WEBVTT - Businessweek Extra-Arnold Donald

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<v Speaker 1>This is Bloomberg Business Week from Bloomberg Radio. I'm Jason

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<v Speaker 1>Kelly and I'm Carol Masser. Welcome to the Bloomberg Business

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<v Speaker 1>Week Extra. It's our weekly podcast. Bring you an interview

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<v Speaker 1>you'll not hear anywhere else. And seriously, I was not

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<v Speaker 1>going to hear this anywhere else. I went on vacation

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<v Speaker 1>and you went off and did a great interview about

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<v Speaker 1>the future of vacations with the CEO and president of Carnival. Right,

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<v Speaker 1>we're talking about Arnold Donald and Carnival. It's the world's

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<v Speaker 1>largest cruising group and the cruise industry. Jason, you and

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<v Speaker 1>I know this. We've been talking about it a lot.

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<v Speaker 1>It's one of the hardest hit industries by the coronavirus.

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<v Speaker 1>Carnival alone has seen its stock plummet. It's sold off ships,

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<v Speaker 1>it's lost billions of dollars. It's raised billions more to

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<v Speaker 1>get through the crisis. Bottom line, though, it's really all

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<v Speaker 1>about getting ships back to seat. Check out this conversation. Arnold.

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<v Speaker 1>It is great to have you back with us. How

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<v Speaker 1>are you doing, Carol, Thanks for asking. I'm great. How

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<v Speaker 1>are you doing? Yeah? Kind of getting used to a

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<v Speaker 1>new world order. And I guess the million dollar are

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<v Speaker 1>billion dollar question, Arnold. You know that everybody has on

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<v Speaker 1>their mind is how do you get the cruise industry?

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<v Speaker 1>How do you get passengers back on ships? How do

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<v Speaker 1>you get ships back at sea safely and responsible responsibly

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<v Speaker 1>around the world. Well, you know, Carol, the first of all,

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<v Speaker 1>you know, our primary responsibilities and therefore our top priority

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<v Speaker 1>is always compliance, environmental protection and the health, safety and

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<v Speaker 1>well being of our guests, of the people in the

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<v Speaker 1>places we go, and of course our carnival family, our

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<v Speaker 1>shipboard and short side personnel. So you know, the interests

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<v Speaker 1>of public health is always in the forefront for us.

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<v Speaker 1>And how do we get people back on ships when

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<v Speaker 1>there's some social gathering and society has developed the compensating

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<v Speaker 1>measures that is comfortable with that we have effectively mitigated

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<v Speaker 1>the spread of COVID nineteen and then we'll be able

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<v Speaker 1>to cruise again. And there are a lot of people,

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<v Speaker 1>as you know, Carrol, who are ready to cruise right now.

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<v Speaker 1>And in fact, we're looking at starting up in Europe

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<v Speaker 1>where the spread has been mitigate it substantially in places

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<v Speaker 1>like Germany and Italy, and we're looking at starting up

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<v Speaker 1>in September. There and a few um cruise lines have,

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<v Speaker 1>but there's a lot of pin up demand, you know,

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<v Speaker 1>for travel in general, and especially for cruise. Well, and

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<v Speaker 1>what I wonder Arnold, though, can you kind of drill

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<v Speaker 1>down a little bit what are some of the specific

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<v Speaker 1>protocols that you might put in place to get ships

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<v Speaker 1>safely back at sea. I've been reading, you know, about

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<v Speaker 1>different folks and what they might be considering different cruise lines.

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<v Speaker 1>They're talking about no buffets, constant um temperature checks, constant testing,

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<v Speaker 1>maybe no excursions. What specific protocols will you be putting

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<v Speaker 1>in place? Well, again, as you well know, we we

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<v Speaker 1>have a lot of measures in place already on cruise

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<v Speaker 1>that often short side destinations don't already have or didn't

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<v Speaker 1>have prior to COVID nineteen. We do medical screens, we

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<v Speaker 1>were already doing temperature checks in many cases. Um, we

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<v Speaker 1>had hand sanitizers throughout the ship and signs all over

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<v Speaker 1>about washing your hands because we've had to deal with

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<v Speaker 1>viruses and the over seven hundred parts and destinations we

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<v Speaker 1>go to annually for many years now. Course, CORVID nineteen

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<v Speaker 1>is especially unique because the whole world is shut down,

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<v Speaker 1>and because of that, there's still a lot of learning

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<v Speaker 1>around COVID nineteen. As you know from all the scientists,

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<v Speaker 1>there's still a lining around epidemiology. They're lying around testing,

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<v Speaker 1>they're lying around the role of testing. The one thing

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<v Speaker 1>everybody right now is aligned on, though, is that you know,

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<v Speaker 1>good personal care in terms of wearing a mask, washing

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<v Speaker 1>your hands, um, using hand sanitizers, you know, physical distancing

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<v Speaker 1>at appropriate times, but wearing a mask is a great

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<v Speaker 1>way to mitigate the spread. So for the time being,

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<v Speaker 1>any cruises that will happen will certainly incorporate some physical

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<v Speaker 1>distancing and you know, wearing masks, and of course what

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<v Speaker 1>we already had was the the hand sanitizers, etcetera. Beyond that, um,

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<v Speaker 1>there's a plethora of possibilities, but it depends on the destination,

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<v Speaker 1>depends on the level of community spreading that destination, etcetera.

