Summary
Royal Caribbean Cruises Ltd. (RCL) announced via a Form 6-K filing on July 16, 2003, that its subsidiary, Celebrity Cruises, was forced to cancel an 11-night Mediterranean cruise on the ship "Millennium" scheduled to depart July 22, 2003. The cancellation is due to the need to replace a thrust-bearing unit in the ship's port propulsion system, which is experiencing premature wear and requires the vessel to enter drydock. The company anticipates this cancellation will negatively impact its third-quarter earnings per share by an estimated $0.04 to $0.05. Celebrity Cruises is offering affected guests a full refund for the cancelled cruise, plus a complimentary future cruise of up to 12 nights, with specific conditions. Travel agents will be compensated for their commissions and a rebooking fee. A dedicated Help Desk has been established to manage guest and agent accommodations.
Key Highlights
- 1Celebrity Cruises, a subsidiary of RCL, cancelled an 11-night Mediterranean cruise on the "Millennium" departing July 22, 2003.
- 2The cancellation is necessary to replace a thrust-bearing unit in the ship's port propulsion system due to premature wear.
- 3The "Millennium" will enter drydock for repairs and is expected to resume service on August 2, 2003.
- 4The company estimates the financial impact of this cancellation will reduce third-quarter earnings per share by $0.04 to $0.05.
- 5Affected guests will receive a full refund and a complimentary future cruise offer.
- 6Travel agents will receive full commission on the cancelled sailing and a rebooking fee.
- 7A dedicated Help Desk has been set up to assist guests and travel agents with reaccommodation.