Continental Airlines

Continental Airlines, Inc. (IATA: CO, ICAO: COA, callsign: CONTINENTAL) (NYSE: CAL) was a chartered carrier of the United States. Headquartered in Downtown Chicago, Illinois, it was the fourth largest airline in the United States in terms of revenue passenger/miles. Since 1998, Continental's slogan has been "Work Hard, Fly Right." On May 3, 2010, it was announced that Continental Airlines and United Airlines would merge to become the world's largest airline. On November 30, 2011, the Federal Aviation Administration (FAA) announced that as of that day, Continental and United Airlines would operate as one (United).

Continental operated flights to destinations in the United States, Canada, Latin America, Europe, and the Asia-Pacific regions. It had more than 6,000 daily departures, serving some 151 domestic and 190 international destinations and had 85,200 employees (as of March 2007). The main operations depart from its main airports at Newark Liberty International Airport (in Newark, New Jersey), the George Bush Intercontinental Airport (in Houston, Texas), and Cleveland-Hopkins International Airport (in Cleveland, Ohio) Continental Micronesia, a wholly owned subsidiary of the company, served routes in Micronesia from its hub at the International Airport Antonio B. Won Pat in Guam and connected the Micronesia region with destinations in East Asia, Southeast Asia, Honolulu and Cairns, Australia.

Continental Airlines was a minority owner of ExpressJet Airlines, which operates under the Continental Express brand but was run entirely independently of Continental and is a public company. Cape Air, Colgan Air, CommutAir, and Gulfstream International Airlines fed Continental's flights operating as Continental Connection, as well as Chautauqua Airlines as Continental Express, although Continental has no involvement in these companies.

Since September 2005, Continental was a member of the SkyTeam alliance, where it participated together with Northwest Airlines, Delta Air Lines, Air France, Aeroméxico, Alitalia, KLM, etc. In addition to having codeshare agreements with airlines belonging to the SkyTeam alliance, the airline also had codeshare agreements with Amtrak's rail services to some cities in the northeastern United States, with US Helicopter flying out of Liberty International Airport. from Newark to Manhattan, and with the French railways to destinations in France. In January 2009, Continental announced that it would leave the SkyTeam alliance on October 24, 2009, and would join the Star Alliance on October 27, 2009.

History

Early History: 1931-1958

Continental Airlines began operating in 1934 as Varney Speed Lines (named after one of its first owners, Walter T. Varney, who was also the founder of United Airlines) with flights from El Paso and extending to Albuquerque, Santa Fe, and from Las Vegas, NM to Pueblo, CO. The airline began operations with the Lockheed Vega, a single-engine aircraft that could carry up to four passengers. The airline later operated other Lockheed aircraft, including the Lockheed L-9 Orion, the Lockheed Electra Junior, and the Lockheed Lodestar.

After the cancellation of all airmail agreements by the Roosevelt administration in 1934, Robert Six saw a buying opportunity in the southwestern division of Varney Speed Lines, which needed money to service the newly awarded route from Pueblo to El Passed. Six was introduced to the company by Louis Mueller (who served as Continental's CEO until February 28, 1966). Mueller helped consolidate Varney's southwestern division in 1934 along with Walter T. Varney. As a result, Six joined the airline with a $90,000 contribution and became general manager on July 5, 1936. Varney was awarded a 17 contract for airmail between Pueblo and El Paso; as well as made passenger flights. The company was christened Continental on July 8, 1937. Six relocated the airline's base to Denver Union (later Stapleton) Airport in Denver in October 1937.

Robert F. Six was one of the most resourceful innovators, pioneers, and visionaries (including Juan Trippe, William A. Patterson, Jack Frye, C.R. Smith, and Eddie Rickenbacker) who established and grew the United States airline industry. Although in his life, Six has had a reputation as a combative executive and risk-taking image that he has remained with for more than 40 years.

During World War II, Continental's Denver maintenance facility became a conversion center where airlines converted their aircraft into B-17s, B-29s and P-51s for the United States Air Force. The benefits of military transport and aircraft conversion allowed Continental to contemplate expanding and acquiring new types of aircraft that became available after the war.

Among these types were the DC-3, the Convair 240, and the Convair 340. Some of the DC-3s were acquired from surplus military aircraft that appeared after World War II. The Convairs were the first aircraft operated by Continental that were pressurized (see photo).

The airline's early route network was limited to the El Paso to Denver route, as well as routes that had been added during World War II from Denver and Albuquerque to destinations in Kansas, Oklahoma, and Texas. In 1946 Continental expanded its routes from Denver to Kansas City and Tulsa/Oklahoma City, and from El Paso and Albuquerque to San Antonio. Each of these routes included intermediate stops in one of the 22 small cities that were also destinations. In 1953 Continental registered its first major expansion after merging with Pioneer Airlines, obtaining permission to fly to 16 additional cities in Texas and New Mexico. These Pioneer destinations seamlessly integrated with Continental's post-WWII routes, building momentum with the industry regulator CAB, then incentivizing from Denver to top destinations in Texas, New Mexico, Kansas and Oklahoma. However, Continental was, like many US carriers at the time, essentially an airline with limited regional flights. Bob Six was extremely dissatisfied with this situation. He lobbied the CAB hard for longer-distance routes to larger cities, as part of his plan to transform the regular carrier into a major carrier like United, TWA, and American. Simultaneously, he was in talks with Boeing for Continental to become one of the first airlines in the world to operate the 707, a jet plane that would be introduced shortly thereafter. Planning was vital, as new routes could justify the 707s, and vice versa.

