Continental Airlines has announced plans to axe a further 1,200 staff by the end of the year and reduce its senior management numbers by a quarter.
The cuts form part of a survival plan for what Continental chairman Gordon Bethune has described as the “worst financial crisis in aviation history.”
The company hopes the plans will lead to $500 million in annual cost savings, but Mr Bethune warned: “If the war in Iraq is prolonged, or if other events further degrade revenue or increase costs, we will need to find additional savings or ways to generate more revenue in order to compete effectively.”
The airline added that the latest initiative would include reducing distribution costs. The airline plans to double the use of its website continental.com and reduce CRS booking fees and “other distribution costs.”