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<v Speaker 1>So there could be various testing protocols. I mean, that's

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<v Speaker 1>a possibility for the US is premature. You know, we're

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<v Speaker 1>not ready to sail here yet. Obviously the community spread

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<v Speaker 1>is still pretty vibrant here in the US, and when

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<v Speaker 1>went out of position to sail here, and we're walking

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<v Speaker 1>cautiously in the other places too, because our primary interests

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<v Speaker 1>is to stand what everyone else in mitigating the spread

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<v Speaker 1>of COVID nineteen. But I did read your your coster

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<v Speaker 1>cruise is safety protocols and you talked about three tests

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<v Speaker 1>for crew members before boarding. Um. You also talked about,

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<v Speaker 1>of course social distancing, new filters. UM Entertainment will have

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<v Speaker 1>more shows on during the day so that they're smaller groups.

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<v Speaker 1>And then also no self service restaurants, so no buffets,

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<v Speaker 1>which for many of you go on a cruise, they're

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<v Speaker 1>pretty used to it. So there are some changes coming.

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<v Speaker 1>Oh yeah, absolutely for the ones that are going to

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<v Speaker 1>sail now, we have to be ready, just like hotels today,

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<v Speaker 1>any hotel that's opened the day has to deal with

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<v Speaker 1>the current situation and the limited knowledge thereas. And so

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<v Speaker 1>for Costa we are deploying a number of testing protocols.

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<v Speaker 1>Obviously for our crew we have not only testing but quarantine.

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<v Speaker 1>Except because it's really important for us to have the

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<v Speaker 1>clue crew UM, you know, safe from the beginning and

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<v Speaker 1>then to keep them safe. And obviously UM once we

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<v Speaker 1>get guests on board, will have protocolls on board for them.

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<v Speaker 1>I do wonder how you do it safely. I mean, Arnold,

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<v Speaker 1>you know this industry better than everyone, uh and better

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<v Speaker 1>than most in terms of lay personnel. But I wonder

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<v Speaker 1>how you do it safely because there have been some

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<v Speaker 1>smaller cruise operations that have come out of Europe, come

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<v Speaker 1>out of Alaska, Tahiti, UM, and I believe there are

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<v Speaker 1>less at least ten crew members aboard UM. Your I

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<v Speaker 1>eat a cruise ships out of Germany that contacted the

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<v Speaker 1>virus ahead of you getting ready to kind of get

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<v Speaker 1>back to the seas UM. That was in August. So

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<v Speaker 1>I just wonder how do you do this safely when

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<v Speaker 1>even when some small cruise operations are starting to go

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<v Speaker 1>back out on the water and still having problems with

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<v Speaker 1>the virus and people are contacting the virus. Carol, think

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<v Speaker 1>those two stage Just one is you want to reduce

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<v Speaker 1>the risk of having UM the COVID nineteen come on

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<v Speaker 1>board from shore. So that's the first thing. So you

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<v Speaker 1>test UM, you monitor, and you quarantine in the case

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<v Speaker 1>of the crew. So the ones you mentioned on Aida,

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<v Speaker 1>you know, those crew members were tested before they left

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<v Speaker 1>their home country, and then they were tested again once

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<v Speaker 1>they arrived in Germany and we got some positives. They

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<v Speaker 1>were then retested again and a couple of In several

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<v Speaker 1>of those cases, the individuals got a double negative test

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<v Speaker 1>after that, which meant they had a false positive, and

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<v Speaker 1>then the others were obviously isolated in quarantine and so

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<v Speaker 1>the risk of them spreading it on board with zero

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<v Speaker 1>because we wouldn't have them sail. Okay. Now, once you're

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<v Speaker 1>at that level, the next question is what else are

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<v Speaker 1>you're doing to mitigate spread? And that's why all the

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<v Speaker 1>other practices on board. Any event you do get someone

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<v Speaker 1>on board who has COVID nineteen, if it's in society, um,

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<v Speaker 1>if it's out there in general, chances are you eventually

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<v Speaker 1>will have someone on board the ship that will have it.

