Portofino Resort- Now with a new BEACH BAR!!
Page 1 of 7 1 2 3 4 5 6 7 >
Topic Options
#282868 - 06/05/08 08:28 AM Continental slashes capacity and jobs!
Otteralum Offline
Lovely -- the most reliable service from the states to Belize just got dicier:

Continental cuts 3,000 jobs, grounds planes
Nation's fourth-largest airline takes 67 airplanes out of service and slashes payroll in response to high fuel prices.

By David Goldman, CNNMoney.com staff writer
Last Updated: June 5, 2008: 11:38 AM EDT

NEW YORK (CNNMoney.com) -- The crisis facing the airline industry, propelled by out-of-control fuel costs, claimed another victim on Thursday.

Continental Airlines said it is eliminating about 3,000 jobs, or 6.7% of its staff, and grounding 67 mainline aircraft in an attempt to cut costs amid record oil and fuel prices.

The airline - the nation's fourth-largest by miles flown by paying passengers - said it was facing the worst industry conditions since the terrorist attacks of Sept. 11, 2001.

"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," said Larry Kellner, Continental's chairman and chief executive officer, and President Jeff Smisek in a letter to employees. "We need to make changes in response."

In recognition of the company's crisis Smisek and Kellner said they would not be paid the remainder of their 2008 salaries and will refuse payment under the company's annual incentive program.

"The move to decline their salaries is symbolically important, but the company's image will still be weighed down by the impending layoffs," said DePaul University transportation expert Joe Schwieterman.

New airline economics
The company said the 3,000 job cuts will come starting in September, and it expects most will be made with voluntary severance packages. After 9/11, Continental (CAL, Fortune 500) cut 12,000 staff, then about 21% of staff, in reaction to the terrorist attack and the drop in demand for flights that followed.

"These record fuel costs have fundamentally shifted the economics of our businesses," the letter said. Continental estimates that the year-over-year rise in jet fuel amounts to about $50,000 per company employee.

Many airlines have hiked fuel surcharges to fares and added fees to once-free benefits, such as food and checked baggage. This latest move by Continental most likely means that passengers will need to pay even more to fly, according to Schwieterman.

"There's going to be enormous upward pressure on fares," he said. "Consumers are going to feel this in a big way."

Continental would not offer further comment beyond the press release.

Despite other cost cutting attempts, Continental said its increased fares will lead to fewer passengers, which will necessitate a reduction in its capacity. The airline said it will trim its domestic mainline departures by 16% starting in September by accelerating the retirement of much of its Boeing (BA, Fortune 500) 737 fleet. Customers should expect crowded planes as airlines reduce capacity.

"The bad news is that airplane load factors could be pushed to 90%, which greatly affects the perceived quality of service," said Schwieterman. "The good news is that if they can shrink by as much as 20%, the airlines will become financially stable."

Fuel fallout may not be over
The last time U.S. airlines were under this much pressure from fuel prices - in September 2005 - two of them, Delta Air Lines (DAL, Fortune 500) and Northwest Airlines (NWA, Fortune 500), filed for bankruptcy.

On Wednesday, No. 2 airline United (UAUA, Fortune 500) announced it was grounding 100 planes and cutting up to 1,600 jobs. But it may not be long before another airline makes a similar announcement. Some analysts believe that airlines will continue attempt to show Wall Street that they have a handle on the fuel crisis.

"The cuts have been bigger than we expected, and more are still to come," said Schwieterman. "Low cost carriers haven't yet played their hand." To top of page

I will have a Belikin -- put it on klcman's tab.

#282872 - 06/05/08 09:00 AM Re: Continental slashes capacity and jobs! [Re: Otteralum]
Belize-N-Us Offline
The price for our tickets with Continental has doubled over the last 6 months.

We used to be able to book for $520 now it's over $900 each.
Future full time Belizeans
Tommy & Sonia Blackledge
Magee, MS 601-849-1918

#282967 - 06/05/08 02:10 PM Re: Continental slashes capacity and jobs! [Re: Belize-N-Us]
Barbara K Offline
better check my flights for July :-(

#282985 - 06/05/08 03:15 PM Re: Continental slashes capacity and jobs! [Re: Barbara K]
travelqueen Offline
A schedule of specific flights and destinations that will be reduced or eliminated is due to be published next week.

#283067 - 06/05/08 06:54 PM Re: Continental slashes capacity and jobs! [Re: travelqueen]
carbunkletrumpet Offline
Now would be a perfect time for Taca to start flying out of New Orleans like they did in the early 90's. That sux about Continental just about everything else out of BZE has to have a evening layover to get home now.
But why eat my vegetables I already know that I am short!

