TOKYO -- Mitsubishi Heavy Industries appears unlikely to meet a December delivery deadline on a ship for the world's largest cruise line operator, Carnival, forcing a third postponement that will probably swell losses incurred on the project.
The vessel is the Japanese shipbuilder's first large cruise liner for Carnival unit AIDA Cruises. Changes in the design and materials had already pushed back delivery from the originally planned March. Now, with changes to interior specifications, delivery may have to wait until fiscal year-end.
This is the first of two large cruise ships, thought to value a combined 100 billion yen ($804 million), that AIDA ordered from Mitsubishi Heavy in 2011. Construction is underway at the Nagasaki shipyard, but Mitsubishi Heavy has already booked more than 160 billion yen in extraordinary losses on the project. The third postponement will likely delay delivery of the second ship until after March 2016, further increasing losses.
The repeated delays could undermine trust in Mitsubishi Heavy's cruise ship business, positioned as the core of its shipbuilding enterprise.