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<v Speaker 1>And so the trick then, of course, is to make

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<v Speaker 1>certain that you are able to quickly identify, that you

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<v Speaker 1>can isolate the person, and that during the time they

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<v Speaker 1>were exposed there was plenty of mitigation and of risk

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<v Speaker 1>protocols in place, so the probability of spread has been

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<v Speaker 1>greatly reduced. And that's where you know, wearing masks, physical distancing,

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<v Speaker 1>washing your hands, um, using a handstand, the size, et cetera,

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<v Speaker 1>all come into play. Arnold, I do also wonder you know,

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<v Speaker 1>what are your plans for passengers and crew members who

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<v Speaker 1>do get sick in the future. You know, you know

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<v Speaker 1>the horror stories of ships that were you know, basically

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<v Speaker 1>lost at sea they couldn't find a homeport. You I know,

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<v Speaker 1>and your team have spent you know, a long time

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<v Speaker 1>repaytrading you know, your crew members back home. So what

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<v Speaker 1>do you do? Will there be a way to airlift

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<v Speaker 1>passengers off ships? What will you do? You're absolutely right,

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<v Speaker 1>you know, we had to repay trade over eighty thousand

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<v Speaker 1>crew members, and it took us quite a while with

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<v Speaker 1>boorders closed and airlines shut down, et cetera. So it

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<v Speaker 1>took us several months to effectively do that, but we

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<v Speaker 1>were eventually able to do it. In regards to now,

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<v Speaker 1>you know that was before now, there's enough understanding we

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<v Speaker 1>would not go to a destination where we did not

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<v Speaker 1>have a plan already in the event that there was

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<v Speaker 1>COVID on board. We're not going to tie up thousands

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<v Speaker 1>of people off of one positive COVID case or a

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<v Speaker 1>couple of positive COVID cases. You know, we would have

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<v Speaker 1>the protocols in place to ensure one that the individual

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<v Speaker 1>is taken care of whoever has it, that we can

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<v Speaker 1>get them the care they need. Um. And then number

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<v Speaker 1>two that everyone else, uh is an effect that you know,

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<v Speaker 1>we would have some form of contact tracing on our boards,

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<v Speaker 1>so we know who we're the most exposed people. But

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<v Speaker 1>we have to have those protocols for each destination. We

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<v Speaker 1>go to seven hundred ports and destinations around the world,

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<v Speaker 1>so they're all not going to have the exact same protocols.

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<v Speaker 1>And and but we will not go to a place

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<v Speaker 1>where we haven't established exactly any event there is a

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<v Speaker 1>COVID case exactly what's going to happen, all right, But

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<v Speaker 1>you're not worried about as we know this virus you know,

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<v Speaker 1>spread so so quickly, um, that you could go out

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<v Speaker 1>to see and end up with a handful of passengers

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<v Speaker 1>or a lot more passengers, hundreds of passengers and be

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<v Speaker 1>kind of stuck at sea. And I mean, I'm just curious,

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<v Speaker 1>what would you do that we won't. We won't sail

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<v Speaker 1>on the situation where we can be stuck at sea.

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<v Speaker 1>I think again, there's a lot more knowledge now than

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<v Speaker 1>when that was happening. Number one, you know, we will

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<v Speaker 1>have some capability of testing on board. When that happened before,

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<v Speaker 1>we didn't. We we will. There's a lot of understanding

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<v Speaker 1>now about how to mitigate spread. Back then, nobody was

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<v Speaker 1>talking about you know, why you were cruising. You know,

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<v Speaker 1>potentially wearing masks are physical distancing that that kind of thing. UM.

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<v Speaker 1>And similarly, we have to look at the incidents of

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<v Speaker 1>spreading a community. You know, we're not going to probably

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<v Speaker 1>sell out of a community where the incidents are spread

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<v Speaker 1>is very high because you're almost certainly they're gonna have it,

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<v Speaker 1>have it on board. UM, so we we have to

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<v Speaker 1>have the protocols. We have a great UM group of

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<v Speaker 1>advisors UM scientific advisors. A number of them participated in

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<v Speaker 1>a summit on COVID that we held with the World

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<v Speaker 1>Travel on Tourism Council. Wasn't about travel, it wasn't about cruise,

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<v Speaker 1>it was about the science of COVID and UM a

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<v Speaker 1>number of our advisors participated in that um that that

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<v Speaker 1>we we produced and and my co hosted with Gloria

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<v Speaker 1>Gavira from w TCC. And so we're using their advice.

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<v Speaker 1>And of course every destination is studying this, every port,

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<v Speaker 1>every city, every nation and will as always be in compliance. UH.

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<v Speaker 1>And so we'll all have a protocol in place because

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<v Speaker 1>no one wants, you know, thousands of people you know

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<v Speaker 1>stuck s C. Nobody wants no doubt about that, and

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<v Speaker 1>I am curious about guidance from the CDC. I mean,

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<v Speaker 1>what are you hearing, Arnold right now from the CDC

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<v Speaker 1>about what they want to see specifically from Carnival before

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<v Speaker 1>heading out at sea again. Well, CDC is concentrating initially

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<v Speaker 1>on what we call the pause. You know, a number

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<v Speaker 1>of US volunteer to stop sailing and so on in

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<v Speaker 1>the CDC issued on no sale orders, and so they've

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<v Speaker 1>concentrated on the ships because even though we're in a pause,

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<v Speaker 1>we still have twelve thousand crew required to minimally man

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<v Speaker 1>our ships. The ships are still out there to still operate,

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<v Speaker 1>and so the CDC focus on that initially. UH. And

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<v Speaker 1>now they've started beginning to ask for public input and

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<v Speaker 1>UH to be submitted in terms of consideration um for

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<v Speaker 1>crews going forward, but there have been no specific direction

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<v Speaker 1>given on what's expected. What we're gonna do is again

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<v Speaker 1>use our expert advisory group to inform us, to use

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<v Speaker 1>the experiences around the world that we have and others have,

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<v Speaker 1>and we'll put together you know, the appropriate protocol at

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<v Speaker 1>the time we think that it makes sense to begin

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<v Speaker 1>to consider cruising again, um out of the U S.

