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Continental Airlines

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Continental Airlines
IATA ICAO Call sign
CO COA Continental
Founded1934 (as Varney Speed Lines)
HubsGeorge Bush Intercontinental Airport
Newark Liberty International Airport
Cleveland Hopkins International Airport
Antonio B. Won Pat International Airport
Frequent-flyer programOnePass
AllianceSkyTeam
Fleet size366 (+84 orders)
Destinations292
Parent companyContinental Airlines, Inc.
HeadquartersHouston, Texas
Key peopleLarry Kellner (CEO)
Jeff Misner (CFO)
Websitehttp://www.continental.com

Continental Airlines (IATA: CO, ICAO: COA, call sign: Continental) (NYSE: CAL) is an certificated air carrier of the United States. Based in Houston, Texas, it is the fourth-largest airline in the U.S.[1] and the eighth-largest in the world by revenue passenger miles. Continental's marketing slogan, since 1998, has been Work Hard, Fly Right.

Continental operates to destinations throughout the the U.S., Canada, Latin America, Europe, and the Asia-Pacific region. Principal operations are from its three hubs at Cleveland Hopkins International Airport (in Cleveland, Ohio), George Bush Intercontinental Airport (in Houston, Texas), and Newark Liberty International Airport (in Newark, New Jersey near New York City). With a relatively small number of focus cities, the airline is arguably the most concentrated of all 6 major U.S. carriers around the hub and spoke system of airline travel. An operating unit, Continental Micronesia, operates between Honolulu and central Pacific islands in Polynesia and Micronesia, and to Australia, East Asia, and Southeast Asia from its hub at Antonio B. Won Pat International Airport in Guam. (Continental Micronesia was a wholly owned subsidiary operation as an affiliate carrier until it was folded-into the Continental mainline operation after September 11, 2001.)

Continental Airlines is a minority owner of ExpressJet Airlines, which operates under the trade name Continental Express but is a separately managed and publicly-traded company. Cape Air, Colgan Air, CommutAir, and Gulfstream International Airlines feed Continental's flights under the "Continental Connection" identity; however, Continental does not have any ownership interests in these companies.

Since September 2004, Continental has been a member of the SkyTeam Alliance, in which it participates with Northwest Airlines and KLM. In addition to extensive code-share arrangements with SkyTeam partner airlines such as Delta Air Lines, the airline also code-shares with Amtrak rail services to some cities in the northeastern United States, and with SNCF French Rail to destinations in France.

History

Early history

File:CO777.PNG
Continental Airlines 777 at Narita International Airport.

Continental Airlines began service in 1934 as Varney Speed Lines, named after one of its initial owners, Walter T. Varney operating out of El Paso and extending to Las Vegas, Albuquerque, Santa Fe, NM and terminating in Pueblo, CO. Varney Speed Lines changed name to Continental on 1 July 1937 after a new owner Robert Six had taken a forty percent ownership with partner Louis Mueller. Six relocated the airline's headquarters to Stapleton Airport in Denver in October, 1937. Robert Six was one of the legendary patriarch's of U.S. aviation had a reputation as a scrappy, pugnacious and risk-taking executive who presided over the airline he largley forged in his image for more than 40 years.

During World War II Continental's Denver maintenance facilities became a conversion center where the airline converted B-17s and B-29s for the United States military during World War II. Profits from military transportation and aircraft conversion enabled Continental to contemplate expansion and acquisition of new aircraft types which became available following the war.

The airline's early route network was limited to the southwestern United States for many years. In 1953, Continental merged with Pioneer Airlines, gaining access to 16 additional cities in Texas and New Mexico which integrated well with the carrier's initial El Paso-Albuquerque-Denver route.

The glory days

Robert F. Six

Beginning in the early 1960s Continental expanded rapidly, adding service from Los Angeles to Houston (both nonstop, and with services via Phoenix, Tucson, El Paso, Midland/Odessa, Austin, and San Antonio); and from Denver and to Seattle, Portland, New Orleans, and Houston (both nonstop, and with services via Wichita and Tulsa/Oklahoma City). In 1963 the company's headquarters moved from Denver to Los Angeles

Throughout the Vietnam War Continental provided extensive cargo and troop transportation for U.S. Army and Marine forces to Asian and the Pacific bases. As a result of Continental's experience in Pacific operations, the carrier formed subsidiary Air Micronesia, picking up island-hopping routes between Saipan/Guam and Honolulu, which Continental operated with 727 aircraft (this unit is currently known as Continental Micronesia). In 1968 a new aircraft livery was launched, the orange and gold cheatlines adorned with a black global circle on the jet's tails.

