Continental's capacity reductions....press release

[General Lee]

Press ReleaseSource: Continental Airlines

Continental Announces Details of Capacity Reductions
Thursday June 12, 11:30 am ET
HOUSTON, June 12 /PRNewswire-FirstCall/ -- Continental Airlines (NYSE: CAL - News) released to its more than 45,000 employees the following employee bulletin.

EMPLOYEE BULLETIN NO. 10

CO today released details of the reductions in flying that were announced last week. These actions are among the many difficult steps CO is taking to respond to record-high fuel prices that are creating unprecedented challenges for the airline industry.
Starting in September, at the conclusion of the peak summer season, CO will reduce capacity from its hubs, resulting in an 11 percent decline of domestic mainline capacity (available seat miles, or ASMs) in the fourth quarter, compared to the same period last year. The changes will result in a 6.4 percent decline in consolidated (mainline plus regional) capacity in the fourth quarter, compared to the same period last year.

The following table shows the estimated capacity reductions by hub, including certain capacity changes effective prior to Sept. 3:
4th Quarter Total and Year-Over-Year ASM Comparison by Hub (millions) 4Q - 08 ASM Hub Est. ASMs Decrease % Decrease Houston 11,208 (960) (7.9%) Newark Liberty 13,251 (433) (3.2%) Cleveland 1,462 (220) (13.1%) Guam 799 (219) (21.5%) Total 26,720 (1,832) (6.4%)

As of Sept. 3, 2008, CO will be reducing frequencies in certain markets and will also discontinue service between its hubs shown below and the following cities or airports:

Houston George Bush Intercontinental: Cali, Colombia, Chatanooga, Tenn., Guayaquil, Ecuador, Hartford, Conn., Monclova, Mexico, Montgomery, Ala., Oakland, Calif., Palm Springs, Calif., Reno, Nevada, Sarasota, Fla., Tallahassee, Fla., and Washington - Dulles.

Newark Liberty: Albuquerque, N.M., Cologne, Germany, Santiago, Dominican Republic, Sarasota, Fla., Salt Lake City, Utah, San Jose, Calif., and Tucson, Ariz.

Cleveland Hopkins: Austin, Texas, Birmingham, Ala., Charleston, S.C., Charleston, W. Va., Cincinnati, Ohio, Des Moines, Iowa, Detroit, Mich., Green Bay, Wis., Greensboro, N.C., Lexington, Ky., Little Rock, Ark., Memphis, Tenn., Nashville, Tenn., Norfolk, Va.; Oklahoma City, Okla., Omaha, Neb., Ottawa, Canada, San Antonio, Texas, San Diego, Calif., Sarasota, Fla., Savannah, Ga., Toledo, Ohio, Tulsa, Okla., Washington- Dulles.

Guam A.B. Won Pat: Denpasar, Bali, Indonesia.


As a result of the discontinued service, the following stations will close:

Denpasar, Bali, Indonesia Oakland, Calif. Cali, Colombia Palm Springs, Calif. Chattanooga, Tenn. Reno, Nev. Cologne, Germany Santiago, Dominican Republic Green Bay, Wis. Sarasota, Fla. Guayaquil, Ecuador Tallahassee, Fla. Monclova, Mexico Toledo, Ohio Montgomery, Ala.

As announced last week, CO will eliminate 3,000 positions across all work groups, including management positions, through voluntary and involuntary separations, with the majority of them expected to be through voluntary programs. The specific number of involuntary furloughs will not be determined until August, after the company knows how many co-workers elect to take advantage of voluntary programs. The company will work with furloughed/terminated co-workers to provide information on benefits and other employment opportunities available to them. In the case where suppliers and vendors are affected by capacity reductions, CO will work with them to determine if there are other job opportunities for their affected employees.





Bye Bye--General Lee

 

[bravodude]

Press ReleaseSource: Continental Airlines

Continental Announces Details of Capacity Reductions
Thursday June 12, 11:30 am ET
HOUSTON, June 12 /PRNewswire-FirstCall/ -- Continental Airlines (NYSE: CAL - News) released to its more than 45,000 employees the following employee bulletin.

EMPLOYEE BULLETIN NO. 10

CO today released details of the reductions in flying that were announced last week. These actions are among the many difficult steps CO is taking to respond to record-high fuel prices that are creating unprecedented challenges for the airline industry.
Starting in September, at the conclusion of the peak summer season, CO will reduce capacity from its hubs, resulting in an 11 percent decline of domestic mainline capacity (available seat miles, or ASMs) in the fourth quarter, compared to the same period last year. The changes will result in a 6.4 percent decline in consolidated (mainline plus regional) capacity in the fourth quarter, compared to the same period last year.

The following table shows the estimated capacity reductions by hub, including certain capacity changes effective prior to Sept. 3:
4th Quarter Total and Year-Over-Year ASM Comparison by Hub (millions) 4Q - 08 ASM Hub Est. ASMs Decrease % Decrease Houston 11,208 (960) (7.9%) Newark Liberty 13,251 (433) (3.2%) Cleveland 1,462 (220) (13.1%) Guam 799 (219) (21.5%) Total 26,720 (1,832) (6.4%)

As of Sept. 3, 2008, CO will be reducing frequencies in certain markets and will also discontinue service between its hubs shown below and the following cities or airports:

Houston George Bush Intercontinental: Cali, Colombia, Chatanooga, Tenn., Guayaquil, Ecuador, Hartford, Conn., Monclova, Mexico, Montgomery, Ala., Oakland, Calif., Palm Springs, Calif., Reno, Nevada, Sarasota, Fla., Tallahassee, Fla., and Washington - Dulles.

