Continental Airlines files 10-K

Continental Airlines files 10-K    Houston-based Continental Airlines filed Tuesday its annual financial report on Form 10-K as required by the Securities and Exchange Commission.
   SEC regulations require that Continental provide detailed information on its future prospects, including what actions Continental will be forced to take if the tentative union agreements it is discussing are not ratified on March 30.
   Continental listed these actions as follows:
   * Increasing the size of needed pay and benefit reductions to $800 million from $500 million. This 60-percent increase is because, without March 30 ratification’s, Continental’s deteriorating financial condition will require significantly greater pay and benefit reductions from each work group.
   * Subleasing or selling 24 Boeing 737-500 aircraft. As part of its contingency planning, Continental has engaged aircraft broker Focus Aviation to market these aircraft.
   * Furloughing a significant number of employees
   * Canceling the Boeing aircraft order; including plans to lease eight 757-300 aircraft, canceling the accelerated delivery of six Boeing 737-800 aircraft, canceling orders for 10 new Boeing 787 aircraft, and discussing with Boeing deferring all 40 remaining aircraft on order that are scheduled for delivery beyond 2005.
   * Needing to post up to an additional $335 million in cash deposits.
   The entire 10-K can be found at https://www.sec.gov or at https://www.continental.com under “Investor Relations.”