Continental Airlines

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Continental Airlines
IATA
CO
ICAO
COA
Callsign
CONTINENTAL
Founded 1934 (as Varney Speed Lines)[1]
Commenced operations July 15, 1934[1]
Hubs
Frequent flyer program OnePass
Member lounge Presidents Club
Alliance SkyTeam
Subsidiaries Continental Micronesia
Fleet size 375 (+111 orders)
Destinations 292
Company slogan Work Hard, Fly Right
Headquarters Houston, Texas
Key people Larry Kellner (CEO)
Jeff Misner (CFO)
Website: http://www.continental.com

Continental Airlines, Inc. (NYSECAL) is a United States certificated air carrier. Based in Houston, Texas, it is the fourth-largest airline in the U.S. based on revenue passenger miles.[2] Since 1998, Continental's marketing slogan has been "Work Hard, Fly Right."

Continental operates flights to destinations throughout the U.S., Canada, Latin America, Europe, and the Asia-Pacific regions. It has more than 3,000 daily departures, serving 151 domestic and 120 international destinations and has 42,200 employees (as of March 2007).[3] Principal operations are from its three hubs at Newark Liberty International Airport (in Newark, New Jersey), George Bush Intercontinental Airport (in Houston, Texas), and Cleveland Hopkins International Airport (in Cleveland, Ohio). Continental Micronesia, a wholly owned subsidiary, operates routes around Micronesia from its hub at Antonio B. Won Pat International Airport on Guam and connects the Micronesian region with destinations in East Asia, Southeast Asia, Honolulu and Cairns, Australia.

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, as does Chautauqua Airlines under the Continental Express identity, although 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, Delta Air Lines, Air France, Aeromexico and KLM; In addition to extensive code share arrangements with SkyTeam partner airlines, the airline also code-shares with Amtrak rail services to some cities in the northeastern United States, with US Helicopter which fly from Newark Liberty International Airport to Manhattan, and with SNCF French Rail to destinations in France.

Contents

[edit] History

[edit] Early history

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 through Las Vegas, Albuquerque, and Santa Fe to Pueblo (Colorado). The airline started with the Lockheed Vega, a single engine plane that carried four passengers. The airline later flew other Lockheed planes, including the Lockheed L-9 Orion, the Lockheed Electra Junior, and the Lockheed Lodestar. It was renamed Continental on 1 July 1937 after a new owner Robert Six had taken a forty percent ownership with Varney's co-founder Louis Mueller. Six relocated the airline's headquarters to Stapleton Airport in Denver in October, 1937. Robert F. Six was one of the patriarchs of U.S. aviation and had a reputation as a risk-taking executive who presided over the airline largely forged in his image for more than 40 years.[4]

During World War II Continental's Denver maintenance facilities became a conversion center where the airline converted B-17s, B-29s and P-51s for the United States Army Air Force. Profits from military transportation and aircraft conversion enabled Continental to contemplate expansion and acquisition of new aircraft types which became available following the war.[4] Among those types were the DC-3, and Convair 240. Some of the DC-3's were acquired as surplus planes after WW-II. The Convair was the first airplane operated by Continental that was pressurized.

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.[4]

[edit] Growth

By the end of the 1950s, Continental Airlines had seen a broad expansion of its routes. In 1957 it flew for the first time from Chicago to Los Angeles (both nonstop, and via Denver); and from Denver to Kansas City. Continental Airlines introduced turboprop service with the Vickers Viscount 800 Series, on the new medium length routes. Continental was also an early operator of the Boeing 707, taking delivery of its first 707s in 1959. Six, not being satisfied with jet service alone, introduced dramatic service innovations with Continental's 707 operations which were described as, "...nothing short of luxurious" by the Los Angeles Times, and, "...clearly, the finest in the airline industry" by the Chicago Tribune.[5]

Continental's initial purchase of the Boeing 707 jets was for four jets. The airline introduced a program of progressive maintenance in order to obtain the utilization rates for the jets needed to operate its schedule. That program was crucial to successfully operating with only four jets.

Prior to the arrival of the Boeing 707 jets, Continental acquired DC-7's to operate its non-stop route from Los Angeles to Chicago.

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.[4]

During the late 1960s, Continental replaced the Viscounts with DC-9s from Douglas Aircraft. The company also disposed of its piston powered airplanes, one of the first airlines to do so. The DC-3 was the final piston-powered airplane equipment operated by Continental.

Throughout the Vietnam War Continental provided extensive cargo and troop transportation for United States 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 Boeing 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. The marketing slogan adopted in the late 1960s and used through the early 70s was, "The Proud Bird with the Golden Tail."[5][4]

1969 saw the introduction of service from Los Angeles to Honolulu/Hilo; and in 1970, Continental's first Boeing 747s arrived. McDonnell-Douglas DC-10s were added to the fleet in 1971. Continental was selected to serve the route from the Pacific Northwest to San Jose, Hollywood/Burbank, and Ontario, CA.[4] In the late 1970s, Continental even flirted with the idea of merging with TWA's ancestor, Western Airlines and their similar fleet of DC-10 "wide-body Spaceships", however this was not proceeded with as expansion was to take Continental down a much different path.

