U.S. airline launches new N.Z. company

Press, 27 September 1983, Page 2

U.S. airline launches new N.Z. company

PA Auckland Continental Airlines’ services into New Zealand and Australia will be run by an independent subsidiary company, it was announced in Auckland yesterday. The new company, Continental Pacific, plans to increase activities in both countries, and predicted competition with other airlines, including Air New Zealand, would become stronger, its regional director, Mr Bill Clague, said.

His announcement of the new company comes after a week-end of dramatic events in the parent company based at Houston, Texas — including the sacking of about 10,000 employees. After the filing of a bankruptcy petition and the announcement that United States domestic airports serviced would be reduced

75 per cent, Continental decided to isolate its profit* able overseas services ifito separate companies.

Mr Clague said yesterday that staff were very excited.

“We have wanted for some time to do our own thing, and now the chance has come,” he said.

A new office will be opened in Christchurch and probably one in Wellington. Similar plans, including a new Melbourne office and larger headquarters in Sydney, have been announced in Australia. Continental has 42 employees in New Zealand, and flies services through Auckland three times a week.

Most of the money earned on trans-Pacific services would be ploughed back into the local company, Mr Clague said.

Aircraft flying services from Los Angeles to the South Pacific would be leased from the parent company, which would also provide technical and cabin crews.

There were no immediate plans for increasing flights out of New Zealand and Australia. Continental has lost about SUSS7O million since 1978, including a ?US96 million loss in the first half of this year.