HighSpeedClimb
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Continental cutting jobs, reducing flights
San Antonio Business Journal
Continental Airlines plans to shed 3,000 jobs and reduce capacity by 16 percent by the fourth quarter.
Houston-based Continental (NYSE: CAL) follows carriers American Airlines (NYSE: AMR), Delta Air Lines Inc. (NYSE: DAL) and United Airlines (NYSE: UAL), which all have announced major job cuts in recent weeks.
"The airline industry is in a crisis," Continental CEO Larry Kellner wrote in a memo to employees, according to the airline. "Its business model doesn't work with the current price of fuel and the existing level of capacity in the marketplace. We need to make changes in response."
Kellner and Jeff Smisek, Continental's president, will take no salaries for the remainder of the year, the airline says.
Flight cuts will start in September, Continental says. Domestic mainline capacity will be down 11 percent in the fourth quarter compared to the same period in 2007. It will drop another 3 percent to 5 percent in 2009, the airline explains.
A majority of the 3,000 positions to be cut should come through voluntary programs, Continental says, though many employees will be laid off.
Continental also plans to retire 67 fuel-inefficient Boeing aircraft by the end of 2009, and it will add fewer gas-guzzling planes to its fleet.
San Antonio Business Journal
Continental Airlines plans to shed 3,000 jobs and reduce capacity by 16 percent by the fourth quarter.
Houston-based Continental (NYSE: CAL) follows carriers American Airlines (NYSE: AMR), Delta Air Lines Inc. (NYSE: DAL) and United Airlines (NYSE: UAL), which all have announced major job cuts in recent weeks.
"The airline industry is in a crisis," Continental CEO Larry Kellner wrote in a memo to employees, according to the airline. "Its business model doesn't work with the current price of fuel and the existing level of capacity in the marketplace. We need to make changes in response."
Kellner and Jeff Smisek, Continental's president, will take no salaries for the remainder of the year, the airline says.
Flight cuts will start in September, Continental says. Domestic mainline capacity will be down 11 percent in the fourth quarter compared to the same period in 2007. It will drop another 3 percent to 5 percent in 2009, the airline explains.
A majority of the 3,000 positions to be cut should come through voluntary programs, Continental says, though many employees will be laid off.
Continental also plans to retire 67 fuel-inefficient Boeing aircraft by the end of 2009, and it will add fewer gas-guzzling planes to its fleet.
