Now Cutting Its Way to Profits: Continental
That didn't take long. After yesterday's capacity cuts by United, Continental has announced that it will trim domestic departures by 16 percent by the end of 2008. The carrier will lose about 3,000 jobs in the process, through both lay offs and buyouts.
Like other airlines that are slashing service, Continental also plans to retire some of its fleet. The carrier will get rid of 67 of its 737s by the end of 2009, and six have already been mothballed this year.
The Wall Street Journal also reports that the painful cuts are going straight to the top: Chairman and Chief Executive Larry Kellner and President Jeff Smisek are both giving up their salaries and bonuses for the rest of the year.
Related Stories:
· Rumors Confirmed: United Planning Massive Cuts [Jaunted]
· Continental Cuts Jobs, Fleet [WSJ]
· Continental coverage [Jaunted]
[Photo: hyku]
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