1969 saw the introduction of service from Los Angeles to Honolulu/Hilo; and in 1970, Continental's first Boeing 747s arrived. McDonell-Douglas DC-10s were added to the fleet in 1971. Continental was selected to serve the route from the Pacific Northwest to San Jose and Ontario, CA.

Continental's growth during this period was about more than new aircraft types or additional route miles. Quality was the watchword in every detail of the carrier's operation; and in one anecdotal indication of Six's passion for premium customer service, every page of the airline's Customer Service Manual was inscribed with these words: "Nothing in this manual supersedes common sense." At Six's insistence, Continental (with Pan Am) was a launch airline for the Boeing 747 aircraft. Its upper-deck first class lounge won awards worldwide for the most refined cabin interior among all airlines, as did meal services developed by Continental's Cordon Bleu-trained executive chefs. Continentals B-747 services from Chicago and Denver to Los Angeles and Honolulu set the standard for service in the western U.S. When asked by one Denver customer service agent in 1974 why he flew Continental wherever he could, Hollywood legend Henry Fonda remarked, "This operation is class; strictly class!"

First black pilot

Continental hired the first black pilot to work for any major carrier, Marlon Green, after a United States Supreme Court decision allowed a Colorado anti-discrimination law to be applied to his case.[citation needed]

Acquisition by Texas Air Corp.

In 1981 Texas Air Corporation, an airline holding company controlled by the talented, hard-charging U.S. aviation entrepreneur and raider Frank Lorenzo, acquired Continental after a contentious battle with Continental's management who were adamantly determined to resist Lorenzo. Continental's labor unions also fiercely resisted, fearing what they termed as, "Lorenzo's deregulation tactics." In the end, Texas Air Corp. prevailed. Frank Lorenzo became Continental's new Chairman and CEO. Texas International was merged into Continental Airlines in June 1982. TI ceased to exist and the "new Continental" relocated its headquarters to Texas Air's base in Houston, Texas. The merger resulted in a large expansion of Continental's hub at George Bush Intercontinental Airport and its extensive routes to Mexico.

Airline unions fought Continental at every step. In the Federal courts, they unsuccessfully sued to stop the company's reorganization. They were successful in working to persuade Congress to pass a new bankruptcy law preventing bankrupt companies from terminating contracts as Continental had successfully done. The law was too late to affect Continental and the drastic cost cutting and changes that had rescued it from liquidation.

First bankruptcy and rapid growth through consolidation

Frank Lorenzo took Continental into Chapter 11 bankruptcy in September 1983 after extensive negotiations with labor unions proved unsuccessful. Continental imposed a series of new labor agreement on its union workers, sharply reducing the airline's labor costs. This move made Continental vastly more competitive with the new airline startups then emerging and thriving in the southwestern U.S.

Much of the airline was liquidated and the company was rebranded as a low-cost carrier. Continental was also forced to abandon its hub in Los Angeles although it maintained its Denver and South Pacific routes. A more streamlined, leaner Continental emerged only a few days after the bankruptcy filing, a fact which gave Continental the distinction of being the first airline to fly through bankruptcy.

In October 1983, Texas Air Corp. made an offer for a Denver-based regional carrier, Frontier Airlines, opening a bidding war with People Express, which was headed by Lorenzo's former TI associate Don Burr. PeopleExpress paid a substantial premium for Frontier's high-cost operation.

On August 24, 1986 Frontier filed for bankruptcy and ceased operations. With PeopleExpress hemorraging cash, Texas Air acquired PeopleExpress on September 15, 1986, at the same time gaining Frontier, which reinforced Continental's already formidable Denver hub. The PeopleExpress hub at Newark allowed Continental to expand its east coast services dramatically for the first time in its history; and the carrier soon the third-largest airline in the U.S.

On February 1, 1987, People Express, New York Air, and several commuter carriers were merged into Continental Airlines to create the sixth largest airline in the world.

1987 saw the creation of the OnePass frequent flyer program, and in 1988 Continental formed its first strategic partnership with SAS.

File:Continental logo73h.gif

In 1985, Continental rebounded as signaled by a major strategic move: initiating European service with flights from Newark and Houston to London. Continental emerged from bankruptcy in 1986.

