Car­ni­val $500m write-off

Cruise Weekly - - NEWS -

CAR­NI­VAL Cor­po­ra­tion has con­firmed its on­go­ing com­mit­ment to all brands in the Aus­tralian mar­ket, af­ter an­nounc­ing a US$392 mil­lion (A$500 mil­lion) “non-cash im­pair­ment charge” in re­la­tion to its oper­a­tions here.

De­tailed in a quar­terly fi­nan­cial up­date last week, the write-down re­lates to “ships, trade­marks and good­will” as part of a strate­gic re­align­ment of the cruise gi­ant’s Aus­tralian oper­a­tions.

Car­ni­val Aus­tralia spokesper­son Sandy Olsen told CW the fi­nan­cial ad­just­ment re­lated to plans re­vealed last week to re­place the com­pany’s Aus­tralian fleet with more ef­fi­cient ships over time.

“P&O Cruises Aus­tralia cur­rently has a dis­pro­por­tion­ate amount of smaller, less ef­fi­cient ves­sels with higher op­er­at­ing costs,” she said.

The im­pair­ment re­flects the ex­pected cash flows of the com­pany’s ves­sels, Olsen added.

“Cruise de­mand in Aus­tralia re­mains strong and Car­ni­val Cor­po­ra­tion is com­mit­ted to all of our brands in this mar­ket.”

Olsen noted last week’s se­ries of Car­ni­val rev­e­la­tions about the lo­cal mar­ket ( CW Thu) in­clud­ing the ad­di­tion of Golden Princess to the P&O brand, an in­ten­tion by Car­ni­val Cruise Line to up its year­round de­ploy­ment and a plan by Princess Cruises to bring Ruby

Princess to Aus­tralia. Both Princess ves­sels will fea­ture the com­pany’s “Ocean Medal­lion” tech­nol­ogy.

Car­ni­val Cor­po­ra­tion had pre­vi­ously an­nounced the de­ploy­ment of the high-tech sys­tem in Aus­tralia ( CW 29 Jun), promis­ing it would of­fer a more per­son­alised hol­i­day ex­pe­ri­ence.

“These moves show Car­ni­val Cor­po­ra­tion’s com­mit­ment to this mar­ket and are a sign of re­spect for our Aussie guests,” Olsen said.

Olsen said P&O Cruises pres Sture Myrmell and his team would work on what the Ocean Medal­lion plat­form would look like for P&O guests in the com­ing months, with fur­ther de­tails about Golden Princess and its role in the P&O fleet to be an­nounced in the sec­ond half of 2018.

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