Carnival Corp. said Tuesday it has exercised its option to build a new ship for its Italian line Costa Cruises at a cost of about $554 million, raising to 18 the number of vessels on order for the world's largest cruise operator.The 92,700-ton Costa ship will have 2,260 lower passenger berths and will be built by Italian shipbuilder Fincantieri at its Marghera shipyard, Carnival Corp. said in a news release. It is scheduled for delivery in March 2010 - in time for summer cruising season in Europe.The newly announced vessel will be a sister ship to another Costa ship scheduled to enter service in spring 2009.Costa now has four new ships on order.
They'll give Costa and Carnival a stronger position in the European market, which at least this year has been stronger than the sluggish Caribbean market."Continuing to invest in new ship construction will enable Costa to maintain its leadership position within the region while providing new and innovative on-board facilities and features for its guests," said Carnival Corp. Chairman and Chief Executive Micky Arison.In September, Carnival Corp. said profits rose 4 percent in its fiscal third-quarter, helped by strong European and Alaska seasons that helped it offset increased fuel costs and softness in Caribbean bookings.Carnival Corp. has 18 new ships on order - with 12 being built by Fincantieri. In addition to Costa Cruises, Carnival's 12 cruise brands include Carnival Cruise Lines, Holland America Line, Princess Cruises, Seabourn Cruise Line, Windstar Cruises, Cunard Line and P&O Cruises. The 18 ships are expected to enter service between March 2007 and spring 2010.And Carnival might not be done ordering ships this year.Robin Farley, a UBS Investment Research leisure and gaming analyst, said in a research note that a Carnival option for a 3,608-berth ship expires Dec. 31."We still expect to see this option exercised before year end," Farley said.Meanwhile, Carnival also said it was extending the build option for a new 2,044-passenger Holland America ship. If the option is exercised, the ship would be built by Fincantieri and enter service in late 2010, the company said.