Cruise Line Fat Cat Billionaires
A fascinating article appeared in USA Today's Cruise Blog by Gene Sloan - "Titans of the Cruise Industry See Their Net Worth Soar."
This is an amazing article reporting on the Forbes 400 richest people in the U.S., which includes Carnival fat cat billionaires Mickey Arison, Royal Caribbean's Pritzker family, and entrepreneur Leon Black whose private equity firm controls Norwegian Cruise Lines, Oceania Cruises and Regent Seven Seas Cruises.
The article which is re-printed in it entirely below is an insight into how to create a fortune by convincing tax paying Americans to turn over their hard earned money to foreign incorporated, non-tax paying companies operating foreign flagged cruise ships.
The phenomenon is of particular interest to me because I represent the backbone of the cruise industry - crewmembers like Ismael Richards (photograph above) who worked for 14 years - over 350 hours a month never making more than $545 a month until his back failed and he was abandoned by the cruise line.
Mr. Richards found himself with an one-way ticket back to St. Vincent, disabled, with no 401(k) plan, no pension, no job prospects, no social security and no social safety network.
So here is the article about cruise line billionaires, for your prurient interests:
"The past year has been a good one to be a titan of the cruise industry. Just ask Micky Arison .jpg)
(photograph right).
A year ago, as cruise stocks were plunging along with the economy, wealth watcher Forbes was pegging the Carnival mogul's net worth at just $2.9 billion -- a multi-year low. But with the industry on the rebound, Arison's fortunes once again are on the rise.
Forbes' annual ranking of the world's billionaires for 2010, out late Wednesday, puts Arison's net worth at $4.4 billion, placing him at No. 189 on the magazine's closely-watched list. A year ago he ranked at No. 221.
Arison still has a long way to go to reach his former glory. As recently as four years ago, when the cruise business was riding high, Arison's hefty stake in Carnival had landed him among the 100 richest people in the world. In 2006, Forbes estimated Arison's net worth at more than $6 billion, putting him at No. 94 on the list. He ranked at No. 129 in 2007 and No. 189 in 2008.
Micky Arison isn't the only Arison whose fortunes are rebounding. Another Carnival heir, Shari Arison, is now worth $3.4 billion, up from $2.7 billion a year ago, according to Forbes. Alas, Shari Arison's rising wealth isn't enough to keep her in place in the rankings, where she has dropped to No. 277 from No. 234 in 2009. Four years ago she was within striking distance of the Top 100 at 109.
Another would-be cruise mogul, Leon Black (photograph below, left), also is doing better. The self-made financier who controls Apollo Management -- the private equity firm that in turn controls Oceania Cruises, Regent Seven seas Cruises and Norwegian Cruise Line -- almost didn't make 
the Forbes list last year as his net worth plunged to just $1.1 billion. But this year he's on the rebound with a net worth that Forbes pegs at $2.5 billion. He now ranks No. 277 on the list, up from No. 647 a year ago.
Also faring better are the many members of the Pritzker family of Chicago who collectively own a sizable chunk of Royal Caribbean. Forbes says Thomas Pritzker is now worth $1.6 billion, up from $1.3 billion a year ago (though his ranking on the list has fallen to No. 616 from No. 559 in 2009). Jay Robert Pritzker, Anthony Pritzker and Penny Pritzker, with $1.4 billion a piece, are next at No. 721, followed by a half dozen more Pritzkers who tie at No. 773."
Credits:
Ishmael Richards Jim Walker's Flickr photostream
Mickey Arison Business Week
Leon Black Adam Berry / Bloomberg / Lardov
.jpg)
where they boarded the cruise ship, where the cruise ship is going, or where the accident occurs. 
Do you handle only maritime cases? Yes. We handle only maritime cases involving accidents and injuries on cruise ships. We have handled high profile cases involving cruise ship fires, collisions, and sinkings. 
ship sickness in an article entitled "Sickness Again Plagues Charleston Cruise Ship:" 
Royal Caribbean trademarked it's new "private island" - "Labadee®" - derived from the name of the 1600's French plantation baron and slave owner Marquis de La'Badie. It then erected a 12 foot high security fence around its "island" and hired armed security guards to keep the impoverished Haitians out. 
