SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
January 10, 2002
CONTINENTAL AIRLINES, INC.
(Exact name of registrant as specified in its charter)
|
Delaware |
0-09781 |
74-2099724 |
|
(State or other jurisdiction |
(Commission File Number) |
(IRS Employer |
|
of incorporation) |
Identification No.) |
|
1600 Smith Street, Dept. HQSEO, Houston, Texas |
77002 |
|
(Address of principal executive offices) |
(Zip Code) |
(713) 324-2950
(Registrant's telephone number, including area code)
Item 5. Other Events.
On January 10, 2002, Continental Airlines, Inc. issued a press release announcing that
it has recorded a special charge of $39 million ($61 million before taxes) in the fourth quarter of 2001 associated primarily with the impairment of various owned aircraft and spare engines. The press release is filed herewith as Exhibit 99.1 and is incorporated herein by reference.Item 7. Financial Statements and Exhibits.
- Exhibits
- Press Release
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, Continental Airlines, Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CONTINENTAL AIRLINES, INC.
By /s/ Jennifer L. Vogel
Jennifer L. Vogel
Vice President and General Counsel
January 10, 2002
EXHIBIT INDEX
- Press Release
EXHIBIT 99.1
News Release
Contact:
Corporate CommunicationsHouston: 713.324.5080
Email: corpcomm@coair.com
News archive: continental.com/news/ Address: P.O. Box 4607, Houston, TX 77210-4607
CONTINENTAL AIRLINES WILL RECORD FOURTH QUARTER
SPECIAL CHARGE OF $39 MILLION
HOUSTON, January 10, 2002 -- Continental Airlines (NYSE: CAL) today announced it will record a special charge of $39 million ($61 million before taxes) in the fourth quarter of 2001 associated primarily with the impairment of various owned aircraft and spare engines. In accordance with applicable accounting standards, the company records impairment losses on owned assets when circumstances indicate that the assets might be impaired and the expected cash flows are not sufficient to recover the carrying value of the assets, resulting in a write-down of the assets to their fair value. The aircraft in the impairment include all of the company's owned DC-10-30, ATR-42, EMB-120, and Boeing 747 and 727 aircraft. The charge is not related to the permanent grounding of aircraft.
In the fourth quarter, the Company will also record $174 million of compensation pursuant to the Air Transportation Safety and System Stabilization Act, resulting in a total of $417 million of compensation pursuant to such Act for 2001.
Continental Airlines will release fourth quarter financial results on January 16, 2002.
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