Carnival Corp. to buy 100% of Costa

By
|

MIAMI -- Carnival Corp. said it plans to acquire 100% of Costa Crociere, doubling the 50% stake it has held since 1997, when Carnival and the U.K.'s Airtours purchased the Italian line.

Carnival said it signed an agreement to buy out Airtours' 50% interest in Costa for approximately $525 million in cash, subject to European regulatory approvals and that of Airtours' board.

Carnival will retain a 26% interest in Airtours, a stake it acquired in 1996.

Carnival chairman Micky Arison called the newest investment in Costa, which is the largest Europe-based cruise line, "a very important move in the continued development of Carnival's European business."

Noting that the seven-ship Costa line is the "most successful cruise operator in Europe," Arison added that Costa "will serve as Carnival's primary platform for expanding our presence in this increasingly important market."

Arison also said that Carnival "will further explore and optimize marketing and operating synergies with Costa."

Costa, which markets primarily in Italy, France, Germany and the U.K., originates only about 20% of its total passenger counts from North America.

This winter the line will base two of its ships in North America, sailing from Florida's Port Everglades: the newly launched CostaAtlantica and the Costa-Victoria.

In still another planned initiative with Costa, Carnival plans to move more quickly to expand Costa's new-building program, to take advantage of the fast-growing European market, Arison said.

He noted, for example, that Carnival just ordered an 86,000-ton Costa vessel, for delivery in 2003, following the delivery of the 86,000-ton Costa-Atlantica in July.

According to Costa chairman Luigi Foschi, the 2,112-berth Atlantica, which became Costa's largest liner with a capacity of 2,680 passengers, "has been met with overwhelming response from guests, travel agents and journalists.

Costa said that the unnamed second vessel in the new class will be slightly larger than the Atlantica, with 2,154 lower berths.

From Our Partners


From Our Partners

Small Groups, Big Adventures
Small Groups, Big Adventures
Register Now
TTC Tour Brands — How We Lead: What Tour Directors Know About Leadership
TTC Tour Brands — How We Lead: What Tour Directors Know About Leadership
Read More
Discover Houston, A World in a City
Discover Houston, A World in a City
Register Now

JDS Travel News JDS Viewpoints JDS Africa/MI