Skip to main content

tv   Cruise to Disaster  CNN  September 22, 2012 5:00pm-6:00pm PDT

5:00 pm
the cleaning service, right. pop! imagine the fun at staff meetings. facilities, we have a popcorn emergency. well, a thing called the popinator happened. though there are some places even facilities can't clean. butt out. jeanne moos, cnn. with hair rather than a kernel of truth in my mouth. >> pop! that was a piece of paper, not popco popcorn. see you at 10:00. friday the 13th of january. italian cruise ship costa concordia has just left the port of civitavecchia. the more than 4,000 passengers and crew on board had no idea of the terror that was about to
5:01 pm
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 the company had. >> and i can 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. 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
5:02 pm
far-reaching consequences for the cruise ship lines. the tragic mistakes on board the costa concordia raise 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 if the costa concordia shows these cruise ships are too big, too complex, and the rules of the sea are simply too old.
5:03 pm
georgia ann anias 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. >> for hector and sahim, it was their first trip to europe and their first cruise. they embarked at barcelona, but they weren't impressed by the safety briefing. >> lift the life jacket over your head. >> they showed you the life vest thing likes that, but we never went through the physical procedure of which deck or how to get to the master station. >> for the ananias family, this cruise didn't feel right from the very beginning. >> we didn't really have any direction from any of the representatives. >> the costa line is part of the biggest cruise company in the world, the florida-based carnival corporation.
5:04 pm
the captain of the concordia, 51-year-old francesco schettino, known for seamanship but also regarded by some colleagues as arrogant. on the first night at sea, 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 water glasses started to tilt. he started to make a hard turn to the starboard. >> captain schettino himself had been in the restaurant a short time earlier, in the company of a it young woman, domnica cemortan. then he took her up to the bridge. his attorney insists schettino was not distracted. >> translator: her presence had no influence at all.
5:05 pm
she wasn't on the bridge in the sense of where the ship is managed. she was very far back. but schettino had been distracted by a phone call a little earlier. the captain had promised a salute to the island, showing off to the people ashore. it was a custom residents had come to expect. concordia safety officer pellegrini later told investigators that first officer ambrose yoe 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 keep the route and increase speed. >> the concordia was traveling at some 15 knots, too fast so close to the shore. the operations manager -- >> sometimes we pass close to
5:06 pm
the land, of course, for me close is 1 mile, 1 1/2 miles. >> the concordia was much closer th that. samona santini, a singer on costa ships for over ten years, was in the rum bar with her musician husband alexander capelli. >> 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. and the screaming. >> everybody screamed. >> and the ship listed. and people got up and they were running, panicked. they were falling all over the floors and so forth. >> kahn and perez were in the roma restaurant 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
5:07 pm
the plates because they were falling against the walls and they were breaking on the floor. >> and i ran. there was a worker over there who stood at the doorway, and he just blocked it like this. he said, no, 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 concordia'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
5:08 pm
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. [ speaking foreign language ] >> everything is all right. please do not panic. everybody go back to your room. it's okay. it's just a motor problem, 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 listened to them and went back to their rooms.
5:09 pm
>> but within an hour, passengers would be fighting the rising waters, desperate to escape the doomed costa concordia. [ kimi ] atti and i had always called oregon home. until i got a job in the big apple. becoming a fulltime indoor cat wasn't easy for atti. but he had purina cat chow indoor. he absolutely loved it. and i knew he was getting everything he needed to stay healthy indoors. and after a couple of weeks, i knew we were finally home! [ female announcer ] purina cat chow indoor. and for a delicious way to help maintain a healthy weight, try new purina cat chow healthy weight. governor of getting it done. you know how to dance...
5:10 pm
with a deadline. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. this is awesome. [ male announcer ] yes, it is, business pro. yes, it is. go national. go like a pro. these are sandra's "homemade" yummy, scrumptious bars. hmm? i just wanted you to eat more fiber. chewy, oatie, gooeyness... and fraudulence. i'm in deep, babe. you certainly are. [ male announcer ] fiber one. i'm in deep, babe. you certainly are. see life in the best light. [music] transitions® lenses automatically filter just the right amount of light. so you see everything the way it's meant to be seen. experience le well lit, ask for transitions adaptive lenses. ♪ [ male announcer ] introducing a stunning work of technology.
5:11 pm
introducing the entirely new lexus es. and the first-ever es hybrid. this is the pursuit of perfection. the second the costa concordia hit the rocks, the water rushed into a gash about
5:12 pm
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 rush 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 less than 20 minutes. third officer sylvia coronica was on the bridge. >> in a few minutes we realized that the situation was serious as three generators were not working. the navigation system was not working, and neither was the emergency ward. >> yes, amid the ship's systematic failures, captain schettino downplayed the situation.