The "Airline that needed to grow," 1959-1969

By the late 1950s, Six's strategy had taken hold. Continental Airlines was experiencing an improvement in its routes, thanks to the responsibility of the CAB and the persistent efforts of Six, who frequently referred to his company as, "the airline that needs to grow." In 1957 first flew from Chicago to Los Angeles (both direct, and via Denver); and nonstop flights from Denver and Los Angeles to Kansas City. Continental Airlines introduced turboprop flights with the Vickers Viscount, on the new medium-haul routes. The CAB allowed Continental to drop flights to many of the small cities on its network, allowing the company's new planes to operate more economically between points with greater distances. Prior to the introduction of the Boeing 707 aircraft, Continental purchased the popular DC-7 to operate its non-stop routes from Los Angeles to Chicago, as well as the Denver-Los Angeles and Chicago-Kansas City routes (see photos).

By the late 1950s and early 1960s, Six clearly established itself as the low-fare leader. He had correctly predicted that increased traffic, not high fares, was the answer to the airline industry's problems. Six stunned the industry when he introduced economy fare on the Chicago-Los Angeles route in 1962. He later pioneered low or discount fares that enabled many who otherwise would not have been able to travel by air. One of the first innovations at Continental Airlines was the creation of a comprehensive system of cheap travel fares that enabled fares to be cut by more than 25 percent.

As Six had planned, Continental was one of the first operators of the Boeing 707, taking delivery of the first of its four 707s in the spring of 1959. Although Pan Am and TWA inaugurated 707 flights just a few weeks before it was made by Continental, Continental was the first airline in the world to use the Boeing 707 on internal flights, using it for the first time on the Chicago–Los Angeles direct route on June 8, 1959. However, because Continental's fleet of 707s was Relatively small relative to other companies, radical innovations were needed in the 707 maintenance program. To maintain its small fleet of jets, Continental developed an industry first: the innovative "progressive maintenance" allowed Continental to fly its 707 seven days a week, 16 hours a day, achieving better aircraft utilization than any other operator of this aircraft in the airline industry.

Six, not satisfied with the unique service of the 707, introduced exclusive innovations and luxury food to Continental's 707 operations that were described as "...without giving up luxury" by the Los Angeles Times, and, "...clearly the best in the airline industry" by the Chicago Tribune.

In the early 1960s, Continental added routes from Los Angeles to Houston, both direct and with one-stop and two-stop flights to Houston via Phoenix, Tucson, El Paso, Midland-Odessa, Austin, and San Antonio. New flights were also inaugurated from Denver to Seattle, Portland, New Orleans, and Houston (to Houston: both direct, and with one and two stops via Wichita/Tulsa/Oklahoma City). In 1963 the company's base was moved from Denver to Los Angeles.

In the late 1960s, the company jettisoned the last of its piston and turboprop aircraft—one of the first airlines in the United States to do so. Continental replaced the fleet of Viscount aircraft with DC-9s from Douglas Aircraft and began an aggressive acquisition campaign for Boeing 727 aircraft. These two aircraft (DC-9 and B-727) became the workhorse of the fleet. Continental since the late 1960s, and for the next twenty years. In 1968 a new system of Continental Airlines liveries was introduced, parallel gold and orange stripes embellished with a "turbulence" Black made up the logo (designed by Six's friend, famed graphic designer Saul Bass) of the planes' tails (the logo was later modified to red; see photo of the 747). The slogans adopted in 1968 and used for about a decade were "The airline that is proud of its construction" and, "The proud bird with the golden tail.".

During the Vietnam War, Continental provided a number of cargo and troop transports for the United States Army and Marine Corps to bases in Asia and the Pacific. Continental's 707s were the most common non-military aircraft passing through Saigon, at Tan Son Nhat International Airport. As a result of the experience Continental gained in Pacific operations, the company created the former Air Micronesia subsidiary in May 1968, inaugurating inter-island routes between Yap/Saipan/Guam, Majuro, Rota, Truk, Ponape (Pohnpei), and Honolulu. "Air Mike," as the new airline was known, initially operated with Boeing 727- 100 specially equipped with survivability measures for landing over the ocean, doppler radar, and a host of accessories (including shock absorbers). A veteran mechanic flew aboard all Air Mike flights until the late 1970s. Air Micronesia now operates as the subsidiary Continental Micronesia.

In September 1969, a priority objective was achieved: the introduction of Continental flights from Los Angeles to Honolulu/Hilo; and in 1970, Continental was awarded routes from Seattle and Portland to San Jose, Hollywood-Burbank Airport, and Ontario, California—all emerging air markets. Nonstop flights from San Francisco to Albuquerque and Dallas were added the same year.

First African-American pilot

In 1963, Continental hired the first African-American pilot to work for any major US airline, Marlon D. Green, following a US Supreme Court ruling on anti-discrimination law in Colorado applied in this case against Continental. Green flew with Continental from 1965 until his retirement in 1978. Continental's hiring of Marlon Green paved the way for the hiring of other pilots by all airlines, a milestone in the industry that finally took shape in 1977 after Southern Airways and Piedmont hired their first black pilots.

Continental enters the era of wide-body aircraft: 1970-1976

Due to Six's insistence, Continental (with Pan Am and Trans World Airlines) was a launch carrier for the Boeing 747 aircraft. On June 26, 1970, Continental was the first carrier to introduce the 747 on domestic flights in the United States. Its upper deck with first class seating and its main floor with "Polynesian Pub" won awards around the world for the most refined cabin interior of any airline, as well as food services developed by Continental chef Lucien DeKeyser. Continental's 747 flights from Chicago and Denver to Los Angeles and Honolulu they set the flying standards for the western United States. When asked by a Denver customer service clerk in 1974 why he flew Continental anywhere he went, Hollywood legend Henry Fonda remarked, "This operation is wonderful; strictly wonderful!"

