don't talk with him all night. >> i'm a competitor. at the end of the day i go home to two great kids and an awesome husband who happens to beat me at words with friends. but it doesn't change who i am. >> a true competitor and truly the pride of america. haup fourth of july, good night. friday the 13th of january. italian cruise ship costa concordia has just left port. 4, -- the more than,000 are passenger and crew onboard had no idea of the terror that was about to unfold. >> and all of a sudden, bang. the lights went out. all of a sudden, bang. the ship listed >> the side of the ship was not

the top of the shift. >> it showed the kind of chaos, the ill preparedness the company had. >> and i could remember thinking oh, my gosh, we're going to die. let's just get it over with. >> today, the costa concordia lies on its side off the italian island of giglio. they've pieced together the multiple failures of that will night and their far-reaching consequences for the cruise ship lines. the tragic mistakes onboard the costa concordia raises the question, just how safe is going on a cruise? >> the safety of our passengers and cruise is absolutely essential to our business. >> the bigger they build the boats the more likely people

aren't going to be able to escape when they have a serious incident. >> 100 years after the titanic, the cruise industry is once again coming to terms with a disaster that no one thought was possible. the "titanic" ushered? in a new era of regulation at sea now many are wondering if the costa concordia shows these cruise ships are too big, too complex and the rules of the sea are simply too old. georgia and her husband dean are cruise veterans. they've been on more than 60. for their cruise on the concordia, the san diego couple were joined by their daughters valerie and cindy >> i've been going on cruises since i was, like, a year old. >> for hector perez and

saheem kahn, it was their first trip to europe and their first cruise. they weren't impressed with the safety briefing. >> they showed you the life vest but we never went through the physical procedure of which deck or how to get to the muster station. >> for the ananias family, the cruise didn't b feel right from the very beginning. >> we didn't have direction from any of the representatives. >> the costa concordia is part of the biggest cruise company in the world, the florida-based carnival corporation. the captain of the concordia is regarded by some colleagues as arrogant. the ananias family gathered

for dinner soon after 9:00 >> there was a vibration. i thought, oh, well. he's probably slowing down. >> then i told valerie, look at the glasses. the glasses started to tilt. he started to make a hard turn to the starboard >> the captain had been up with a young woman. then he took her up to the bridge. his lawyer insists schettino was not distracted. >> she wasn't on the bridge in the sense of where the ship is managed. she was very far back. >> schettino is under house arrest and not allowed to give interviews. the captain had promised a salute to the island. a cruise line custom of sailing very close to land to show off the ship to the people on shore.

it was a custom giglio residents had come to expect. >> the first officer had ordered the helmsman to turn away from the island. but then -- >> schettino relieved ambrosio of his duty and taking on himself directly the navigation command ordered the helmsman to increase speed. >> it was traveling at 15 knots, too fast so close to the shore. >> sometimes we pass close to land, of course. but for me, close is one mile. 1 1/2 miles. >> the concordia was much closer than that. a singer on costa ships for over ten years was in the rum bar. >> it was a normal night.

the band was playing and at 9:40 p.m., we feel a movement. not a crash. a movement. >> and all of a sudden, bang. and the lights went out. >> everybody screamed. >> and the ship listed. and people got up and they were running. they were falling all over the floors and so forth. >> kahn and perez were on a lower deck. >> the plates that were on tables with wheels, they started rolling to the side and the waiters, they just ran towards the plates because they were falling against the walls and they were break on the flooer. >> and i ran. there was a worker over there who stood at the doorway and he just blocked it like this. he said calm down, calm down. just go back, go back. i was surprised he was telling

me to go back in the room, which is falling apart. >> miles from its chartered course, the con cardia's port side was ripped open. schettino later insisted the reef he hit wasn't marked. >> i don't know if it was detected or not, but on the nautical chart it was marked just as water at some 100 to 150 meters from the rocks. and we were about 300 meters from the shore, more or less. we shouldn't have had this contact. >> the last time -- >> locals told cnn the rocks concordia hit are clearly marked on nautical charts. >> every rock here is on the chart? >> every one, every one. that's why i think the only possibility should be only that one. >> such was the force of the collision.