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<v Speaker 1>So the CDC isn't say anything, aren't like, okay, positivity

0:11:45.040 --> 0:11:47.240
<v Speaker 1>rates who want to see it, you know, below ten percent,

0:11:47.320 --> 0:11:49.000
<v Speaker 1>below five percent, they're not giving you any kind of

0:11:49.000 --> 0:11:51.920
<v Speaker 1>guidance like that specific items. No, not at this time.

0:11:51.960 --> 0:11:54.320
<v Speaker 1>And I don't think you know, I don't. I think

0:11:54.320 --> 0:11:57.520
<v Speaker 1>it's fine that they're not again, you know, right now,

0:11:57.880 --> 0:12:00.679
<v Speaker 1>look at the US in many places where talking still

0:12:00.720 --> 0:12:04.280
<v Speaker 1>talking about shell training, place stay at home. Very limited

0:12:04.559 --> 0:12:07.120
<v Speaker 1>universities are figuring out what to do. Schools are figuring

0:12:07.160 --> 0:12:09.520
<v Speaker 1>out what to do. And as long as we're not

0:12:09.920 --> 0:12:14.200
<v Speaker 1>you know, just comfortably socially gathering, then we shouldn't be

0:12:14.200 --> 0:12:18.760
<v Speaker 1>talking about cruise. Now you can comfortably socially gather with

0:12:18.880 --> 0:12:22.680
<v Speaker 1>different protocols, physical distancing where I masks, et cetera. And

0:12:22.679 --> 0:12:25.520
<v Speaker 1>and at that point when when we're comfortably doing that

0:12:25.679 --> 0:12:28.360
<v Speaker 1>in US society, then we can seriously, you know, take

0:12:28.400 --> 0:12:30.960
<v Speaker 1>a look at cruise. Yeah, no, listen, I I get it.

0:12:30.960 --> 0:12:33.400
<v Speaker 1>It's my first day back in our headquarters here in

0:12:33.400 --> 0:12:36.839
<v Speaker 1>New York City. I have been home since mid March. Hey, listen,

0:12:37.520 --> 0:12:39.520
<v Speaker 1>it's like it's crazy, right, Like as we've tried to

0:12:39.559 --> 0:12:41.280
<v Speaker 1>figure this out. One thing I want to ask you

0:12:41.320 --> 0:12:43.360
<v Speaker 1>while we're talking about the c d C, I mean

0:12:43.920 --> 0:12:46.680
<v Speaker 1>the c d C. You know, um, you guys have

0:12:46.760 --> 0:12:50.120
<v Speaker 1>read everything that they have put out. They have put

0:12:50.160 --> 0:12:52.679
<v Speaker 1>out a strongly worded order as they continue to do

0:12:52.720 --> 0:12:55.440
<v Speaker 1>the no sale and push that off for ships sailing

0:12:55.440 --> 0:12:58.480
<v Speaker 1>here out of the US. They say, the current scientific

0:12:58.520 --> 0:13:00.840
<v Speaker 1>evidence suggests that cruise ships is a greater risk of

0:13:00.880 --> 0:13:03.839
<v Speaker 1>COVID nineteen transmission than other settings. And you know, they

0:13:03.880 --> 0:13:07.200
<v Speaker 1>talk specifically some of the research that you know, the

0:13:07.240 --> 0:13:10.960
<v Speaker 1>Carnival Diamond Princess back in February, they talked about it

0:13:11.000 --> 0:13:14.600
<v Speaker 1>transmitting COVID nineteen at a reproduction rate that was four

0:13:14.640 --> 0:13:17.480
<v Speaker 1>times roughly four times higher than what we saw at

0:13:17.480 --> 0:13:20.440
<v Speaker 1>the epicenter of Wuhan. You know, do you agree with

0:13:20.480 --> 0:13:23.680
<v Speaker 1>the CDC's assessment that cruise ships pose a greater risk

0:13:23.800 --> 0:13:27.480
<v Speaker 1>of COVID nineteen transmission than anywhere else. I think what

0:13:27.520 --> 0:13:30.600
<v Speaker 1>the industry will do is show the history that we

0:13:30.679 --> 0:13:35.320
<v Speaker 1>have um with other viruses UM for example, um naul

0:13:35.440 --> 0:13:38.680
<v Speaker 1>virus and other viruses that happen, and show how, in fact,

0:13:39.080 --> 0:13:43.760
<v Speaker 1>you know, historically the industry has successfully mitigated the risk

