Carnival $500m write-off
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.