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Costa Cruises CEO blames 'human error'

Monday, January 16, 2012 - 01:58

Jan.16 - Carnival Corp, the owner of the cruise ship that capsized off Italy's west coast, estimates the impact to 2012 earnings for loss of use alone to be around $90 million. The group said it also anticipated further costs to the business. It's shares were down 17 percent in early morning trade. Joanne Nicholson reports

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Three days after the Costa Concordia capsized off the coast of Italy, its parent company is counting the cost. Carnival Corporation estimates it will lose around $90 million dollars in 2012 - for the loss of use alone. The ship was insured for 500 million dollars - but its not covered for loss of business and that's likely to hurt. Carnival which also owns P&O and Cunard, expects the Concordia to be out of service for the rest of this year - at least. Costa Cruises's CEO Pier Luigi Foschi said they would provide the captain with all the necessary legal assistance but could not rule out human error as a factor. (SOUNDBITE) (English) CHAIRMAN AND CEO OF COSTA CRUISES PIER LUIGI FOSCHI SAYING: "We believe it has been a human error, the captain did not follow the authorised route which is used by Costa ships very frequently, probably more than 100 times in a year we have this route from south of Tyrrhenian Sea to the north Tyrrhenian Sea. The ship ran aground off the west coast of Italy late on Friday with more than 4,000 people on board. At least six were killed and about 15 others are still missing. (SOUNDBITE) (English) CHAIRMAN AND CEO OF COSTA CRUISES PIER LUIGI FOSCHI SAYING: "This thing is a tragic event that all our safety systems, all our policy and procedures, all our training has never, never considered this to happen." Carnival and its rival Royal Caribbean account for around three quarters of the global cruise market. It's now feared the industry as a whole may feel the impact of the incident - it occurred at the beginning of the the peak holiday booking season. The firm's share price closed down 16 percent on Monday, knocking nearly 700 million pounds off the company's value. Hayley Platt, Reuters

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Costa Cruises CEO blames 'human error'

Monday, January 16, 2012 - 01:58