8-KOther Events

CARNIVAL CORP 8-K Report (Dec 2, 2002)

Filed December 2, 2002For Securities:CCL

Summary

Carnival Corporation (CCL) has reported an incident involving its subsidiary, Windstar Cruises. On December 1, 2002, a fire occurred onboard the Windstar vessel, 'Wind Song,' off the coast of French Polynesia. Fortunately, all passengers and crew were disembarked safely with no reported injuries. While the vessel sustained significant damage, believed to be a total loss, it is fully insured. Carnival Corporation's management anticipates no material impact on its fiscal year 2003 earnings due to this event. As a consequence of the 'Wind Song' incident, Windstar Cruises has had to cancel certain sailings and redeploy the 'Wind Star' vessel. The 'msy Wind Star' will be moved to Tahiti to cover 'Wind Song's' scheduled itineraries, leading to the cancellation of the 'Wind Star's' winter season cruises in Costa Rica, Panama Canal, and Belize. Windstar Cruises is offering passengers booked on canceled sailings rebooking options, shipboard credits, or full refunds with future cruise credits, along with protected travel agent commissions.

Key Highlights

  • 1Fire onboard Windstar Cruises' vessel 'Wind Song' on December 1, 2002.
  • 2No injuries reported among 127 passengers and 92 crew members.
  • 3The 'Wind Song' is considered a total loss due to significant damage but is fully insured.
  • 4Management expects no material impact on Carnival Corporation's fiscal 2003 earnings.
  • 5Windstar Cruises' vessel 'Wind Star' will be redeployed to Tahiti to cover canceled 'Wind Song' itineraries.
  • 6Winter season cruises for 'Wind Star' in Costa Rica, Panama Canal, and Belize have been canceled.
  • 7Windstar Cruises is providing rebooking options, refunds, and credits for affected passengers and travel agents.

Frequently Asked Questions

On December 1, 2002, a fire occurred in the engine room of the 'Wind Song' vessel, ten miles off the coast of Tahaa, French Polynesia. Initial observations indicate the damage is significant, likely resulting in a total loss of the ship.

The 'Wind Song' was fully insured. Carnival Corporation's management believes there will be no material impact on the company's fiscal 2003 earnings.

To mitigate the impact, the 'Wind Star' will be redeployed to Tahiti to operate the 'Wind Song's' previously scheduled itineraries. This necessitates the cancellation of the 'Wind Star's' winter season cruises in Costa Rica, Panama Canal, and Belize.

Affected passengers are being offered generous rebooking options on alternative sailings with Windstar Cruises or Holland America Line, a $250 per person shipboard credit, or a full refund plus a 10% future cruise credit certificate if they choose not to rebook. Travel agents will receive protected commissions and an additional rebooking commission.