2H4
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Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 1:22 am

Continental Airlines said yesterday that it may lose hundreds of millions of dollars this year and may have to scrap an order for Boeing Co. 7E7s unless the carrier gets $500 million in wage and benefit cuts by the end of next month.

The airline made the comments in a Securities and Exchange Commission filing yesterday and didn't give a figure for the potential loss. Houston-based Continental said that without the cost reductions, its board might reject delivery of a Boeing airplane order of more than $1.3 billion that was announced Dec. 29.



http://seattlepi.nwsource.com/business/206878_continental07.html?source=rss


Not cool.


2H4
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TW741
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 1:25 am

that was announced Dec. 29

And CO didnt know that it may lose hundreds of millions of dollars this year by Dec.29th or did the situation get that bad within 10 days for them?

Somehow I don't understand this ...

=TW741=
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FriendlySkies
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 1:26 am

If CO cancels...they sure as hell won't get as sweet a deal when they order again (which we all know they would)...Boeing would be royally pissed at CO, and Bethune isn't there to calm things down...definatly not good.  Sad
 
NWAFA
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 1:28 am

Personally I think it is part of the scare tactic to get paycuts from their employees.
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solnabo
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 1:29 am

This is exactly what I wrote a week ago! How can CO afford 10 7e7 when they need $ 500 mill. by the end of next month??

Micke//SE  Confused
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supa7E7
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 1:30 am

maybe it has something to do with DL's hare-brained pricing scheme
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NIKV69
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 1:30 am

Gordo is not even gone a month and all hell is breaking loose!  Angry

Gordo come back!

This is not good news at all. I hope they can come to some sort of an agreement to free up some capital for those birds!

Bethune 2008
Hey that guy with the private jet can bail us out! Why? HE CAN AFFORD IT!
 
DeltaWings
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 1:31 am

nahhhhhhh. Obveasly too good to be true.  Crying
Homer: Marge, it takes two to lie. One to lie and one to listen.
 
ba319-131
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 1:33 am

I think it is a mixture of both NWAFA and Supa7E7's replies.
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tcfc424
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 1:35 am

This could be a sign of things getting shaken up at CO as the changing of the guard occurs. Gordo was great and wanted to ensure that CO continues flying Boeing products for many years to come...but does Kellner feel the same way? Perhaps he feels differently than Gordo about the acquisition of new aircraft...remember he was a finance guy...It will be interesting to see how this pans out. It could be a scare tactic for the employees, but that would concern me as to the employee management relationship if MGMT is having to "threaten." Then again, maybe it is due to Delta's low fare-high cost idea to become liquidated faster than US!

Mike in AUS
 
FriendlySkies
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 1:36 am

nahhhhhhh. Obveasly too good to be true.

What's that supposed to mean? Are you happy CO is losing money?  Confused
 
DeltaWings
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 1:39 am

No of course not! I mean the 7e7 order. It was a miracle that CO ordered the 7e7, but now, they may cancel it, which is no good.
Homer: Marge, it takes two to lie. One to lie and one to listen.
 
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scbriml
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 1:58 am

Personally I think this is a pressure tactic by CO. However, it did seem odd when the 'order' was announced that it still needed full board-level approval. Was this the last act of Bethune before he left?

Maybe now Gordon "I'll only ever buy Boeing" Bethune is gone, CO might actually consider the A350.  Innocent
Time flies like an arrow. Fruit flies like a banana!
 
9844
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 2:04 am

Absent the $500 million reduction in annual wage and benefit costs, we expect to lose hundreds of millions of dollars in 2005 under current market conditions. In addition, we have approximately $984 million in debt and pension payments due in 2005, approximately $500 million more than in 2004. Without the reduction in wage and benefits costs and a reasonable prospect of future profitability, we believe that our ability to raise additional money through financings would be uncertain. Moreover, unless we are able to timely achieve the reductions, we believe that we will not receive approval from our board of directors to take delivery of the additional aircraft that we recently announced.

recent 8k report........CAL chap 11 in 07
 
racko
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 2:08 am

I'm sure that Continental, being a long-time customer, will be able to negotiate a deal with Boeing so the 7E7 orders can be kept. Boeing has the highest interested in CO surviving, for them the best airline in the US that could die would be US.
 
LifelinerOne
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 2:20 am

If I was a Continental employee I wouldn't give sh*t on the order. You can't spend money that you don't have. Continental should have figured the 500 million pay-cut out first, before ordering those new planes.