a huge chunk of rock the size of a car ended up embedded in the hull of the concordia. within moments, the engine room director reported the engine control room and the electrical panel were under six feet of water. but the severity of the situation was kept from passengers. >> everything is all right. please do not panic. everybody go to your room. it's just a motor problems and the technicians are trying to fix it. a lot of people were not believing them. but there were a good majority of people who believed them and went back to their rooms. >> but within an hour, passengers would be fighting the rising waters, desperate to escape the doomed costa concordia.

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they claim to be complete. only centrum goes beyond. providing more than just the essential nutrients, so i'm at my best. centrum. always your most complete. >> the costa concordia hit the rock, water rushed into a gash about the width of a football

field. the ship lost power, its pump didn't work, and neither did the computer designed to calculate the ship's stability. this video was taken on the bridge in the minutes after the collision. the crew rushed to maintain control of the ship as five supposedly watertight compartments rapidly filled with water. according to data obtained by cnn, more than 6,000 tons of water entered the ship in 20 minutes. the third officer was on the bridge. >> in a few minutes we realized that the situation was serious as the generators were not work, the navigation system was not working and neither was the emergency ward. >> yes, amid the ship's systematic failures, captain schettino down played the situation.

>> the captain told the cruise director to make calming announcements, that it was an electrical problem. >> please remain calm and we'll give you more news as we have it. thank you for your attention. >> some passengers didn't believe it. >> why would the boat start tipping to the side if it was electrical? from the beginning, they're lying. >> as the crisis unfolded, many of the rules for handling emergencies at sea appeared to have been ignored. >> no one knew anything. there was no direction. he had not had a muster drill so we didn't know which one was our station. >> the ship's lifeboats were onboard but when the family arrived there were no life vests left. the parents had to crawl two floors back to their cabin where they grabbed three life jackets. hector perez and sohaim kahn were on deck four. >> we didn't know how to strap

them, put them on, nothing. >> a crew member blocked them from getting on the lifeboats. >> he kept telling me, we need to wait for instructions from the captain. the captain has not given us the orders therefore i cannot open the door of this boat. >> costa's georgio moretti said they followed procedure. >> if he doesn't sound the emergency signals, nothing. we just wait. >> captain schettino made a series of calls, as many as 17, but what he said is a matter of bitter dispute. his lawyer insists he hid something. nothing >> translator: captain schettino immediately, promptly informed the company of what happened and

kept it constantly informed. >> the first information we have says absolutely contrary to that. it says the information he received from captain schettino didn't sound as serious indeed in the end it was. >> authorities were first notified of the incident not by the crew but cell phones from passengers at least half an hour of the collision. a few minutes later, coast guard headquarters here in rome were alerted. information started flooding into these computer, but the more they learned, the more concerned they became. >> they didn't call. we called them. we called them twice. >> the commander says the coast guard was forced to reach out to the rapidly sinking ship. >> so we called the ship and the ship doesn't say it was an emergency.

>> costa executives say this was a big mistake. >> if you need help, you have to call the right person and the coast guard was the place to call to receive immediate help. >> the concordia continued north, losing speed, before turning south and moving close to the coastline. the scene on the deck was chaotic as the ship begin to list heavily. >> screaming, yelling, people pushing angry, slide, falling, crying. >> on the bridge, there was still hesitation about sounding the alarm. at 10:48 p.m., one hour after concordia's crash, schettino finally sounded the general alarm which officially ordered passengers so emergency stations. that delay is now the focus of an italian judicial inquiry.

besides the captain, as many as as eight other crew members and managers face criminal charges. sounding the emergency alarm as quickly as possible is critical to saving lives. >> moving thousands of passengers around the ship in an emergency situation is never an easy thing to do. and so you want to start the assembly process as soon as you suspect there's a major problem with the vessel. >> it was way too long, way too long. and they would have save sod many lives if they had done it a lot earlier. >> schettino said he delayed the alarm until he could maneuver the ship closer to shore. >> 'always said the ship was located there because he made the choice to order the abam

abandonment when he considered the coast close enough for rescue boats. >> schettino also said he didn't want to create panic, but that's exactly what happened. >> pushing, it was knocking people down. and we were yelling, get the kids on first. >> moments after the ship came to rest, the first lifeboats were launched. it was 11:00 p.m. but then the concordia rolled more than 20 degrees. for the ananias family and others, escaping just became a lot harder. choose control.

