Cruise-line Industry: Carnival Australia Cruise Ship Investigation

The financial, economic, health and political troubles brought in by Covid-19 seems to be never-ending. As soon as the world starts believing that the struggle against the novel epidemic cannot get any worse, the situation further worsens. The plight of the outbreak did not remain confined to the land; it reached to the vast stretches of the seas and oceans as the cruises and ships set on their journey.

The holiday vacations and the enticing cruises that could have thrilled you beyond bounds now send a wave of fear amongst the people in the current scenario.

As if the fate of the Diamond Princess was not enough, Carnival Corp’s another cruise, known as Ruby Princess, joined the bandwagon of the Covid-19 affected vessels.

Investigation Launched

Intense criticism has been lashed on the Carnival corporation and the ship management as many blamed the ship authorities for the irresponsible attitude. On Sunday, 5 April 2020, NSW police commissioner, Mick Fuller launched a criminal investigation against the vessels for violating the biosecurity law of the country.

It is reported that ambulances were called for many patients who reported flu-like symptoms. However, the ship authority called the ambulance stating other problems such as heart disease without hinting on the actual issues. A patient over 70 years of age died due to Covid-19 infection.

The question hovers over the transparency of the cruise regarding the actual Covid-19 infection scenario on the ship. Fuller informed that when the ship authorities were contacted for information regarding the coronavirus infection, they did not choose to highlight the real conditions in the ship.

In response to the investigation, the Carnival Australia spokesperson highlighted the company would cooperate willingly with the investigation and would respond vigorously to the allegations.

The Entire Ship Debacle

Ruby Princess cruise liner docked in Sydney on 19 March 2020 after the 11-day cruise. It disembarked 27,00 passengers; many of them were Covid-19 affected. Several passengers were showing flu-like symptoms when they boarded off the ship showcasing the probability of coronavirus infection.

As the ship sailed from Sydney to New Zealand, the vessel was classified as the low risk. The passengers were allowed to leave freely without any quarantine and other preventive measures after they docked in Sydney. Following which many passengers took different transportation, including train and air travel to reach their destinations.

As highlighted by NSW Health, many people who boarded off the ship were not feeling well. Some were taken to the hospital through the ambulance.

However, as the infection cases from the Ruby ship surfaces, a widespread worry has been propelled highlight cruise as one of the significant sources for Covid-19 infection in Australia. More than 600 cases and 11 deaths have been reported among the passengers, highlighting the graveness of the disease in the ship.

As of 6 April 2020, there has been around 5744 cases, and 36 deaths in Australia, as per the WHO.

Following the infection spread from the cruise, the ship authority has come under the direct scrutiny of the people and the agencies.

Regarding the issue, PM Scott Morrison cited the entire fiasco as the state official’s responsibility. While the government authorities continue to blame each other regarding the docking of the ship, many went ahead to take a dig at the ship authorities for concealing the real information.

Ship Currently Docked at Port Kembla

Following the reporting of the infection soon after the ship docked in Sydney, it has caught all sorts of attention. In the effort to further avoid any more disease spread, the ship has been docked at Port Kembla which lies south of Sydney in Illawarra region of NSW.

The ship remains in the water to treat its crew member, many of whome are showing Covid-19 symptoms.

According to Mick Fuller, around 200 crew members are currently showing the coronavirus symptoms, and they are getting necessary medical treatments. The passengers who earlier disembarked were either quarantined in hospitals or their homes. However, the crew members are not allowed to get off the ship. Only those requiring treatment are taken to the hospitals.

Cruise Industry Left to Fend for itself

The plight and worries surrounding the cruise do not seem to lessen. While Covid-19 has impacted many of the industries and sectors, the cruises are heavily bearing the brunt of the pandemic.

Carnival Corp, the group running the Princess Cruises such as Diamond Princess and Ruby Princess is not likely in the line for the relief packages of worth 2 Trillion USD rolled by the US government, as they are not incorporated in the US.

The cruise industry has been hit by the massive blow as they were excluded from the industry groups availing the relief package.

The covid-19 outbreak has already caused massive havoc in the travel industry amidst the intensifying travel bans and lockdowns.

The wound inflicted on the cruise industry, and particularly on the Carnival corporation has been exceedingly terrible.

The Covid-19 cases on its two cruises, followed by the controversy of the unlawful behaviour has tarnished the company’s reputation heavily. Amidst such circumstances, the absence of any government’s assistance and criminal cases being launched in Australia may create further worries for the cruise authorities.

Measures Taken by Carnival Corp

As the company is confronted with the tough situation, the uncertainty regarding its future performance has taken a considerable surge amidst the growing speculation of the group getting bankrupt.

The stock price of Carnival Corp has dwindled by over 80% from USD 51.9 on 17 January 2020 to USD 10.21 on 6 April 2020.

Amidst the burgeoning crisis when all travel is at a standstill, the cruises are eyed with suspicion. The company has been taking various actions to deal with the current problem.

To enhance its liquidity position under the current circumstances, the company is planning multiple measures. While the USD 3 million is planned through bond investors, the company is also planning to raise another USD 3 Billion through the issue of the common stocks and convertible notes sale.

While the company is trying to take all-around measures to ensure its sustenance, it would be interesting to note the level of confidence the investors place. Although the company has sported strong fundamentals in the past years, the current unpredictable scenario alongside the growing problems for Carnival Corp may drive the investors’ sentiments.