Leading cruise operator and vacation company,
) subsidiary Carnival Cruise Lines will introduce a new program
to improve its fleet-wide efficiency and ensure better safety for
its passengers. Carnival Cruise is likely to spend $300 Million
to completely execute the program.
Under the program, Carnival Cruise will be involved in
augmenting the efficiency of its engine rooms as well as its
emergency power supply across its 24 ships. In addition, Carnival
Cruise will also be installing a latest technology in all of its
vessels to detect fire and take proper measures to control it.
Apart from this, Carnival Cruise has also formed a Safety &
Reliability Review Board to monitor its fleet-wide
In the recent times, Carnival met one accident after another,
which might compel the cruise operator to invest heavily in
safely issues. Earlier in Feb 2013, the engine of Carnival
Triumph carrying around 3,000 passengers caught fire in the
Caribbean. Although there were no casualties, Carnival expects
the voyage disruption and repair costs owing to the fire will
hurt its earnings by around 8-10 cents per share during the first
half of 2013.
Once more, in March, Carnival's ship the Carnival Dream was
docked in the Caribbean due to equipment problems, adding to the
company's woes. In mid-Jan 2012, Carnival's ship, Costa Concordia
met with a tragic accident on the west coast of Italy causing
casualties. Although the recent Triumph disaster is much smaller
in scale than the Concordia catastrophe, it might disrupt the
near-term bookings of the company.
Following the Carnival Triumph fire disaster, Carnival has
issued a rigorous review process for all of its 101 ships across
10 brands. Moreover, the company plans to invest nearly $600 to
$700 million to improve its entire cruise operations and enhance
Carnival currently carries a Zacks Rank #5 (Strong Sell). Some
other companies that are performing well include
Carmike Cinemas Inc.
Speedway Motorsports Inc.
The Madison Square Garden Company
) . The Madison Square currently carries a Zacks Rank #2 (Buy)
while both Speedway and Carmike carry a Zacks Rank #1 (Strong
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