(In the US there seems to be a revolution going on among the big ones)
Dateline: Wednesday March 16, 2005
Continental Airlines yesterday warned that if its unions do not ratify the new tentative agreements reached last month (ATWOnline, March 1) by March 30, it will be forced to take a number of actions, including increasing the size of the pay and benefit reductions it is seeking, subleasing or selling some aircraft, furloughing a number of employees and canceling future aircraft orders.
The carrier said it would have to increase the size of the pay and benefit reductions from $500 million to $800 million because without ratifications, its "deteriorating financial condition" would require bigger concessions from its labor groups.
Additionally, it would need to sublease or sell 24 737-500s, which, according to the airline, have relatively few seats compared to its other mainline aircraft and have become less attractive to operate in a low-fare environment. Continental said it has engaged Focus Aviation to market these aircraft as part of its contingency planning. This also would result in frequency reductions and aircraft gauge downsizing in various markets. As a result of these actions, a "significant" number of employees would be furloughed, including pilots, flight attendants, mechanics and other positions.
Further, the carrier would have to cancel plans to accelerate delivery of six 737-800s and lease eight 757-300s, along with canceling orders for 10 new 787s. Additionally, it said it would have to enter discussions with Boeing regarding the deferral of all 40 remaining aircraft on order that are scheduled for delivery beyond 2005.--Loren Farrar
Source atw-online
Dateline: Wednesday March 16, 2005
Continental Airlines yesterday warned that if its unions do not ratify the new tentative agreements reached last month (ATWOnline, March 1) by March 30, it will be forced to take a number of actions, including increasing the size of the pay and benefit reductions it is seeking, subleasing or selling some aircraft, furloughing a number of employees and canceling future aircraft orders.
The carrier said it would have to increase the size of the pay and benefit reductions from $500 million to $800 million because without ratifications, its "deteriorating financial condition" would require bigger concessions from its labor groups.
Additionally, it would need to sublease or sell 24 737-500s, which, according to the airline, have relatively few seats compared to its other mainline aircraft and have become less attractive to operate in a low-fare environment. Continental said it has engaged Focus Aviation to market these aircraft as part of its contingency planning. This also would result in frequency reductions and aircraft gauge downsizing in various markets. As a result of these actions, a "significant" number of employees would be furloughed, including pilots, flight attendants, mechanics and other positions.
Further, the carrier would have to cancel plans to accelerate delivery of six 737-800s and lease eight 757-300s, along with canceling orders for 10 new 787s. Additionally, it said it would have to enter discussions with Boeing regarding the deferral of all 40 remaining aircraft on order that are scheduled for delivery beyond 2005.--Loren Farrar
Source atw-online