On June 1, 1972, Continental's flights with the DC-10 wide-body aircraft began. Six insisted that Continental had placed a large order for the DC-10 with manufacturer McDonnell Douglas. This decision again fulfilled the predictions, since the publicity associated with the entry into service of the Continental 747 in the Chicago-Denver-Los Angeles-Honolulu corridor, which increased not only the market share but also increased traffic numbers. in all companies. Additionally, Denver, Houston, and Seattle experienced large increases. DC-10s quickly took over many of the flights between Denver and Chicago, to Los Angeles, Houston, and Seattle (and between Houston-Los Angeles).

During the 1970s, Denver continued to be the base of operations for the Continental flight network. The 747s were placed on the Chicago-Los Angeles-Honolulu routes, with a round-trip flight from Denver. The DC-10 aircraft operated in long-haul markets between major city markets (typically from Los Angeles to Chicago, Denver, Houston, and Honolulu; and from Denver to Chicago, Los Angeles, Seattle, and Houston). DC-9s and B-727s dominated the flight system, as well as additional frequencies in the DC-10 markets. Along with Braniff, Continental operated few aircraft types (four: the B-747, the McDonnell Douglas DC-10, B-727-200, and DC9-30) during this period than any major airline in the United States, saving a good deal on aircraft parts, maintenance, and crew training.

The DC-10 proved to be a very timely addition to Continental's fleet, allowing the airline to lead the passenger growth of the Western United States markets. Continental saw annual passenger growth in every market where the DC-10 served during the 1970s, until its numbers matched those of United, the main competitor on many of the DC-10's routes. The same service innovations introduced to the 747 fleet began to be implemented in the DC-10s, including the "Polynesian Pub" class; although after the 1973 Oil Crisis - increasing fuel prices needed to increase the number of seats to be more profitable - the DC-10's pub seats were removed.

According to Robert Serling, Six's biographer, he accurately recounted every detail of Continental's operations in the 1960s and 1970s. In an anecdotal account of Six's passion for providing the best service to the passenger, the following words were inscribed on each page of the airline's customer service manual: "Nothing in this manual supersedes common sense." Bob Six in his relentless prowl of the Continental flight system, and competitive flights, in order to search for ideas that could be applied to the Continental flight network. In an ongoing tribute to Six's passion For providing the highest quality of passenger service—and in a difficult period that resulted in a deterioration in service quality between 1982 and 1994—Continental earned further awards for its preferential treatment of passengers and for its professionalism in the passenger industry. travel than any other airline.

Deregulation and Expansion: 1977-1980

In 1974, after years of delays and legal proceedings, Continental inaugurated flights between Houston and Miami, and on May 21, 1976, Continental was cleared to fly between San Diego and Denver - both long-awaited routes, and marked a new episode of rapid growth for Continental. President Carter and Civil Aeronautics Council counsel Alfred Kahn promoted deregulation of the airline industry (see Airline Deregulation Act), which would dissolve the CAB and for the first time in the history of the industry of US companies the airlines could decide where they should fly, without government supervision, and could set the rates freely. In this context, 1977 was a historic year for Continental and the entire airline industry, as the CAB began to lose its benefits of bygone eras. Continental began flying from Denver to Miami/Ft. Lauderdale and Tampa/St. Petersburg. In the same year, President Carter authorized Continental to operate daily flights between Air Micronesia destinations to Saipan and Japan, and approved Continental's route from Los Angeles to Australia via Honolulu, Samoa, Fiji, New Zealand, and Australia. Flights to the South Pacific began on May 1, 1979.

After the 1978 verification of the effects of the Airline Deregulation Act, Continental embarked on an aggressive route expansion plan. In October 1978, Continental began flying from the New York area airports to Houston and Denver, and from Denver to Phoenix. That same month, Continental launched DC-10 flights between Los Angeles and Taipei, via Honolulu and Guam.. Flights between Houston and Washington D.C. began in January 1979. In June 1979, Continental connected Denver with Washington D.C., Las Vegas, San Francisco, and San Jose and also began flights between Houston and Tampa. By the time of the company's acquisition by Texas Air Corp. in 1981, post-deregulation Continental had grown to the point of being in every major US market (and every regional market) since its inception. operating bases in Denver and Houston; and the rapid air expansion was responded to by expanding the long-haul flight facilities at each of these airports. In Denver, Continental's rapid growth provided a final push for construction of the new Denver International Airport, which would be completed fifteen years later.

During 1978, Continental explored the possibility of merging with Western Airlines. Western was also based at Los Angeles International Airport (LAX) and operated primarily a fleet dominated by B-727s and DC-10s. As in the Continental fleet. The route system would have been complementary, with minimal overlaps; because while both operated in the western states, Continental had a strong presence in Hawaii, the southern zone, and the Great Plains states; while Western was strong in the interstate market of California, Alaska, Mexico, and the intermountain west. Both airlines served the Pacific Northwest and Rocky Mountain states, but maintained different routes from Los Angeles, Denver, San Francisco, Seattle, and Phoenix. This merger was never consummated, however, changes in the industry harbored an entirely different picture for the future of Continental.

Unlike some airlines (notably Braniff whose expansion was so rapid and unsustainable that the additional costs became an impossible investment, and the company ended up in bankruptcy and liquidation), Continental had a rate of expansion based on the performance of the airlines. market after deregulation, adjusting more to what is appropriate. The markets that were added were the ones that would bring benefits, and provide the company with a strong financial base to face the setbacks of the future and face them as they did between 1982 and 1994.

Acquisition by Texas Air Corporation: 1981-82

In 1981 Texas Air Corporation, an airline company controlled by American aviation enthusiast and broker Frank Lorenzo, acquired Continental after a contentious battle with Continental management who was against the Lorenzo acquisition. Continental's unions also came out strongly against the buyout, launching a campaign of attrition under the slogan "Lorenzo's deregulation tactics" to spread the idea that Continental would be spun off. During the conflict, the president of Continental Airlines, A. L. Feldman, committed suicide on August 9, 1981, in his office.