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>> when the order to abandon ship was given, hector perez and sahoim kahn were at a lifeboat. the member who barred access to the boat told people to calm down. >> as soon as he opened the door, everybody ran for the boat and pushed him away. everybody was panicking, everybody was running for their lives. >> the ship right now is totally leaning to one side. >> this cell phone video shot by hector perez has never been seen before on television. he shot it as they boarded the

lifeboat. it had seats for 150 people. >> a lot of people didn't realize they were going to let people jump into the boat without an actual seat. those that realized it, they jumped into the boat and they just stood standing in the boat. it was way over the 150 limit. >> the boat made it to the sea, but even then they were not safe. >> i look up and i see the emergency boat a, sideways one way. suddenly it went this way again and went right on top of our boat. >> if we were turning while we were evacuating and the second boat fell on top of us, we would have been dead. >> several lifeboats couldn't be lowered and with the ship listing, the problem of people evacuating had been multiplied.

the ananias family was evacuating but had to return to the ship when the lifeboat wouldn't launch. once they were back onboard -- >> bam, the boat flips. >> it takes another five-degree roll to the star board side. >> one of the crew told investigators that some officers literally pushed passengers into the water. the ananias family turned around and tried to climb across the ship with nothing to hold on to. >> the side of the ship is now the bottom of the ship. you're literally walking on the side of the ship. >> the speed with which the concordia tilted, first one way and then the other has alarmed maritime experts. this is the safety of life at sea rule book issued by the

international maritime authority here in london. it specifies that ships should remain stable with two watertight compartments flooded and they should be able to be evacuated within 30 minutes. but the loss of power, the flooding of pumps and generators turned concordia into a helpless hulk. the ship tilted further, more than 60 degrees. >> and i remember us all starting to pray and saying our goodbyes. i remember thinking oh, my gosh, we're going to die. let's just get it over with. >> while the ananias family prayed, captain schettino was leaving the stricken liner. he said later he'd fallen into a lifeboat as the ship had suddenly listed. a claim his lawyer suddenly

modified. >> translator: so captain schettino exited the ship as all others located on that side at that time existed. because it was impossible to stay there and impossible to climb up. because it was a nearly vertical wall. there was no voluntary abandon ship. captain schettino is not captain coward. >> by now, it was nearly 1:00 in the morning. the ananias family and dozens of other passengers were still trying to climb a metal ladder to reach the outside of the ship but it was still a mad scramble to escape >> men pushing women aside, pushing children aside. >> i said i'm not going to watch another man push another woman and child to get up there. it isn't going to happen. >> the ananias family would be

among the last to evacuate the ship. they jumped into a moving lifeboat and even then they felt they were on their own. >> they just told us to jump. that was it. >> months later, georgia and her family feel their experience is a wake-up call. >> you get in a disaster like this and you see what happens and how enprepared they are, passengers really need to be aware. >> and on that, at least rare agreement with captain schettino's lawyer. >> translator: i would be astonished if the industry said something true, which would perhaps be good to say about its own organizational systems about