Second bankruptcy

Continental filed for bankruptcy again in 1990, shortly after unveiling a new white and blue livery. There were a number of circumstances behind the second bankruptcy: Lorenzo left Continental to dedicate himself full time to Eastern Air Lines, and fuel prices had risen because of Iraq's invasion of Kuwait and the resulting Gulf War. People Express had also been highly leveraged at the time of its merger with Continental, having purchased Frontier Airlines just two years before. In 1993 Air Canada, along with Air Partners and Texas Pacific Group, aided Continental in coming out of chapter 11 once again by investing $450 million dollars in the airline. Under the leadership of Gordon Bethune Continental subsequently ordered new Boeing aircraft - converting to an all-Boeing fleet - and scaled down their expensive Denver hub substantially in 1995 (Denver is now a spoke operation for flights from Newark, Houston and Cleveland). Bethune chronicled his experiences in the book From Worst to First.

Continental Airlines Boeing 757-200 lands from Newark (USA) at Bristol International Airport, Bristol, England
Continental Airlines Boeing 757-200 takes off for Newark, USA

Current operations

Continental went on to expand its international operations. In 1998 it launched flights to Ireland and Scotland and in October 1998 the airline received its first Boeing 777, allowing non-stop flights from Newark and Houston to Narita, Japan and from Newark to Tel Aviv, Israel. Continental also launched partnerships with Northwest Airlines, Copa, Avant Airlines, Transbrasil, and Cape Air, and Continental and America West Airlines became the first two US airlines to launch interline electronic ticketing.

On March 1 2001 Continental launched a non-stop flight from Newark to Hong Kong, flying over the North Pole, which was the first non-stop long-haul flight service for any airline with flying duration of 16 hours. However the September 11 attacks and the SARS outbreak in Asia caused service to be suspended until August 1 2003. The launch in 2001 started the battle between Continental, United Airlines and Cathay Pacific over non-stop flights between Hong Kong and New York.

On February 22 2005, the United States Department of Transportation announced that both Continental and American had won a battle with Delta Air Lines to operate flights to China, with Continental offering a daily flight from Newark to Beijing beginning June 15 2005. With the announcement, Continental, American, and United, will become the only three United States based airlines to offer non-stop flights between the United States and Mainland China. (Northwest Airlines operated non-stop flights to Beijing from Detroit from 1996 to 2002). Continental also flies non-stop from Newark to New Delhi and plans to start service from Newark to Shanghai in 2007. In 2005, Continental expanded service from Newark to six new European destinations: including Belfast, Stockholm in Sweden, Oslo-Gardermoen Airport, Bristol, Edinburgh,Hamburg and Berlin. By May, 2006, Continental surpassed bankrupt Northwest Airlines in traffic volume and become the fourth-largest U.S. carrier, the first change in the top-five rankings since 2001.

Continental Airlines was named "Airline of the Year" by OAG. According to Yahoo, Continental was also named "World's Most Admired Airline." Continental Airlines received a J.D. Power and Associates Award for Highest- Ranked Network Airline.

Continental has recently earned other noteworthy recognitions and awards:

  • No. 1 Most Admired Global Airline; FORTUNE magazine (three years in a row)
  • No. 1 Most Admired U.S. Airline; FORTUNE magazine
  • Best Executive/Business Class; OAG Airline of the Year Awards (four years in a row)
  • Best Airline Based in North America; OAG Airline of the Year Awards (three years in a row)
  • Best Trans-Atlantic and Trans-Pacific Business Class among U.S. airlines; Conde Nast Traveler (eight years in a row)
  • Best Airline for Travel in North America, Best Flight Attendants in the US, and Best Inflight Service in the US by reader survey in the UK's Business Traveller magazine, Dec 2006

In mid-2007, Continental will feature docking capability for Apple Computer's iPod portable music and video player. This will allow the device's battery to be charged, but will also allow integration with Continental's In-flight Entertainment (IFE) system. This will also enable the IFE system to play music, television shows, or movies stored on the iPod, as well as function as a control system.[2]

The Wall Street Journal revealed on December 12, 2006 that Continental was in merger discussions with United Airlines. Of issue would be Continental's golden share held by Northwest Airlines, dating from a stakeholding relationship during the late 1990s. A deal was not "certain or imminent," with the talks being in a preliminary state.[3][4]

Destinations

Continental Airlines counter
Further information: [[:Continental Airlines destinations]]

Continental flies to the most destinations of any US airline in Japan, Mexico, and the United Kingdom, and is the only US airline to fly to the Federated States of Micronesia, Indonesia, Norway, Northern Ireland, Palau, and Portugal. It has the most international destinations of any U.S.-based airline, which includes new non-stop flights from Newark to Copenhagen, Stockholm, Oslo, Barcelona, Cologne, Hamburg, and Moncton.