Big chances are that the employees aren't that willing to take a cut now the bosses bought something that they couldn't afford.

Hopefully they can work something out with Boeing when the problems remain. Or maybe Airbus can make a sweeter deal, not needing the 500 million...  Nuts

Cheers!
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PHXinterrupted
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 3:10 am

"Hopefully they can work something out with Boeing when the problems remain. Or maybe Airbus can make a sweeter deal, not needing the 500 million... "

I'm sure Airbus could provide a sweeter deal, but it's too bad they can't provide a sweeter plane than the 7E7.
Keepin' it real.
 
NYC777
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 3:31 am

This was well known when the order came out on Dec. 29th. CO said that they needed to get $500m in custs as well as Board approval to finalize the 7E7 deal. There is nothing new...all this was is that CO reiterated the same thing in the SEC filing and the media is picking it up and rehashing old news(guess they have nothing better to report).

The date everyone needs to watch for is Feb. 28th which the date that they need get board approval and the $500m in cuts.
That which does not kill me makes me stronger.
 
bennett123
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 3:43 am

Two points catch my attention.

Firstly, the $500M in pay cuts is now, whereas the $1,300M to buy the aircraft is in the future. Are the aircraft being purchased by the airline or the staff.

Secondly, I understood that were buying the B7E7 because it was more efficient. If so, then the aircraft will reduce costs without pay cuts.

I do not see any A350 order at this stage, because it will still cost money.
The last thing that Airbus needs are customers with no money attracting WTO attention.
 
ConcordeBoy
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 3:48 am

Exactly what Boeing and CO said from the start

...I'm wondering why no one else seems to have picked up on this.

Of course CO didnt know the specifics of the DL plan at the time, but it's not like there was no forewarning at that point either.




I'm sure Airbus could provide a sweeter deal, but it's too bad they can't provide a sweeter plane than the 7E7

Boeing bailed CO out of a pretty tight spot with its multi-million easy-termed cash infusion... Airbus could do likewise, but PhxInterrupted is right; they'd still need a top-performing plane in the end.

Can they do it? Of course.

Will Airbus do it? Well, considering its history when it comes to delivering promised specs... ya never know.
Faire du ciel le plus bel endroit de la terre c'est impossible sans Concorde!
 
wbmech
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 3:50 am

I don't understand. When CO announced the order employees were outraged that they could place an order for new aircraft with paycuts coming. Continental responded by saying, in effect, one had nothing to do with the other. That the paycuts were not being used to finance new aircraft. Now all of a sudden the new order is contingent on the $500 million in employee givebacks? Something is not right, this is another example why management can't be trusted and why unions at companies fight so hard for their members.
 
DAYflyer
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 3:50 am

I think this is a bunch of bull frankly.

It has to do with liquidity now, not 3-4 years from now when they start taking aircraft. Do they pay for them 3 + years out? I think not. They pay for them at delivery.

I think it has more to do with the price they got than scaring the employees.
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M27
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 4:02 am

"The last thing that Airbus needs are customers with no money attracting WTO attention."

Oh please!!! give us a break already.
 
ckfred
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 4:04 am

I think AA tried this tactic in the mid-90s when it was negotiating a new contract with the pilots. If a remember my chronology correctly, AA first made a statement in the early part of 1996 that it had no confirmed orders for the first time in a number of years, and that unless there was substantial progress on the contract, there would be no future orders.

Then, after some progress, AA and Boeing signed the long-term agreement in the fall of 1996. That was conditioned on AA getting an agreement with its pilots within a few months.

Then, the pilots walked out for 20 minutes in February, 1997 (President Clinton sent them back to work). So, the Boeing deal was technically dead.

I think the Boeing deal was reannounced several weeks after the pilots approved their new contract in May of 1997. The net affect was that it pushed deliveries of 737s, 757s, and 777s by a few months. Deliveries started in Janurary of 1999, but under the 1996 announcement, they were supposed to start in the fall of 1998.

So, it seems to me that CO is playing hardball. I can't believe that CO would sign any kind of agreement with Boeing, then spring this statement about the need for wage cuts both on the employees and Boeing.
 
