AIRLINES

Continental Backs Out of Pacific Sale: The airline said it no longer wants to pursue the planned $290-million sale of its Pacific operation and would consider using the system as collateral for a possible loan. In a year-end Securities and Exchange Commission filing, Continental accused Pacific Micronesia Corp. of breaking its contract to buy Air Micronesia by trying to reopen price negotiations. Micronesia agreed last November to buy Continental’s Pacific system for $270 million cash and $20 million in stock in the new venture. When the proposed deal was announced, it was Continental’s first major asset sale since filing for bankruptcy protection in December, 1990, and was viewed as a key cash provider in its reorganization strategy.