p&o cruises job losses

P&O Ferries: Ian King on why the company has taken the axe to its workforce again

Sky's Ian King explains why the company, which cut over 1,000 jobs in response to the pandemic, is again having to slash costs through job losses.

Business presenter @iankingsky

Thursday 17 March 2022 17:59, UK

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It is barely three years since DP World, the Dubai-based logistics giant, paid £322m for P&O Ferries.

At the time of the deal, in February 2019, Sultan Ahmed Bin Sulayem, DP World's chairman and chief executive, said he was delighted to be acquiring such a "strong, recognisable brand".

"P&O Ferries has delivered a robust performance in recent years and we aim to drive further value through increasing efficiencies and offering value-added solutions to our customers," he said.

"Overall the transaction offers compelling value strategically and financially, and we look forward to P&O Ferries contributing to driving shareholder value in the coming years."

Read more: P&O Ferries makes 800 staff redundant and warns of 'significant disruption' to services 'over next few days'

Read more: What are the rights of workers and passengers affected by the mass sackings?

With the benefit of hindsight, it was a disastrous deal.

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P&O Ferries Holdings lost £38.82m in 2019 and in 2020, the year COVID-19 first struck, it lost a further £85.95m.

The accounts for 2021 have yet to be formally filed but the company said on Thursday that losses had increased to £100m during the latest year.

That is getting on for a quarter of a billion pounds worth of losses to date and the company clearly feels things are going to remain tough.

Second round of cuts

These are not the first job cuts at P&O Ferries since DP World bought the business.

In an early response to the pandemic, it made some 1,100 employees redundant, which at the time represented just over a fifth of the workforce.

However, after an appeal for support from the government was turned down, the business found itself being increasingly propped up by DP World. The business was given a £30m loan from its parent in November 2020 and a further loan of £10m in March last year.

It would be a mistake, however, to say that all of the operator's problems stem from the pandemic.

Brexit has also clearly contributed to its difficulties.

In the pre-pandemic and pre-Brexit period, P&O Ferries was carrying some two million units of freight per year, but that is understood to have fallen as trade in goods with the EU has fallen.

This will have affected the Hull-Rotterdam crossing in particular, and it is also understood that, with fewer Irish trucking firms using Great Britain as a "land bridge" to and from continental Europe, traffic on the Liverpool-Dublin crossing will have been hurt.

In its latest results, the company singled out the Northern Ireland protocol, part of the UK's post-Brexit trade deal with the EU, as having been problematic, potentially creating headaches on the Cairnryan-Larne crossing between Scotland and Northern Ireland.

But others in the industry believe that, with Northern Ireland's unique status as being both inside the UK and inside the EU's single market, this crossing ought to remain solidly profitable. Before the pandemic, there were up to seven daily crossings from Cairnryan to Larne, with almost a quarter of all roll-on-roll-off traffic to Northern Ireland coming via Larne.

A further millstone around the company's neck is the money that it owes to the Merchant Navy Ratings Pension Fund.

This industry-wide fund, which manages the retirement savings of some 25,000 seafarers, is sponsored by around 100 employers but P&O Ferries reportedly owes the fund more than any other sponsors.

The latest accounts published by the company recognised a liability of £146m owed to the fund.

P&O Ferries evidently feels that, as a result of all this, more cost reductions are now in order.

Some 800 employees have been handed redundancy notices which, when they have departed, will leave P&O Ferries with some 2,200 employees.

That, according to the company, will secure the future viability of the business.

The irony is that, when it acquired P&O Ferries, DP World knew the business reasonably well.

It had first bought P&O - arguably the most famous name in Britain's maritime industry - in 2006 for £3.33bn from under the nose of Hong Kong-based Hutchison Ports, owner of the Felixstowe and Harwich terminals in East Anglia and Temasek, Singapore's sovereign wealth fund, which had been building a stake in P&O.

At the time, P&O consisted not only of its ferries operations, but also owned 29 container terminals around the world, including Southampton and Tilbury in Essex.

Shortly afterwards, P&O Ferries was sold to DP World's parent and majority shareholder Dubai World, as DP World was at that time a focused container operator.

Despite fierce competition on the lucrative Dover-Calais crossing from the Le Shuttle service operated by Eurotunnel, the performance of P&O Ferries steadily improved, particularly after the collapse of its rival MyFerryLink - itself a business that had emerged from the ashes of the old SeaFrance - in 2015.