NYC777
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 4:20 am

They didn't spring this statement all of a sudden. REad the press release announcing the order and you will see that they needed the cuts and the Board approval in order to finalize the deal.

http://www.continental.com/vendors/default.asp?SID=3EDCBAC9F141494EA56EAE6A4CFE9498&s=&i=PRNews

"The agreement with Boeing for the 10 7E7 aircraft, the eight 757-300 aircraft, and the acceleration of the six 737-800 aircraft are subject to several conditions, including the approval of Continental's board of directors on or before Feb. 28, 2005, and in the case of the 7E7 agreement, the negotiation of an engine supply arrangement for the 7E7 aircraft acceptable to Continental. The company expects to finalize its $500 million in annual wage and benefit cost reductions by Feb. 28, 2005, and believes it will receive approval from its board for the additional aircraft, provided that the company's business case for the aircraft includes a cost structure that will allow the aircraft to generate a positive return to Continental."

--from CO press release 12/29/2004
That which does not kill me makes me stronger.
 
Planesmart
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 4:28 am

As Dayflyer states, the $500m concessions are about immediate liquidity.

There will be a point with the 7e7 order, where a meaningful, non-refundable deposit must be handed over to B (i doubt it will be as early as Feb 2005). By then, CO need to have finance and/or leases in place.

Lenders will want to see CO with a lower sustainable cost structure before approving new funding. Whether this comes from pilot pay cuts, pay cuts including pilots, or a range of other cost reduction measures, is largely irrelevant.
 
ConcordeBoy
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 4:30 am

"The last thing that Airbus needs are customers with no money attracting WTO attention."

Oh please!!! give us a break already.



...actually, the statement isn't much of a reality stretch at all.
Faire du ciel le plus bel endroit de la terre c'est impossible sans Concorde!
 
bennett123
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 4:53 am


Thanks Concordeboy.

If Airbus gives a Non Economic price to Continental, how long will it take Boeing to shout foul.

 
ConcordeBoy
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 5:00 am

About three tenths of a nanosecond... which is my point exactly.
Faire du ciel le plus bel endroit de la terre c'est impossible sans Concorde!
 
M27
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 5:15 am

The last thing that Airbus needs are customers with no money attracting WTO attention."

Oh please!!! give us a break already.


...actually, the statement isn't much of a reality stretch at all.

I would assume that you are referring to the fact that Airbus already has several airline customers that have questionable finances and do not need anymore, as opposed to all of Airbus's customers having great finances.

Bennett 123, if the statement had read "the last thing that Airbus needs are more customers with no money attracting WTO attention, I would agree completely.
 
ConcordeBoy
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 5:26 am

I would assume that you are referring to the fact that Airbus already has several airline customers that have questionable finances and do not need anymore

...particularly considering the potential advent of a WTO trade dispute.
Faire du ciel le plus bel endroit de la terre c'est impossible sans Concorde!
 
wbmech
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 5:33 am

Lenders will want to see CO with a lower sustainable cost structure before approving new funding. Whether this comes from pilot pay cuts, pay cuts including pilots, or a range of other cost reduction measures, is largely irrelevant.

The deal has to be financed somehow, and the way it looks now it is going to be through the employees giving back money. Whether it is directly through the paycuts or indirectly through lender approval dependent on paycuts. My point is don't come out and lie. The question was asked directly if paycuts were paying for these orders and the direct answer was NO. Now all of a sudden it is dependent on the $500 million in wage reductions.
 
stlgph
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 5:35 am

Why does CO need to order these planes? I think they should get more use out of the ones they have now. I went into Cleveland early yesterday afternoon in case of weather cancellations and left in the evening. There were no cancellations and everything was going normal but I counted a number of 737's that were there when we pulled in which didn't leave until a good 3 1/2 hours later.

if assumptions could fly, airliners.net would be the world's busiest airport
 
kalakaua
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 6:19 am

CO are scaring their employees in the name of cost cutting, and at the same time they're using scare tactics so Boeing could give them a better deal on the 7E7s before the order is finalized?
Gravity explains the motions of the planets, but it cannot explain who set the planets in motion.
 
keesje
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 6:47 am

I found it an odd deal from the start, perhaps more a Gordo then Continental deal.

Feet back on the ground now. Gordo also ordered the 737-900, 767-400 and 767-200ER during the last few years. Most carriers didn´t do so.

Punctuality, getting the luggage on the same plane as its owner, keeping your best people in house, strengthening a balance position, seems more important then committing for the most fancy & risky new toy from the friends of the boss.