PR people. Newsweek magazine joined the ranks of those questioning Royal Caribbean's corporate morality in an article "
Several weeks ago, TV evangelist Pat Robertson claimed that the Haitians are cursed because they "made a deal with the devil" to free themselves from slavery 200 years ago. Although preacher Robertson was openly ridiculed for such a preposterous notion, I for one believe in curses. Not that Haiti is cursed at all, mind you, (and no doubt that Reverend Robertson is becoming increasingly delusional). But, yes there are curses. Whether you call them bad karma, voodoo, superstition, what goes-around-come-around, don't tempt fate, don't tug on Superman's cape, an eye-for-an-eye, or there-goes-I-but-for-the-grace-of-God.
Over the weekend even the Arab news station Al Jazerra sent a film crew to Labadee to document the story (video below). Al Jazerra reported that Royal Caribbean forbid the reporters from interviewing any passengers at what is often erroneously referred to as the cruise line's "private island." The video shows a Royal Caribbean security boat trying to waive the reporters away from the resort. 
Seas docking at the "heavily guarded Labadee resort to allow its residents to jet-ski, parasail or have rum punches brought to their hammocks," as "rampant self-interest and insensitivity."
The local newspaper carries the sensational headline: "Body Found On Gay Cruise Ship." .jpg)
of the ship's medical facilities. Are cruise ships equipped to handle medical emergencies which occur during Atlantis parties? Does Atlantis discuss the use of drugs and the foreseeable risk of a drug overdose with the cruise line to make certain that there are properly trained medical personnel to respond to emergencies?
You must have conflicted feelings if you have a ticket on a Royal Caribbean cruise to the Caribbean this month..jpg)
services - it may donate $10 to Haiti. Coming from a foreign corporation which does not pay U.S. taxes and collects $6,000,000,000 (billion) from tax-paying U.S. citizens each year? 
The show revolved around Princess Cruises' Pacific Princess cruise ship, whose passengers and crew had romantic interludes every week. The show starred the ship's captain (Captain Stubing) who encouraged his passengers and crew members to hook up and, well, it was the 1970's and people didn't talk in public about such things - do whatever people do behind closed doors. .jpg)
Several years ago P & O Cruises ran a sexually charged campaign showing bikini clad women oiled up and lying oh-so-promiscuously on their backs with the caption "Seamen Wanted." 
this is right up RoyalCaribbean's alley. 
Today the Internet is a buzz regarding Royal Caribbean's much touted $65 million dollar settlement with Rolls Royce - the manufacturer of the "Mermaid pod-propulsion system" on Celebrity Cruises' Millennium-class ships. The pods were installed on four Celebrity ships - Millennium, Summit, Infinity and Constellation.
Rolls-Royce for many years to come . . . Rolls-Royce has one of the best reputations for reliability, and guests and travel agents should feel confident in Rolls-Royce's assurances of the reliability of the Mermaid pods."
The India Times is continuing to follow the case of Neha Chhikara.
The tragedy of Neha Chhikara's disappearance from the Monarch of the Seas raises a lot of issues. 
damages even if they get sued for their malfeasance. Royal Caribbean's ultimate exposure to damages is limited by the 
We previously reported on this story - 
share of overboards in the last few years. The cruise ship left Port Canaveral, Florida on Tuesday for the Bahamas and was scheduled to return to port on January 2, 2010.
of the passenger overboard could be determined.
published articles last week about Mr. Tore Myhra - described as an "English tourist" - who died November 1st at Jackson Memorial Hospital after sailing for a week on the Liberty of the Seas. I commented on the story - .jpg)
different water samples from the ship over the past few months as part of our routine water testing program, and all those tests have come back negative regarding the bacteria that can cause the illness. .jpg)
After a death like this, there should be literally over a thousand tests conducted to test every possible source of this disease. 
sustained heavy damage to the hull and began to take on water, requiring Captain Myhra to ground the ship to keep it from sinking. The passengers were taken from the beached cruise ship via tenders. 
The 
because the cruise ship kept the sick passenger on the ship and did not request a medevac with the Coast Guard.
Prime Minister Hubert Ingraham presided over a "Plaques and Keys" ceremony welcoming the cruise ship to the country. The Prime Minister boarded the ship along with hundreds of government officials to meet and greet Royal Caribbean International President Adam Goldstein and the Master of the vessel, William Wright.
excursions. 