It reported record results for 2015, helped not only by the Dover-Calais route, but also by the ongoing strength of the P&O Ferrymasters logistics business.

But that very much proved to be a high water mark. Sales in the COVID-affected 2020 were less than half the £1bn that P&O Ferries had notched up five years earlier.

It is difficult to get a handle on the profitability, or otherwise, of the individual routes operated by P&O Ferries.

Traditionally, it has made just over one-third of its sales from the Dover-Calais crossing, while a quarter came from the Hull-Rotterdam, Liverpool-Dublin and Cairnryan-Larne crossings, with the remainder coming from P&O Ferrymasters.

Today's depressing news marks another chapter in the long-term decline of the cross-channel ferry industry - much of which, over the years, has been consolidated under the P&O Ferries banner.

The original Peninsular and Oriental Steam Navigation Company, founded in 1837, was once a major passenger liner operator that took thousands of "Ten Pound Poms" from the UK to Australia and New Zealand after the war.

It branched into cross-channel services in the 1960s, later buying the parent of Townsend Thoresen, whose vessel the Herald of Free Enterprise capsized in March 1987 with the loss of 193 lives.

The company recovered from that and nine years later it merged with the UK arm of the Swedish ferry operator Stena Line, which by then was the owner of SeaLink, the former ferries arm of the old British Rail. It confirmed P&O Ferries as the biggest player in the market.

But British tourists have more choice these days over where they go on holiday since airlines like Ryanair and easyJet - and, more recently Wizz Air - brought down the cost of air travel.

It is now a more competitive market than ever - as today's news confirms.

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The fold of P&O Cruises Australia signals the end of Australian-branded cruising

Analysis The fold of P&O Cruises Australia signals the end of Australian-branded cruising

In 1981 Australia was on the cusp of a recession that would usher in the Hawke and Keating years.

And one Aussie-branded company, P&O Cruises Australia, was selling the idea of escaping the rat race by taking to the high seas .

But now the brand is set to fold as the harsh economic realities of the 2020s take their toll.

Its parent company, the Miami-based Carnival, has decided it's too expensive to operate the brand in Australia.

There will be job losses in Carnival's Sydney office, and one of three ships under the P&O brand will be retired, with the other two absorbed into Carnival's fleet.

Griffith University's Cruise & Maritime researcher Johnnel Smith called the decision "heartbreaking". 

"It's sad news all-round," she said 

"Our beloved P&O Cruises will be leaving the Australian market."

It's understood P&O Cruises Australia will be absorbed by the Carnival Cruise Line brand.

"It's a cessation of the [Australian-branded] cruising," Ms Smith adds. 

"Basically Carnival is taking over all of the ships."

Restructure not uncommon in cruise industry 

To be clear, P&O Cruises Australia is not insolvent.

Ms Smith explains there's "lots of restructure" in the cruise industry, especially post-pandemic. 

"There's been a lot of restructuring – a lot of bigger cruise lines, you take over smaller ones," she says. 

"I wouldn't say [the business] is a bust.

"I would say it's an improvement."

Which is precisely how Carnival Corporation chief executive officer Josh Weinstein described the move.

"Given the strategic reality of the South Pacific's small population and significantly higher operating and regulatory costs, we're adjusting our approach to give us the efficiencies we need to continue delivering an incredible cruise experience year-round to our guests in the region," he said.

More competition in the cruise market 

The fundamental problem is P&O Cruises Australia has become, as far as US bosses are concerned, a high cost and uncompetitive operation.

Costs, including port fees and fuel, are relatively high in Australia and make it one of the most expensive regions to operate a cruise line.

Carnival told the ABC it viewed the Australian P&O brand as a drag on the overall business.

Or to put it bluntly, the business isn't turning a big enough profit for the company's American shareholders.

Between 10 and 20 jobs will be lost in Australia and Carnival says crew members will be assigned to other ships, although it's not clear where or how.

Competition was also an unwelcome factor for P&O, Ms Smith says. 

"This past cruise season we had Disney and Virgin Voyages come Down Under for the first time," she said. 

"And so when it comes to the level of competition taking place in the cruise market, Aussies are cruising, and all it means is that [you need to be] a bit more competitive [but] it takes cash to care."

"It costs a lot of money to stay competitive and to remain top of mind [for travellers]."

Fears for future itineraries

It's the end of an era for the popular brand which set sail from Sydney on December 23, 1932, on a seven-day itinerary calling at Brisbane and Norfolk Island.