"Never mistake motion for action." Ernest Hemingway
 
RICARDOAB
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 6:52 am

Perhaps CO wanted to put on a brave face by pretending that they were financially sound enough to commit to a new airliner project
 
NYC777
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 6:56 am

Why don't you naysayers look at the press release..again!

They made all of this abdunately clear on December 29th. There are no surprises here.
That which does not kill me makes me stronger.
 
wbmech
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 7:06 am

They made all of this abdunately clear on December 29th.

There are surprises here. In usual CO management fashion they did not make this abundantly clear. I know what the press release says and I also know what the employee q & a says. They both contradict each other.
 
AngelAirways
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 7:56 am

Absolutely 100% scare tactics.

Basically they're saying "look we'll buy American and support our industry (and the Japanese industry and the Italian Industry and many more) but if you want this to happen you must give us those wage cuts or get some of you fired"
 
ewr757
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 8:25 am

>>and I also know what the employee q & a says. They both contradict each other.<<

This whole story is like the fable of the boy who cried wolf.
 
Lockheed1011
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 8:27 am

I could not agree with you more! That is the way the operate...

"Absolutely 100% scare tactics."

Basically they're saying "look we'll buy American and support our industry (and the Japanese industry and the Italian Industry and many more) but if you want this to happen you must give us those wage cuts or get some of you fired"
 
ConcordeBoy
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 8:39 am

Gordo also ordered the 737-900, 767-400 and 767-200ER during the last few years. Most carriers didn´t do so.

Each one of those models also made perfect sense for an airline with CO's business model... ergo, what's your point?
Faire du ciel le plus bel endroit de la terre c'est impossible sans Concorde!
 
ETStar
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 9:03 am

A couple of things... why is this that, while all other majors were publicly stating that they would be cutting back, CO was not doing the same? Yes, we know what CO was in a better position than say AA, UA, US, DL, but would it have not been wiser to even look at furloughs etc way before they got to needing to scrap $500 million in expenses?

Anythong thing is, with CO's one supplier policy for non-regional aircraft (well, this happened cause Bethune was a big cheese at Boeing before joining CO), does it not hurt the airline as it is a disadvantage in terms of negotiating for aircraft prices? Would't they have gotten better deals on Airbus aircraft, or even on Boeing aircraft had they played their cards? What's so special about their deals with Boeing (same with AA and DL).

Is it fair to assume that NW will follow suit in a few weeks and announce the need to make some serious cutbacks?
 
ScottB
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 9:27 am

You have to read the company's statements very closely to "get" why paycuts will not be paying for the new aircraft. Continental needs about $500 million in cost reduction from its employees in order to get back to profitability in the current market environment. I don't think that's particularly far-fetched, and the company truly does need to improve its cash flow and profitability given the amount of debt it has coming due.

The real point is that the company can't make a business case for buying new 7E7's (and leasing the 757-300's and 737-800's) from Boeing with its current cost structure. If they can't obtain acceptable profit margins (or even a profit at all) with the fleet at its current size, the company isn't likely to be profitable with a larger fleet, either.

You could pretty much make an argument that ANY non-labor expenditure at the company is being paid for by employee wage reductions! Fuel? Coming out of the employees' paychecks. Food and drinks onboard? Ditto. Spare parts? Yep, out of the paychecks. Landing fees and gate rents? Paid out of the employees' pockets.
 
atmx2000
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 9:41 am

As I said before on another thread, CO is the healthiest legacy in terms of their balance sheet, but they are making losses. If they can trim their costs CO can get back into the black and will be in a very strong position going forward. Perhps CO should offer employees stock and profit sharing plan to get the employees to make a concessions.

ConcordeBoy is a twin supremacist!! He supports quadicide!!
 
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N328KF
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 10:56 am

I think this topic title is bunk. Saying that Continental is "considering" order cancellation is an inaccurate assessment of the root of the scenario.
When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' -Theodore Roosevelt
 
AASTEW
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 11:07 am

I thought the relationship between management and labor was sweet over there at CO. If so, how can CO be using scare tactics! Someone please explain!
 
NWAFA
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 11:09 am

AASTEW,

That was in the Gordon days..it is amazing he is gone 7 days and look whats going on. Scarry!
THANK YOU FOR FLYING NORTHWEST AIRLINES, WE TRULY APPRECIATE YOUR BUSINESS!
 