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immediately after the concordia disaster, captain schettino became a target for media around the world, especially when a caustic call between the captain and the coast guard was released, showing the coast guard ordering the captain back on ship. >> costa executives like the vice president of marketing insist the company was blameless given captain schettino's actions. >> just like an airline captain who's going to land in paris, flying 100 meters over the eiffel tower. you can do it, but nobody is

expecting a captain to be so, you know, irresponsible. >> the chances of something happening to somebody are so much greater simply because of the compaction. >> but u.s. senator jay rockefeller who had a hearing into the cruise industry weeks after the disaster says the company bears responsibility >> the cruise ship is the captain, right? i mean, he didn't wander in on his own and start turning the wheel or whatever it is, pushing buttons. the company is the captain. the captain is the company. >> costa and some other lines have made changes since the concordia disaster. current regulations say there must be an assembly drill within 24 hours of embarkation. know those are held before a ship leaves port. that wasn't the case with the costa concordia. hector said the crew encouraged

passengers to ignore it all together. >> he said we were all adults here, to have fun, spend money at the casino, there were nice restaurants, to go to the restaurants and basically just place your red emergency drill cards in front of the table and he will scan them on your way out. >> just last week clia, the largest industry lobbying group and its european counterpart announced changes in the way ships would handle emergencies. passengers will be given 12 specific instructions including how to don a life jacket, where to gather in an emergency, and what to expect if an evacuation is ordered. some cruise lines are also beginning to look at the way the bridge is managed. as cruise ships have taken on more passengers and more size, the captain's responsibilities have grown proportionally. the costa's ceo says other officers need to be given more authority onboard.

>> we need to learn from this tragic accident and we have to move more towards a collective management of the bridge through training. >> reporter: but european officials tell cnn they are deeply concerned by a shortage of qualified junior officers throughout the industry. there are concerns about the support staff as well. many of the service crew members are contract workers. they have little job security, often earn less than $1,000 a month and many don't speak english. costa insists on its ships, there is rigorous training for every member of the crew. and they generally have a higher pay scale. >> we are checked by inspection from the italian coast guard. >> this singer said her fellow

crew members were well trained. >> we have every day in the morning and in the afternoon for ten days the drill every day. every day with a trainer for, i don't know, for for example, fire, or for the leaking or the emergency, for everything that would happen onboard. >> but many of the passengers who fought for their lives say the company was as much to blame as its captain. >> hiring people that aren't trained, hiring people that don't know what they're doing, not anticipating disaster, not taking life seriously onboard the cruise ship. >> the cruise industry is reviewing crew train and a practice known as touristic navigation, saling close to land. >> you sort of salute the island and move away. it has happened five or six times but it's totally regulated. you don't come as close as the

costa concordia went. >> but should it continue? just six months earlier, the concordia with a different captain followed an almost identical course. costa insists it was never closer than 550 yards to the shore. but using tracking data, the shipping publication lloyd's list found the earlier voyage shown here in blue was just 250 yards from colliding with the same rocks. international regulation requires the airline industry to track every movement of the each plane, but there are no similar worldwide guidelines for the cruise industry. italy's coast guard only monitors ships in areas with the highest shipping traffic soon after the accident, costa showed us the system used to display its ships. at the time of the crash, costa's tracking system was unable to provide minute-by-minute location data for the ship.

since then, costa has upgraded their tracking technology, but questions still remain. i suppose the family of the victims would say why on earth wasn't this introduced 20 years ago? the gps technology has been around for a long time. >> i'm not sure about 20 year fps. >> okay, 10 years. >> i think that's a legitimate question for the family of the victim. it's unfortunate we have to learn from tragedy, but morally, we have to learn from this and do what's possible today based on technology and knowledge and go forward. >> the wreck has also highlighted the size of today's cruise ships. the costa concordia was almost three times the weight of the titanic and much larger. most experts say the size of modern cruise ships don't affect the structural stability unless it's compromised.

>> the center of gravity is in the right place. center of buoyancy is in the right place. halfway down the draft of the ship. >> was abundance water enters a ship. >> if you try to hold a frying pan filled with watt and move it, it becomes unstable. it's the same with a ship. >> but the larger a ship is, the more difficult it is to evacuate. >> so it might mean you might have to have more assembly stations, you might have to locate the assembly stations in different locations. >> and with bigger ships and more passengers, traditional lifeboats might not be adequate. >> if a ship takes on an angle here of greater than 20 degrees, it becomes virtually impossible to launch lifeboats using the traditional launch approach.

