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Carnival Cruise Line to Get First New CEO in 34 Years

A series of cruise ship accidents has damaged its image


Don't miss the boatOn Tuesday, Carnival (CCL) announced that it will have a new CEO starting on July 3. Investors liked the news, sending the company’s shares jumping more than 4%.

The cruise line operator said that current CEO and Chairman Micky Arison will relinquish the top executive role, but will continue on as chairman. He will be successes by company board member Arnold Donald, who becomes only the second Carnival CEO in 34 years, Forbes notes.

Fire Cuts Royal Caribbean Cruise Short
Fire Cuts Royal Caribbean Cruise Short

Arison, Carnival’s billionaire founder, became CEO in 1979. The company operates almost half of the world’s cruise liners. However, its stock has risen just 4.8% over the last three years as a string of highly-publicized cruise ship accidents has tarnished its image and provoked lawmakers to call for tighter regulation of the industry.

In April, its Carnival Ecstasy lost power for 12 minutes while cruising off the Florida coast due to a mechanical error. The problem was quickly repaired.

Two months earlier, the Carnival Triumph suffered an engine fire, cutting off electrical power on the ship and leaving it drifting in the Gulf of Mexico with 4,200 passengers on board. The ship was safely towed to port, but reports of squalid conditions on board made media headlines.

Article printed from InvestorPlace Media,

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