The company's first permanent ship in Australia, called the "Fairstar" and heavily promoted as 'the fun ship', was part of the fleet for nine years until 1997.

The brand's fold has also led to doubts about the future of cruises across the Tasman Sea to New Zealand for many cruise goers, Ms Smith says.

"People are a bit concerned that, in addition to taking over this cruise line, that there are going to be changes to the itineraries," she said. 

"It's a major concern. 

"And especially also value for money because P&O does provide a lot of value for money for cruises."

Passengers booked onto P&O Cruises this year won't be affected, while guests booked for next year will have the option for a full refund.

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P&O Ferries: New legislation could lead to company shut down with loss of 2,000 jobs

‘we will be taking steps to protect all mariners who are working in uk waters and ensure that they are paid the living wage,’ says boris johnson, article bookmarked.

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New legislation to be brought in by the government this week could lead to the shutdown of P&O Ferries and affect international links operated by other firms.

P&O made 800 seafarers redundant on 17 March , intending to replace them with cheaper agency staff. The company has repeatedly said the decision – which contravened rules on consultation about job cuts – was the only alternative to closure.

The transport secretary, Grant Shapps , is expected today to tell P&O Ferries’ chief executive, Peter Hebblethwaite, to re-hire the sacked staff.

Last week Mr Shapps said: “We are going to make sure P&O have to U-turn on this.”

But the ferry firm boss has repeatedly said that the firm has lost £100m in a year – a rate of £3 per second – and that it will close unless it can reduce its cost base.

Mr Hebblethwaite told MPs last week: “We weren’t viable before, and I know that if we hadn’t made radical changes, the business would have closed.

“That would not have been 800 redundancies with substantial severance packages, that would have been 3,000 people losing their jobs.”

He said that the average wage of agency staff is £5.50 per hour. The rate is 42 per cent less than the national minimum hourly wage of £9.50, which takes effect on 1 April.

Currently P&O Ferries, whose parent company is DP World of Dubai, is losing £1m per day. No ships are sailing on the key routes between Dover and Calais and between Cairnryan and Larne. On the latter link, one of two P&O ships has been detained in the port of Larne due to safety concerns.

P&O Ferries is expected to resume sailings between the Scottish and Northern Irish ports imminently, as well as on the Hull-Rotterdam link. It is already operating between Liverpool and Dublin – a route crewed by lower-cost agency staff.

Any closure would lead to more than 2,000 additional job losses and a sharp cut in capacity for passengers and freight ahead of Easter.

Ministers will bring in legislation this week to make ferry firms serving UK ports pay at least the national minimum wage to seafarers.

This would force Irish Ferries – whose crew are employed on agency contracts – to increase its pay on ships connecting Dover with Calais – as well as two links to Ireland, Holyhead-Dublin and Pembroke with Rosslare.

Low-cost competition from Irish Ferries was raised as a concern with Mr Shapps by the chief executive of DP World at a meeting in Dubai last November.

Many other shipping firms, including cruise lines, will be compelled to pay crew at least £9.50 per hour while they are in British waters and ports.

On 23 March the Prime Minister told Parliament: “We will be taking steps to protect all mariners who are working in UK waters and ensure that they are paid the living wage.”

This will particularly affect firms such as Southampton-based P&O Cruises , which is unconnected with the ferry company.

The standard business model in the cruise industry is to employ agency staff at below minimum wage rates in many countries.

The Independent has asked the Department for Transport what arrangements the government would make to help the 2,000-plus existing staff of P&O Ferries if the firm were to close, as well as for passengers and freight on the affected routes.

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Who owns p&o ferries when dp world bought the firm and why p&o cruises is unaffected by cuts announcement, p&o ferries is owned by dp world, a logistics company based in dubai that bought the firm for the second time in 2019.

P&O Ferries fired 800 members of staff  on Thursday, sparking outrage from politicians and workers alike.

Unions threatened legal action against the firm, describing the move as “one of the most shameful acts in the history of British industrial relations”.

The operator said it has suspended  ferries  for “for the next few days,” and that crew members will be given “enhanced” compensation packages .

Transport minister Robert Courts later said that passengers should expect disruption to ferry routes in coming days, with P&O likely to suspend all services for as long as 10 days.

Workers have staged sit-in protests on board grounded ships, with coaches carrying agency workers hired to replace them are parked near ships at ports.

