serious, we're not kidding you go to the jersey shore, go to the mountains, the riviera, your boss should want you to take off. >> here's the article, fascinating stuff, at of stats in here backing it up. we're helping to save your life, don thank you for joining us. good night. friday the 13th of january, italian cruise ship costa concordia has just left the port. the more than 3,000 passengers and crew on board have no idea of the terror that was about to unfold. >> and all of a sudden, bang. the lights went out. and the ship listed. >> the side of the ship is now the bottom of the ship.

>> everybody was panicking. everybody was running for their own lives. >> it showed the kind of chaos the ill preparedness that the company had. >> and i can remember thinking, oh, my gosh, we're going to die, let's just get it over with. >> narrator: today the costa concordia lies on its side on the italian island. one of the largest cruise ships in the world ripped apart by rocks. 32 people died on this ship, on that cold, january night. a cnn investigation has pieced together the multiple failures of that night and their far reaching consequences for the cruise ship lines. the tragic mistakes on board the costa concordia raised the question just how safe is going on a cruise? >> the safety of our passengers

and crew is absolutely essential to our business. >> the bigger they build those boats, the more likely people are not 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 that the costa concordia shows that these big 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 have been on more than 60, they were joined on the costa concordia with their daughters.

for hector and sahim, it was their first trip to europe and their first cruise. their they embarked in barcelona but they weren't impressed with the safety briefing. >> they showed you the life vests, things like that, but we never went through the physical procedure of which deck or how to get to your master station. >> for the nanias family this cruise didn't feel right from the very beginning. >> we didn't have any direction from any of the representatives. >> the florida based carnival corporation is the biggest cruise line in the world. the captain, 51-year-old fr---o

their first night at sea, the ananias family gathered soon@after 9:00. >> there was a vibration. i thought, oh, the ship is probably slowing down. i said look at the water glasses, the water glasses started to tilt. >> the captain himself had been in the restaurant a short time earlier. in the company of young woman. then he took her up to the bridge. his attorney insists he was not distracted. >> translator: her presence had no influence at all and she wasn't on the bridge in the place where the ship is managed, she was very far back. >> but the captain amitted he was distracted by a phone conversation shortly before the crash. he had promised a salute to the

island, a cruise line custom of sailing very close to lands to show off to people on the show. it was a custom the island residents had come to expect. first the officers had ordered the helmsman to turn away from the island. but then, schettino relieved ambrose owe of his duty. >> the concordia was traveling at some 15 knots, too fast, so close to the shore. giorgio moretti, the -- >> sometimes we go one mile to the lands. . >> the concordia was much lowser than that. simonea santin was in the ramba.

>> it was a normal night. the band was playing and at 9:30 p.m., we feel a movement. not a crash. a movement. and all of a sudden, bang, and the lights went out. and people were screaming and the ship listed. and people got up when the lights went off, they panicked and they were falling off over the floor. >> carl and perez were on a lower deck. >> the plates that were on tables with wheels, they started to rolling to the side. and the waiters they just ran toward the place because they were falling against the walls and they were breaking on the floor. >> and i ran and there was a worker over there who stood at the doorway and he just blocked

it like this and he said calm down, calm down, just go back, just go back, i was surprised that he was telling me to go back in the room which was falling apart. >> miles from its charted course, the concordia's port side was ripped open. the captain later inge cysted that the. >> i don't know if it was desect detectived or not. but on the nautical chart, there was rocks about 150 feet from the shower. >> locals sole 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 should be, the possibility should be on the captain.

>> 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. the severity of the situation was kept from passengers. >> translator: everything is all right, please do not panic, go back to your rooms, it's okay, it's just a motor problem an the technicians are trying to fix it. and a lot of people were not believing it, but a good majority of people actually believed them and listened to them and went back to their rooms. >> but within an hour, passengers would be fighting the rising waters, desperate to escape the doomed costa concord concordia.

the second the costa concordia hit the rocks, water rushed into a gash about the

width of a football field. the ship lost power, its pumps 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 water tight compartments rapidly filled with father. according to data obtained by cnn, more than 6,000 tons of water entered the ship in less than 20 minutes. a third office was on the bridge. >> in a few minutes we realized the situation was serious, as three generators were not working, the navigation system was not working and neither was the emergency board. >> captain schettino downplayed

the situation. >> the captain told the cruise director to make calming announces. >> remain calm, as we'll have more news we'll inform you. >> some passengers didn't believe it. >> why would the boat start tilting to the side if it's electrical. >> from the beginning, they're lying. >> as the crisis unfolded, many of the rules for handling emergencies at sea appear to have been ignored. >> no one knew anything, there was no direction and we had not had a muser drill so we didn't know which one was our, you know, station. >> the ship's lifeboats were on deck for, but when the ananias family arrived there were no lifeboats left. the family had to crawl two cabins back to their cabin where they grabbeded three life jackets. hector perez and dean khan were