Ultimately, the offer from Texas Air Corp. prevailed. Frank Lorenzo became the new president and CEO of Continental. On October 31, 1982, Continental merged with Texas International (the merger retained the company's Continental name, brand, and identity; the Texas International brand and identity disappeared), offering flights to three continents (the Americas, Asia, and Oceania) with a fleet of 112 aircraft. The "new Continental" relocated its base to where Texas Air had been, in Houston, Texas. The merger led to a major expansion at Continental's base of operations: Houston Intercontinental Airport and an expansion of new routes to Mexico and the central and southern United States.

The merger of the airlines gave a strong boost to Lorenzo and Continental. The federal courts were not able to stop the reorganization of the companies. However, they persuaded Congress to enact an anti-bankruptcy law to stop the restructuring. The law was enacted too late without affecting Continental or the costs and taxes of the liquidation.

First bankruptcy and labor relations: 1983-84

Frank Lorenzo filed Continental into Chapter 11 bankruptcy on September 23, 1983, after failing to reach an agreement to reduce wages with the unions. The reconstruction of the company began immediately. After the bankruptcy, Continental was released from contractual obligations and imposed a new set of labor agreements with its workers' unions, allowing the airline to reduce labor costs by reducing the costs of the moratorium on its employees. This move made It made Continental much more competitive and, with the new airline bases, emerged and re-dominated the Southwest fringe of the United States, but it had a significant negative impact on employee attitudes and values. In financial terms, the airline cleared the bankruptcy treaty—by the end of 1984, Continental made $50 million in profit. On June 30, 1986, Continental filed for Chapter 11 bankruptcy. Continental holds the distinction of being the first US airline to overcome bankruptcy.

During this period, Continental was forced to abandon its small base of operations in Los Angeles, although it maintained its routes from LAX to Denver, Chicago, Houston, and to the South Pacific.

European flights and rapid growth towards consolidation: 1985-89

On April 28, 1985, Continental began its comeback, inaugurating its first scheduled flights to Europe with flights from Newark and Houston to London. A short time later, flights were also launched to Paris, Frankfurt am Main, Madrid-Barajas and Munich.

In October 1985, Texas Air Corp. made a bid for Denver-based regional carrier Frontier Airlines, sparking fierce competition with People Express, led by Lorenzo's former IT associate Don Burr. People Express paid a huge amount for Frontier's high-cost operations. The company's debt acquisition was frowned upon by industry observers based on the criteria of route integration and the overall philosophy of the deal although it was, according to industry analysts, a way on Burr's part of catch the eye of his old boss, Frank Lorenzo.

Boeing 757-200 with winglets in Newark exit.

On August 24, 1986, Frontier filed for bankruptcy and canceled all operations. With People Express's massive economic bleeding, Texas Air acquired PeopleExpress on September 15, 1986, while also acquiring Frontier's strong network of destinations in the Great Plains and west of the Intermountain area, bolstering the already-developed yes strong Continental hub in Denver. As the largest airline serving the New York market, PeopleExpress' Newark hub allowed Continental to dramatically expand its network of East Coast destinations for the first time in its history. Continental soon became the third largest airline in the United States, and the leading carrier in the New York, Denver, and Houston air markets. Continental emerged from bankruptcy in 1986 with improved features and a significant box and a more competitive route structure with routes to every major US city from its main hubs of Denver and Houston.

On February 1, 1987, People Express, Frontier, New York Air, and a few other feeder airlines merged with Continental Airlines creating the third largest airline in the United States (and the sixth largest airline in the world). As a result, Continental became a major player in the Northeast markets. In 1987, the creation of Continental's frequent flyer program, OnePass (in conjunction with Eastern Airlines), was proposed; and, in 1988, Continental created the first group strategy (and the first international alliance of its kind) with SAS.

Second bankruptcy, new leadership and structural changes: 1990-97

In 1990, Frank Lorenzo retired after 18 years at the helm of Texas International and later Texas Air and Continental Airlines, selling the majority of his share capital to Scandinavian Airlines System (SAS). According to William F. Buckley, in his September 17, 1990 National Review article, the sale to SAS was conditional on Lorenzo leaving the company.

Continental Airlines canvas bag. He has the Spanish slogan, "Work with commitment. Fly with passion."

On December 3, 1990, Continental filed for its second bankruptcy in a decade. There were a number of circumstances behind this second bankruptcy, the most important of which are: Lorenzo had spent most of his time acquiring Eastern Air Lines and negotiating new working conditions; Iraq's invasion of Kuwait and the subsequent Gulf War in 1990 led to a sharp increase in the price of fuel; and People Express was also not very strong after its merger into Continental, having acquired Frontier Airlines just two years earlier. In addition, Lorenzo had embarked on solving the debts of other companies, also trying to consolidate the different airlines into a single group. This led to the airline having a fairly large number of aircraft of different types, evident in the very diverse liveries that comprised the Continental fleet for years.

In the late 1980s, after a reduction in flights by United Airlines and USAir's failed attempt to establish point-to-point routes, Continental expanded its flights at Cleveland Hopkins International Airport and established what would become its third base of operations of its extensive network of destinations. Continental quickly took over virtually all of the gates in the airport's C-module (formerly owned by United), and later expanded its gates with the construction of the new D-module.

On February 12, 1991, Continental introduced its new blue and gray livery, featuring a "globe" logo. This continues to be the hallmark of the Continental fleet and its facilities.

