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June 5, 2008

And Now, Continental’s Turn to Down-size (Plus Execs Decline Salaries)

Filed under: Continental — Rick Seaney @ 10:51 am

First we learned about the United cuts; now, here’s what’s happening with Continental:

Continental announced early this morning that it will reduce its fleet by 21 airplanes during the rest of this year, and another 10 planes in 2009. In other words, the current fleet will go from 375 aircraft to 344 aircraft by this time next year.

Plus, it’s cutting 7% of its workforce — a loss of 3,000 jobs (including some management jobs). They hope to eliminate most through voluntary buyouts, but there will be some, no doubt, who are just let go.

One especially interesting note (according to the article on the Dallas Morning News’ Airline BIZ blog) is that Continental CEO Larry Kellner and Pres. Jeff Smisek have declined their salaries for the remainder of the year and have declined any payment under the annual incentive program for 2008.

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