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Carnival Corp.'s Arison Warns of Capacity Slowdown

July 12, 2008 By: Susan Young

Onboard the new Carnival Splendor on Saturday, Micky Arison, Carnival Corp. chairman, told reporters in a press briefing that the environment for any potential new ship orders remains "very difficult." Arison noted that Carnival Corp. hasn't ordered a ship for any of its North American brands in more than a year. While collectively those brands will take delivery of four to five new ships a year between now and 2010-2011, beyond that Arison sees a potential slowdown in capacity growth if worldwide economic conditions and currency exchange rates remain as they are today. While the Carnival Corp. brands will continue to talk with shipyards and vendors, "we have to get a return better than the cost of capital" when ordering any new ships, Arison said.

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