In 1993 Air Canada, together with Air Partners and Texas Pacific Group, helped Continental emerge from bankruptcy by investing $450 million in the airline. Under the new leadership of former Boeing executive Gordon Bethune, who became its president in October 1994, Continental began a great job of reviving the company. Bethune began ordering new planes in an effort to convert his fleet to an all-Boeing fleet. After the opening of Denver International Airport on February 28, 1995, Continental's management decided that the Denver operating base - its historic operating base and hub of its flight system for 60 years - saw its flights reduced to stay with a minimum part (with flights only to Houston, Newark, and Cleveland). This reduction was based on cost reduction, as the new airport's fees and charges were considerably higher than at Stapleton, which this new airport had replaced. Bethune also initiated a breakthrough plan, designed to repair declining employee morale and to eliminate other airline problems. His decisions were reflected in the book published in 1999 From the worst to the first .

Recent and current operations

Continental Center I, the former headquarters of the Continental Airlines

The Boeing 777 "Peter Max" (the most colorful plane) at George Bush Intercontinental Airport in Houston, Texas. Downtown Houston is visible at the bottom. The book was withdrawn in the winter of 2007-2008.

In September 1997 the airline announced that it intended to consolidate its Houston base at the Continental Center complex.

In early 1998, Continental re-embarked on a plan to expand international flights. That same year it inaugurated flights to Ireland and Scotland, and in October 1998 the airline took delivery of its first Boeing 777 aircraft, enabling non-stop flights from Newark and Houston to Tokyo, Japan, and from Newark to Tel Aviv, Israel. That same year, Continental reached agreements with Northwest Airlines, Copa, Avant Airlines, Transbrasil, and Cape Air, and Continental and America West Airlines became the first two airlines in the United States to launch the electronic ticket service.

On March 1, 2001, Continental launched nonstop flights from Newark to Hong Kong, flying over the northern polar circle. This flight was the first direct long-haul flight with a duration of more than 16 hours. SARS in Asia caused flights to be suspended until August 1, 2003. The inauguration in 2001 began with a brief battle between Continental, United Airlines and Cathay Pacific over non-stop flight rights between Hong Kong and New York.

Continental introduced new non-stop flights to Oslo, Norway, in 2004. In 2005, Continental expanded its flights from Newark to Beijing after Chinese authorities gave them permission to operate the flight. In the same year, five new destinations were added: Stockholm-Arlanda Airport in Sweden, Belfast and Bristol in the United Kingdom, and Hamburg and Berlin in Germany. Flights were added to Cologne, Germany, in 2006 and to Athens, Greece in 2007. Of the US airlines, only Delta serves more European destinations than Continental.

In 2005 flights to Asia were expanded by Continental with the introduction of daily non-stop flights between Newark and New Delhi, India. The success of the Newark to New Delhi route heralded the creation of a second route in India with direct flights to Bombay announced daily. The inauguration of flights to Bombay meant that Continental became the airline that offered the most daily direct flights from the United States to India.

In May 2006, the company's passenger traffic surpassed that of Northwest Airlines, and Continental became the largest airline in the United States, the first change among the top five passenger airlines since 2001.

The The Wall Street Journal announced on December 12, 2006 that Continental was engaged in discussions with United Airlines. According to the Northwest Airlines article, it could have a gold share of Continental dating back to the two companies' relationship in the late 1990s, and the demise of Continental's base of operations in Guam. Negotiations were not "safe or imminent," with talks preliminary at best.

Recognizing the limitations in the number of operations in Newark, Continental announced plans to expand the utilization of its Cleveland hub by deploying more international flights to Cleveland. On September 14, 2007, Continental laid out its two-year plan at its Cleveland home base, including new flights from Cleveland to Paris beginning May 22, 2008. Its expansion of international flights is expected to continue shortly, as The new Federal Flight Control office at Continental's main module in Cleveland is soon to be completed.

Regarding internal flights, the expansion plan includes two phases. The first phase comprises twelve destinations that would be operated by regional jet aircraft, with the new flights planned in May 2008. Later in 2009, 20 new destinations were planned, mainly with parent aircraft. Continental said the expansion would be completed in time for the summer 2009 travel season, bringing 700 new jobs to the Cleveland base of operations. However, the economic crisis of 2008 put an end to these plans and, in fact, led to a reduction in flights at the Cleveland hub.

Continental is the main operator at Houston Intercontinental Airport

Continental, main company of New York, operates from Terminal C of the Libertad International Airport of Newark

In May 2008, Continental Airlines sold its 4.38 million shares in the Panamanian flag carrier Copa at a price of $35.75 per share, thus obtaining $149.8 million. Continental had been one of the main shareholders in Copa. Continental said on June 5, 2008 that due to domestic and international economic conditions, they would be forced to cut 3,000 jobs and that the CEO and Chairman would reduce their salaries for the remainder of the year. The airline also said it would reduce capacity and remove 67 aircraft from the parent carrier's fleet by the end of 2009, retiring all 737-300s and leaving just 35 of Continental's 737-500s.

On June 19, 2008, Continental announced that it planned to leave the SkyTeam alliance and intended to join the Star Alliance in order to collaborate more closely with United Airlines and other Star Alliance airlines. The new Continental-United relationship has been seen in some circles as a 'virtual merger'. Continental said that its SkyTeam affiliation had, however, been the best way to increase its business passenger traffic. Continental had been in negotiations with United Airlines since early 2008 with the intention of the two airlines eventually merging, but Continental made clear in the negotiations its intention to continue operating as an independent airline.

On August 19, 2008, USA Today announced that Continental would lay off 140 to 180 pilots. The article also mentioned that more than 2,500 jobs had already been eliminated, many of them with voluntary early retirement programs. Continental said in June that it intended to reduce its capacity on domestic flights in the United States by 11% after the increase in travelers from the summer season.

In September 2008, Continental announced that it would operate new seasonal flights between Houston and Rio de Janeiro. The new direct flight aims to offer flight connections from Continental's Houston hub to more than 160 cities in the United States, Canada, Central America, Europe, and Asia.

