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Costa disaster could cost Carnival $95 million

The Costa Concordia tragedy is expected to cost parent company Carnival Corporation at least $95 million.

The figure emerged this morning as the global cruise company admiited it expects other additional costs to the business “that are not possible to determine at this time”.

The ship, which cost $565 million when built in 2006, is expected to be out of service for the remainder of the financial year ending in November if not longer, Carnival said.

“A damage assessment review of the vessel is currently being undertaken to determine how long it will be out of service,” a statement said.

“The company has insurance coverage for damage to the vessel with a deductible of approximately $30 million as well as insurance for third party personal injury liability subject to an additional deductible of approximately $10 million for this incident. The company self-insures for loss of use of the vessel.”

Chairman Micky Arison said: “At this time, our priority is the safety of our passengers and crew.

“We are deeply saddened by this tragic event and our hearts go out to everyone affected by the grounding of the Costa Concordia and especially to the families and loved ones of those who lost their lives. They will remain in our thoughts and prayers.”

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