#283070 - 06/05/08 07:38 PM Re: Continental slashes capacity and jobs! [Re: carbunkletrumpet]
darrin fisher Offline
holy crap! ive been waiting forever for that to happen.

are you from around the easy? why dont you call em and tell em so.


#283118 - 06/06/08 10:22 AM Re: Continental slashes capacity and jobs! [Re: darrin fisher]
bywarren Offline
I was just booking airfare for my daughter, son-in-law and 3 grandkids to come to Belize over Christmas holidays from Illinois. Just under $7000. I wonder what this will mean for tourism this year? Has to have an impact.

#283126 - 06/06/08 10:44 AM Re: Continental slashes capacity and jobs! [Re: bywarren]
kathyw Offline
Continental will now only let you check in one piece of luggage (50 lbs) with the price of your ticket. The second piece will cost additional $25.00. I thought for International flights they were still allowing 2 checked pieces, however they told me the flights to Central Americal will be the same as domestic flights charging extra for the second piece.

#283142 - 06/06/08 12:39 PM Re: Continental slashes capacity and jobs! [Re: kathyw]
Northern Canuck Offline
We just booked return tickets for January with USAirways from Toronto. They only fly 4 days a week to BZE but we only paid $664.00 taxes included through Charlotte (easier than Houston!).

#283143 - 06/06/08 12:45 PM Re: Continental slashes capacity and jobs! [Re: kathyw]
JZB Offline
Hey Kathy! When are you coming?

I just flew American to Austin for $670! Most expensive ticket I have ever purchased (to Austin) but at least they let me check in two bags without a charge. I wonder how long that will last?

Page 1 of 7 1 2 3 4 5 6 7 >

Click for excellent scuba lessons with Elbert Greer!

Things to do

Daily News
Daily Weather

Classified Ads
San Pedro Sun
Ambergris Today
SP Town Council
Channel 7
Channel 5
Love FM
The Reporter
Caye Caulker

TV Newscasts
Radio Stations

Click for our
Search thousands of Belizean-only websites

Event Guides
Event Calendar
Specials & Events
Things to Do
iTravel Belize
Paradise Theater

San Pedro Scoop!
Tia Chocolate
My Beautiful Belize
I-Travel Belize
Belize Adventure
Belize Hub
Romantic Travel
Bound for Belize
Conch Creative
As The Coconuts Drop
More Blogs...
Search thousands of Belizean-only websites
Chaa Creek is an award-winning luxury Belize Resort, rated as one of the worlds best Eco Lodges. We are a pioneer in adventure travel to Belize since 1981!
White Sands Dive Shop - 5 Star PADI Dive Facility - Daily diving, SCUBA instruction and Snorkeling
Caribbean Inspired All Natural Condiments & Spice Blends, Over 100 are Gluten Free!
We manage a variety of homes, apartments, condos and commercial properties here on Ambergris Caye. Our minimum lease on ALL properties is six months.
Conch Shell Inn: All rooms are right on the beach in the heart of San Pedro, so within walking distance to anything and everything!!
Lilí Alphonse has snorkel equipment to fit anyone as well as Marine Park Tickets and flotation devices to assist those not as experienced.
Coastal Xpress offers a daily scheduled ferry run to most resorts, restaurants and private piers on the island of Anbergris Caye. We also offer  private and charter water taxi service.
Mini Chat

Cayo Espanto
Click for Cayo Espanto, and have your own private island
More Links
Click for exciting and adventurous tours of Belize with Katie Valk!
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31
Who's Online
4 registered (RedRover, Marty, wade the gringo, 1 invisible), 59 Guests and 8 Spiders online.
Key: Admin, Global Mod, Mod
Forum Stats
18,631 Registered Members
44 Forums
63,684 Topics
461,181 Posts

Most users ever online: 1,262 @ 06/10/07 02:16 PM

AmbergrisCaye.com CayeCaulker.org HELP! Visitor Center Goods & Services San Pedro Town
BelizeSearch.com Message Board Lodging Diving Fishing Things to Do History
BelizeNews.com Maps Phonebook Belize Business Directory
BelizeCards.com SanPedroDaily.com Picture of the Day

The opinions and views expressed on this board are the subjective opinions of Ambergris Caye Message Board members
and not of the Ambergris Caye Message Board its affiliates, or its employees.