On Friday, Continental Airlines welcomed Jeffrey Smisek as the airline's new chief executive, taking over Larry Kellner's position as Mr. Kellner moves on to a position at a private equity firm. Today, Mr. Smisek said he will not take a salary or an annual bonus until Continental records a full-year profit.
In a letter to Continental employees, Mr. Smisek said, "I am not asking you or anyone else to reduce their pay. What I am asking is that you join me in making Continental profitable again." The carrier, like most airlines, has had trouble turning up a profit during a period of weak demand for air travel.
According to a filing with the U.S. Securities and Exchange Commission (SEC), Mr. Smisek's annual salary, as of January 1st, is $730,000. CNN says the filing of Mr. Smisek's retirement and stock purchase plans "will be impacted by his salary and annual bonus waiver."
Continental Airlines is expected to report a loss for 2009. However, recent reports from the IATA say air traffic is already starting to recover.
