Airline "BAD" News

CONTINENTAL ANNOUNCES DETAILS OF CAPACITY REDUCTIONS

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)







Hub
4Q – 08

Est. ASMs

ASM

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., 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

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.