Continental Makes $84M Pension Payment

HOUSTON – Continental Airlines Inc. said Monday it paid $84 million into its defined-benefit pension plans, bringing this year’s contributions to $304 million.

The latest payment means the Houston-based carrier has met its minimum required contribution for the year, Continental said.

The payment “demonstrates that we are working hard to fulfill our obligations and keep our promises to employees,” said Larry Kellner, Continental’s chairman and chief executive.

Continental, the nation’s No. 5 carrier, and Fort Worth-based American Airlines, the largest U.S. carrier, have been seeking more time to make required pension contributions.

They objected to a bill in the U.S. Senate that would have given Delta Air Lines Inc. and Northwest Airlines Corp., both of which have filed for bankruptcy protection, more time to make pension contributions.

Last week, key senators agreed to add Continental and AMR Corp.’s American to the relief measure, although the legislation’s fate is still unclear because a House version of the bill doesn’t cover airlines.

Continental shares fell 36 cents, or 3.1 percent, to $11.33 in trading Monday afternoon on the New York Stock Exchange.