India, Jan. 23 -- A cruise line in Australia came under fire after passengers were left horrified by the costumes worn by the staff. The employees walked out in white costumes resembling the gear worn by the white supremacist group Ku Klux Klan. Though the company denied the allegations and issued an apology, people are unconvinced.

The incident occurred on a P&O Cruises Australia vessel on December 19 during a Christmas-themed event. In a video, now going viral, a group of people dressed in white, with conned hats, are seen walking behind an individual dressed as Santa Claus.

"There was a lot excitement [for the competition] then it all went quiet [when they walked out]," a passenger aboard the cruise told Daily Mail Australia. "The la...