On January 7, 2009, Continental hosted the first commercial airliner to demonstrate the use of biodiesel in the United States. The flight demonstration was fueled with a special fuel made from components derived from algae and sustainable crops, second-generation fuels that have no impact on the world's population's food or water and do not contribute to deforestation.

On January 29, 2009, Continental announced a net loss of $266 million in its fourth quarter 2008 attributable to the cost of pilot retirements and increased fuel prices.

2010: Merger with United Airlines

On May 3, 2010, it was announced that Continental Airlines and United Airlines would merge to become the world's largest airline, operating under the United name.

Recent Awards and Recognitions

• Top airline worldwide; Fortune magazine (2004, 2005, 2006, 2007, and 2008)
• United States most admired airline; FORTUNE magazine (2006)
• "Airline of the Year" by OAG (2004, 2005)
• Best executive/business class; OAG Airline of the Year Awards (2003, 2004, 2005, and 2006)
• Best North American Airlines; OAG Airline of the Year Awards (2004, 2005, and 2006)
• Best business class on transatlantic and trans-Pacific flights from United States airlines; Condé Nast Traveler (1999, 2000, 2001, 2002, 2003, 2004, 2005, and 2006)
• Best U.S. Airline to Travel, Best U.S. Flight Triplers, and Best U.S. Flight Service in UK's Business Traveller Magazine (2006)
• Continental was also named "World's most admired airline." by Yahoo!
• Award for the largest flight network by J.D. Power and Associates (2007)
• The largest national airline (Premium class) by Zagat (2008)
• Continental was named the most valuable (International) value of all airlines by Zagat (2008)
• North American Best Airline to Travel through Business Traveler Magazine (2008)

Destinations

A Continental Micronesia Boeing 737-800 at Fukuoka Airport, Japan

Continental, along with Continental Express and Continental Micronesia, offered more than 3,100 daily departures to destinations in the Americas, Europe and the Asia-Pacific region. The summer 2008 schedule showed that Continental served 145 domestic and 138 international destinations with more than 550 additional destinations through SkyTeam partners.

Continental Airlines operated primarily on a route network of home bases, with its North American hubs in Cleveland, Houston, and Newark, and its Western Pacific hub in Guam. Most of their flights were operated from their home bases, with a few exceptions (the main ones being Seattle-Anchorage and Los Angeles-Honolulu). Some affiliated airlines used the Continental Connection name to also operate non-home base flights, such as Gulfstream International Airlines, which operated flights within the state of Florida and between Florida and the Bahamas.

For more than 40 years, Continental operated a large base of operations in Denver, Colorado, but made the decision to close this base in 1995 immediately after the opening of Denver International Airport (DIA). DIA had higher operating costs than the old Stapleton airport, which DIA had replaced. The unexpected nature of this change stung Denver, which was seeing huge passenger growth, thanks in large part to Continental. The inevitably departure of Continental allowed for the establishment of the "new" Frontier Airlines (a new company, unrelated to the defunct company of the same name). Frontier expanded rapidly to fill the gap Continental had created with its closure of its Denver home base.

For its first forty years of existence, Continental was an internal airline; however, especially after the addition of Texas International routes, it served more Mexican destinations than any other US airline in the mid-1980s.

Continental's first entry into the transatlantic market came in April 1985, with the inauguration of flights from Houston to London Gatwick. Although its intention was to fly to London-Heathrow, the Bermuda II agreement prevented it, Continental has maintained its flights to London-Gatwick, where in 2007 at least six flights a day traveled to Newark, Houston, and Cleveland.

In March 2008, an Open Skies Agreement between the United States and the European Union came into force, invalidating the Bermuda II restrictions that limited the number of companies and cities in the United States that could be operated from London- Heathrow. In November 2007, Continental announced that it would serve London-Heathrow from its hubs at George Bush Intercontinental Airport and Newark Liberty International Airport with two daily non-stop flights that it intended to launch on March 29, 2008. The flights replaced those that had previously to London-Gatwick and which were operated with Boeing 777-200ER and 767-200.

Continental makes direct flights with its own aircraft from C Lewis W. Cutrer Terminal at George Bush Intercontinental Airport in Houston, Texas.

Continental makes international flights from Terminal E of Intercontinental Airport George Bush, Houston, Texas.

During the Vietnam War, Continental performed a number of military charter flights implementing its Pacific region presence culminating in the creation of Air Micronesia operations. Flights to Japan were inaugurated in the 1970s from Guam and Saipan, and in the late 1980s, direct flights between Seattle and Tokyo were for a time carried out with Boeing 747s, which were soon replaced by the Honolulu-Tokyo (Narita) flight. During the 1990s, Continental maintained a minimal presence in the transpacific long-haul market, until the delivery of the 777 in 1998, which allowed the opening of direct flights to Tokyo from Houston and Newark. In 2007, Hong Kong and Beijing were added to the route network, with Shanghai to follow in 2009, all from the Newark hub. Continental has served Australia in the past with Douglas DC-10 aircraft and from Hawaii with Boeing 747s; although Continental reduced many of its flights to Australia, it continued to operate Air Micronesia Boeing 737-800s between Cairns and Guam.

Continental carries the largest number of scheduled frequencies of any US carrier to India, Japan, Mexico, and the United Kingdom, and is the only US airline serving Norway, the Federated States of Micronesia, the Marshall Islands, and Palau. Continental began flying from Newark to Mumbai, India on October 1, 2007 becoming Continental's second Indian destination.

On September 24, 2007, the Department of Transportation attempted to reward Continental with daily nonstop service between Newark and Shanghai, which began in March 2009. origin and end in Cleveland with a change of plane to Newark.

Continental was considering operating flights from its Houston home base to Dubai, Rome, Milan, and Madrid that it plans to open when it begins receiving 787 aircraft after 2010.

