AIRLINES

Continental to Discontinue CALite Service: Less than two years after launching its no-frills service with tremendous fanfare, the airline said the money-losing operation will be grounded in July--right down to the peanuts. Houston-based Continental Airlines will retain no-frills, high-frequency flights where markets permit. Continental is so set on distancing itself from the failed CALite service and its companion Peanuts Fares policy that it will no longer serve peanuts on its flights. The airline estimates it lost $100 million to $120 million on CALite in 1994.