>> there are skids on the side, but perhaps a better way of launching those lifeboats that would enable the boats to more easily slide down the side of the vessel. >> but the question remains -- will the cruise ship industry put your safety before their bottom line? >> it's not sometimes just a matter of doing what the law says but doing what you think is appropriate. do you think you're doing your fair share? now get an incredible offer on the powerful c250 sport sedan. but hurry before this opportunity...disappears. the mercedes-benz summer event ends july 31st.

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in the weeks and months after the costa concordia disaster, many passengers reported signs of trauma. >> the first month was hell for me. almost every night i was having nightmares, especially of the deck as i was waiting there a few hours, waiting to get in. sometimes i dream with my family that we're all running for our lives. >> but the fine print of the passenger ticket severely limits compensation offered by costa. >> there's a huge page, actually two pages. it's like a newspaper. >> i lost everything on that boat. i lost laptops, cameras, memories. they offered me 1 1,000 euros. and that was supposed to release them from everything and anything that has to do with

this accident. i cannot ask for more than this. >> 11,000 euros, about $14,000 is the minimum amount after a ship is abandoned. >> they were condescending. >> they called us at 5:00 in the morning. >> offering 30% off the next cruise. and then they started harassing us. they started harassing us, three, four, five, six phone calls a day wanting to talk about settling. >> costa officials deny they offered a discounted cruise as compensation. they were also offered 11,000 euros. >> they were forced to do that. >> it wasn't out of the goodness of their heart let's put it that way.

>> right. and what put the passengers at a disadvantage is they have a very, very tight contract. they have limitations to what they'll pay in the death of a person. >> that's $21,000 for death or injury. though many experts believe costa can pay more than $71,000 in this instance. james walker, a maritime lawyer says any potential cruise ship passenger needs to examine the terms and conditions listed on the ticket. >> there's a number of surprises, if if not outright shocks contained in the fine legal print of the leem mum bow jumbo. the cruise lines have had their defense lawyers draft every conceivable protection of the cruise line to limit the ability of injured passengers to pursue their remedies. >> such contracts make it very difficult to bring a lawsuit in an american court where compensation would likely be much higher, even if the ship is american owned. that hasn't stopped a flood of lawsuits, including some brought by crew members.

but costa's ceo says lawsuits from crew members represent a tiny minority. >> 95% of the crew have accepted compensation, but more importantly for us, most of them, 95% has already indicated they want to come back and work for costa. >> costa estimates 1/3 of passengers are taking legal action. >> we believe we are fair, we believe we did whatever was possible and impossible to assist the family of the people who are deceased, to provide psychological assistance. >> reports of the survivors of costa concordia do not inspire confidence. >> senator rockefeller was highly critical of the industry at a hearing in march when he clashed with the ceo of the cruise line's international association. >> carnival actually paid no u.s. corporate taxes a the all in 2011. do you have a comment on that? >> again, i can only say --

>> you're here representing your industry. do you think that's right -- if i'm right, do you think that that's right if that happened? >> i think it's appropriate that they pay their taxes based on the current laws. >> i think the cruise ships are getting away with a lot and they're not paying tacks. taxes and their ships are registered in other countries where they can, you know, get cheaper labor. they play virtually no taxes in this country. >> carnival is incorporated in panama, and princess cruises in bermuda, even though their headquarters are in florida, a source of contention for rockefeller. from 2004 to 2011, carnival paid just 1.1% in federal, state and foreign taxes, yet recorded $11.3 billion in profits. the member of the cruise line

association says all lines have to follow the international rule of the sea, but he concedes there's tax advantages of registering outside of the united states. >> are there some fees and taxation considerations that go into that? certainly. we pay a wide array of fees, duties and we pay all of the taxes that we are required to pay. >> of all commercial cruise ships, only one, norwegian's pride of america, is registered in the united states. carnival ships are registered in several countries. the costa cruise line for instance flies an italian flag and pays italian taxes. rockefeller says the industry is piloting their boats through legal loopholes. >> they don't pay taxes which would help these 20 industries watching over them.

