QM2 Mermaid claim balloons


#1

Don’t book that cruise just yet…

QM2 Mermaid claim balloons
11 Dec 2009 [CENTER][B]Queen Mary 2 in New Zealand[/B]
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CARNIVAL Corp is now seeking “in excess of $130M” from Mermaid pod suppliers Rolls-Royce and Converteam, as propulsion woes continue to haunt the Queen Mary 2. CARNIVAL Corp is now seeking “in excess of $130M” from Mermaid pod suppliers Rolls-Royce and Converteam, as propulsion woes continue to haunt the Queen Mary 2.

In its original December 2008 lawsuit, Carnival sought more than $100M. Rolls-Royce and Converteam tried to have Carnival’s fraud and conspiracy claims dismissed on procedural grounds, but a judge denied their arguments last month.

Carnival filed an amended complaint this month, seeking higher damages. The new complaint reveals that Carnival was so concerned about the Mermaid system during the 148,528gt QM2’s construction that it seriously considered a last-minute switch to ABB Azipods or shaft propulsion.

After assurances from suppliers, Carnival stuck with Mermaid – a decision it has rued ever since.

Carnival disclosed that “numerous problems continue to plague the Mermaid pods on the QM2”. This will mandate drydockings every 2-3 years (versus the usual five-year schedule) for the rest of the QM2’s life, promising ongoing costs and lost voyage revenues.

Alternatively, Carnival could take the sweeping decision to replace the Mermaid system entirely, averting accelerated drydockings. In either case, it demands compensation not just for past losses, but for future financial impact.