Who owns P&O Ferries?

P&O Ferries is owned by DP World, a logistics company based in Dubai and owned by the prominent Emirati businessman Sultan Ahmed bin Sulayem.

DP World bought the company back from Dubai World in February 2019, having initially owned it for a short time in 2006.

P&O began operating ferries in the 1960s – the cruise line P&O Cruises is unaffected by the developments as it is a separate business owned by Carnival UK.

DP World was criticised for paying a £270 million dividend to shareholders at the end of April 2020 while P&O Ferries cut around 1,100 jobs as demand for travel collapsed due to the coronavirus pandemic.

In its statement, P&O said that its parent company had been covering £100 million of losses year on year, which it described as “not sustainable”.

The ownership of P&O Ferries has been the focus of some of the criticism directed at the firm after its announcement on job losses

Mark Dickinson, general secretary of maritime union Nautilus International, said: “The news that P&O Ferries is sacking the crew across its entire UK fleet is a betrayal of British workers.

“It is nothing short of scandalous given that this Dubai-owned company received millions of pounds of British taxpayers’ money during the pandemic.”

Conservative MP Huw Merriman, who chairs the Commons Transport Select Committee, described the sacking of staff as “appalling”.

He said: “The Government should make it clear that it will not condone this behaviour. P&O’s parent company, DP World, must understand that British customers won’t do business with companies that treat their staff with contempt.”

What has P&O Ferries said?

A spokesperson for P&O Ferries said the company was currently not a “viable business” in a statement on Thursday.

The firm said: “P&O Ferries plays a critical role in keeping trade flowing, supply chains moving, and connecting families and friends across the North and Irish seas and the English Channel.

“We have been at the heart of this service for years and we are committed to serving these vital routes.

“However, in its current state, P&O Ferries is not a viable business. We have made a £100m loss year on year, which has been covered by our parent DP World. This is not sustainable.

“Our survival is dependent on making swift and significant changes now. Without these changes there is no future for P&O Ferries.

More on P&O Ferries

“These circumstances have resulted in a very difficult but necessary decision, which was only taken after seriously considering all the available options.

“As part of the process we are starting today, we are providing 800 seafarers with immediate severance notices and will be compensating them for this lack of advance notice with enhanced compensation packages.

“In making this tough decision, we are securing the future viability of our business which employs an additional 2,200 people and supports billions in trade in and out of the UK.

“And we are ensuring that we can continue serving our customers in a way that they have demanded from us for many years.”

What has the reaction been?

Mick Lynch, general secretary of the Rail, Maritime and Transport union, said: “We are seeking urgent legal action and are again calling for the Government to take action to stop what is fast turning into one of the most shameful acts in the history of British industrial relations.”

P&O workers in Dover clashed with motorists after blocking a road close to the port in protest at being sacked. Dozens of employees who lost their jobs stood on the road with banners and flags saying “Stop the P&O jobs carve up”.

One man, who has worked in ferry engine rooms since the 1980s, told the PA news agency: “I’m fuming, to be honest with you. I’ve known people who’ve been with the firm for years – this is no way to treat people.

“It was just a short message this morning saying you’ve all lost a job, basically, all this service for nothing.”

Shadow transport secretary Louise Haigh said employers “cannot be given free rein to sack workers and replace them with agency staff”.

Transport Secretary Grant Shapps said his officials “will be having urgent discussions with P&O about the situation, particularly of concern for their workers”.

Manuel Cortes, Transport Salaried Staffs Association general secretary, said: “This is absolutely despicable behaviour from P&O, designed to reduce pay and worsen terms and conditions for their staff.

“They should be ashamed of themselves, treating loyal and hardworking staff like this.”

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I'm booked on a P&O Cruise but I'm worried about my trip after hearing about the ferry sackings: Are they connected and is my holiday at risk?

By Emilia Shovelin For Thisismoney.Co.Uk

Updated: 05:10 EDT, 22 April 2022

View comments

My friends and I have a trip booked in May with P&O Cruises, travelling around Scandinavia for two weeks.

It has been postponed and rescheduled multiple times since 2020, so we are keen to finally get our holiday - but having seen recent news about P&O Ferries sacking many of its staff, I am concerned about whether the trip can go ahead.

First of all, are P&O Ferries and P&O Cruises connected?

It appears that trips on P&O Ferries are all cancelled and customers are being diverted to other carriers, causing long delays in many cases.

