Continental Says Airline Industry Is "In A Crisis"

Continental will cut 3,000 jobs and reduce capacity by 11% due to the ongoing “crisis” in the airline industry.

Continental chief executive Larry Kellner and the company’s president, Jeff Smisek said in a message to employees: “The airline industry is in a crisis. Its business model doesn’t work with the current price of fuel and the existing level of capacity in the marketplace. We need to make changes in response.”

Both announced that they would not take salaries for the rest of this year.

3,000 Continental Jobs, Capacity To Be Cut [WNBC]
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