Continental to cut $500 mln costs, 1,200 jobs

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Continental to cut $500 mln costs, 1,200 jobs  =

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Wednesday March 19, 6:29 PM EST =


HOUSTON, March 19 (Reuters) - Continental Airlines Inc. (CAL), the No. 5 =
U.S. carrier, on Wednesday announced $500 million of cost cuts, including=
 1,200 jobs by the end of the year.

Continental said it will cut about 125 pilots, 500 reservation agents, 35=
0 airport agents, and 225 other employees by year end. It said it will el=
iminate as many of the jobs as possible through voluntary exits, leaves o=
f absences and attrition. It said it is now asking for pay cuts.

"We need $500 million in annual cost savings and revenue generation to pe=
rmit us to be a survivor during the worst financial crisis in aviation hi=
story," said Chief Executive Gordon Bethune in a press statement. "If the=
 anticipated war in Iraq is prolonged, or if other events further degrade=
 revenue or increase costs, we will need to find additional savings or wa=
ys to generate more revenue."

Big U.S. airlines have lost nearly $20 billion since the end of 2000. The=
 Air Transport Association, which represents them, said an Iraq war might=
 lead to $10.7 billion of annual losses and another 70,000 job cuts. =



=A92003 Reuters Limited. =


Roger
EWROPS

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