P&O Cruises, owned by Carnival UK, has no connection to P&O Ferries which is owned by DP World. It said its holidays would not be impacted by the mass-sackings of staff

If the two firms are part of the same parent company, I also feel morally dubious about paying money to a firm that has treated its staff so badly.

Can you explain what the situation is here and whether our holiday is likely to be affected? M.L, Leicestershire

Emilia Shovelin of This is Money replies:  Before we go any further, the first thing that needs to be said is that, aside from the shared name, P&O Cruises and P&O Ferries are two separate, unconnected entities, owned and operated by different parent companies.

When you booked your dream holiday in early 2020, none of us could have foreseen the next two years of constant rescheduling and Covid cancellations.

When restrictions eased, it seemed only natural to start to get excited for our holidays again.

But for those planning to travel by boat, the news of P&O Ferries letting go around 800 staff members in March has potentially put travel plans in jeopardy yet again. 

What happened to P&O Ferries?

On March 17, P&O Ferries handed 800 members of staff immediate severance notices to replace them with agency staff who would be paid 50 per cent less.

They subsequently called all of their ships back to port, leaving thousands of customers stranded abroad.  

Bosses said the job losses were necessary to keep P&O Ferries afloat after losses of £100million each year over the past two years. 

Its Dover to Calais services remain suspended, but customers are being transferred to other operators. 

Since then, lots of holidaymakers have been concerned about what this mass-sacking means for their trips.

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Will P&O Cruises be impacted by the Ferries sacking?

Other than the damage from people being worried by the name, there is no impact on P&O Cruises from the P&O Ferries debacle. The two companies are totally unconnected, as we explained above.

P&O Ferries is owned by DP World, which is an Emirati logistics company based in Dubai, while P&O Cruises is owned by Carnival, a British-American cruise operator. 

There has been enough customer concern, however, that P&O Cruises has ebenn taking out full page newspaper adverts to reassure customers and explain it has nothing to do with P&O Ferries. 

The name P&O comes from the company it used to be a part of, which was originally called the Peninsular and Oriental Steam Navigation Company, dated from the 19th century. 

P&O first introduced passenger services in 1844 with the launch of a cruise from Southampton to the Mediterranean, and it began operating ferries in the 1960s.

The brand P&O Ferries was created in 2002 through mergers within P&O, but in 2006, the P&O Group, including P&O Ferries was sold to DP World, while P&O Cruises was taken over by Carnival UK.

As a result, the two brands are run completely independently, and while connected historically, the operations at P&O Ferries should not impact P&O Cruises.

A spokesperson for P&O Cruises told This is Money: 'Historically the two companies were owned by the P&O Steam Navigation Company (P&OSNCO) but were run separately.

'In 2000 the cruises division was de-merged from P&OSNCO into a new business which included P&O Cruises and Princess Cruises. 

'This new business merged with Carnival Corporation in 2003 to create a worldwide portfolio of market-leading cruise brands.'

So with regards to your concern that you would rather not financially support a company which sacked hundreds of employees, you can rest assured knowing that P&O Cruises and P&O Ferries' only shared feature is the legacy of their brands. 

P&O Ferries made a controversial decision to sack 800 staff members to reduce costs after losing £200m in the last two years 

Is there a risk of my cruise being cancelled? 

Although it seems unlikely that our reader's holiday will be affected by what is happening at P&O Ferries, the last two years have taught us that it pays to prepare for the worst when it comes to travel plans being cancelled.  

Unfortunately, we are becoming more used to having our holidays and plans interrupted, rescheduled, or downright cancelled. 

While many firms will offer vouchers or refunds for trips cancelled by events outside the customer's control, these can be a headache to secure and the process can be a long one. 

If you are concerned about your holiday getting cancelled for reasons outside of your control, it's best to ensure you are protected. 

Depending on the type of trip, that could mean making sure to book ATOL-protected package holidays, or taking out comprehensive travel insurance and checking the policy small print carefully. 

Share or comment on this article: Will my P&O Cruise be affected by P&O Ferries sackings?

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Cruise And Ferry

Crew crisis hits P&O Cruises as company is forced to cancel sailings

Carnival Corp subsidiary says it is unable to secure enough seafarers to operate all of its ships

UK-based P&O Cruises has had to scrub seven cruises scheduled for one of its ships after being forced to redeploy its crew to meet manpower shortages on other vessels.

