Continental Airlines

Continental Airlines Contributes $50 Million to Mechanics' Pension Plans
Recently Negotiated Contract Amendments Ensure Payments

January 5, 2006

Continental Airlines has announced that it is contributing nearly $50 million to its pension plans, bringing its 2005 contributions to $354 million. The increase follows the company’s recent contract negotiations with the Teamsters.

Approximately 3,430 Teamster aviation maintenance technicians (AMTs) and related workers are covered by the pensions.

“The pensions of Continental AMTs are stable, thanks in large part to our contract negotiations,” said Jim Hoffa, Teamsters General President.

"Continental's pension contributions stand in sharp contrast to the positions of several non-Teamster air carriers, some of whom have defaulted on their obligations," said Don Treichler, Teamsters Airline Division Director.

Earlier in 2005, the Airline Division negotiated key contract amendments with Continental that ensure the stability of the mechanics' defined benefit pension plan.

The company's contribution also stems from its recent sale of about 9 million shares of stock in Copa Holdings, S.A., parent of Copa Airlines, for $172 million. Continental still holds about 12 million shares of common stock in Copa Holdings.

 

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