State of the Airlines

Wednesday, January 26, 2005

NEWS: Pilots Counter Continental Airlines

The pilots for Continental Airlines have laid out an offer to take $122 million in cuts annually while putting some pension and job guarantees in place. This is all in an effort to help the airline reach its "absolute minimum" goal of $500 million in annual salary and benefit savings that it says are needed to survive. No word on how far apart the two sides are but the union must feel that they need to make their best deal and soon. Continental has already made deals with several employee groups to the tune of $169 million in annual savings...but the mechanics and flight attendants are not part of these deals. I gotta think that the pilots believe the first major union to cut a deal will be the best off of the bunch...heck that strategy was working for United's pilots union until that pesky bankruptcy judge threw the deal out. The pilots at Continental won't have that problem. And they know that Continental is not yanking their chain either...the union had an independent group go over the financials and come to the conclusion that hey the airline needs to cut more costs.