The Carnival Corp subsidiary said over the weekend that it was delaying the return to service of the recently reactivated 84,300-gt cruise ship Arcadia (built 2006) until 5 July due to “crew availability issues”.

“The impact of Covid upon airlines and general disruption has necessitated the cancellations as we need to move crew from Arcadia to other ships in the fleet,” the company said.

P&O Cruises did not disclose the types of seafarers it is struggling to bring on board — cruise ship crews are divided into deck, technical and hotel departments — but it highlights a problem for the revival of the cruise sector following a two-year shut down that left most its employees unemployed.

A senior executive at a Manila-based manning agency that supplies crew to the cruise industry said the sudden big demand cruise crews as ships are being reactivated for the summer season has created a tight labour market.

Speaking on the condition of anonyminity as she was not authorised to talk to the media, the manning agency representative said that many of the seaferers who had been laid off when the cruise sector shut down have “moved on with their lives”.

Deck and engine crew members, she said, have moved to other types of ships, while hotel department seafarers have found alternative employment ashore and are reluctant to return.

While qualified deck and engine staff are hard to find, she said that there is no shortage of willing new candidates for hotel department positions.

However, this has led to a bottlenecks at institutions in the Philippines that provide International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) training and certification, which is required by all seafarers no matter what their position on board.

Cruise industry sources said the war in Ukraine has exacerbated the situation as Russia and Ukraine were also important source markets for cruise crews but are now almost impossible to recruit seafarers from.

This is putting further pressure on other crewing source markets in Eastern Europe and Asia, where like in the Philippines, experienced seafarers have moved on to other types of ships or left the industry altogether.

P&O Cruises is not affiliated in any way with the DP World-owned P&O Ferries, which recently laid off hundreds of UK seafarers in an effort to replace them with cheaper contract workers.

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P&O Cruise Australia to shut down after almost a century of voyages

One of Australia’s most famous companies will be no more after a shock announcement today.

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One of the most famous cruise liners to sail around Australia will be no more, with the shock announcement that P&O Cruises Australia will cease to exist from early 2025.

The family-friendly cruise brand will wind up operations after almost a century of voyages, its parent company Carnival Cruises announced on Tuesday.

Avid cruisers have told news.com.au they fear the “Aussie spirit” on board the beloved brand will be lost, with some fearing their holidays will never be the same.

The P&O Australia brand will instead be folded into Carnival Cruise Line, which has sailed across the South Pacific since 2013.

While the Pacific Encounter and Pacific Adventure ships, which are currently under the P&O banner, will carry on sailing under the Carnival name, the Pacific Explorer ship will no longer operate in Australian waters.

A spokesperson for Carnival Cruise said current itineraries booked with P&O Cruises Australia will “operate business as usual” and guests will be “notified in the coming days” of any changes to future bookings as a result of the announcement.

Josh Weinstein, chief executive officer of Carnival Corporation & plc said the operating costs and the South Pacific’s “small population” had weighed in on the decision.

“P&O Cruises Australia is a storied brand with an amazing team, and we are extremely proud of everything we have accomplished together in Australia and the broader region,” Mr Weinstein said.

“However, given the strategic reality of the South Pacific’s small population and significantly higher operating and regulatory costs, we’re adjusting our approach to give us the efficiencies we need to continue delivering an incredible cruise experience year-round to our guests in the region.”

P&O Cruises Australia will continue operations until March next year before Carnival Cruises absorbs P&O customers on board one of their ships: the Sydney-based Carnival Splendour and Carnival Adventure, and Brisbane-based Carnival Encounter and Carnival Luminosa .

According to The Daily Telegraph , Christine Duffy — president of Carnival Cruise Line — travelled in from America ahead of the announcement, warning there would be job losses as a result of the decision.

“This is not an easy decision for the company to shut down or sunset the P&O Australia brand,” she said.

“We will continue to maintain an office here in Sydney. We don’t want to get into the numbers of people this impacts.”

Ms Duffy said there will be no immediate changes to the way passengers typically enjoy and experience a P&O ship, with “the same crew, the same entertainers, the same themed cruises and the same dining,” she said.

It is understood alongside the rebrand, some of the biggest updates for passengers will be technology upgrades and other small changes to the ships.

“The most notable change will be the availability of our popular HubApp, enabling guests to make online dining and excursion reservations, request food and beverage delivery, and chat with other guests, among other features,” Ms Duffy explained.