5:13 pm
>> the captain told the cruise director to make calming announcements, that it was an electrical problem. >> please remain calm and we'll keep you informed as we have more news to inform you. thank you for your attention. >> 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 appeared to have been ignored. >> no onknew anything. there was no direction. and, you know, we had not had a muster drill so we didn't know which one was our station. >> the ship's lifeboats were on deck four, but when the ananias 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.
5:14 pm
hector perez and sohaim khan were also on deck four. >> luckily he find two life jackets that were lying around on the life -- like on the deck. when we put it on we didn't know how to strap it, what to do, how to tie it on, nothing, because we were never given the training. >> but 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 the concordia's crew members followed company policy. >> according to the training we give to our crew members, 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 is a matter of bitter dispute. his lawyer insists he hid nothing. >> translator: captain schettino immediately, promptly informed
5:15 pm
the company of what had happened and kept it constantly informed. >> the costa ceo claims otherwise. >> the first information which we have says absolutely contrary to that. it says the information he received from captain schettino didn't sound as serious as 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 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. >> they didn't call. we called them. we called them twice. >> the coast guard commander says the coast guard was forced to reach out to the rapidly sinking ship. >> so we called the ship and the ship say there was just a blackout on board. they don't say it was an
5:16 pm
emergency. >> costa executives acknowledge this was a major mistake. >> if i'm the captain of the ship and i need help, you have to call the right people, the right person, and the call in that case the coast guard was the right place to call and receive immediate help. >> the concordia continued north, losing speed, before turning toward the south and moving slowly toward the coastline. the scene on the deck was chaotic as the ship began to list heavily. >> just screaming, yelling, people pushing, angry, sliding, falling, crying. >> on the bridge, there was still hesitation about sounding the alarm. almost one hour after concordia's crash, schettino finally sounded the general alarm, which officially ordered passengers to emergency
5:17 pm
stations. that delay is now the focus of an italian judicial inquiry. besides the captain, as many as as eight other crew members and costa managers face possible criminal charges. an italian court document says that they should have sounded the alarm earlier. sounding the emergency alarm as early as possible can be critical for saving lives. according to a professor, a maritime safety specialist at the university of greenwich in london. >> 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 process, 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 saved so many lives if they would have done it a lot earlier. >> schettino said he delayed the alarm until he could maneuver the ship close to shore. >> translator: he has always said the ship was located there
5:18 pm
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. it was people knocking people down. and we were yelling, get the kids on first. screaming, 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. [ woman ] ring. ring. progresso.
5:19 pm
your soups are so awesomely delicious my husband and i can't stop eating 'em! what's...that... on your head? can curlers! tomato basil, potato with bacon... we've got a lot of empty cans. [ male announcer ] progresso. you gotta taste this soup. keys, keys, keys, keys, keys. ♪ well, he's not very handsome
5:20 pm
♪ to look at [ sighs ] ♪ oh, he's shaggy ♪ and he eats like a hog [ male announcer ] the volkswagen jetta. available with advanced keyless technology. control everything from your pocket, purse, or wherever. that's the power of german engineering. ♪ that dirty, old egg-suckin' dog ♪
5:21 pm
5:22 pm
when the order to abandon ship was given, hector perez and sahoim khan were at a lifeboat. the crew member who'd 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.
5:23 pm
>> 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 the 150-people limit. >> the boat rrying 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 couldn't be lowered, and with the ship listing, the problems of evacuating people multiplied. the ananias family boarded a lifeboat but were forced to
5:24 pm
return to the ship when the lifeboat wouldn't launch. once back on board -- >> bam. >> people screaming. >> the boat flips. >> it takes another five, eight-degree roll to the starboard side. >> one of the crew told investigators that some officers literally pushed passengers into the water. but 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, the maritime safety bible if you like, issued
5:25 pm
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 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 i remember us all starting to pray and saying our goodbyes. and i can remember thinking, oh, my gosh, if 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 subsequently
5:26 pm
modified. >> translator: so captain schettino exited the ship as all others located on that side 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. >> kids. >> 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 be among the last to escape the concordialive, jumping ten
5:27 pm
feet into a moving lifeboat and even then feeling they were on their own. >> they did nothing. they just said -- they tried 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 wake-up call for the entire industry. >> i really feel for passengers getting on board a ship. yeah, they say it's safe and the best way to go, but you get in a disaster like this and you see what happens and how unprepared they are. passengers really need to beware. >> 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 why maybe there could be safety problems. the fact is, everyone is comfortable having a scapegoat,
5:28 pm
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? [ engine revving ] ♪ [ male announcer ] every car we build must make adrenaline pump and pulses quicken. ♪ to help you not just to stay alive... but feel alive. the new c class is no exception. it's a mercedes-benz through and through. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs.
