Carnival will look at marketing for particular brands, he said.

Frank explicitly thanked travel agents during the call. “Many of our travel agent partners have been very supportive during this challenging period, and for that we are very grateful,” he said.

Six more Grandeur cruises cancelled after fire

Six more Grandeur cruises cancelled after fire

Six more Grandeur cruises cancelled after fireA further six summer cruises have been cancelled by Royal Caribbean International to allow for repairs to fire damaged Grandeur of the Seas.

The blaze burnt out what the line described as an “industrial area” at the aft of the ship which had only just re-entered service after a refit.

The 2,446-passenger capacity vessel is not expected to return to service on seven-night itineraries from Baltimore until July 12.

The vessel was being moved from Freeport in the Bahamas to a berth at Grand Bahama shipyard yesterday for the repairs to be carried out. A cruise due to depart on Friday had already been cancelled.

Parent company Royal Caribbean Cruises said: “The company has taken the vessel out of service and expects that it will take approximately six weeks to complete the repair efforts.”

The line laid on 11 charter flights to fly passengers from the vessel’s aborted cruise back to Baltimore. Others were travelling by ferry to Florida and then being transferred by  train or coach.

People booked on the cancelled cruises are being offered refunds and 25% future cruise discounts.

Royal Caribbean estimates that the direct financial impact will be a reduction of $0.10 per share.

Senior vice president and chef financial officer Jason Liberty said: “The extent of the financial impact was relatively high because the affected sailings were during the premium summer season.”

Royal Caribbean International president and chief executive Adam Goldstein said: “We are gratified that no one was hurt and that the safety and comfort systems performed exactly as designed.

“I extend my appreciation to our crew who performed so well, as well as to our guests who have been co-operative, understanding and highly complimentary of the shipboard team throughout.”