0:13:43.800 --> 0:13:46.840
<v Speaker 1>of spread on ships, um you know, lowered the risk

0:13:46.960 --> 0:13:50.120
<v Speaker 1>relative even to short side type of activities. Now we

0:13:50.200 --> 0:13:53.880
<v Speaker 1>can't make that claim today for COVID nineteen, but obviously

0:13:53.880 --> 0:13:55.880
<v Speaker 1>that's what we aspire to what we're working on, and

0:13:55.920 --> 0:13:58.960
<v Speaker 1>I think we'll show a body of evidence um to

0:13:59.040 --> 0:14:02.360
<v Speaker 1>the CDC, which I'm sure they are also accessing. As

0:14:02.360 --> 0:14:06.760
<v Speaker 1>I mentioned, we're being informed by very capable scientists and

0:14:06.840 --> 0:14:10.160
<v Speaker 1>medical professionals around the world UM to to take a

0:14:10.160 --> 0:14:12.840
<v Speaker 1>look at this. But let me assure you as a

0:14:12.840 --> 0:14:16.920
<v Speaker 1>company and as an industry, the cruise industry in RUS

0:14:17.000 --> 0:14:22.040
<v Speaker 1>as a company one to expose any guests to greater

0:14:22.160 --> 0:14:26.320
<v Speaker 1>risk than they would have in similar activities short side,

0:14:26.760 --> 0:14:30.160
<v Speaker 1>and so our focus is to make certain that you know,

0:14:30.240 --> 0:14:34.760
<v Speaker 1>we are managing that risk at minimum, you know, relative

0:14:34.880 --> 0:14:37.880
<v Speaker 1>to what they would experience short side. And we aspire

0:14:37.920 --> 0:14:40.920
<v Speaker 1>of course that when they cruise was with us, they

0:14:40.920 --> 0:14:45.080
<v Speaker 1>have less risk than the same experience short side. And

0:14:45.120 --> 0:14:47.720
<v Speaker 1>when you talk with the Diamond Princess, I think people

0:14:47.760 --> 0:14:51.080
<v Speaker 1>have to remember at number one, that happened really early on,

0:14:51.160 --> 0:14:55.720
<v Speaker 1>when there was very little understanding of COVID nineteen. Number two,

0:14:56.080 --> 0:14:58.880
<v Speaker 1>that ship was a quarantine ship. The ship was in

0:14:58.960 --> 0:15:03.200
<v Speaker 1>quarantine for two weeks. It was not just a normal cruise,

0:15:03.680 --> 0:15:06.880
<v Speaker 1>okay it was, it was a quarantine ship. And so

0:15:07.240 --> 0:15:10.960
<v Speaker 1>while it's an example of something that can happen, I

0:15:11.000 --> 0:15:14.440
<v Speaker 1>think the practices today would be dramatically different than what

0:15:14.560 --> 0:15:16.920
<v Speaker 1>existed at the time of the Diamond Princess, which and

0:15:17.040 --> 0:15:19.480
<v Speaker 1>was different than what it was, different than what happened

0:15:19.840 --> 0:15:22.840
<v Speaker 1>on subsequent sales. So or do you think if that

0:15:22.880 --> 0:15:25.640
<v Speaker 1>happened today, um, and forgive me for interrupting, do you

0:15:25.640 --> 0:15:27.560
<v Speaker 1>think if it happened today, you would you would have

0:15:27.600 --> 0:15:30.560
<v Speaker 1>shut down immediately in terms of all operations. No new

0:15:30.600 --> 0:15:32.560
<v Speaker 1>ships would go out. Because I do wonder when you

0:15:32.600 --> 0:15:36.560
<v Speaker 1>look back at February March, you know, what did you learn?

0:15:36.680 --> 0:15:38.840
<v Speaker 1>What regrets that you have that maybe do you wish

0:15:38.840 --> 0:15:42.320
<v Speaker 1>you had shut down ships? You know, right after the

0:15:42.320 --> 0:15:46.600
<v Speaker 1>news of some of the virus cases on Diamond Princess Carol.

0:15:46.640 --> 0:15:49.880
<v Speaker 1>And you know it's uh, not any analogy or breakdown

0:15:49.880 --> 0:15:51.760
<v Speaker 1>if you push it too far. But but should the

0:15:51.760 --> 0:15:56.720
<v Speaker 1>world have shut down immediately once Wuhan Province had a situation?

0:15:57.200 --> 0:16:00.200
<v Speaker 1>You know with COVID nineteen, I think you can only

0:16:00.240 --> 0:16:02.520
<v Speaker 1>operating the time you're in with the information you have.

