Carnival cruises seeks $6bn funding amid coronavirus fallout
World’s largest cruise operator and owner of Diamond Princess admits sector may never recover from pandemic
The cruise giant, whose lines include the UK’s P&O Cruises and Cunard, and the Princess brand whose ships were the first to be quarantined offshore due to coronavirus, will raise $3bn in bonds secured on its ships, a further $1.75bn in convertible bonds and $1.25bn through issuing new shares.
The impact on cruises could potentially outweigh almost all other sectors of the deeply damaged travel and tourism industry, which has been brought to a virtual global halt by Covid-19. The spectacle of passengers on the Diamond Princess, confined to cabin while the ship was docked off Japan, became a global story in February as the virus spread.
Cruise passengers tend to be heavily represented by the over-70s, the demographic most vulnerable to Covid-19, and ships are known to swiftly spread outbreaks of all viruses, such as the comparatively benign vomiting bug norovirus.Although it has paused all cruise holidays, several of Carnival’s ships remain at sea and unable to disembark passengers, including some sailings with coronavirus fatalities still on board.
Carnival’s subsidiary Princess Cruise Lines is still involved in a standoff in Australia, where the Ruby Princess is anchored near Sydney with more than 1,000 passengers and crew onboard. The ship is now believed to have been a major cause of bringing coronavirus to Australia, with one in 10 recorded cases having been cruise passengers.
While Carnival has recorded around $3bn in annual profits on just under $20bn in revenues last year, it expects to post losses this year and its future is now uncertain.In a downbeat statement to the stock market announcing its refinancing plans, Carnival listed the ways in which the spread of Covid-19 was affecting its business. It said the “resulting illness and loss of life… could have a long-term impact on the appeal of our brands, which would diminish demand for vacations on our vessels.”
Future cruises, when restarted, would likely be subject to “heightened governmental regulations and travel bans and restrictions” which would limit customers and ports of call.The cruise operator said it had incurred significant additional costs in repatriating passengers, assisting stranded crew and sanitising ships. It also is being sued by passengers aboard the Grand Princess, who were detained off California for five days earlier this month with coronavirus cases on board.
Carnival added: “We have never previously experienced a complete cessation of our cruising operations, and as a consequence, our ability to be predictive regarding the impact of such a cessation on our brands and future prospects is uncertain.”The crisis has also shed a light on the industry’s employment and accounting practices. US president Donald Trump said a bailout of Carnival would be difficult because the corporation is registered in Panama, rather than in America.
Carnival’s London-listed shares rebounded after falling in early trading and closed up 8% at 981p. Read more: The Guardian »
What happens when you put proffit before your customers health and well being? They will come out of this with a very 'dirty face'. For years they have been repelling questions about hygeine, blaming 'dirty passengers' for spreading food poisoning on their boats. Fuck’em! Go and find money from offshore financing bodies.
😂😂😂😂😂😂😂 Huh! good Why should an International corporation with a large fleet of foreign built and foreign flagged vessels receive our tax $? Provide financial assistance to the small business and the individuals who rely on seasonal tourism $. Not to these large multinational corporations. No thanks we don’t need these polluting monsters
TheresaSchroe14 BOOTSTRAPS, tell them to pull it up by its bootstraps. Should humanity not move on from cruise ships? A hugely polluting block of flats on the sea. Too much harm to justify a luxury break for a lucky few. You can give them 100 billion and it won't save them. Nobody in their right mind is ever going on a cruise again in our life time after watching ship after ship left to die off the coast of civilized nations. Right now people are dieing off the coast of Florida for fuck sake.
They’ve been fined millions of dollars for deliberately polluting the ocean and they register their ships in Panama to avoid paying taxes Let them sink. haha But they haven’t share their profits with the state There’s an iceberg ahead Fuck them. Floating pollution factories But they are not registered in the US. Not sure I understand why we are bailing them out. They dont pay taxes here, a lot of them, in the US. In fact, I saw on an article once they register elsewhere to avoid US laws and regulations for when there's accidents.
No thank you They can fuck right off. its the free market sweaty No. No. No. Only if they pay corporate tax within...if they are all off shore , sorry 😐 tata It will be better for the environment too. An evil evil industry that really doesn’t need saving. Visit a bank. Take out loans. Sink or swim, cruising friends. It'll make the industry stronger ... In the long run. And if that attitude is supposed to be good enough for everyone in the UK, it's sure as shit good enough for you.
£6bn and I have never heard of them. Strewth! Not our problem This industry is registered outside the US. They hardly pay any Taxes. Why are we bailing them out? Lotta old chiks on these floating 🧫’s cruisin’ for a bruising! Oh no. Enough is enough. Free market free market free market free market... F* those guys. They want help when they evade taxes by being flagged in another country CarnivalCruise Go ask your flag country for help.
Seek, and he shall.... with any luck, be less than successful. Show them this. Fuck that noise.. Not to be in consideration Turn them all into Hospital Ships ! Then I guess you shouldn't avoid us taxes by saying your company I'd incorporated in Bermuda, foreign companies dont get US tax dollars!!! Cool never stepping foot on a cruise boat.
No way. Horrible, polluting, belittling industry with no respect for the workers or the people in the places they call at. Nope. Wait, the same cruise ship companies that are registered in foreign countries to avoid US taxes? Now they want our tax money? Surely not. Surely the rich old farts who use this service can pay their own way.
Pretty sure you gave up that option when you started sailing under a Panamanian flag to avoid taxes. Also, I'm trying to think how anyone is diminished if you fold. No. Corporations are people who could care not a whit if a poor or homeless person died. So why should we care if they do? Sink them all, please?
This is their fault!! No way! They can go outta business. Fuck that if cruise lines aren't going to recover, why should they receive that money ? let them fall apart under bankruptcy, and then give $6bn to their employees. or countries could just flush that money down the toilet, and then we can avoid future headaches from a terrible industry
Let them go bankrupt. Let the unseen hand of the market do its thing. Are you looking for a Logo designer, Logodesign, photo-editing,photo-retouching, etc?
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