Counting The Costa of Disaster

The Costa Concordia disaster, when the cruise liner capsized off Italy more than two years ago, will likely end up costing the ship’s owners just over 1.5 billion euros ($2 billion), a company executive told a German newspaper. “So far, our costs are at 1 billion euros. But that does not include 100 million for the ship to be broken up for scrap and the cost of repairing damage to Giglio island,” Michael Thamm, chief executive of Costa Crociere – a unit of Carnival Corp and operator of the ship said. The disaster dealt a blow to the image of Carnival, the world’s largest cruise operator, which in March forecast an annual profit below analysts’ estimates.