Falcon84
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 12:46 pm

Personally I think it is part of the scare tactic to get paycuts from their employees.

Of course you do, seeing your pro-union stance on here.

I think it's just the reality. If CO cannot get the cuts that will help us get back in the red (something the unions don't seem to care about, btw), then I think the 7E7 order could be cancelled. I think, however, CO will hold that order for a while, no matter what.

I do think that if the concessions aren't reached, CO won't get the 753's and 738's that would help CO keep some market share.

This whole story is like the fable of the boy who cried wolf.

And when the bankruptcy filing comes knocking at our door, and you're forced to take even bigger concessions, you'll be crying the loudest.
Work Right, Fly Hard
 
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STT757
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RE: Continental Considering 7E7 Order Cancellation

Sat Jan 08, 2005 1:10 pm

Folks the aircraft order is tied to the wage concessions, unlike other carriers CO is offering something in return for the wage concessions. They are offering more flying, CO is offering a carrot (more flying) in exchange for the wage concessions.

They originaly stated the wage concessions and aircraft order were not connected, obviously they are connected. Wage concessions=more flying.

From the first post about CO's order,

"AIRCRAFT ORDER Q AND A TO EMPL OF CONTINENTAL AIRLINES
Dec. 29, 2005
Why are we leasing additional aircraft at the same time we are asking for $500
million in annual wage and benefit reductions?

We need to act now to take market share from our weaker competitors. The 757s have become available from Boeing because of the current bankruptcy of ATA, a lowcost competitor. The 737s have become available because American Airlines recently deferred delivery of them due to their financial challenges. Even after lengthy negotiations with Boeing, we were able to keep this opportunity available to us only until Feb. 28, 2005, as Boeing will not hold these aircraft off the market indefinitely. If we don’t take these aircraft by then, someone else will — most likely a low-cost carrier. We need to obtain board approval by Feb. 28, 2005, and with your help in making the business case, we can obtain these aircraft. They will help us avoid losing domestic market share to low-cost carriers as we shift our domestic 757-200 aircraft to grow our profitable international network. We don’t want to be forced down the path of our failing competitors, who are shrinking and ceding market share and jobs to low-cost carriers. The Boeing agreement represents our belief in you and in the airline’s future. While it is important to act quickly to survive the current industry downturn, we must plan and prepare for the future. We need to grow (we are currently only the fifthlargest U.S. airline) and become stronger to compete in the future. Should consolidation occur, we need to be in a position of strength. Adding international growth helps return us to profitability sooner and cements our position in the marketplace.
In the last seven years, low-cost carriers have significantly increased their market share, while legacy carriers (excluding CO) have shrunk by an average of 10 percent. However, CO has increased its mainline capacity by 25 percent over the same period. Our fleet utilization is already stretched, so to continue this growth, we need additional aircraft. Prior to today’s announcement, our plans included only five replacement aircraft over the next three years, offering no prospect for any incremental growth. By flying these 757 and 737 aircraft on high-density domestic flights, we can free up existing domestic aircraft to expand internationally. In addition, the long-range 7E7 represents the platform for further international growth in years to come. Before we can justify and get approval from our board of directors for a growth strategy, we must first achieve a cost structure, with your help, which allows us to stop
bleeding cash.

Is my pay being cut in order to fund the new aircraft?

No. The 757 and 737 aircraft are all being leased with no cash upfront. The 7E7 will not be coming for another four years. CO needs $500 million in wage and benefit reductions in order to avoid a cash crisis and to remain competitive in the permanently restructured, low-fare pricing environment. The wage reductions will help CO maintain a competitive cost structure
that allows us to grow and once again achieve profitability.

If you’re not using my pay cut, where is the money coming from that will fund these aircraft?

Boeing continues to be a great business partner of CO. Because of our strong
relationship, CO can lease the additional 757 and 737 aircraft with no cash upfront. This means we don’t have to spend any money to get the aircraft. In addition, Boeing has also agreed to finance the 757 conversion costs, such as repainting the exteriors and reconfiguring the interiors to CO’s standards.
The first 7E7 delivery is four years away. Although Boeing has announced the list price of the 10 7E7s as $1.3 billion, CO will receive a significant discount as a preferred launch customer. We believe that with a competitive cost structure we will be able to finance these aircraft on attractive terms when deliveries start in 2009."
Eastern Air lines flt # 701, EWR-MCO Boeing 757