on board. we actually found three life jackets that were laying around on the deck. we were never given the training. >> a crewmember blocked them from getting on the lifeboat. >> he kept on telling me we need to wait for the instructions of the captain, the captain has not given us the orders therefore i can't open the doors of this boat. >> captain moretti said that the costa concordia followed procedure. >> if you don't sound the emergency signals, they do nothing, they just wait. >> captain schettino made a series of calls, as many as 17. but what he said was a matter of bitter dispute. his lawyers insists he hid nothing. >> translator: captain schettino

immediately promptly informed the company of what had happened and kept it constantly inform e the costa ceo claims otherwise. >> the first information which we have says absolutely the contrary to that, it's saying that information he received from captain schettino didn't sound as serious indeed at the end it was. >> authorities were first notified of the incident, not by the crew, but from cell phone calls from passengers at at least half an hour after the collision. a few minutes later, coast guard headquarters here in rome were alerted. information started flooding into these computers. but the more they learned, the more worried they became. >> but they didn't call, we called them, we called them twice. >> coast guard commander castro says the coast guard was forced to reach out to the rapidly sinking ship. >> so we call the ship and the

ship said it was not an emergency. >> if i'm the captain of the ship and i need help, you need to call the right person. in that case the coast guard in that case is the place to call to get help. >> the concordia continuing north losing speed, before turning south and moving slowly toward the coastline. as seen on the deck was chaotic as the ship began to list heavily. >> screaming yelling people pushing, angry, sliding, falling, crying. >> on the bridge there was still hesitation about sounding the alarm. at 10:48 people, one hour after concordia's crash, schettino finally sounded the general alarm, which officially ordered passengers to emergency stations. that delay is now the focus of

an italian judicial inquiry, besides the captain, as many as eight other crewmembers, and costa managers face possible criminal charges. sounding the emergency alarm as early as possible can be critical for saving lives according to a maritime safety specialist at the university of greenwich in london. >> moving passengers around a ship in an emergency situation is never an easy thing to do so you want to start that process, the assembly process as soon as you suspect that there's a major problem with the vessel. >> it was way too long. way too long and they would have saved so many lives if they would have done it a lot earlier. >> schettino told investigators he delayed the alarm until he could maneuver the ship close to shore. >> he has always said the ship was located there because he made a choice to order the 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, there was people knocking people down and we kept yelling, put the kids on first, get the kids, we were screaming, get the kids on first. >> moments after the costa came to rest, to the lifeboats were launched. but then the concord yes rolled 90 degrees the other way. escaping just became a lot harder. you know what's exciting? graduation. when i look up into my students faces, i see pride. you know, i have done something worthwhile. when i earned my doctorate through university of phoenix,

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when the order to abandon ship was given, hector perez and sahim kahn were at a lifeboat. the crewmember who barred access to the boat told passengers to calm down. >> as soon as he opened the door, everybody ran towards that emergency boat and pushed him out of the way. everybody was panicking, everybody was running for their own 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 them didn't realize that 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 stayed standing on the boat. it was way over 150 people limit. >> the boat carrying khan and perez made it to the sea. but even then, they were not safe. >> i look up, and i see the emergency boat a, it goes sideways, one way. suddenly it went this way again and it fell right on top of our boat. >> if our boat would have turned when we were evacuating and the second boat fell on us, we would have been dead. >> several lifeboats could been lowered and with the ship listing, the problems of

evacuating people multiplied. the anaias family boarded a lifeboat but were forced to return to the ship when the lifeboat wouldn't launch. once back on board. >> bam, the boat flips. >> it takes another 5 degrees moore roll to the star board side. >> one of the crew told investigators that some officers literally pushed passengers into the water. for the anaias family turned around and tried to climb atop the ship with nothing to hold on to. >> the side of the ship is now the bottom of the ship. so 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, the maritime safety bible if you like, issued by the international maritime authority here in london. it specifies that ships should remain stable with two water tight compartments flooded and they should be able to be evacuated within 30 minutes. but the loss of power, the flooding of the pumps and back up generators had turned the concordia into a helpless hulk. as the water continued to rise, the ship tilted yet further, more than 60 degrees. >> and then they remember us all started to pray and saying our good buys and i can 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 had fallen into a lifeboat as the ship suddenly listed.

a claim his lawyer subsequently modified. >> translator: captain schettino exited the ship as all the others who were located on the ship at that time exited 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 put my foot down and said this is not going to happen, i am not going to sit here and watch one other man jump in front of this mother and child to get his way up there, it wasn't going to happen.

