Continental Airlines is to rein in capacity growth next year, to 4.6% from the planned 6% through the early disposal of six of its 31 McDonnell Douglas DC-10-30 widebodies. Chairman and chief executive Gordon Bethune says the move, in line with industry trends, will help the airline and its Continental Micronesia subsidiary to "preserve yields".
The disposal, together with the decreasing market value of Boeing 747s no longer operated by the airline, will cause Continental to take a charge of $50 million for the fourth quarter of this year.
The DC-10s, to be retired by the end of the first half of next year, will be replaced by Boeing 757s and 737-800s on some routes, and Boeing 777s on others.
Meanwhile, Continental plans to use proceeds from the sale of its interest in the Amadeus computer reservations system to boost its stock repurchase programme by $400 million, to $1.2 billion.
Source: Flight International