“P&O Cruises Australia guests will also be invited to participate in Carnival’s loyalty program and promotional offerings specific to Carnival ships sailing in the region.”

It is understood that Carnival’s longstanding company executive Peter Little will

continue to lead the team in Australia.

As a much loved brand — especially among families — social media users were quick to share their sadness at the cruise brand’s closure.

“RIP P&O,” one wrote.

“So many memories on those ships,” another added.

“End of an era … Going on one this Friday better make the most of it,” another added.

“So sad to see the end of P&O – and especially sad to likely see the end of super cheap cruise prices.”

Avid Sydney cruiser Honida Beram who runs cruising blog Cruising with Honey and has been on more than two dozen P&O cruises in her lifetime.

Speaking to news.com.au, Ms Beram said the closure of the cruise brand was the “end of an era” and a “massive loss” for Australians.

“The P&O legacy in Australia is synonymous with cruising in Australia. This is a huge loss, and the Aussie spirit will be lost in this amalgamation,” she said.

“P&O has made cruising accessible to families and for those at the lower end of market … given Aussies ability to holiday on a low budget and with low organisation.

“Carnival is the same price point but a very different type of cruising.”

Ms Beram said the biggest loss for her with the “Australian flare” the P&O brand offers to cruisers.

“I’m not sure how they [Carnival] will mirror that,” she explained.

“I think the P&O brand will be lost. When you go on a P&O there’s an instant connection and a laid back approach. You feel at home and comfortable. 

“Carnival is a very different product to P&O. It’s a different vibe [so] it seems like there will be some mismatch there to bring people who are loyal P&O cruisers to go to Carnival.

What happens to current P&O Australia bookings

It’s perhaps the biggest question on the lips of many P&O cruisers who have bookings lingering in the next year or two.

What does this mean for current and future guest bookings made with P&O?

According to Carnival Cruises, business is “operating as usual and “there are no changes to any itineraries in 2024.”

While Pacific Explorer is leaving the fleet in February 2025, it is understood all guests with bookings that are affected are being notified this week.

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“A small number of itineraries will be impacted on Pacific Encounter and Pacific Adventure as we transition the ships into Carnival Cruise Line operations,” the statement read.

“Our valued guests will be notified in coming days of any changes to bookings as a result of this announcement.”

A spokesperson from Carnival Cruises confirmed that guests booked to travel on the impacted itineraries have been offered a full refund or they can choose a Future Cruise Credit with bonus on-board spending money (value depend on length of cruise booked).

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P&O Ferries makes 800 staff redundant after cancelling ships and kicking passengers off

P&O Ferries, which employs around 3,000 people and runs 20 ships, has just unveiled mass lay-offs for UK workers in order for the firm to survive and be a 'viable business'

• 12:05, 17 Mar 2022
• Updated 09:01, 18 Mar 2022

P&O Ferries has sacked 800 employees over video call and plans to replace them with cheap agency staff after racking up losses of £100million a year.

The move has caused furore among union bosses and politicians, with some members of staff refusing to leave one of the ferries in protest and face being hauled off by security staff wearing balaclavas .

The RMT union said the issue was "fast turning into one of the most shameful acts in the history of British industrial relations".

Are you a P&O worker or passenger affected by this crisis? Message [email protected]

A woman whose son and husband work for P&O slammed bosses for the "highly immoral" and "insulting" way hundreds of crew members were made redundant to make way for cheaper agency workers.

Downing Street also condemned the way the 800 members of staff were informed of the company's decision .

Labour MP Diana Johnson told the Commons today the mass lay-offs were "reminiscent of the worst Thatcherite policies".

She told MPs: "I understand from the RMT union that these agency staff, mainly from overseas, are in buses on the quayside with a security firm... wearing balaclavas and taking British crew off these ships."

In a pre-recorded video announcing mass redundancies, staff were told: "The company has made the decision that its vessels going forward will be primarily crewed by a third party crew provider.

"Therefore I am sorry to inform you that this means your employment is terminated with immediate effect on the grounds of redundancy.

The ferry firm has temporarily suspended its services , causing massive delays at ports in Dover and Hull, with customers told to use rivals instead.

The company employs 3,000 workers and has 20 ships.

A P&O Ferries spokesperson said the firm needed to lay off 800 of its workers due to losing £100million year on year.

The spokesperson said P&O is "not a viable business" as it is.

They added: "Our survival is dependent on making swift and significant changes now. Without these changes there is no future for P&O Ferries.

