A new company was created, P&O Princess Cruises, which was independent of P&O and consisted of P&O Cruises, P&O Cruises Australia, Princess Cruises, AIDA Cruises and later A'Rosa Cruises and Ocean Village.Later in 2003, P&O Princess Cruises merged with Carnival Corporation to form Carnival Corporation & plc, the world's largest cruise company, with a portfolio of eleven cruise lines, including P&O Australia. In October 2007, the oldest ship of Princess Cruises' fleet, the Regal Princess, was transferred to P&O Australia.The Pacific Sky joined the P&O Australia fleet in 2001 and was sold to Pullmantur Cruises in 2006, becoming their Sky Wonder. After one month of refurbishment, she entered service as the Pacific Dawn.
She underwent refurbishment in Singapore and has started sailing as Ocean Dream from .
On 30 October 2008, Carnival Corporation & plc announced the closure of their United Kingdom-based Ocean Village brand.
Coinciding with this closure, both Ocean Village ships were transferred to the fleet of P&O Cruises Australia.
Ocean Village Two joined the P&O Australia fleet in December 2009 as Pacific Jewel.
Ocean Village followed in late 2010 as "Pacific Pearl".
In October 2009, P&O Cruises offered assistance to the Red Cross in relief efforts for earthquake and tsunami victims in the South Pacific by donating 740 pillows with the promise of mattresses, more pillows and hundreds of light bulbs to be given a later date.
In December 2009, the Pacific Dawn was moved from Sydney to its new home port at Brisbane.
This was done to allow the Pacific Jewel and after its acquisition the Pacific Pearl to be based in Sydney.
P&O Cruises Australia is a British-American owned cruise line with corporate headquarters at Carnival House in Southampton, England and operational headquarters in North Sydney, New South Wales, Australia.