Continental announced on June 12, 2008 that it plans to terminate its flights to fifteen destinations as part of its effort to reduce costs due to increased costs and reduced demand. The airline will close its doors and counters check-in at each of these airports. Flights to the following cities will be canceled entirely: Denpasar, Bali, Indonesia; Cali, Colombia; Cologne, Germany; Guayaquil, Ecuador; Monclova, Mexico; Santiago, Dominican Republic; Oakland, Calif.; Palm Springs, Calif.; Reno, Nev.; Sarasota, Florida; Tallahassee, Fla.; Green Bay, Wisconsin; Chattanooga, Tennessee; Toledo, Ohio and Montgomery, Alabama.

As a result of current economic conditions, flights to other destinations will also be reduced or eliminated from Continental's hubs in Newark, Houston, Cleveland and Guam. Travelers from Houston and Cleveland will be strongly affected by the company's flight reduction plans.

Fleet

Continental Airlines

Continental's fleet, which was made up exclusively of Boeing aircraft, had an average age of 9.5 years as of December 2009. The fleet was made up of four types of aircraft (Boeing 737, 757, 767, and 777) in eleven variants, with two variants of the Boeing 787 Dreamliner expected to enter service in 2011. Continental has always been one of the leading fuel-efficient aircraft operators on the aviation scene. Daily utilization of the company's aircraft was the highest in the industry.

Continental's fleet consisted of the following aircraft:

^{*They are the property of Continental Micronesia.}

Continental Airlines was one of three companies (along 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 cancel all the contracts. Both sides finally reached a gentleman's agreement.

Continental was one of the first major airlines to fly the Boeing 757 on transatlantic routes. There were a good number of range restrictions on westbound transatlantic flights due to strong headwinds, causing unscheduled intermediate stops to be made, although these technical stopovers are not very frequent. The use of the 757 with its reduced seating capacity allowed operation on "thin" (routes with little passenger traffic) making them economically profitable. This made direct flights possible from small cities such as Bristol, England and Hamburg, Germany to New York. Previously, original customers from these and similar cities needed to connect at a European base such as London, Paris or Frankfurt to travel to New York.

Historical fleet

Continental Express

• Bombardier CRJ-200ER: 59
• Embraer ERJ-135: 48
• Embraer ERJ-145: 45
• Total: 152

Mainland Micronesia

• Boeing 737-800: 9
• Boeing 767-200ER: 4
• Total: 13

Cabin

Continental Airlines had a two-class-of-service configuration, First/BusinessFirst and Economy Class, for aircraft in the parent carrier's fleet.

Business First

Continental recently announced, but has not yet installed, BusinessFirst seats that would lie fully flat, recline 180 degrees and provide 2m of sleeping space when the seat is fully extended on these wide-body aircraft. The seat recline offers a width of 25 inches (635 mm) when the armrest is positioned flush with the back of the mattress. Electronic "one-touch" they allow passengers to easily place their seat in the normal travel position, in different resting positions and a few more controls to adjust the backrest, lumbar support and leg and foot support. An iPod connection is also available in the new Business Class seats. The new BusinessFirst seats also have six headrest positions, and an individual overhead reading light allowing the Business passenger to read in bed without disturbing their neighbor and giving them a feeling of complete confidentiality.

The new BusinessFirst seats are scheduled to become operational in the fall of 2009. There is no fixed date for aircraft to enter maintenance to change their seats.

National First Class

Domestic first class was offered on internal flights. It is available on all Boeing 737 family aircraft, as well as the Boeing 757-300. Seats range from 20.75 to 21 inches (533.4 mm) wide, and have 37 to 38 inches (965.2 mm) seat pitch. Passengers aboard this class received free food, soft drinks and alcoholic beverages. Passengers could watch movies on overhead TV screens throughout the cabin. In early 2009, Continental plans to add LiveTV and Wi-Fi services to all next-generation Boeing 737s and Boeing 757-300s that will be free for all first-class passengers.

International Economy Class

Economy class was available on all international flights. The seats were 17.2 to 17.9 inches (454.7 mm) wide, and were 31 to 32 inches (812.8 mm) apart. Passengers aboard this class received free meals, snacks, and non-alcoholic beverages; alcoholic beverages could be purchased for $5 per drink or a Continental drink coupon.

Boeing 757-200 aircraft featured AVOD systems in the rear of all seats. The Boeing 767 and 777 were equipped with a personal television in the back of all seats, using a tape system. All Boeing 777-200s would be equipped with AVOD by the end of 2009. All Boeing 757-200s and Boeing 777-200s to be equipped with AVOD would be equipped with plugs (two plugs per 3-seat group) that do not require special adapters or cables.

Domestic tourist class

Economy class was available on all internal flights. The seats measured 17.2 inches (436.9 mm) wide, and had between 31 and 32 inches (812.8 mm) seat pitch. Passengers aboard this class receive free meals, snacks and non-alcoholic beverages. Alcoholic beverages can be purchased for $5 or a coupon per drink. Passengers on some Boeing 737-300s and all Boeing 737-700s, -800s, -900s, -900ERs, and 757-300s can watch movies on overhead screens throughout the cabin, and headphones can be purchased for $1. In January 2009, Continental began adding LiveTV and Wi-Fi services to all Boeing 737NG and Boeing 757-300 aircraft that will cost US$6.00 for economy class passengers to use.

