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Northwest mum on service contract with Continental
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Posted on Sep 09 2005
Northwest Airlines is tightlipped about its plans for its soon-to-expire ground-handling service contract with Continental Micronesia at the Saipan International Airport.
James Mueller, Northwest managing director for Asia and the Pacific, refused on Wednesday to talk about the status of Continental’s contract, where the employment of a number of Continental workers relies upon.
“I prefer not to talk about that. It’s an ongoing business discussion of ours. It would be premature to say,” Mueller said during a press conference at the Governor’s Office.
He also declined to disclose the exact expiration date of Continental’s current contract.
“It’s a business relationship between Continental and us. We’re evaluating our options,” Mueller said.
Last week, however, Continental reportedly told its Saipan employees that Northwest was not renewing the ground-handling service contract with the airline.
This came about a month after Continental advised the workers that some of them would be furloughed due to possible loss of service contracts with Northwest, as well as Japan Airlines.
JAL will stop regular flights to Saipan starting Oct. 4, 2005, but it is expected to continue offering charter flights from Japan.
In early August 2005, Continental also said that the furlough was going to begin around Oct. 1, 2005. It did not provide the exact number of the personnel who might be laid off.
“It is very difficult to have to furlough our hard-working co-workers,” Mark Erwin, Continental Micronesia’s president and chief executive officer, had said. “We will work closely with the affected employees to help them through this transition.”
However, Erwin had assured the affected employees that the airline would provide them with information regarding opportunities at other Continental Micronesia and Continental locations.