5:29 pm
can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. now save 50% on banners.
5:30 pm
5:31 pm
5:32 pm
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. [ speaking foreign language ] >> 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. it's the same. you can do it, but nobody is expecting a captain to be so, you know, irresponsible. >> the chances of something
5:33 pm
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. i mean, 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. now those drills are held before a ship leaves port. but that wasn't the case with the costa concordia. hector perez said safety officers went so far as to encourage passengers to ignore the lecture altogether. >> he told everybody that we're
5:34 pm
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 spend -- 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. >> after the accident, clia, the industry's largest 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 on board. >> we need to learn from this
5:35 pm
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 shortages of qualified junior officer 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. >> the crew member are well trained for sure. we have checked by inspection from the italian coast guard. >> this singer said her fellow crew members on the concordia were well trained. >> we have every day in the morning and in the afternoon for
5:36 pm
ten days boat drill every day with a trainer, and -- i don't know. for example, fire or for the leaking or the emergency, for everything that would happen on board. >> 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 on board the cruise ship. >> the cruise industry is reviewing crew training and a practice known as touristic navigation, sailing close to land. >> you sort of salute the island and then you move away in total security. it has happened five or six
5:37 pm
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 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 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 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. since then, costa has upgraded their tracking technology, but questions still remain.
5:38 pm
i suppose the families 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 years ago. >> okay, ten years. >> i think it's a legitimate question for the families of the victims. and, again, it's unfortunate we have to learn from tragedy, but morally, we have to take this and do whatever'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 does not affect their stability unless the structural integrity of the ship is compromised. >> there we are. >> phillip wilson, professor of ship dynamics at the university of southampton.
5:39 pm
>> the center of gravity is in the right place. center of buoyancy is in the right place. center of buoyancy is halfway down the draft of the ship. >> but once water enters a ship -- >> if you try to hold a frying pan filled with water 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 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 may not be adequate. >> if a ship takes on an angle of heel 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
5:40 pm
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? without freshly-m. you could also cut corners by making it without 100% real cheddar cheese. but then...it wouldn't be stouffer's mac & cheese. just one of over 70 satisfying recipes for one from stouffer's. starts with ground beef, unions, and peppers baked in a ketchup glaze with savory gravy and mashed russet potatoes. what makes stouffer's meatloaf best of all? that moment you enjoy it at home. stouffer's. let's fix dinner.
5:41 pm
[ male announcer ] introducing a reason to look twice. the entirely new lexus es and the first-ever es hybrid. this is the pursuit of perfection. progresso. your new light creamy potato with bacon & cheese soup says it's 100 calories a serving. that's right. in what world do potatoes, bacon and cheese add up to 100 calories? your world. my world. ♪ [ whispers ] real bacon... creamy cheese... [ whispers ] 100 calories... say it again... [ whispers ] 100 calories... ma'am, hello? ma'am
5:42 pm
[ male announcer ] progresso. you gotta taste this soup. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again. see life in the best light. [music] transitions® lenses automatically filter just the right amount of light. so you see everything the way it's meant to be seen. experience life well lit, ask for transitions adaptive lenses. monarch of marketing analysis. with the ability to improve roi through seo all by cob.
5:43 pm
and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. i'm going b-i-g. [ male announcer ] good choice business pro. good choice. go national. go like a pro. is as much about getting there... ♪ ...as it is being there. ♪ [ birds chirping ] away is where the days are packed with wonder... ♪ [ wind whistles ] ...and the evenings are filled with familiar comforts. find your away. for a dealer and the rv that's right for you, visit gorving.com.
5:44 pm
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 is a huge page of terms and conditions. actually, two pages. it's like a newspaper. >> i lost everything on that boat. i lost laptops, cameras, i lost memories. they offered me 11,000 euros. and that was supposed to release them froeverything and anything that has to do with this accident. i cannot ask for more than this. >> 11,000 euros, about $14,000,
5:45 pm
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. >> they tried to call us sunday morning -- >> 5:00 in the morning. >> 5:00 in the morning west coast time. >> offered 30% off a cruise, on your next cruise. >> great. >> and then 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. the ananias family 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 that costa cruise lines have a very, very tight contract. they have limitations to what they'll pay even in the death of a person. >> that limit is $71,000 for death and injury, as spelled out in an international convention.
