MOODY'S CONTINUES REVIEW OF TEXAS AIR <TEX> UNIT
Moody's Investors Service Inc said the
debt ratings of People Express Airlines Inc remain under review
for possible downgrade.
    The agency said that People Express has not legally merged
with Continental Airlines Inc, a unit of Texas Air Corp, even
though the two have integrated their flight operations. Moody's
also cited significant litigation against People.
    Moody's pointed out that neither Texas Air nor Continental
have assumed the debt service obligations of People Express,
which currently carries B-3 senior secured debt and Caa senior
unsecured debt.
 Reuter