they always say safety is their emphasis. i never quite believed that. i think the bottom line is their emphasis. >> finances aside, the question looming after the concordia disaster, is the crude line taking safety seriously. >> did it take the deaths of 33 people onboard to prompt you to take action? i was a kid. i didn't know how i was gonna to do it, but i knew i was gonna get that opportunity one day, and that's what happened with university of phoenix. nothing can stop me now. i feel like the sky's the limit with what i can do and what i can accomplish. my name is naphtali bryant and i am a phoenix. visit phoenix.edu to find the program that's right for you. enroll now.

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the cruise industry has expanded fast worldwide seeking out new markets in asia and europe. the u.s. industry says it's created more than 300,000 jobs and claims there were just 28 fatalities related to operational incidents in the last decade, a figure some critics debate. but whatever the true number of casualties, the industry continues to have safety problems. just when you think things can't get any worse for costa, a mere six weeks after the concordia crash, a fire disabled the engine of the costa allegra, leaving passengers without power for three days.

>> it was extremely black smoke so we knew something was going to happen. >> the most horrify experience i've ever had. >> and most incidents at sea don't even get reported. from its headquarters hooer in london, the maritime organization a u.n. body, has the job of overseeing the international law of the sea. since the concordia disaster, the imo has issued some new proposals, including additional life jackets in public areas, better communication of emergency instructions, and muster drills before the ship departs. but at the moment, they are simply recommendations. a point i put to the imo secretary general. these interim measures are voluntary. they're not mandatory. shouldn't you be saying to the

shipping industry, you have to do this? >> we take our action based on the result of the casualty report. we are expecting to receive casualty investigation probably over this summer. while it is necessary, i'm sure the committee will take robust action. >> so basically this could become mandatory after november when you have the report? >> i can't imagine that. >> but many want a tougher approach. >> there needs to be an overhauling of how this industry operates. they lobby hard, they're paying bucks, buying people off. >> the clia spends $10 million on lobbying between 2007 and 2011. that does not includes campaign contributions from industry owners and operators. >> they're kind of in a world of their own. >> senator rockefeller said

their political clout will make it harder to tighten regulation and close tax loopholes. >> it will be a fight because of incredible number of lobbyists they have and the enormous amount of money they make. >> i suppose families of the victims would say why is the imo only now taking action after a tragedy. did it take the deaths of 32 people onboard to prompt you to take action? >> we cannot avoid sometimes some casualties. this is actually the fact of life. the important thing is we have to respond quickly. and ensure the safety and rebuild confidence of the safety by the public. >> meanwhile, the italian investigators will issue their report later this year. its conclusions may affect the many lawsuits against costa and its parent florida-based carnival.

of those onboard that night, samona santini and her husband have gone back to work, still haunted by memories of january 13. >> some of your friends of the crew did not make it off? >> yeah. the drummer of the band and the violinist. >> the violinist drowned after he tried to help children put on their life jackets. and as for captain schettino, his trial on manslaughter charges have yet to begin. >> translator: i think he's completely grief stricken over the loss of human life. his life has been destroyed in every aspect. >> keep asking the question why. >> the costaceo is retiring after the shadow of the costa concordia disaster. >> it's the most painful thing to happen to my life after the death of my mother. >> but costa is confident in its

future. four months after the disaster, it's launched a new liner. >> after a brief lull in bookings, a new global marketing campaign is under way. >> from a booking standpoint, the reservations we are receiving, we are very much encouraged. >> they cannot remove everything they have done, everything they have affected. >> like perez and many other passengers and crew, the ananias family is suing for negligence. after some 60 cruises, the family can't imagine taking another. >> we won't get on another cruise, any of us, until there's changes. >> nothing is good enough to give up the chance of losing your life. >> it will take more than a year to salvage the wreck of the costa concordia. for now, the giant liner lies silently here, a shocking testament to the consequences of