Newark Liberty: Albuquerque, N.M., Cologne, Germany, Santiago, Dominican Republic, Sarasota, Fla., Salt Lake City, Utah, San Jose, Calif., and Tucson, Ariz.

Cleveland Hopkins: Austin, Texas, Birmingham, Ala., Charleston, S.C., Charleston, W. Va., Cincinnati, Ohio, Des Moines, Iowa, Detroit, Mich., Green Bay, Wis., Greensboro, N.C., Lexington, Ky., Little Rock, Ark., Memphis, Tenn., Nashville, Tenn., Norfolk, Va.; Oklahoma City, Okla., Omaha, Neb., Ottawa, Canada, San Antonio, Texas, San Diego, Calif., Sarasota, Fla., Savannah, Ga., Toledo, Ohio, Tulsa, Okla., Washington- Dulles.

Guam A.B. Won Pat: Denpasar, Bali, Indonesia.


As a result of the discontinued service, the following stations will close:

Denpasar, Bali, Indonesia Oakland, Calif. Cali, Colombia Palm Springs, Calif. Chattanooga, Tenn. Reno, Nev. Cologne, Germany Santiago, Dominican Republic Green Bay, Wis. Sarasota, Fla. Guayaquil, Ecuador Tallahassee, Fla. Monclova, Mexico Toledo, Ohio Montgomery, Ala.

As announced last week, CO will eliminate 3,000 positions across all work groups, including management positions, through voluntary and involuntary separations, with the majority of them expected to be through voluntary programs. The specific number of involuntary furloughs will not be determined until August, after the company knows how many co-workers elect to take advantage of voluntary programs. The company will work with furloughed/terminated co-workers to provide information on benefits and other employment opportunities available to them. In the case where suppliers and vendors are affected by capacity reductions, CO will work with them to determine if there are other job opportunities for their affected employees.





Bye Bye--General Lee

I wonder why they are cutting some international flights. I thought those were supposed to be money makers

 

[donvag]

I remember that when I worked at COex the Cologne flight used to be in a 757 with 40 held seats coming back to EWR. What is the point of having a plane full of gas with 40 held seats?

 

[contrail67]

Wonder if this is pre-merger trimming....I still don't think that it is just chance they announced capacity cuts 24 hours after UAL did. Something is up.

 

[dudemize]

A dude in my squadron just got his furlough letter. I can't remember what the effective date was....a couple months from now I think.

 

[lookin4better]

Wonder if this is pre-merger trimming....I still don't think that it is just chance they announced capacity cuts 24 hours after UAL did. Something is up.

of course I have nothing to back this up but a hunch....however,I agree, something is up.

 

[zonker]

A dude in my squadron just got his furlough letter. I can't remember what the effective date was....a couple months from now I think.

Wrong. No furloughs have been announced.

 

[Kugelblitz]

Not everybody who is cutting capacity is necessarily in the process of merging with someone. I know a lot of people are hoping that we will merge with UAL, but I honestly don't think that is going to happen. Like USair, the books on UAL scared our people off and that is likely the end of any merger issues.

The marketing alliance, perhaps, but I sincerely doubt anyone wants to marry UAL at this point. Analysts are beginning to pull back on their consolidation rhetoric and are now adding in the same sentence, 'liquidation' as a possible outcome for the future of some companies in the industry.

I don't wish that on UAL or anyone, but given the impossibility of merging two companies seniority lists, and given the USAPA/USair situation and the fact that UAL has more pilots than us, trust me, we CAL pilots will shut this airline down rather than just hand our jobs over to someone we were a white knight too, like the USair/ AM West deal.

A harsh post, and I am sorry for that, I am not meaning to 'flamebait'. But I can honestly tell you that is the view from the cockpit I have observed these last few months. ALPA merger policy simply doesn't exist, much like ALPA as a national union is a fallacy. There will be no trusting national to properly adjudicate a merger with anyone.

 

[BLUE BAYOU]

Most airlines will be waiting until September to reduce or remove capacity.

 

[MountainFreak]

Interesting times. FWIW, I do believe that CAL turned down UAL over the books. However, USAir didn't turn down UAL, it was the other way around.
Mostly due to union pressure over the dysfunctional pilot group at US.

 

[dudemize]

Wrong. No furloughs have been announced.

Well you would know better than me. I'm the last person who wants to start rumours. I should have known better, the info was from my wife talking to his wife.

 

[CALDC9]

I remember that when I worked at COex the Cologne flight used to be in a 757 with 40 held seats coming back to EWR. What is the point of having a plane full of gas with 40 held seats?

Because they need all that fuel + more. CAL always sizes their Intl flights based off of how many BF seats they can sell.Stopped too many times back to EWR. Nice city.

 

[Paul R. Smith]

So much for CLE expansion. I always kind of hoped it would pan out there for me.

CLE took it on the chin.

 

[BID]

Well you would know better than me. I'm the last person who wants to start rumours. I should have known better, the info was from my wife talking to his wife.

thanks for setting the record straight! I was like where do people come up with this?

Regarding capacity cuts, cash is king! I also noticed the cuts in international routes. not all international routes are money makers. United and US Airways both delayed international routes to Asia, citing fuel cost.

I wonder if other airlines will cut even more capacity? I am also surprised Delta, and SWA Airlines plan to hire.

 

[Ex737Driver]

Cash is king. We somehow managed to increase our cash and cash equivalents from $2.39B in the first quarter to $3.30B in the second quarter. All of this was done while hedging almost 50% of our fuel costs for the remainder of the year.