Star Princess fire lowers Carnivals earnings

By David Cogswell

Apr 03, 2006

The Star Princess fire will cost Princess Cruises parent company, Carnival Corp., about $32 million, or four to five cents per share.

One person died and 11 people were injured as a result of the fire, which started as the ship sailed between Grand Cayman and Jamaica and burned 100 cabins.

The Star Princess, which was last week was in the Grand Bahama Shipyard in the Bahamas, will be repaired at the Lloyd Werft yard in Bremerhaven, Germany.

Six Star Princess cruises were canceled through May 15.

The cause of the fire, which has not been determined, is being investigated by the U.K.s Marine Accident Investigation Branch. The MAIB will lead the investigation of the fire on the Bermuda-flagged ship at the request of Bermuda authorities.

The U.S. National Transportation Safety Board and members of the FBIs fire investigation team are also participating.

Terry Williams, a spokeswoman for the NTSB, said the investigation will take 12 to 18 months.

Princess said it would give passengers booked on the canceled cruises full refunds for the cruises and any nonrefundable air charges, as well as a 25% credit toward future cruises. Princess also said it would protect travel agent commissions on the canceled cruises.

Princess expects the ship to be back in service on May 15, in time to begin its European season with a departure from Copenhagen.

The earnings hit comes on the heels of Carnivals first-quarter earnings report, released on March 23, which showed a 19% year-over-year decline in earnings.

Bear Stearns had lowered its 2006 earnings estimate on Carnival to $2.88 per share from $3 following the companys first-quarter financial report.

After the Star Princess fire, it again revised its 2006 estimate to $2.83 per share.

To contact reporter David Cogswell, send e-mail to [email protected].

Jamaica assists Star Princess passengers

By Gay Nagle Myers

Jamaicas crisis management plan, used during hurricanes in 2004 and 2005, was reactivated for the Star Princess fire.

Our crisis plan involved quickly galvanizing the support of dozens of agencies on the national and local levels, said David Shields, deputy marketing director of the Jamaica Tourist Board in Kingston.

Shields coordinated many of these efforts throughout the day-long effort.

The agencies involved included the Office of Defense, the Ministry of National Security, the Port Authority of Jamaica, the fire services, the Jamaican Defense Forces, the Ministry of Health, the Ministry of Tourism, the Jamaica Tourist Board, the Jamaica Hotel and Tourism Association and the Tour Product Development Co.

Representatives of these agencies, along with helicopters, ambulances and a medical services team, gathered at the pier to await the ships arrival.

We were not sure if the helicopters would be needed to transport injured passengers, but we had them on standby just in case, Shields said.

Several of the injured were airlifted to Cornwall Regional Hospital in Montego Bay.

Wyckham MacNeil, Jamaicas minister of state, who was at the pier, said that most of the injuries were from smoke inhalation.

There was speculation that the fire began with a cigarette but that has not been confirmed, MacNeil said.

Shields said that Jamaica was running at close to 100% hotel occupancy, but the Jamaica Hotel and Tourism Association, along with the JTB, were able to accommodate all the passengers in hotels. We used properties from Negril to Ocho Rios in addition to Montego Bay.

Meanwhile, Shields and his staff in Kingston contacted embassies and consulates in Canada and the U.S. because many passengers had lost their passports in the fire.

To contact reporter Gay Nagle Myers, send e-mail to [email protected].