Fleet

Continental's all-Boeing fleet consists entirely of two-class aircraft . The fleet age for Continental Airlines is 8.9 years. It comprises the following aircraft as of September 2006:[5]

Continental Airlines Fleet
Aircraft Total Passengers
(First*/Economy) 		Routes Notes
Boeing 737-300 48 124 (12/112) Short-medium haul domestic routes
Boeing 737-500 63 114 (8/106) Short-medium haul domestic routes
Boeing 737-700 36
(36 orders) 		124 (12/112) Short-medium haul domestic routes
Most configured with winglets
Boeing 737-800 105
(2 orders) 		150 (18/132)
152 (20/132)
155 (14/141)
157 (16/141) 		Continental Micronesia
US, Mexico, Canada 		Short-medium haul domestic routes
All configured with winglets
Boeing 737-900 12
 167 (18/149)
Boeing 737-900ER (24 orders) 173 (20/153) Entry into service: 2008
Boeing 757-200 41 172 (16/159) Medium-long haul domestic/international routes
Configured with BusinessFirst seats, winglets
Boeing 757-300 17 216 (24/192) Medium-long haul
Occasional short haul domestic routes
Boeing 767-200ER 10 174 (25/149) Medium-long haul international
Domestic routes
Boeing 767-400ER 16 235 (35/200)
256 (20/236) 		Continental Micronesia
Mainland Hawaii, Europe,
South America, Asia 		Medium-long haul international
Domestic routes
Boeing 777-200ER 18
(2 orders) 		285 (50/235) Long haul international flights
Boeing 787-8 (20 orders) Entry into service: 2009

* First Class is offered on Domestic Flights. BusinessFirst is offered on Transatlantic/Transpacific Flights.

Recently, Continental Airlines announced that it will acquire 24 more Boeing Next-Generation 737 (737NG) aircraft, bringing the total number of Boeing 737NGs in its fleet to 213 when these aircraft, and pre-existing firm order 737NG aircraft, are delivered. [1] On August 3, 2006, Continental converted an order for 12 Boeing 737NG's for an order for 737-900ER's, the first carrier in the Americas to operate the aircraft, with first delivery in 2008. [6]

Continental Airlines was one of three carriers (with American Airlines and Delta Air Lines) to sign an exclusivity agreement with Boeing in the late 1990s. When Boeing acquired McDonnell Douglas, the European Union forced Boeing to void the contracts. However, both parties have been adhering to the terms under a gentlemen's agreement.

OnePass

OnePass, Continental's frequent flyer program, was created in 1985.

In addition to its Continental Express and SkyTeam Alliance partnerships, Continental offers frequent flyer partnerships the following:

Presidents Club

The Presidents Club is the membership airport lounge program of Continental Airlines and COPA Airlines. Unlike lounges run by some of its larger competitors, the Presidents Club features an open bar and was the first lounge operated by an American network airline to feature nationwide free WiFi. Although the size of the network, 27 clubs, is small compared to larger airlines, members enjoy full reciprocal privileges at over 40 additional locations including lounges operated by SkyTeam partners Delta Air Lines and Aeromexico along with the WorldClubs operated by long-standing partner Northwest Airlines. The most unique lounge is a beautiful former dance club located at Washington D.C.'s National Airport. The Presidents Club, along with the Northwest WorldClubs and Qantas Club is one of few airline lounges that offer lifetime memberships, something that currently costs non-elite members $4,690.

Locations

The Presidents Club locations are listed below:

Continental Airlines President Club members are allowed to use partner clubs, which offer more clubs in more locations. For partner club information, visit continental.com:[2]

Codeshare agreements

Continental Airlines has codeshare agreements with the following airlines as of August 2006:
(This list does not include Skyteam Airlines)

Continental Connection codeshares

Continental Connection has a codeshare with American Eagle (the American Airlines and AMR Corporation version of Continental Express), yet not with American Airlines. Also, American Eagle does not operate as Continental Connection, they just codeshare specifically with Continental Connection, not Continental Airlines. The operators of Continental Connection are:

Incidents and accidents

Trivia

  • In episode 02-134 of the The West Wing titled "The Mommy Problem", a Continental 737 was used in the start of the episode as the Santos/McGarry plane. The livery and the Skyteam logo are visible near the forward door.
  • In episode 66 "I Heart NY" of HBO's Sex and the City, Mr. Big leaves Carrie two Continental Airlines tickets.
  • In the 1997 film, Donnie Brasco, a Continental Airlines MD-80 is seen taking off, and a Continental Airlines DC-10-30 is seen taxiing during scenes filmed in a hangar at Newark Liberty International Airport, NJ.
  • Robert Six, CEO of Continental Airlines from 1938 to 1980, was married to both singer and actress Ethel Merman and The Honeymooners star Audrey Meadows.
  • In John Cusack's 1999 movie Pushing Tin, a movie about air traffic control in the New York area, Continental's call sign and livery are both heard and shown.
  • In an episode of MythBusters, the tail section of a retired Continental DC-9 was used to see if a person could fall to earth in the tail section and survive.
  • Continental's standard row configuration does not include a 13th row because of triskaidekaphobia. However, Continental's headquarters office tower in downtown Houston has a 13th floor.
  • Continental was featured in the movie Terms of Endearment which was filmed in Houston, Texas. The logo featured was created by Saul Bass, a graphic designer known for his motion picture title sequences.
  • Former Continental CEO, Gordon Bethune, is seen in a Continental advertisement flying an airplane; Bethune is a licensed commercial pilot.
  • Continental Airlines owns the domain name continentalsucks.com.
  • In Ben Stiller's 1996 Movie Flirting with Disaster, the characters are seen flying on Continental.
  • Passengers flying a polar route, such as that flown by Continental from Newark Liberty to Hong Kong, will receive 256 times the normal ground based radiation, or the equivalent of three chest X-rays.
  • Continental Airlines recently added Chautauqua Airlines as a Continental Express partner for regional service. Chautauqua Airlines is owned by Republic Airways, an airline holding company whose vision-statement emphasizes that each employee "...regardless of personal beliefs or world-view, has been created in the image and likeness of God."
  • The interior office scenes for Robocop 2 were filmed in the lobby of Continental Center I, Continental's downtown corporate headquarters, located at 1600 Smith Street in Houston.
  • The opening piece of dialogue in the 1970 film "Airport" is a Continental Airlines P.A. flight announcement: "Attention...attention, please. Continental Airlines announces the departure of Flight 3 for Los Angeles and Honolulu, Gate 28, the Blue Concourse."
  • In the movie Speed (film), the bus enters a busy Los Angeles airport and passes by a hangar where the tail of a Continental DC-10 is seen with the new livery.
  • On June 8, 2006, Captain Dewey Lockwood, his wife, son and his wife's sister and her husband made up the entire crew of Flight 1683, from Houston to El Paso, and Flight 1515, the return flight.[8]
  • Continental Airlines is the official airline for the Cleveland Indians Major League Baseball Team.

References

  • Christian, J. Scott, former Continental employee and manager, Bring Songs to the Sky: Recollections of Continental Airlines, 1970-1986, Quadran Press, 2000.
  • Continental Airlines, Customer Service Manual, 1970 edition.
  • Buckley, William F. Jr., [5] Frank Lorenzo & the free market in National Review, September 17, 1990.
  • Delaney, Kevin J., Strategic Bankruptcy: How Corporations and Creditors Use Chapter 11 to Their Advantage (ISBN 0-520-07359-2), University of California Press, 1999.
  • Serling, Robert J., Maverick: The story of Robert Six and Continental Airlines (ISBN 0-385-04057-1), Doubleday & Company, 1974.
  1. ^ and one of the world's largest airline operations."Continental now USA's 4th-biggest airline, passing Northwest", USA Today notes Continental overtaking Northwest according to a Bloomberg News study
  2. ^ "Apple: 6 Airlines To Offer In-Flight iPod Connection In '07." De Weese, J. The Wall Street Journal. November 14, 2006.
  3. ^ "UAL, Continental Discuss Merger As AirTran Presses Bid for Midwest." Carey, S.; Trottman, M.; Berman, D. K. The Wall Street Journal. December 13, 2006.
  4. ^ "United and Continental Discussing Possible Merger." Sorkin, A. R. and Bailey, J. The New York Times. December 12, 2006
  5. ^ "Continental Airlines Orders 10 More Boeing 787s and 24 More Boeing 737s" (Press release). Continental Airlines. June 6, 2006. Retrieved 2006-06-06.
  6. ^ "Boeing, Continental Airlines Reach Agreement for 12 737-900ERs" (Press release). Continental Airlines. June 6, 2006.
  7. ^ "Jetliner bound for Texas lands on Midway". The Honolulu Advertiser, 6 January 2004. Retrieved June 14. {{cite web}}: Check date values in: |accessdate= (help); Unknown parameter |accessyear= ignored (|access-date= suggested) (help)
  8. ^ "Five Members of Same Family to Comprise Entire Crew of Continental Airlines Flight". Press Release, 5 June 2006 (Press release). Retrieved June 18. {{cite press release}}: Check date values in: |accessdate= (help); Unknown parameter |accessyear= ignored (|access-date= suggested) (help)

See also

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