"These circumstances have resulted in a very difficult but necessary decision, which was only taken after seriously considering all the available options.

"As part of the process we are starting today, we are providing 800 seafarers with immediate severance notices and will be compensating them for this lack of advance notice with enhanced compensation packages. "

In Hull Eugene Favier, the captain of ferry The Pride of Hull, was hailed as a hero when he drew up the gangplanks, sealing himself and staff inside, and refused to let anyone aboard for several hours.

The crew later left the ship when the stand off came to an end.

RMT organiser for Yorkshire and Lincolnshire Gaz Jackson hailed the captain for his decision to stop people coming aboard "for the safety of the crew."

P&O runs 30,000 voyages a year across the English Channel, North Sea and Irish Sea.

The firm has suspended sailings "for the next few days".

It posted on Twitter : "P&O Ferries services are unable to run for the next few days. We are advising travellers of alternative arrangements."

The general secretary of the RMT, Mick Lynch, said: "We have instructed our members to remain onboard and are demanding our members across P&O's UK operations are protected, and that the Secretary of State intervenes to save UK seafarers from the dole queue."

The Department for Transport (DfT) is having "urgent discussions" with P&O, according to the official spokesperson for the prime minister.

The spokesperson added: "It does obviously cause concern for P&O workers, the company is not ceasing to operate and DfT is speaking with them to understand what the potential impact is so there will be further updates later on.”

The Prime Minister’s official spokesman said maritime minister Robert Courts had raised the issue with the company’s chief executive.

The spokesman added: “The way these workers were informed was completely unacceptable.

“Clearly the way that this was communicated to staff was not right and we have made that clear.

“Our sympathies are with these hard-working employees affected during this challenging time who have given years of service to P&O.”

P&O staff on one ferry are reportedly staging a "sit-in" protest on the firm's Pride of Rotterdam ship, in Hull.

The mother of a P&O worker told a Mirror sister title that P&O staff were told they had "five minutes to get their stuff and get off the ships".

Security staff with balaclavas and handcuffs are bracing to remove staff from vessels if they refuse to leave.

Labour MP Diana Johnson said: "This is shameful and it goes against all norms of fair and reasonable behaviour and it's clear that foreign ratings will be employed on terms that are less favourable than our current UK seafarers are.

"And this is about a race to the bottom in terms and conditions reminiscent of the worst Thatcherite policies."

Scottish Trades Union Congress general secretary Roz Foyer said: "This is a damning, outrageous move from P&O and we offer our full support to the RMT union and all their members."

Earlier today the company told its staff by email to expect a major announcement.

The email said: "We will be making a major company announcement today which, with the support of our shareholder DP World, will secure the long-term viability of P&O Ferries.

"To facilitate this announcement all our vessels have been asked to discharge their passengers and cargo and standby for further instructions.

"This means we're expecting all our ports to experience serious disruption today so please bear with us and we will give further information in an all-colleague announcement later today.

"If you're in a customer facing role further information will follow separately on how we would like you to work with our customers.

"Thank you for your patience and support."

This morning a P&O spokesperson denied claims the firm was going bust.

The P&O spokesperson added: "We have asked all ships to come alongside, in preparation for a company announcement.

"Until then, services from P&O will not be running and we are advising travellers of alternative arrangements."

In January The Mirror reported that the billionaire owners of P&O Ferrie s stood accused of splashing out millions sponsoring a golf contest while ignoring calls to fund the firm's pension pot .

P&O Ferries cut around 1,000 staff during the pandemic, while seeking Covid bailouts.

P&O is owned by logistics firm DP World, which is in turn owned by Dubai firm Port & Free Zone World.

Michael Foote, at travel insurance comparison site, Quotegoat.com, said: “It’s distressing news for P&O Ferries employees and their families. Now is the time to check what redundancy rights you have and dig out any income or mortgage protection policies you hold.

“If you’ve got tickets booked with P&O Ferries and they don’t offer you alternative transport, it’s a good idea to contact your travel insurance company. Not all policies will cover you, but it’s worth reaching out.

“If you paid by debit card, you may be able to make a claim through your Mastercard and Visa Chargeback scheme.

“If you paid with a credit card, you may also be able to claim under section 75 of the Consumer Credit Act 1974 . You’ll need to have spent more than £100 on your tickets.

“If you booked with a tour operator and they are a member of ABTA, your money should be protected.”

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