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CAL to sell CALEX, pilots concerned

Prop Trash

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SALE OF CONTINENTAL EXPRESS RAISES JOB CONCERNS AMONG CONTINENTAL PILOTS

HOUSTON (02/25/02) — The pilots of Continental and Continental Express Airlines have every right to be concerned about the impending sale of Continental Express, according to Capt. Pat Burke, Chairman of the Continental Master Executive Council of the Air Line Pilots Association (CAL ALPA).

Although Continental postponed an initial public offering (IPO) of
Continental Express stock after Sept. 11, 2001, it announced today (Monday, Feb. 25, 2002) that it intends to continue pursuing a strategy of separating the ownership of Continental and Continental Express.

Continental pilots currently are contractually protected from job loss by a “Flow-Through Agreement” that gives them the right to move down to positions at Continental Express if they are furloughed from Continental. Currently, 233 furloughed Continental pilots are flying for Continental Express. During
the last five years, the same agreement has provided Continental Express pilots with a career path to become Continental pilots.

The pilots’ concern is that, once Continental Express is spun off, the Flow-Through Agreement will be abandoned along with future job opportunities at Continental that induced many pilots to come to work for Continental Express. Likewise, should Continental management then begin furloughs anew, it would send Continental pilots to the street instead of back to jobs at Continental Express.

“Unlike other carriers, labor unrest has been almost non-existent in recent years at Continental,” said Burke. “Management needs to understand that the pilots see the impending IPO as a threat to their jobs. Negotiations on the impact the IPO will have on these job protection and job opportunity provisions are essential to maintaining that relationship.”

The pilots for both Continental and Continental Express are in the midst of preparations to open new labor contract negotiations later this year.

CAL ALPA represents the 6,800 pilots flying for Continental and Continental Express Airlines. The Air Line Pilots Association, Int’l, represents 66,000 airline pilots at 46 airlines in the U.S. and Canada.
 
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