Continental Airlines Inc. executives have a vision: They want to make the airline paperless-and they're getting close. Several applications are helping the airline save paper and money-something that's more important now than ever.

About 35,000 of the airline's employees have opted for direct deposit, with their paycheck stubs available for viewing on the company intranet. Each biweekly paycheck would cost the airline $3 to print and distribute, so the online stubs save $2.7 million a year. Continental's "buddy pass" program, a benefit that lets employees give their families or friends free plane tickets, became completely electronic this year, saving the airline $300,000 in ticket-printing costs.

Perhaps Continental's biggest paper-saving, cost-cutting initiative is its use of the Web to distribute aircraft maintenance manuals. Most other airlines continue to rely on paper manuals or microfilm, but Continental's 3,000 maintenance technicians go right to their computer screens for assistance. They can look up information online in the hangar-or at home in the evening as they're thinking about how to resolve a problem.

The results are clear. Previously, it took Continental 60 to 90 days to produce and distribute manual revisions. Now, the Web site is updated every 14 days. The airline also saves $500,000 to $1 million a year in distribution costs. Maintenance mechanics save 30 to 45 minutes each time they research a problem because the Web application can search by keyword and drill down to deliver the appropriate information.

In 2000, Continental was No. 1 in on-time performance, according to the U.S. Department of Transportation. "We think that's because we can turn around maintenance problems quickly," CIO and senior VP Janet Wejman says. Continental also has the fewest delays and cancellations caused by mechanical problems.

Another key benefit of the system is that it improves the quality of life for employees. "We're giving them the right tools to do the job," Wejman says. "They wouldn't dream of doing it any other way now."

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