Continental Announces Details of Capacity Reductions

Starting in September, at the conclusion of the peak summer season, CO will reduce capacity from its hubs, resulting in an 11 percent decline of domestic mainline capacity (available seat miles, or ASMs) in the fourth quarter, compared to the same...


HOUSTON, June 12 /PRNewswire-FirstCall/ -- Continental Airlines (NYSE: CAL) released to its more than 45,000 employees the following employee bulletin.

EMPLOYEE BULLETIN NO. 10

CO today released details of the reductions in flying that were announced last week. These actions are among the many difficult steps CO is taking to respond to record-high fuel prices that are creating unprecedented challenges for the airline industry.

Starting in September, at the conclusion of the peak summer season, CO will reduce capacity from its hubs, resulting in an 11 percent decline of domestic mainline capacity (available seat miles, or ASMs) in the fourth quarter, compared to the same period last year. The changes will result in a 6.4 percent decline in consolidated (mainline plus regional) capacity in the fourth quarter, compared to the same period last year.

The following table shows the estimated capacity reductions by hub, including certain capacity changes effective prior to Sept. 3:

4th Quarter Total and Year-Over-Year ASM Comparison by Hub (millions)

4Q - 08 ASM

Hub Est. ASMs Decrease % Decrease

Houston 11,208 (960) (7.9%)

Newark Liberty 13,251 (433) (3.2%)

Cleveland 1,462 (220) (13.1%)

Guam 799 (219) (21.5%)

Total 26,720 (1,832) (6.4%)

As of Sept. 3, 2008, CO will be reducing frequencies in certain markets and will also discontinue service between its hubs shown below and the following cities or airports:

Houston George Bush Intercontinental: Cali, Colombia; Chatanooga, Tenn.; Guayaquil, Ecuador; Hartford, Conn.; Monclova, Mexico, Montgomery, Ala., Oakland, Calif.; Palm Springs, Calif.; Reno, Nevada; Sarasota, Fla.; Tallahassee, Fla.; and Washington - Dulles.

Newark Liberty: Albuquerque, N.M.; Cologne, Germany; Santiago, Dominican Republic; Sarasota, Fla.; Salt Lake City, Utah; San Jose, Calif.; and Tucson, Ariz.

Cleveland Hopkins: Austin, Texas; Birmingham, Ala.; Charleston, S.C.; Charleston, W. Va.; Cincinnati, Ohio; Des Moines, Iowa; Detroit, Mich.; Green Bay, Wis.; Greensboro, N.C., Lexington, Ky., Little Rock, Ark.; Memphis, Tenn.; Nashville, Tenn.; Norfolk, Va.; Oklahoma City, Okla.; Omaha, Neb.; Ottawa, Canada; San Antonio, Texas; San Diego, Calif.; Sarasota, Fla.; Savannah, Ga.; Toledo, Ohio; Tulsa, Okla.; and Washington-Dulles.

Guam A.B. Won Pat: Denpasar, Bali, Indonesia.

As a result of the discontinued service, the following stations will close:

Denpasar, Bali, Indonesia; Oakland, Calif.; Cali, Colombia; Palm Springs, Calif.; Chattanooga, Tenn.; Reno, Nev.; Cologne, Germany; Santiago, Dominican Republic; Green Bay, Wis.; Sarasota, Fla.; Guayaquil, Ecuador; Tallahassee, Fla.; Monclova, Mexico; Toledo, Ohio; and Montgomery, Ala.

As announced last week, CO will eliminate 3,000 positions across all work groups, including management positions, through voluntary and involuntary separations, with the majority of them expected to be through voluntary programs. The specific number of involuntary furloughs will not be determined until August, after the company knows how many co-workers elect to take advantage of voluntary programs.

The company will work with furloughed/terminated co-workers to provide information on benefits and other employment opportunities available to them. In the case where suppliers and vendors are affected by capacity reductions, CO will work with them to determine if there are other job opportunities for their affected employees.

CO customers who are currently booked on flights previously scheduled to operate on or after Sept. 3 that are affected by the capacity reductions, will be contacted by CO to make alternate arrangements.

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