0:16:03.000 --> 0:16:05.360
<v Speaker 1>You know, back when Diamond Princess first started, there was

0:16:05.400 --> 0:16:08.320
<v Speaker 1>not community spread around the world on COVID nineteen. There

0:16:08.360 --> 0:16:10.840
<v Speaker 1>was very limited understanding of it. And even at the

0:16:10.840 --> 0:16:13.160
<v Speaker 1>time of assailing the Diamond Princess, there was very little

0:16:13.240 --> 0:16:17.080
<v Speaker 1>understanding you know, about COVID nineteen. Even now, we are

0:16:17.080 --> 0:16:20.840
<v Speaker 1>still learning every day, you know, about this virus. And

0:16:20.920 --> 0:16:23.240
<v Speaker 1>so it's not to make an excuse, it's just simply

0:16:23.320 --> 0:16:25.800
<v Speaker 1>to point out that at that point in time, we

0:16:25.840 --> 0:16:28.200
<v Speaker 1>did what we always do and what we will continue

0:16:28.240 --> 0:16:33.240
<v Speaker 1>to do. We complied. We we complied with every authority

0:16:33.280 --> 0:16:37.160
<v Speaker 1>there was, the World Health Organization, the Japanese Ministry of Health.

0:16:37.200 --> 0:16:40.160
<v Speaker 1>Actually we didn't manage the quarantine or any of that,

0:16:40.440 --> 0:16:42.400
<v Speaker 1>you know, as soon as we identified it, you know,

0:16:42.440 --> 0:16:44.600
<v Speaker 1>we went to the Japanese the Japanese Ministry of Health

0:16:44.640 --> 0:16:47.280
<v Speaker 1>told us what to do. And so you know, our

0:16:47.360 --> 0:16:53.400
<v Speaker 1>number one priority, our highest responsibility is compliance, environmental protection

0:16:53.400 --> 0:16:55.840
<v Speaker 1>and health, safety and well being. And so you know

0:16:56.160 --> 0:16:59.000
<v Speaker 1>we would do that today. You know, whatever is the

0:16:59.040 --> 0:17:03.600
<v Speaker 1>informed you know knowledge um that exists, uh and whatever

0:17:03.640 --> 0:17:05.719
<v Speaker 1>authority is telling us you know what we need to do,

0:17:05.880 --> 0:17:08.440
<v Speaker 1>We're going to comply with that as as we always would.

0:17:08.520 --> 0:17:10.040
<v Speaker 1>You know, it's interesting and I think we all feel

0:17:10.080 --> 0:17:12.800
<v Speaker 1>this way, Arnold, even those of us UM in the

0:17:12.800 --> 0:17:15.440
<v Speaker 1>media world. I think we were hearing stories and trying

0:17:15.440 --> 0:17:17.639
<v Speaker 1>to make sense of it. But I think I do

0:17:17.760 --> 0:17:20.320
<v Speaker 1>wonder do you feel like you got good advice from

0:17:20.359 --> 0:17:22.359
<v Speaker 1>the w H O, from the c d C. Do

0:17:22.400 --> 0:17:26.040
<v Speaker 1>you feel like out of Washington that the information decision

0:17:26.040 --> 0:17:28.160
<v Speaker 1>making that you were getting at that time, that it

0:17:28.240 --> 0:17:31.359
<v Speaker 1>wasn't really good, that it was rather muddled. I think, look,

0:17:31.400 --> 0:17:33.879
<v Speaker 1>at the time, you know, Washington had very little to

0:17:33.920 --> 0:17:37.600
<v Speaker 1>do with, for example, the incident in Japan, Okay, very

0:17:37.640 --> 0:17:41.040
<v Speaker 1>little to do with that. And I think that all

0:17:41.080 --> 0:17:45.480
<v Speaker 1>of these agencies are made up of people who are

0:17:45.560 --> 0:17:49.240
<v Speaker 1>trying to serve the best interests of society and the

0:17:49.280 --> 0:17:51.680
<v Speaker 1>public health, and so I think they do the best

0:17:51.760 --> 0:17:54.800
<v Speaker 1>job they can with the information they have at the time. UM.

0:17:54.840 --> 0:17:58.600
<v Speaker 1>And I think, again, our mistakes made. Of course, mistakes

0:17:58.600 --> 0:18:02.439
<v Speaker 1>are made, UM, but but it's not because of you know,

0:18:02.600 --> 0:18:06.680
<v Speaker 1>just irresponsible behavior. UM. Is because people are genuinely trying

0:18:06.720 --> 0:18:09.280
<v Speaker 1>to analyze and figure out what to do. And this

0:18:09.359 --> 0:18:11.280
<v Speaker 1>is new and we just have to keep in mind

0:18:11.320 --> 0:18:14.080
<v Speaker 1>it's not like there was COVID nineteam popped up one

0:18:14.119 --> 0:18:17.520
<v Speaker 1>day and that was perfect knowledge. Even today, we are

0:18:17.560 --> 0:18:21.520
<v Speaker 1>still learning every day about this virus, and I think

0:18:21.600 --> 0:18:24.600
<v Speaker 1>that we just all have to stand together, you know,

0:18:24.640 --> 0:18:27.840
<v Speaker 1>around the world, uh and share the knowledge and learnings

0:18:27.840 --> 0:18:31.600
<v Speaker 1>and experience and figure out what are the best protocols

