Marine Log

November 17, 2006

More pod problems for Celebrity

Celebrity Cruises, Miami, said it would cancel the December 10 seven-day cruise of the Millennium to replace the port thrust bearing in the ship's propulsion system.

The ship must enter drydock to replace the bearing and it is expected to return to its scheduled sailings on December 17.

Millennium is fitted with two 19.5 MW Mermaid podded propulsion units.

This is Celebrity's third cruise cancellation this year because of pod related problems and the 14th since its first Mermaid-equipped vessel was introduced

Guests booked on the cancelled sailing will receive a full refund and a free Celebrity cruise of equal value from North America of up to seven nights, departing on or before December 31, 2007, excluding holiday and Celebrity Xpedition sailings. Travel agents will receive full commissions for the cancelled sailing, plus a $50 rebooking fee per stateroom when their clients reschedule their cruise.

"I sincerely apologize to our guests for the disruption this cancelled cruise will cause them," said Dan Hanrahan, president of Celebrity Cruises. "We will do everything we can to assist them onboard other sailings. Millennium continues to operate safely, however, this is a matter that can only be addressed through repairs in a drydock."

Celebrity has established a special help desk to assist guests and travel agents with rebooking, air transportation, land tours and other issues. The cancelled cruise is expected to have a negative impact on the earnings of Royal Caribbean Cruises Ltd. of approximately $.02 per share.