Continental suspends Newark-Hong Kong flights

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Continental suspends Newark-Hong Kong flights

CHICAGO (Reuters) =97 Continental Airlines said Monday that it would suspend=
=20
nonstop flights between New York and Hong Kong because of passenger fears=20
caused by SARS, a new virulent form of pneumonia sweeping the world.=20
Continental, the No. 5 U.S. air carrier, said traffic from Hong Kong has=20
remained stable, but passenger demand from the United States has plummeted=
=20
because of government and health organization advisories against Hong Kong=
=20
travel.The pneumonia-like disease, called Severe Acute Respiratory Syndrome=
=20
or SARS, has killed 100 people worldwide and infected more than 2,600. It=20
originated in China's Guangdong province, hit neighboring Hong Kong in=20
March, and has been spread around the world by travelers.

Continental said it would suspend its five-times per week service from its=
=20
Newark, New Jersey, hub to Hong Kong until June 2. The last flight to Hong=
=20
Kong will be Thursday and the last flight to Newark Saturday. The nonstop=20
Newark to Hong Kong flight over the North Pole takes 15.5 hours, shaving at=
=20
least two hours off other routes and making it a favorite of business=20
travelers. Continental, based in Houston, said it will still provide Hong=20
Kong service by connection in Tokyo on codeshare partner Northwest Airlines=
=20
and twice weekly flights from Guam. In March, Continental said it expected=
=20
to cut 1,200 jobs by the end of 2003 for a plan to cut $500 million per=20
year in costs. Continental said last week it would trim its summer schedule=
=20
2% and cut more jobs because of weak demand.

Shares of Continental were up 44 cents, or 7.1%, to $6.65 Monday on the New=
=20
York Stock Exchange, mainly because of investor optimism that the U.S.-led=
=20
war with Iraq might end sooner rather than later, analysts said. United=20
Airlines, a UAL Corp. unit, has suspended daily flights between Hong Kong=20
and Singapore for April, but continues to serve Singapore from Tokyo's=20
Narita Airport, a spokesman said. Northwest Airlines has made no=20
SARS-related schedule changes, a spokeswoman said. United and Northwest=20
both have extensive service to Asia. American Airlines, the world's largest=
=20
air carrier and a unit of AMR Corp. has canceled no flights because of=20
SARS, though only 3% of its capacity comes from trans-Pacific routes.=20
Several airlines have offered surgical masks on flights from Asia to=20
passengers who want to protect themselves from SARS or to travelers who=20
show symptoms. Airlines have eliminated fees for changing reservations on=20
unrestricted tickets because of the war which apply for the next several=
 weeks.


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