Guy Norris/GUAM
Continental Micronesia is expanding its route network, revising its Guam hub operation and modernising its fleet with Boeing 757s and Next Generation 737s as part of plans to counteract the downturn in traffic following the Asian economic crisis.
The first of two new 757-200s due for delivery this month arrived in Guam on 2 March and will be followed by four more by the end of May. The single 757 on loan from parent company Continental will then be returned to the US-based fleet to leave five aircraft operating from Micronesia. "It's very timely," says airline president James Ream who is using the 757s to replace McDonnell Douglas DC-10-10s on some routes and to build up frequencies on others. The 757s have lower operating costs.
The airline's three DC-10-10s are due to return to the USA by the end of March, along with the last two of five Boeing 727-200s sent to join the mainland Continental fleet as part of restructuring plans announced at the start of the year. The move leaves Continental Micronesia with nine 727-200s, one DC-10-30, five 757s and four 747-200s. "Asia is on its knees and we've tried to respond aggressively. Instead of doing things slowly every quarter, we're leapfrogging that and making the move in one go. The transfer helps them and helps us. We have the chance to flow excess capacity back stateside where it is needed now," says Ream.
Continental Micronesia also reveals that it is studying the 737-900 as part of plans to replace its 727 with Next Generation 737s from 1999/2000 onwards. "The -800 was pegged as the aircraft of choice, but now Boeing has launched the -900 there's a lot of interest here in that," says Curt Bourg, senior vice-president customer service and sales. The aircraft would be acquired as part of Continental's original Next Generation order, and could well include a mix of types including the -600 and -700, says Ream.
The airline is also expanding services to Japan, where it plans to serve 11 cities by 2000 compared to six at the start of this year. New services are also planned for 1998 to Cairns, Australia, the island of Bali and, pending French Government approval, to Noumea in New Caledonia. The expansion compensates for the closure of once lucrative routes to Seoul which have ceased with the collapse of the South Korean economy.
The revised network is linked to changes at the Guam hub, where the timing of the predominantly north-south and east-west flights are being changed to more closely connect with one another and with south and east Pacific locations.
Source: Flight International