0:18:31.920 --> 0:18:35.320
<v Speaker 1>to mitigate spread of this virus while at the same

0:18:35.400 --> 0:18:40.280
<v Speaker 1>time allowing society not to create other unintended consequences, whether

0:18:40.280 --> 0:18:43.159
<v Speaker 1>they be economic or the health issues. So talk to

0:18:43.160 --> 0:18:45.080
<v Speaker 1>me a little bit about your timeline for getting back

0:18:45.119 --> 0:18:46.800
<v Speaker 1>to see because I know when we initially talked about

0:18:46.840 --> 0:18:48.719
<v Speaker 1>doing this interview, we thought that there would be ships

0:18:48.720 --> 0:18:52.160
<v Speaker 1>this past week and or yesterday coming out of Germany,

0:18:52.240 --> 0:18:53.720
<v Speaker 1>and I know all of this is being kind of

0:18:53.720 --> 0:18:57.800
<v Speaker 1>pushed off to September. So tell me about your expectations

0:18:57.800 --> 0:19:00.919
<v Speaker 1>for September. Do you anticipate, you know, a lot of

0:19:00.920 --> 0:19:03.000
<v Speaker 1>ships coming out at sea. Give us a little idea,

0:19:03.160 --> 0:19:05.040
<v Speaker 1>and I do wonder. I know the no sale order

0:19:05.920 --> 0:19:09.080
<v Speaker 1>has been pushed off certainly here in the United States.

0:19:09.119 --> 0:19:12.160
<v Speaker 1>What are your expectations for the US market? Well, first

0:19:12.160 --> 0:19:15.480
<v Speaker 1>of all, yes, September, we will start in Germany and

0:19:15.560 --> 0:19:18.879
<v Speaker 1>we plan to start in Italy. UM. We didn't start

0:19:18.880 --> 0:19:21.480
<v Speaker 1>previously in Germany, even though we have a German brand

0:19:21.480 --> 0:19:26.320
<v Speaker 1>AIDA which sources Germans. The ships are flagged in Italy

0:19:26.760 --> 0:19:29.480
<v Speaker 1>and so we weren't able to get Italy flag clearance.

0:19:29.600 --> 0:19:31.840
<v Speaker 1>But now we have it and we also have it

0:19:32.040 --> 0:19:34.920
<v Speaker 1>UM for Italy, and so we'll start with a few ships.

0:19:35.040 --> 0:19:38.080
<v Speaker 1>Initially the ships will be cruisers to nowhere. They'll they'll

0:19:38.080 --> 0:19:39.959
<v Speaker 1>go out to sea and then come back, so just

0:19:40.040 --> 0:19:43.000
<v Speaker 1>a few days of cruising that that will do multiple things.

0:19:43.040 --> 0:19:47.000
<v Speaker 1>The one it allows us to manage effectively, you know,

0:19:47.040 --> 0:19:51.160
<v Speaker 1>the folks on board UH to handle the new processes,

0:19:51.240 --> 0:19:53.119
<v Speaker 1>make sure all the training we've given our people in

0:19:53.160 --> 0:19:56.800
<v Speaker 1>the new way to conduct and handle things is practiced

0:19:56.840 --> 0:20:00.119
<v Speaker 1>in an efficient way. And it mitigates any risk of

0:20:00.359 --> 0:20:02.879
<v Speaker 1>you know, spread from stopping at the destination where you

0:20:02.960 --> 0:20:05.800
<v Speaker 1>might bring COVID on board after you've you know, I'm

0:20:05.840 --> 0:20:09.520
<v Speaker 1>screening initiative to get started. So that's the initial but

0:20:09.600 --> 0:20:12.399
<v Speaker 1>then shortly thereafter we will have you know, some longer

0:20:12.440 --> 0:20:15.280
<v Speaker 1>cruises and we will go to some destinations again approved

0:20:15.359 --> 0:20:18.520
<v Speaker 1>by you know, the flag states and by the destinations

0:20:18.800 --> 0:20:21.119
<v Speaker 1>with the protocols in place that they want. But it

0:20:21.119 --> 0:20:23.560
<v Speaker 1>will be a few ships at a time initially, and

0:20:23.640 --> 0:20:26.800
<v Speaker 1>I suspect that overall the industry will roll out slowly.

0:20:26.840 --> 0:20:30.400
<v Speaker 1>With regards to the US, Carol is early. We'll we'll

0:20:30.440 --> 0:20:33.560
<v Speaker 1>see what happens. We've extended a number of our brands,

0:20:33.560 --> 0:20:37.800
<v Speaker 1>have gone beyond the no sale order already, intern Or

0:20:37.840 --> 0:20:40.239
<v Speaker 1>do you think it's more? I think, I know. I

0:20:40.280 --> 0:20:43.800
<v Speaker 1>think there's a possibility if if we can get the

0:20:43.880 --> 0:20:46.679
<v Speaker 1>mitigation of spread down and with people going back to

0:20:46.760 --> 0:20:50.520
<v Speaker 1>college and high school and elementary schools and movement of people,

