Continental Airlines (CAL)

Continental Airlines Inc (NYSE:CAL) is cutting 600 reservation agent jobs, effective April 11, as customers increasingly book flights online, according to Reuters. Continental, which has 2,600 reservation agents, told its employees about the furloughs on Monday. The airline, also, will not renew a third-party contract for handling calls. The airline said it saw a 15 percent drop per year in call volume as customers book tickets on the Internet.
Houston-based Continental said it will offer an 'early-out' program to reservation employees who have worked at the carrier for 10 years. It will offer severance and outplacement services for employees affected by the cuts. Continental is just one of many airlines that are seeing increased internet sales. The trend in online booking is reducing the amount of time that a flyer needs in booking a reservation versus human communication. Analysis indicates that like bank ATMs, on line booking can be very profitable for the airlines in a time of charging for various amenities.

Feb 23 · 9:44:00 AM · Source: Reuters
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by Steve Wieczorek