>> the ananias family would one of the last to escape the concordia alive. jumping 10 feet into a lifeboat and then even feeling they were on their own. >> they said they would try to get the boat as close as possible. they just told us to jump, that was it. >> months later, georgia ananias and her family believe their experience on the concordia is a wakeup call for the entire industry. >> i really feel for passengers getting on a ship. but you get in a disaster like this and you see what happens an you see how unprepared they are. passengers really need to be wear. >> and on that, at least rare agreement with captain schettino's lawyer. >> i would be astonished if the industry said something true which would perhaps be good to

say about it's own organizational systems about why maybe there could be safety problems. the fact is everyone is comfortable having a scapegoat, especially the industry. >> an industry under scrutiny because of tragic mistakes that raise the troubling question, will you be safe as your cruise heads out to sea? ♪ how are things on the west coast? ♪ ♪ i hear you... ♪ rocky mountain high ♪ rocky, rocky mountain high ♪ ♪ all my exes live in texas ♪ ♪ born on the bayou [ female announcer ] the perfect song for everywhere can be downloaded almost anywhere. ♪ i'm back, back in the new york groove ♪

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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. >> i am going because now there is the other motor boat. >> costa executives like the vice president of marketing insists the company was blameless given captain schettino's actions. >> it's just like an airline pilot flying 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 chaired 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 disaster. current regulations say there must be an assembly drill within 24 hours of embark indication. now those drills are held before a ship leaves port. but that wasn't the case with the costa concordia, hector perez says safety officers went so far as to encourage passengers to ignore the lecture all together. >> she told everybody that we're

all adults here, that we came here to have fun and to go spend your money at the casinos, there's nice restaurants to go to the restaurants and just basically place your red emergency drill cards in front of the table and he will scan them on your way out. >> after the accident, clia, the largest industry lobbying group and it's european counter part announced changes in the way ships would handle emergencies. passengers would be given 12 specific instructions that include 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 actually -- as ships are taking on more passengers and more size, the captain's responsibilities have grown proportionately. other officers need to be given more authority on board. >> we need to learn from this tragic accident.

and we have to move more towards a collective management of the bridge through training. >> but european officials tell cnn they are deeply concerned by a shortage of qualifieded junior officers throughout the industry. there are concerns about the support staff as well. many of the service crewmembers 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. >> the crewmembers are well trained for sure. furthermore, we are checked by inspection from the italian coast guard. >> simonea santini says after the members on the concordia

were well trained. >> we have every day, in the monk and the afternoon for ten days, the boat drill, every day, with a trainer and for the fire for the leaking. for the emergency, for everything that would happen on board. >> but many of the meanipasseng who fought for their lives say the cruise line is as much to blame as the captain. >> not anticipating a disaster, not taking life seriously on board the cruise ship. >> the industry is reviewing cruise training and sailing close to land. >> you sort of salute the island and then you move away. in total security. that has happened five or six times, 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. 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 air line industry to track every move of every plain. the coast guard only monitors -- soon after the accident, costa shows us the system it used to display the location of its ships. at the time of the crash, costa's tracking system was unable to provide minute by minute location data for the ship. things sen costa has upgraded

their tracking technology, but questions still remain. >> i suppose the families of the victims would say why on earth wasn't this introduced 20 years ago, gps tracking has been around for a long time. >> i think it's a legitimate question for the family of the victim and again, it's unfortunate that we have to learn from tragedy, but at least morally, we have to take this and do whatever possible to today based on today's 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 does not affect their stability unless

their -- >> the center of the gravity is in the right place. >> but once water enters a ship -- >> if you try and hold a frying pan with water in it, it becomes very unstable very quickly. it's a free surface effect. it's the same with a ship. >> but the large et cetera a ship is, the more difficult it is to evacuate. >> you may have more muster stations. >> and with bigger ships and more passengers, traditional lifeboats may not be adequate. >> if a ship takes on an angle of greater than 20 degrees, it becomes virtually impossible to launch lifeboats using the traditional 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 l 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? the capital one cash rewards card gives you a 50% annual bonus. and who doesn't want 50% more cash? ugh, the baby.

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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 passengers tickets severely limits compensation offered by costa. >> there's a huge page of terms and conditions, actually two pages, it's like the newspaper. >> i lost everything on that boat, i lost lap tops, i lost cameras, i lost memories. they offered me 11,000 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 14,0$14,0

is the minimum compensation under international law when a ship is abandoned. >> they were condescending, they were rude. >> the ananias family got a call several weeks after the disaster. >> we got a call at 5:00 in the morning, they said we could safe 30% on our next cruise. three, five, six phone calls a day wanting to talk about settling. >> the ananias family were also offered 11,000 euros. >> costa cruise lines has a very, very tight contract. they have limitations even for the death of person.

