Thirteen jobs are to go in Bermuda as Continental Airlines outsources its operations on the Island because of the financial crisis in the US airline industry, according to a spokesperson for the airline.

The company sent a letter to the Bermuda Industrial Union (BIU) about two or three weeks ago, according to an employee who did not wish to be named, letting them know all 13 Continental employees will be made redundant on October 6 this year.

According to the employee, these jobs are being outsourced to Sovereign Flight Operations, which he says has told them none of them will be kept on.

Sovereign Flight Operations, was at the centre of controversy last year when it was given the green light to begin private jet services at L.F. Wade International Airport.

Bermuda Airport Services and its subsidiary Aircraft Services have since filed a writ against Premier Ewart Brown, in his capacity as Tourism Minister, and former Attorney General Phil Perinchief, claiming that they breached the company's exclusive rights to provide that same service.

E-mails to Sovereign Group were not responded to at the time of going to press.

A Continental Airlines' spokesperson said there was consultation concerning the 13 staff members who face redundancy.

They added that the decision to outsource was due to the current financial crisis and there would be a global movement within the organisations to downsize.

"In light of the financial crisis in the US airline industry Continental has undertaken global capacity reductions that resulted in approximately 3,000 job eliminations over the summer," she said.

"The company's international staffing model is to outsource its operations where feasible and order to maintain its competitiveness.

"Continental will try to minimise the effects of this decision on employees by offering alternatives to involuntary leave.

"The company also remains loyal to the Bermuda market and to providing its regular, consistent, high-quality service to Newark."

The decision to outsource the jobs comes only weeks after Zoom Airlines announced it was going bankrupt and would stop all flights to Bermuda.

Announcing the suspension of all flights on August 28, the airline posted a statement on its website advising passengers to contact their credit card company for refunds and seek alternative flights on other carriers.

The airline had started flying to Bermuda in June 2007 and blamed rising fuel prices for the end of its service.

On the recent announcement by Continental, Chris Furbert president of the BIU said the union was still in talks with the company.

He said: "We are in talks with Continental right now.

"What I don't want to do is hinder the process."