Carnival Corp: On Track to Slowly Remove Older Ships

Adonia in her Fathom livery during a 2016 turnaround day in Miami
Adona (Fathom) is set to join Azamara Cruise.

Carnival Corporation remains on pace to remove one to two older, less efficient ships from its fleet on an annual basis following two recent transactions.

Carnival announced earlier in the week the P&O Adonia has been sold to Azamara for a March 2018 delivery. The Adonia joins the neoClassica, which will leave the Costa fleet around the same time.

Newer ships are not only generally larger, but burn less fuel and generate higher ticket pricing and onboard revenue.

The 2001-built Adonia is one of the smallest ships in the Carnival fleet, at 684 passengers. The neoClassica is also on the smaller side, with capacity for 1,308 passengers, having been built in 1991.

The sales are part of the company’s broader corporate strategy to remove older, less efficient ships, while moderating capacity growth in line with demand, according to executives.

“We remain on track with our strategically enhancement program as we continue to deliver more efficient vessels, while replacing less efficient ones over time,” said Arnold Donald, president and CEO of Carnival Corporation, on the company’s third quarter earnings call.

Last year followed a similar beat as the 1988-built Pacific Pearl left the P&O Australia fleet for a new home with Cruise & Maritime Voyages. Her capacity was replaced by the much newer 1997-built Dawn Princess, which was transferred to P&O Australia and renamed the Pacific Explorer.

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“As demonstrated by our April sale of Pacific Pearl, as well as our recently announced sale of Costa neoClassica, expected to leave the fleet next April, and our P&O Adonia, expected to leave the fleet next March. We remain on pace with our historical average of removing one to two ships per year,” Donald added.

In 2014, the company moved a number of ships off its books as the Voyager, which was operating for Costa was sold to Bohai Ferry.The Celebration went to Bahamas Paradise after her stint with Iberocruceros. The Grand Holiday, another Ibero ship, was sold to Cruise & Maritime Voyages, and finally, the Ocean Princess was sold to Oceania, a deal in which Carnival even provided financing.

Carnival Corp to Rollout ‘Best’ WiFi with MedallionNet

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Carnival Corporation today announced MedallionNet, what the company is calling “a game-changing connectivity service enabled by SES Networks that will deliver the best WiFi experience in the cruise industry.”

SES Networks will leverage both geostationary earth orbit (GEO) and medium-earth orbit (MEO) constellations, managed services, antenna and shipboard technology to offer high-performance and reliable broadband connectivity at sea, according to a statement.

The unique GEO/MEO combination also includes O3b Networks’ low-latency satellites. The company has global coverage backed up by 65 satellites.

“Staying connected is inextricably linked to our daily life experiences and that now extends to the vacation experience, even when sailing in the middle of the sea,” said John Padgett, chief experience and innovation officer for Carnival Corporation. “MedallionNet will set the new standard for Wi-Fi service at sea and we look forward to rolling it out to our guests. Our top priority is doing everything we can to exceed guest expectations, and by listening closely to our guests, we know Wi-Fi connectivity is important to many of our guests. For guests who want to disconnect, they are free to do so. But for those who want to stay connected, MedallionNet will make it easy for them – and that includes being able to easily send photos, videos and messages letting everyone know they are having a fabulous vacation.”

“MedallionNet is another development that came out of Carnival Corporation’s Global Experience and Innovation Center located in Miami and is the first end-to-end Wi-Fi service development formulated with a focus on exceeding guest expectations through “GuestCentricity” – an initiative to enhance all aspects of the vacation experience by delivering guests what they want, when, where and how they want it,” Carnival said.

“SES Networks is privileged to be associated with Carnival Corporation’s Global Experience and Innovation team and to be powering MedallionNet,” said Steve Collar, CEO of SES Networks. “We share Carnival Corporation’s passionate focus on connecting people, places and cultures around the world with amazing experiences. As the only company to offer a GEO and MEO constellation, unmatched in scale, performance and technological diversity, SES Networks is uniquely positioned to enable the highest performing Wi-Fi connectivity at sea as well as immersive media and gaming content.”

MedallionNet leverages multi-band antennas configured in a shipboard formation to minimize any potential impact to guest connectivity due to seasonal weather or ship positioning. By combining multiple sources of bandwidth to achieve the highest capacity shipboard network ever brought to a cruise ship with an unprecedented volume of shipboard access points, MedallionNet introduces a level of service reliability and signal pervasiveness not previously achieved on ships sailing at sea.

More specifics about MedallionNet and specific cruise brand implementation will be announced later this year, Carnival said.

Carnival Corp. pledges $10 million for Irma relief

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Carnival Corp. and related entities have pledged $10 million toward hurricane relief in the wake of Hurricane Irma, which devastated parts of the Caribbean and Florida, including Miami-Dade County where Carnival has its headquarters.

Carnival Foundation (the philanthropic arm of Carnival Corp.) and the Miami HEAT Charitable Fund are pledging to raise a combined $5 million for relief and recovery efforts. Carnival chairman Micky Arison and his wife Madeleine will match that commitment through their foundation.

Included in the $5 million, the Arisons are making an immediate donation of $2.5 million to Direct Relief, UNICEF and the United Way of Miami-Dade County to support the most timely and urgent relief needs, Carnival said.

“Hurricane Irma’s impact strikes close to home both in our home state of Florida and across the Caribbean, where we and our brands have made many friends and partners over many years,” Carnival Corp. CEO Arnold Donald said. “Our prayers and thoughts go out to all of those who have been impacted.”