Continental recalls some furloughed pilots

By Aaron Smith, CNNMoney.com staff writer


NEW YORK (CNNMoney.com) -- Continental Airlines is recalling some of the pilots it furloughed several years ago, as the company ramps up international flights and replaces retiring older pilots.

Continental (CAL, Fortune 500) spokeswoman Julie King said the airline is recalling 15 of the 147 pilots it furloughed in 2008. In addition, it is putting more than 100 pilots back on active status from the voluntary leaves of absence that they took in 2008.

Some of these pilots will be flying the company's two recently acquired Boeing 777s, which will be used for international flights, King said.

Continental furloughed the pilots during a particularly tough year for the airline industry, which has struggled to cope with stagnant business and vacation travel thanks to the recession, as well as volatile fuel prices.

"We are pleased to see our pilots returning," said Capt. Jay Pierce, a Continental pilot and a chairman for the Continental chapter of the Air Line Pilots Association. "With the anticipated delivery of new aircraft, the improvements in the economy and the expectations for increased passenger travel during the upcoming summer vacation season, the return of our furloughed pilots -- all of them -- is needed to maintain the level of service that Continental is known for."

Hunter Keay, senior airline analyst for Stifel Nicolaus & Co., said the recall is a small but positive sign for the airline industry.

"Clearly, the industry is recovering, but I think certain regions are performing better than others, and certain airlines are outperforming others," said Keay. "I think that's a bullish indicator for the demand that Continental sees in its core markets."

The recall is occurring as Continental prepares to merge with UAL Corp.'s United Airlines.

UAL Corp. (UAUA, Fortune 500) announced on May 3 that United will merge with Continental in a deal worth $3.2 billion, creating the world's largest airline.

The combined company, which will fly under the United moniker and Continental logo, will be larger than Delta Air Lines (DAL, Fortune 500), which became the country's largest airline when it merged with Northwest Airlines in 2008.

Helane Becker, airline analyst for Jesup & Lamont Securities Corp., said the airlines pledged that they would not lay off pilots as part of the merger.

She cast Continental's pilot recall as a sign that the airline recognized that its latest staff cuts were "more muscle than fat." To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 12,454.83 -74.92 -0.60%
Nasdaq 2,837.53 -1.85 -0.07%
S&P 500 1,317.82 -2.86 -0.22%
Treasuries 1.74 -0.01 -0.80%
Data as of 8:31am ET
Company Price Change % Change
Bank of America Corp... 7.15 0.01 0.14%
Sprint Nextel Corp 2.62 0.09 3.56%
Cisco Systems Inc 16.33 -0.06 -0.37%
Chesapeake Energy Co... 15.81 0.23 1.48%
Ford Motor Co 10.60 0.01 0.09%
Data as of May 25
Sponsors

Sections

The Senate hearing will focus JPMorgan's recent $2 billion trading loss, which Dimon announced earlier this month. More

The offer for mail handlers is part of the Postal Service's plan to cut 150,000 jobs by 2015. More

In the whirlwind of its IPO fallout, there has been a sort of glee in watching the company stumble. What's driving the Facebook-schadenfreude and what can the social network do about it? More

One in six children in the United States is obese. These small businesses have found creative -- and lucrative -- ways to fight the childhood obesity epidemic. More

In Harper County, Kansas, oil companies are offering farmers up to $1,250 an acre for the mineral rights that allow them to drill for oil on their property. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2012 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2012 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2012. All rights reserved. Most stock quote data provided by BATS.