Continental starts layoff of Saipan employees

Some Continental Micronesia employees have already lost their jobs on Saipan in view of the pullout of Japan Airlines from the Marianas route effective today.

Continental Micronesia staff vice president for sales and marketing Wally Dias confirmed yesterday that, as earlier announced, Saipan employees would lose their jobs beginning this week due to loss of service contracts with Japan Airlines and Northwest Airlines. He declined to specify, however, the number of employees who have already been let go.

Currently, he said, Continental Micronesia has 150 staff on Saipan. By January 2006, the number of personnel will be down to 35.

Continental Airlines would lose its ground-handling contract with Northwest effective Dec. 1.

On Nov. 1, Continental is also scheduled to stop its Guam-Saipan-Taipei flights, while on Nov. 7, it will drop Saipan from its Guam-Hong Kong flights.

These changes primarily stem from the rising price of fuel and poor market demand.

Mark Erwin, Continental Micronesia’s president and chief executive officer, earlier said, “It is very difficult to have to furlough our hard-working co-workers. We will work closely with the affected employees to help them through this transition.”

Erwin had said the airline would provide the affected employees with information regarding opportunities at other Continental Micronesia and Continental locations.

Meantime, after 28 years, JAL will hold its last regular flight from Saipan today.

JAL notified the CNMI last May of its withdrawal from the Marianas effective today, although the airline is expected to continue providing charter flights from Japan throughout the month at a much reduced price.

JAL said it will have special flights on Oct. 16, 18, 21, 23, and 26 at $240 roundtrip ticket. Regular fare is over $600 for a roundtrip ticket.

Meantime, Northwest Airlines manager Richard Parsons said yesterday that the airline’s Osaka maiden flight went smoothly on Saturday.

“We’re very pleased that it went smoothly as scheduled,” said Parsons.

Parsons earlier said that direct flights between Saipan and Osaka beginning Oct. 1 will proceed despite major restructuring within the airline following its bankruptcy filing in the United States.

Marianas Visitors Authority managing director Vicky I. Benavente earlier said that MVA and NWA held destination seminars in Osaka for tour agents and media groups in the last three or four weeks to promote the new route.

Sources said the airline had opted to keep its ceremonies for the Osaka maiden flight “simple.”

“There’s not much fanfare,” said a source, noting that no top government officials were present.