CELEBRITY CRUISES
FILES SUIT AGAINST
ROLLS ROYCE, ALSTOM
POWER CONVERSION
MIAMI — August 7, 2003 —
After repeated attempts to resolve issues satisfactorily, Celebrity Cruises filed a $300
million lawsuit today against Rolls Royce and Alstom Power Conversion, co-producers of a
ship pod-propulsion system, to recover lost revenue and costs associated with failing
pods. The lawsuit was filed in state court in Miami-Dade County, Florida.
The
lawsuit charges that the Rolls Royce and Alstom Power Conversion pods, brand-named
Mermaid, have failed repeatedly, resulting in cancelled cruises and thousands of
disappointed guests. These recurring failures cost the company hundreds of million of
dollars, for which the lawsuit seeks restitution.
The
lawsuit further claims that Rolls Royce and Alstom Power Conversion misrepresented their
product, which was “defectively designed” and “deceptively and fraudulently
marketed.”
Mermaid
pods are installed on four Celebrity ships — Millennium, Summit, Infinity and
Constellation. All four had one or more mechanical or electrical problems with the
pods, which caused the ships to be taken out of water — and out of service — to
repair.
“Unfortunately,
the Mermaid pods have not lived up to the manufacturers’ promise or to
Celebrity’s high operating standards,” said Jack Williams, president and chief
operating officer of Celebrity. “This has created intolerable consequences for our
guests, and imposed unacceptable conditions on our company.”
There
are — and have been — no safety issues with any of these ships. All have been
given clearance to sail by the U.S. Coast Guard and the ships’ classification
society. Even with the problems, safety was never compromised.
“Guests
and travel agents should continue to have full confidence in the Celebrity brand,”
Williams said. “We have modified the more troublesome components, and we are working
on a permanent solution.
“In
the meantime, guests should know that any cruise we have to cancel, as a result of
any issue with these pods, we will back with a full refund and a free cruise.”
Propulsion
pods consist of an electrical motor and a propeller. They are typically favored by cruise
operators because the pod’s design — a 360 degree rotating unit — provides
a number of advantages, including greater maneuverability.
Celebrity
Cruises is the industry’s highest-rated premium cruise line. Its nine ships comprise
the youngest fleet of any major line. For more information, visit Celebrity’s web
site at www.celebrity.com.
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SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
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