5 Executives Resign at Continental Air

Continental Airlines announced the resignation of five top executives in what appeared to be a major housecleaning at the Houston-based carrier.

In a statement, Continental said the action was a “cost-efficiency measure” intended to make Continental more competitive worldwide.

The action came two months after controversial former Chairman Frank Lorenzo quit and sold his Continental stake to Scandinavian Airlines System. SAS, which owns 18.4% of Continental’s stock, was instrumental in hiring Delta Air Lines President Hollis Harris as Lorenzo’s replacement.

Continental said Tuesday that Harris would be given the additional role as president, replacing Mickey Foret, who is leaving the company to pursue other interests, officials said.

Others who plan to leave include Neal Neehan, senior vice president-customer services; Clark Omstad, senior vice president-properties and government affairs; Jim Arpey, senior vice president-aircraft programs, and Elliott Seiden, vice president and associate general counsel for Continental Airlines Holdings Inc.

Continental named Thomas Kalil senior vice president-customer service and said Lewis Jordan, executive vice president and system general manager, was given the additional responsibility for managing the company’s international division.

“With radically higher fuel costs, Continental must become a stronger competitor in the global marketplace,” said Harris, Continental’s chairman and chief executive. “We have reaffirmed our intention to become a preferred airline among frequent travelers around the world.”