21 Aug 2009

Continental Micronesia airlines makes 25 Guam employees redundant

10:30 am on 21 August 2009

The airline Continental Micronesia has made 25 Guam employees redundant.

The move came earlier this month and the company is declining to confirm or furnish details, and Guam-based officials referred inquiries to its office in Japan.

The Marianas Business Journal reports the Continental furloughs follow those earlier in the year at DFS Guam, hotels in Guam, and ongoing reduction of hours in the hospitality industry.

Tokyo-based Koji Nagata, corporate communications executive for the Asia/Pacific for Continental Airlines Inc., told the Journal by e-mail, that as a wholly owned subsidiary of Continental Airlines, Continental Micronesia is also participating in savings and revenue-generating initiatives.

Mr Nagata says the elimination of approximately 1,700 positions will be across the company, including management and clerical positions, as stated in a news release.

He is referring to a release on July 21st, in which Continental reported a second quarter 2009 loss of $213 million US dollars, and a net loss of $169 million.

It attributed those results to a downturn in the lucrative business-travel sector, or the conversion of those travelers to economy passengers.