OnePass

Founded in 1987, OnePass is the frequent flyer program for Continental Airlines, Copa Airlines and Copa Airlines Colombia. OnePass offers regular travelers the possibility of obtaining free tickets, first class flight upgrades, access to VIP lounges at each airport (President's Club), and other types of rewards. Customers earn miles from their flight segments that they have flown with Continental Airlines and its associates. OnePass cards come in Silver, Gold, and Platinum and provide benefits like free flight upgrades, bonus miles, priority check-in, priority boarding, and much more. Continental had a frequent flyer program before OnePass, which had started shortly after American Airlines started its own in 1981 and when most US airlines were following in its footsteps, but merged with Eastern Airlines' frequent flyer program in 1987 to form OnePass. The name "OnePass" he was referring to the possibility of accumulating miles on two large airlines, called Continental and Eastern, in a single frequent flyer program. The Onepass program will terminate its operation on December 31, 2011, since as of January 1, 2012 it will continue its operations with MileagePlus (United Airlines frequent flyer program).

In addition to its partners Continental Express, Continental Connection, and the Star Alliance, Continental has frequent flyer programs with the following airlines:

OnePass members can also earn miles through partner car rental companies and hotels. Due to its agreement with Amtrak, miles can also be earned on some Amtrak trains.

Presidents Club

The Presidents Club is the airport lounge program for passengers from Continental Airlines, Copa Airlines and Copa Airlines Colombia. All rooms have bars. Continental was the first airline to offer free Wi-Fi in its lounges. There are 26 lounges worldwide and it reciprocates with the additional 40 lounges operated by SkyTeam members including Delta Air Lines, Aeroméxico, Alitalia, and Northwest Airlines. Presidents club members also have access to Alaska Airlines and Amtrak Acela lounges. The Presidents Club had a cost as of November 2008 for regular OnePass members of $5,500. BusinessFirst Class passengers traveling internationally as well as International Business Class passengers are entitled to access these lounges. BusinessFirst travelers may bring two guests and Presidents Club members may bring two guests or immediate family (spouse and children under 21 years of age). Members of the American Express Platinum and Centurion cards are guaranteed access to the Presidents Club if they are taking a flight that day, operated by Continental with a Continental flight number.

Locations

The Presidents Club locations are as follows:

Continental Currency

At Continental Airlines kiosks in airports, passengers can purchase the "Continental Currency," a prepaid card to purchase headphones and alcoholic beverages in flight.

Continental allows its passengers to purchase the "Continental Currency" for the following amounts:

• 1 coupon for $5
• $2 for $10
• 3 for 13 dollars (the airline announces it with a discount of 2 dollars)
• 6 for 25 dollars (the airline announces it with a discount of 5 dollars)

Codeshare Agreements

Continental Airlines has codeshare agreements with the following airlines as of January 2011:
(This list does not include SkyTeam airlines)

Continental Connection Codeshare

Continental Connection aircraft.

Continental Connection has a codeshare agreement with American Eagle (American Airlines' equivalent of Continental Express), but not with American Airlines. Although American Eagle also does not operate as Continental Connection, it is limited to codeshare with Continental Connection, not Continental Airlines. The Continental Connection operators are:

• CommutAir operates mainly from Continental team sites in Cleveland and Newark.
• Colgan Air operates from Houston, Newark, and Cleveland. Colgan, as a subsidiary of Pinnacle Airlines (which currently flies as the main Northwest Airlink flight airline), operates Bombardier Q400 aircraft from Newark and Cleveland and with Saab 340B from Houston as 'Continental Connection'.
• Cape Air operates (Continental also has code-shared agreements with the Big Cape Air) in South Florida and from Guam to Saipán, Saipán to Rota and Rota to Guam.
• Gulfstream International Airlines operates in the Bahamas, Miami, Ft. Lauderdale, Orlando, Tampa, West Palm Beach, Jacksonville, Fort Walton, Tallahassee, Fort Myers, Key West, and Sarasota.

Environmental milestone

Continental Airlines has made many efforts to minimize the negative environmental effects of commercial airlines. Continental employees have gone to great lengths to change the pattern of operations to reduce environmental impact. The company invested $12 billion to purchase 270 fuel-efficient aircraft and their equipment. These efforts helped significantly reduce greenhouse gas emissions, improving fuel consumption by 45% over the past 10 years..

Continental created a program that allowed passengers to offset the emissions of their flight with the possibility of paying an extra two euros. The money raised is used to plant those reforestation areas. Passengers can also contribute $50 or more to a fund for the creation of renewable energy projects such as solar or wind power, or the restoration of marine flora in the oceans or large-scale reforestation.

The United States Environmental Protection Agency (EPA) awarded the "Environmental Plan Design" to Continental (2008) for the use of chromium-free aircraft surface treatment preparations that are environmentally viable. Continental Airlines is the first company to use this technology on its planes. The product, "PreKote", eliminates the chemical residues that are normally used in the pre-treatment phase prior to painting the aircraft. This technology allowed an improvement in the conditions of the employees, while also reducing the purification processes.

Continental Airlines is planning to conduct flight tests using a biofuel-powered aircraft. On January 7, 2009, Continental in conjunction with GE Aviation conducted a biofuel demonstration flight, making Continental the first US company to conduct biofuel flights. The test base, a 737, in one of its engines was powered by a mixture of kerosene, algae, and other compounds.

Continental Airlines has been recognized by NASA and Fortune Magazine for its significant contribution to the environment.

Incidents and accidents

The following are the largest accidents and incidents that the Continental Airlines fleet has suffered.

Minor incidents

• On 1 July 1965, Continental Airlines Flight 12 went off track at Kansas City Municipal Airport while landing at a time of heavy rain. The 66 people on board survived.
• On 28 October 2006, flight 1883, a Boeing 757-200 carrying 160 passengers, landed on a road parallel to track 29 at the Libertad International Airport in Newark. No one was injured and both pilots were temporarily removed from the service pending the outcome of the investigation, although they have since been approved to continue flying. The research mentioned a possible confusion of the track lights and a pilot error.
• Flight 61 of Continental Airlines a Boeing 777 landed in New Jersey when the pilot suffered a heart attack in full flight. The plane from Brussels landed in Newark. The commands were the first officer and a relay pilot. The plane had 247 passengers.