Both clients featured in the TIME article - Janet Kelly who was a victim of a violent shipboard crime and Jennifer Hagel who lost her husband under mysterious circumstances during a Royal Caribbean cruise - overcame their personal tragedies to help change the cruise industry. Both ladies appeared before our U.S. Congress in 2006 and went on television to get the message out that changes needed to be made to protect American traveling on foreign flagged cruise ships, particularly Royal Caribbean's ships. .jpg)
cruise ships. In light of these problems, how many security guards are employed on the Oasis of the Seas?
handled the problem with sexual assaults on its cruise ships even worse. I also think the Oasis of the Seas is a boondoggle.
article written by John Honeywell a/k/a "
paperwork. Very innovative. .jpg)
defending the case to make certain that an American flag was positioned behind him as he sat in front of the videographer. They didn't have a flag so they had to go and rent one for the afternoon. .jpg)
with a governmental organization called the Bahamas Association for Social Health's (BASH). .jpg)
her cabin. This was far from a rape, but it certainly sounds like something other than a "cultural misunderstanding."
He was a big man and i was a little unnerved by his size. I just stopped his hands and didn't say anything. I know I am stupid for not reporting right away, but i just wasn't sure what to do. I had another incident occur on a Royal ship years ago with my then 11 year old son, where a fellow passenger hauled off and cold cocked him while he was at the kids club. The security really didn't do much about it, told his parents and told them to stay close to their son for the trip, but he was still allowed in the kids club and left unsupervised on the ship. Needless to say my son had a black eye throughout our vacation and the fact that security just didn't make sure that this other kid was allowed where my son was, was even more upsetting. Maybe that is why I didn't report him at the time for fear of security not really doing much . . ." 
Recently, a bill was introduced before Congress (HR 3360) which will require cruise lines to provide contact information for assault crisis centers. But the Senate has not voted on the bill yet. As matters now stand, cruise lines continue to keep the passengers in the dark regarding what to so or who to contact in circumstances like this..jpg)
Follow up in writing and by email. Don't let it drop until you are satisfied. .jpg)
At this moment, the Oasis of the Seas is sailing with newspaper reporters, travel writers, cruise bloggers, and other cruise enthusiasts. They are tweeting their observations on Twitter under the hashtag .jpg)
1. Does the Oasis of the Seas discharge wastewater/sewage (whether treated or outside 3 miles of shore or not) during the cruises? .jpg)
have found when female passengers are at a higher risk of being assaulted?
up. The Carver family fought back. .jpg)
Congressapproved the bill by a resounding vote of 416 to 4..jpg)
requirement that all doors be fitted with peepholes so that passengers inside cabins can determine who is outside of their doors. Congress was previously provided with testimony of passengers who opened their doors and were raped by crew members. .jpg)
identifying the attacker, or in prosecuting the crime. The ship doctor gave Ms. Dishman a trash bag and told her to return to the crime scene and collect the evidence herself. Congresswoman Matui characterized the need for the cruise crime bill as "urgent and necessary." 
Caribbean had over 250 incidents of where cruise victims were sexually assaulted, battered or sexually harassed. (Our firm handled the case where a Court in Miami ordered the cruise line to reveal this information under a threatened sanction of $1,000 a day). 
victims..jpg)
wrist injuries. After being sent home, they had to call and email the cruise line repeatedly before a medical appointment was finally scheduled. They received only $12 a day for living expenses. And their "case managers" - the employees at the cruise line responsible for arranging their medical treatment - would never return their e-mails..jpg)
waiters work over 12 hours a days, 7 days a weeks, carrying the trays over their shoulders. The result is a rash of neck, shoulder, wrist and back injuries due to the repetitive heavy load and strain.
The injuries occurred aboard the Royal Caribbean's Mariner of the Seas, which arrived back in port yesterday. 
Falmouth is the chief town and capital of Trelawny parish, Jamaica, and is located on Jamaica's north coast near Montego Bay.
Meticulously planned in the Colonial style, it is often compared to Colonial Williamsburg, Virginia, here in the United States. 
Royal Caribbean's President Adam Goldstein 
don't get off, because this ship itself is the destination. This is better than a lot of the islands.”
"In beautiful and historic Falmouth, we are busy making a billion-dollar cosy corner for the Royal Caribbean Line on the alleged promise that they will be bringing 6,000 visitors a week to Falmouth. What we don't know is that we have probably been conned.
Jamaica has a history of being exploited by foreign plantation owners, sugar barons, slave owners, bauxite-mining companies and now the mega ships of the $15 billion Royal Caribbean cruise line. 
In an article entitled ".jpg)
Cruises. It also operates its Spanish Subsidiary - Pullmantour Cruises, where it sends its old cruise ships like the Zenith and the Sovereign of the Seas. .bmp)
the daily amount it pays to its sick or injured crew members from $25 a day to only $12 a day. Obviously, no one in the world can eat and pay rent and other living expenses - which is the cruise line's legal obligation - on a pittance of only $12 a day. But this is what Royal Caribbean is doing, scrimping on every penny, to try and finance its new cruise ships. 