0:20:50.840 --> 0:20:55.359
<v Speaker 1>if we can manage the mitigation of spread where we're seeing,

0:20:55.359 --> 0:20:58.080
<v Speaker 1>instead of a surge, a real decline, then I think

0:20:58.080 --> 0:21:01.639
<v Speaker 1>we can begin to consider, you know, um, social activities,

0:21:01.680 --> 0:21:04.119
<v Speaker 1>of which, of course, cruise this one. Hey listen. Just

0:21:04.160 --> 0:21:07.239
<v Speaker 1>got about time for one last question, Arnold, What is

0:21:07.280 --> 0:21:10.680
<v Speaker 1>Carnival going forward? I've seen analysts of Verstiphil. They've talked

0:21:10.680 --> 0:21:14.199
<v Speaker 1>about a leaner Carnival corporation, that the pandemic has allowed

0:21:14.240 --> 0:21:16.800
<v Speaker 1>you to get rid of some assets that maybe needed

0:21:16.800 --> 0:21:19.360
<v Speaker 1>to uh and that longer term this is a positive.

0:21:19.440 --> 0:21:21.520
<v Speaker 1>What kind of company is Carnival going forward? Just got

0:21:21.520 --> 0:21:24.679
<v Speaker 1>about a minute left. We'll be smaller um with in

0:21:24.760 --> 0:21:26.520
<v Speaker 1>terms of number of ships, we had a hundred and

0:21:26.520 --> 0:21:30.400
<v Speaker 1>six ships or so. We've already um either recycled or

0:21:30.440 --> 0:21:33.560
<v Speaker 1>sold about fifteen ships. Uh. Those ships that would have

0:21:33.600 --> 0:21:35.720
<v Speaker 1>happened over a few years. It just happened this year

0:21:35.720 --> 0:21:38.400
<v Speaker 1>because obviously not going to generating revenue in a sharp

0:21:38.520 --> 0:21:40.879
<v Speaker 1>term here, and we can eliminate some costs as we

0:21:40.960 --> 0:21:43.919
<v Speaker 1>prepare a longer runway to withstand you know, have along

0:21:43.960 --> 0:21:46.560
<v Speaker 1>this thing last um. But all of all, we're going

0:21:46.600 --> 0:21:49.600
<v Speaker 1>to be a stronger company. UM. You know, it's painful.

0:21:49.840 --> 0:21:52.800
<v Speaker 1>We we've had to take some people actions, but we

0:21:52.960 --> 0:21:55.680
<v Speaker 1>have a deep bench and once we once we start

0:21:55.760 --> 0:21:57.400
<v Speaker 1>up again, we'll be bringing a number of those people

0:21:57.440 --> 0:21:59.720
<v Speaker 1>back and we'll ask some new talent. But but we'll

0:21:59.720 --> 0:22:03.679
<v Speaker 1>be leaner and stronger, but most importantly, will still be

0:22:03.720 --> 0:22:06.840
<v Speaker 1>the best vacation experience there is. And that one of

0:22:06.880 --> 0:22:10.040
<v Speaker 1>the best vacation values there is. That was Carnival Corporation

0:22:10.080 --> 0:22:13.240
<v Speaker 1>President and CEO Arnold Donald. And what's interesting, Jason, we

0:22:13.440 --> 0:22:16.720
<v Speaker 1>had expected that we would be talking about ships back

0:22:16.760 --> 0:22:19.040
<v Speaker 1>at sea, because that was the expectation that the weekend

0:22:19.040 --> 0:22:21.560
<v Speaker 1>before this interview that was going to happen. And they

0:22:21.560 --> 0:22:23.480
<v Speaker 1>had to delay it again. These are delays over in

0:22:23.480 --> 0:22:26.080
<v Speaker 1>Germany and Italy. They are expecting to get chips back

0:22:26.080 --> 0:22:29.560
<v Speaker 1>out to see come September. The US market, that's a

0:22:29.560 --> 0:22:32.200
<v Speaker 1>lot more uncertain at this point, but I gotta say

0:22:32.240 --> 0:22:34.800
<v Speaker 1>it's going to be tough, going so tough. I mean,

0:22:34.840 --> 0:22:38.679
<v Speaker 1>listening to that interview, you're just reminded that the world

0:22:38.800 --> 0:22:41.119
<v Speaker 1>is very different and it's not coming back to normal

0:22:41.560 --> 0:22:44.280
<v Speaker 1>any times. A great interview. You've been listening to Bloomberg

0:22:44.320 --> 0:22:46.199
<v Speaker 1>Business Week Extra, and be sure to check out our

0:22:46.200 --> 0:22:49.120
<v Speaker 1>Bloomberg Business Week Daily Show on radio. It airs live

0:22:49.160 --> 0:22:51.440
<v Speaker 1>Monday through Friday at two pm Wall Street Time. I'm

0:22:51.480 --> 0:22:54.160
<v Speaker 1>Carol Massara and I'm chasing Kelly. This is Bloomberg