Continental Halts Pilot Furloughs to Minimize Impact on Continental Express
HOUSTON, Feb 4, 2002 /PRNewswire-FirstCall via COMTEX/ -- Continental Airlines
(NYSE: CAL) today announced it will eliminate further pilot furloughs this year
to minimize pilot training and costs at Continental Express as a result of the
flow of pilots from Continental to Continental Express under a flow-through
Under terms of the flow-through agreement with Continental's pilots, furloughed
Continental Airlines pilots have the option to work as pilots for Continental
Express, resulting in furloughs of existing Continental Express pilots.
Continental had previously announced a furlough of 100 Continental pilots
scheduled to begin in March. This furlough will not occur. Continental Express
had projected the inflow of these 100 Continental mainline pilots would result
in training and other costs for the subsidiary and contribute to as many as 250
"By eliminating further pilot furloughs, Continental can avoid significant
training challenges at Continental Express while we focus on separating our
ownership interest in Continental Express," said Capt. Deborah L. McCoy, senior
vice president of Continental's Flight Operations.
Continental filed with the U.S. Securities and Exchange Commission (SEC) last
summer for an initial public offering of Continental Express, but decided to
postpone the offering after Sept. 11. Continental recently announced that it
intends to continue pursuing a strategy of separating the ownership of
Continental and Continental Express, while noting that the structure and terms
of the offering will be revised and that timing of an IPO is uncertain.
Since capacity at Continental was reduced following Sept. 11, Continental has
furloughed a total of 439 pilots from mainline operations. Of this number, 233
pilots took positions at Continental Express, contributing to the furlough of
386 Continental Express pilots.
Continental does not anticipate that its decision will affect its previously
announced guidance concerning 2002 capacity.