EWRflyr

So now we know where CAL picked up its newest Heathrow slot.

Continental closes Gatwick operation

By Kevin Done, Aerospace Correspondent
Financial Times
Tuesday Sep 9 2008 13:40

Continental Airlines (NYSE:CAL) , one of the leading US carriers, is abandoning its long-standing base at Gatwick airport in order to concentrate its London operations at Heathrow.

It said on Tuesday it was dropping its flights to Gatwick from its US hubs at New York Newark with two daily services and Houston with one daily service.

It is adding one more daily flight between Heathrow and Newark increasing the service to three a day in order to improve its competitiveness against the leading carriers on the London-New York route, British Airways, Virgin Atlantic and American Airlines.

It also operates twice daily flights between Heathrow and Houston.
Continental is the US carrier that has taken most advantage of the opening of Heathrow to full competition from all US and European airlines since the end of March, when the "open skies" treaty between the US and European Union came into force liberalising transatlantic aviation.

It set a record for Heathrow slot prices in 2007 when it paid $209m for four pairs of take-off and landing slots to start twice-daily services from Houston and New York Newark. It acquired two slot pairs from GB Airways, one from Air France and one from Alitalia.

It is leasing its fifth slot pair at Heathrow from United Airlines for the additional New York service, which will begin on October 25.

Jim Compton, Continental's executive vice-president marketing, said: "Our focus on Heathrow is a response to the changing realities of the marketplace. Our customers have shown a clear preference for Heathrow and our main competitors have focused their operations there.

"We regret the need to end year-round operations at Gatwick, but it is imperative that we remain competitive," he said.

The airline said 44 jobs would be eliminated at Gatwick as a result of the move.

The US carrier operates to more destinations in the UK from New York than any other airline with services to Heathrow, Belfast, Birmingham, Bristol, Edinburgh, Glasgow and Manchester.

American Airlines also closed its Gatwick base this year as part of the move to consolidate its London operations at Heathrow tranferring its flights to Dallas Fort Worth and Raleigh Durham.