>> that cost is $70,000 for the death of a passenger. but experts say costa can pay more than $71,000 in this instance. john walker, a cruz ship lawyer, says every single cruise ship passenger needs to review the terms and conditions listed on the ticket. >> there are a number of prizes, if not down right shocks that's in the legal mumbo jumbo. >> the cruise lines have had their defense lawyers draft every single protection of the cruise line to limit the ability of injured passengers to per sue their remedies. >> such contracts make it very difficult to bring a lawsuit in an american urt 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 crewmembers. but costa's ceo says lawsuits

from crewmembers is a tiny minority. >> most of them, 95%, has already indicated they wish to come back to work for costa. >> costa estimates one-third of passengers are taking legal action. >> we believe we are fair. we believe that we did whatever was possible and impossible. to assist the family of the the deceased, to provide psychological assistance. >> the survivors of t ssurvivor >> senator rockefeller was highly critical of the costa when he clashed with the cruise line's international association. >> carnal actually paid no u.s. taxes at all in 2011. do you have a comment on that? do you think that's rht? >> again, i can only say that -- >> you're here representing your industry. you think that's right -- if i'm right, do you think that it's

right that that happened? >> i think what is appropriate is that the cruise industry pays it's taxes based on the current laws. >> i think the cruise ships are getting away with a lot and they're not paying taxes and their ships are registered in other country where is they can, you know, get cheaper labor than they pay no taxes in this country or virtually no taxes in this country. >> carnival is incorporated in panama, royal caribbean in liberia 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 cruz line's international soaks is no matter where a boat is registered all lines have to

follow the international rules of the sea. but he concedes there are tax advantages to registering outside the united states. >> are there some fees and taxation considerations that go into that? certainly. we pay a wide array of fees and duties and we pay all of the taxes that we're 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 companies. the costa cruise line flies an italian flag. senator rockefeller says the industry is piloting it's boats right through legal loopholes. >> they don't reimburse coast guard, they don't pay taxes which would help with these 20 federal agencies which are watchi watching them. they always say safety is their

emphasis, i never quite believe that, i think the bottom line is their emphasis. >> the questions after the disaster is the cruise line taking safety seriously? >> did it take the deaths of 32 people on board to prompt you to take action? [ male announcer ] this is anna, her long day teaching the perfect swing begins with back pain and a choice. take advil, and maybe have to take up to four in a day. or take aleve, which can relieve pain all day with just two pills. good eye.

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the cruise industry has expanded fast world wise seeking out new markets in asia and europe. u.s. industry says it's created more than 300,000 jobs and claims there were just 28 fatalities relateded 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 couldn't get any worse for costa -- >> a mere six weeks after the concordia crash, a fire disabled the engine of a costa allegra, leaving the ship on the indian ocean without power for three

days. >> it was extremely black smoke so we knew something was going to happen. >> the most horrifying experience i have ever had. >> and industry insiders say many incidents at sea don't even get reported. from it's headquarters on the banks of the -- major seaing -- since the concordia disaster, the imo has issued some new proposals, including additional life jackets in public areas better communications of emergency instructions and muster drills before the ship embarks. but they are still just recommendations. 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 investigation report.

we are expecting to receive the casualty investigation probably over the summer. and when it is necessary, i'm sure the maritime safety committee will take probust action. >> so basically this could become mantory after november once you have the report? >> i can't imagine that happening. >> some of the concordia's passengers say there needs to be a much faster approach. >> they lobby hard, they're paying bucks, they're buying people off. >> the cruise line's international association based in america spent almost $10 million on lobbying between 2007 and 2011. that does not include campaign contributions made by industry owners and operators. >> they're kind of in a world of the their own. >> senator rockefeller says the industry's political clout will make it harder to tighten regulation and close tax

loopholes. >> it will be a fight because, again, of the incredible number of lobbyists they have and the enormous amount of money that they make. >> the industry governing body defends it's methodical approach to changing cruise line standards. >> i suppose families of the victims would they why is the imo only now taking action now after a tragedy? did it take the deaths of 32 people on board 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 insure the safety and rebuild confidence of the safety by the public. >> meanwhile the italian investigators will issue their report later this year. it's conclusions may affect the many lawsuits against costa and its parent florida based carniv carnival. of those on board that night,

simona santini and her husband have gone back to work. >> some of your friends 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. in an interview with italian television television. >> i keep asking the question why. >> while schettino awaits trial on manslaughter charges, the ceo is retiring under the shadow of the concordia disaster. >> it is the most painful thing in my life after the death of my

mother. >> the costa is confident in it's 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 stand point, the reservations that we are receiving, we are very much encouraged. >> they cannot remove everything they have done, everything they have affected. >> like other passengers and crew, the ananias family is suing costa cruises. >> we won't get on another cruise, any of us until something changes. >> it will take more than a year to salvage the wreck of the costa concordia. for now, the giant liner lies silently h