When medical conditions cannot be managed on the cruise ships, Royal Caribbean sends its ill crew members to, of all places, the Dominican Republic for treatment. Why? It's cheap. No other reason. To save money. The Dominican Republic is an impoverished country, next to Haiti. It is certainly one of the last places you would think of for state-of-the-art medical treatment. 
September. No Gleevac. No bone marrow transplantation. No living expenses. Her calls and emails to Royal Caribbean begging for assistance were ignored. .jpg)
We quickly by-passed the claims handler and wrote to and called the lawyers at the cruise line. They informed us that because a lawsuit had not been filed, they would not talk with us. So within one hour, I prepared a lawsuit and had a process server run over to the port to serve their General Counsel. Still, they refused to discuss the situation. They continued to stall, lie and obfuscate..jpg)
lasts. She is receiving only $12 a day to live on, always paid late. On Friday evening, Royal Caribbean finally agreed to permit Ms. Jones to come to the U.S. but it took her hiring a lawyer and filing a lawsuit first. We are trying to obtain a visa for her from the U.S. Embassy so she can come to Miami to be properly evaluated and treated by board certified U.S. oncologists. .jpg)
who was sailing on Royal Caribbean's Mariner of the Seas. The complaint alleges that the adult met the child at a "teens-only" event sponsored by the cruise line. The information is contained in a Miami maritime lawyer's blog:
These type of cases are troubling because the public does not realize that there is a problem with sexual predators on cruises (both crew and passengers). To make matters worse, the cruise lines tell the parents not to worry about their kids because the cruise line will keep them safe which is not true. 
No U.S. newspaper covered the stories. No one in the world of Twitter re-tweeted the stories. The cruise line did not even bother to issue a press statement about the sexual assault of a minor on the P & O cruise. No calm and reassuring statement via YouTube by cruise line CEO Ann Sherry, 
The cruise fans who blog and twitter undoubtedly use the same search words in their Goggle readers as I do or have similar RSS feeds. They obviously see the same stories popping up about sexual assault of children on cruise ships, or the robbery of eleven cruise passengers last Sunday at a tourist attraction in the middle of Nassau, as I did. (1).jpg)
Apparently, strong winds pushed Carnival's Legend into the Enchantment, causing relatively minor damage. Some have characterized the incident as the two cruise ships "trading paint."
The article focused on the two largest cruise lines, Carnival and Royal Caribbean. Around 75% of U.S. passengers sail on cruise ships owned or operated by these giants. Virtually all crew members are non - U.S. employees, from countries like Jamaica, Trinidad, or Honduras where medical care is either non-existent or spotty at best. .bmp)
The "Screwed If By Sea" article revealed that Carnival and Royal Caribbean were very neglectful parents.
A Royal Money Game
But a few journalists have questioned the environmental appropriateness of this monster of a cruise ship. In an article entitled "
When 40 year old Boston resident Merrian Carver "disappeared" from the cruise ship Mercury operated by Royal Caribbean’s subsidiary brand Celebrity Cruises, the cruise line tried its best to cover the incident up. It didn’t report Merrian missing to either the FBI or the Alaskan State Troopers, even though the cabin attendant reported her missing early in the cruise. Merrian’s Dad, insurance executive Ken Carver, began a serious investigation. Royal Caribbean responded by lying to Mr. Carver and disposing of evidence. Mr. Carver didn’t go away and the story went public. The 
But when their frustration forced them to the press for answers, the cruise industry’s response was quick and brutal. Michael Crye, representing the International Council of Cruise Lines ( the predecessor to today’s Cruise Line International Association - "CLIA") told an AP reporter investigating the story " . . . its difficult if someone chooses to do harm to themselves . . ."
The recent disappearance of Washington resident Amber Malkuch shows that little has changed. Amber was 45 when she sailed on the Holland America Line ("HAL") cruise ship Zaandam. On August 3, 2009, Amber disappeared. The usual protocol when a passenger disappears should be for the FBI or the state law enforcement authorities to board the vessel at the next port and to conduct an investigation. The period of time leading up to the cruise ship's arrival at the next port is critical because the cruise line controls the scene of the disappearance, the witnesses and all of the evidence. Before the authorities can conclude whether the "disappearance" resulted from an accident (due to the ship's negligence, or the passenger's carelessness or intoxication, or a combination of factors), foul play or suicide, they must first review the evidence and interview passengers and crew members.
