Royal Caribbean and Rolls-Royce reach settlement: Travel Weekly

Royal Caribbean Cruises Ltd. reached an amicable settlement with Rolls-Royce concerning problems with the pod-propulsion system on Celebrity Cruises' Millennium-class ships.

RCCL sued Rolls-Royce and Alstom Power Conversion, maker of the Mermaid propulsion pods, for $300 million after technical issues with the pods on four Celebrity ships (Millennium, Summit, Infinity and Constellation) forced them out of service and into drydock on several occasions.

In a statement today, RCCL said it had reached "a suitable and amicable resolution to the lawsuit," and that RCCL and Rolls-Royce have improved the reliability of the pods' design.

"We look forward to continuing our alliance with Rolls-Royce for many years to come," stated Dan Hanrahan, Celebrity CEO. "Rolls-Royce has one of the best reputations for reliability, and guests and travel agents should feel confident in Rolls-Royce's assurances of the reliability of the Mermaid pods."

RCCL said the settlement would generate a net increase of approximately $65 million in income for the company's 2010 first quarter results.

In 2008, Carnival Corp. also sued Rolls-Royce for damages related to the Mermaid pod system on Cunard Line’s Queen Mary 2.

From Our Partners


From Our Partners

Future Leaders in Travel: Meet Our Supplier Partners
Future Leaders in Travel: Meet Our Supplier Partners
Watch Now
Revenue, Retention and Risk: The Business Case for Integrated Travel Insurance Technology
Revenue, Retention and Risk: The Business Case for Integrated Travel Insurance Technology
Read More
Let's Sell Luxury Together
Let's Sell Luxury Together
Register Now

JDS Travel News JDS Viewpoints JDS Africa/MI