5:46 pm
but many experts believe costa could 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 not outright shocks, contained in the fine legal print, the legal mumbo 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.
5:47 pm
>> 95% of the crew has accepted compensation, but, more importantly for us, most of them, 95%, has already indicated they wish to come back and work for costa. >> costa estimates one-third 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 at all in 2011. do you have a comment on that? >> again, i can only say -- >> do you think that's right? >> again, i can only say -- >> you're here representing your industry. >> i'm here represent -- >> you think that's right? if i'm right, do you think that's right that that happened?
5:48 pm
>> i think what is appropriate is that the cruise industry pays its taxes based on the current laws. >> i think the cruise ships are getting away with a lot, and they're not paying taxes. their ships are registered in other countries where they can, you know, get cheaper labor and they pay no taxes in this country, 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. a member of the cruise line international association says no matter where a boat is
5:49 pm
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, 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 accordingly, a corporate rate of about 30%. senator rockefeller says the industry is piloting their boats right through legal loopholes. >> they don't reimburse coast guard. they don't pay taxes, which would help these 20 federal agencies which are watching over them. they always say safety is their emphasis. i've never quite believed that.
5:50 pm
i think the bottom line is their emphasis. >> finances aside, the question looming after the concordia disaster -- is the cruise line taking safety seriously? >> did it take the deaths of 32 people on board to prompt you to take action? ♪ keys, keys, keys, keys, keys. ♪ well, he's not very handsome ♪ to look at [ sighs ] ♪ oh, he's shaggy ♪ and he eats like a hog [ male announcer ] the volkswagen jetta. available with advanced keyless technology. control everything from your pocket, purse, or wherever. that's the power of german engineering. ♪ that dirty, old egg-suckin' dog ♪
5:51 pm
it's got that sweet honey taste. but no way it's 80 calories, right? no way, right? lady, i just drive the truck. right, there's no way right, right? have a nice day. [ male announcer ] 80 delicious calories. fiber one. i'm an expert on softball. and tea parties. i'll have more awkward conversations than i'm equipped for because i'm raising two girls on my own. i'll worry about the economy more than a few times before they're grown. but it's for them, so i've found a way. who matters most to you says the most about you. massmutual is owned by our policyholders so they matter most to us. massmutual. we'll help you get there.
5:52 pm
5:53 pm
5:54 pm
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 couldn't get any worse for costa -- >> a mere six weeks after the concordia crashed, a fire disabled the engine of the costa allegra, leaving the ship without power on the indian ocean for three days. >> it was extremely black smoke so we knew something was going
5:55 pm
to happen. >> the most horrify experience i've ever had. >> and industry insiders say many incidents at sea don't even get reported. from its headquarters on the banks of the river thames here in london, the international 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
5:56 pm
investigation report. we are expecting to receive casualty investigation probably over this summer. and when it is necessary, i'm sure the maritime safety committee will take robust action. >> so basically this could become mandatory after november once you have the report? >> i can imagine that. >> some of the concordia's last passengers want a much faster and tougher approach. >> there needs to be a total overhauling of how this industry operates. they lobby hard, they're paying bucks, 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 their own. >> senator rockefeller says the industry's political clout will make it harder to tighten regulation and close tax loopholes.
5:57 pm
>> 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 its methodical approach to changing cruise line standards. 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 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 ensure the safety and rebuild confidence in 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 on board that night, samona santini and her husband have gone back to work, still
5:58 pm
haunted by memories of january the 13th. 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. in an interview with italian television, schettino said he's sorry the accident ever happened but he insists others on the bridge also share the blame. >> translator: i think he's completely grief stricken over the loss of human life. his life has been destroyed in every aspect. >> i keep asking the question why. >> while captain schettino awaits trial on manslaughter charges, the costa ceo is retiring under the shadow of the
5:59 pm
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, the fascinosa. after a brief lull in bookings, a new global marketing campaign is under way. >> from a booking standpoint, the reservations we are family can't imagine taking another. >> like perez and many other passengers and crew, the ananias family is suing for damages. after 60 cruises, the family cannot imagine taking another. >> we won't get on another cruise, any of us, until there's changes. >> nothing is too good to give up the chance of losing your life. >> it will take more than a year to salvage the wreck of the costa concordia.

103 Views

info Stream Only

Uploaded by TV Archive on