Flic1
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Continental to Cut 1,200 Jobs, Costs
Wednesday March 19, 6:36 pm ET
HOUSTON (Reuters) - Continental Airlines Inc. (NYSE:CAL - News), the No. 5 U.S. carrier, on Wednesday announced $500 million of cost cuts, including 1,200 jobs by the end of the year.
Continental said it will cut about 125 pilots, 500 reservation agents, 350 airport agents, and 225 other employees by year end. It said it will eliminate as many of the jobs as possible through voluntary exits, leaves of absences and attrition. It said it is now asking for pay cuts.
"We need $500 million in annual cost savings and revenue generation to permit us to be a survivor during the worst financial crisis in aviation history," said Chief Executive Gordon Bethune in a press statement. "If the anticipated war in Iraq is prolonged, or if other events further degrade revenue or increase costs, we will need to find additional savings or ways to generate more revenue."
Big U.S. airlines have lost nearly $20 billion since the end of 2000. The Air Transport Association, which represents them, said an Iraq war might lead to $10.7 billion of annual losses and another 70,000 job cuts.
Wednesday March 19, 6:36 pm ET
HOUSTON (Reuters) - Continental Airlines Inc. (NYSE:CAL - News), the No. 5 U.S. carrier, on Wednesday announced $500 million of cost cuts, including 1,200 jobs by the end of the year.
Continental said it will cut about 125 pilots, 500 reservation agents, 350 airport agents, and 225 other employees by year end. It said it will eliminate as many of the jobs as possible through voluntary exits, leaves of absences and attrition. It said it is now asking for pay cuts.
"We need $500 million in annual cost savings and revenue generation to permit us to be a survivor during the worst financial crisis in aviation history," said Chief Executive Gordon Bethune in a press statement. "If the anticipated war in Iraq is prolonged, or if other events further degrade revenue or increase costs, we will need to find additional savings or ways to generate more revenue."
Big U.S. airlines have lost nearly $20 billion since the end of 2000. The Air Transport Association, which represents them, said an Iraq war might lead to $10.7 billion of annual losses and another 70,000 job cuts.