Royal Caribbean Cruises Ltd. and Rolls-Royce Announce Pod Settlement
January 11 2010 - 10:57AM
PR Newswire (US)
MIAMI, Jan. 11 /PRNewswire-FirstCall/ -- Royal Caribbean Cruises
Ltd. (NYSE: RCL; Oslo) and Rolls-Royce announced today that they
have reached a suitable and amicable resolution to the lawsuit
regarding the Mermaid pod-propulsion system on Celebrity Cruises'
Millennium-class ships. When they were first designed and
implemented, podded propulsion was a significant technological
advance over traditional shaft propulsion, but it experienced a
number of technical issues in the early years of use. However,
working together, Royal Caribbean and Rolls-Royce have been
successful in improving the reliability of the design. Mermaid pods
are installed on four Celebrity ships - Millennium, Summit,
Infinity and Constellation. "We look forward to continuing our
alliance with Rolls-Royce for many years to come," said Daniel J.
Hanrahan, president and chief executive officer, Celebrity Cruises.
"Rolls-Royce has one of the best reputations for reliability, and
guests and travel agents should feel confident in Rolls-Royce's
assurances of the reliability of the Mermaid pods." "We are not
only satisfied to have reached a solution with Celebrity Cruises,
but that we have been able to improve and enhance the Mermaid pod's
reliability," said John Paterson, President-Marine, Rolls-Royce.
"We look forward to the opportunity to continue contributing to
Celebrity's high operating standards now, and in the future." The
settlement will generate a net increase of approximately $65
million in Other Income/(expense) in Royal Caribbean's 2010 first
quarter results. Royal Caribbean Cruises Ltd. is a global cruise
vacation company that operates Royal Caribbean International,
Celebrity Cruises, Pullmantur, Azamara Cruises and CDF Croisieres
de France. The company has a combined total of 39 ships in service
and four under construction. It also offers unique land-tour
vacations in Alaska, Asia, Australia/New Zealand, Canada, Dubai,
Europe and South America. Additional information can be found on
http://www.royalcaribbean.com/, http://www.celebritycruises.com/,
http://www.pullmantur.es/, http://www.azamaracruises.com/,
http://www.cdfcroisieresdefrance.com/ or
http://www.rclinvestor.com/. Rolls-Royce, a world-leading provider
of power systems and services for use on land, at sea and in the
air, has established a strong position in global markets - civil
aerospace, defence aerospace, marine and energy. As a result of
this strategy, Rolls-Royce today has a broad customer base
comprising more than 600 airlines, 4,000 corporate and utility
aircraft and helicopter operators, 160 armed forces, more than
2,000 marine customers, including 70 navies, and energy customers
in nearly 120 countries, with an installed base of 54,000 gas
turbines. Rolls-Royce employs over 38,000 skilled people in
offices, manufacturing and service facilities in 50 countries. The
Group has a strong commitment to apprentice and graduate
recruitment, and to further developing employee skills. In 2008,
Rolls-Royce and its partners invested £885 million on research and
development, two thirds of which had the objective of further
improving the environmental aspects of its products, in particular
the reduction of emissions. Annual underlying revenues were £9.1
billion in 2008, of which 52 per cent came from services revenues.
The firm and announced order book stood at £57.5 billion at 30 June
2009, providing visibility of future levels of activity.
DATASOURCE: Royal Caribbean Cruises Ltd. CONTACT: Media, Cynthia
Martinez, Manager, Corporate Communications, Royal Caribbean
Cruises Ltd., +1-305-982-2458, , or Mia K. Walton, Sr. VP,
Corporate Communications, Rolls-Royce North America,
+1-703-621-2709, Web Site: http://www.royalcaribbean.com/
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