05 June 2008

Now it's a full scale rout - Continental joins the cuts

One of the industries best performers (well at least in the USA market), Continental has decided to join the cutback guys and will slash over 3,000 jobs according to the Wall Street Journal. This will include sending out pink slips pretty soon, retiring some of their gaz guzzlers in its fleet (note CO already has one of the youngest fleets) and slashing domestic capacity 16%. Kilner and Smisek will forgo their salaries this year. (Kilner is starring in an ad campaign appearing in the WSJ promoting Houston).

Formally, of the big boys, this leaves only Southwest and Northwest to announce their cuts.

We anticipate that there will be further cutbacks coming from Frontier and Alaska who already announced retiring the RJs. Spirit air already announced its intention to ax at least 400 jobs in Florida.

Used 737-300s anyone?



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