Boeing 737-824 taking off from Los Angeles for Houston.
Boeing 737-824 taking off from Los Angeles for Houston.

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." Bob Six relentlessly prowled the Continental system, as well as competitors' flights, to assure tight quality standards and to search for ideas that could be adopted to Continental's network.[5][4]

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 chef, Lucien DeKeyser. Continentals 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!"[5][4]

[edit] First black pilot

In 1963, Continental hired the first black pilot to work for any major carrier in the United States, Marlon Green, after a United States Supreme Court decision allowed a Colorado anti-discrimination law to be applied to his case against Continental.[6]

[edit] Acquisition by Texas Air Corporation

Sign marking Continental's headquarters in Downtown Houston.
Sign marking Continental's headquarters in Downtown Houston.
Continental Airlines headquarters building in Downtown Houston. The Continental logo is lit at the top.
Continental Airlines headquarters building in Downtown Houston. The Continental logo is lit at the top.

In 1981 Texas Air Corporation, an airline holding company controlled by 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 Airlines (TI), another Lorenzo holding, 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 Houston Intercontinental Airport and its extensive routes to Mexico.[5][7] 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.[5][7][8]

[edit] First bankruptcy

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.[7][8]

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.[7][8]

[edit] Rapid growth through consolidation

In June 1985, Continental rebounded as signaled by a major strategic move: initiating European service with flights from Houston to London.

Boeing 777 "Peter Max" (the colorful aircraft) at George Bush Intercontinental Airport in Houston, Texas. Downtown Houston is visible in the background.
Boeing 777 "Peter Max" (the colorful aircraft) at George Bush Intercontinental Airport in Houston, Texas. Downtown Houston is visible in the background.

In October 1985, 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. The acquisition, funded by debt, did not seem rational to industry observers from either the route integration or the operating philosophy points of view, but was in the opinion of most industry analysts rather an attempt by Burr to best his former boss, Frank Lorenzo.[5][8]

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 became the third-largest airline in the U.S.. Continental emerged from bankruptcy in 1986 with dramatically improved asset and cash flow positions and a much more competitive route structure with routes radiating to every large U.S. city from major hubs at Denver and Houston.[8][5]

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 also saw the creation of the OnePass frequent flier program (jointly with Eastern Airlines), and in 1988 Continental formed its first strategic partnership (and the first international airline alliance of its kind) with SAS.[5]

[edit] Second bankruptcy

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 Jet Capital Corporation to Scandinavian Airlines System (SAS). According to William F. Buckley, in his September 17, 1990 article on National Review, the sale to SAS was conditioned on Lorenzo leaving the company. Shortly after Lorenzo left Continental, the airline filed for its second bankruptcy inside of a decade. There were a number of circumstances behind the second bankruptcy, most importantly: Lorenzo had dedicated himself almost full time to Eastern Air Lines acquisition and labor relations issues; the 1990 Iraqi invasion of Kuwait and the resultant Gulf War had prompted a dramatic increase in the price of jet fuel; and People Express had also been highly leveraged at the time of its merger with Continental, having purchased Frontier Airlines just two years before. In addition to Lorenzo embarking on deals which saddled the airline with other carriers' debts, he also began consolidating the different airlines into one system. That resulted in a fleet comprising numerous aircraft types, evident in the array of liveries in the Continental fleet for years to come.

In the late 1980s, following a dramatic reduction of service by United Airlines and an unsuccessful attempt by USAir to build-up point-to-point service, Continental slowly moved into Cleveland Hopkins International Airport and established what would become its third-largest system hub. Continental quickly gained nearly all of the gates in the airport's C concourse (once dominated by United), and later expanded that concourse in addition to constructing an entirely new Concourse D.

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 in the airline. Under the leadership of former Boeing executive Gordon Bethune, who became President in October of 1994, Continental subsequently ordered new aircraft in an effort to convert to an all-Boeing fleet. The airline's Denver hub - its historic operational base and headquarters for, in effect, almost 50 years - was reduced to spoke status (with service only to Houston, Newark, and Cleveland) in a further efficiency measure in 1995. Bethune also launched a 'Go-Forward Plan', designed to fix numerous other problems with the airline. His experiences were chronicled in his 1999 book From Worst to First.[9]

[edit] Current operations

Continental embarked on an ambitious program 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 aircraft, allowing non-stop flights from Newark and Houston to Tokyo, Japan and from Newark to Tel Aviv, Israel. Continental in the same year 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. The SARS outbreak in Asia caused service to be suspended until August 1, 2003. The launch in 2001 started a brief battle between Continental, United Airlines and Cathay Pacific over non-stop flights between Hong Kong and New York.

In 2005, Continental expanded service from Newark to Beijing after being awarded the China route. During the same year, five new European destinations including Oslo-Gaerdermoen in Norway, Stockholm in Sweden, Belfast and Bristol in the United Kingdom, and Hamburg and Berlin in Germany. 2005 was a year in which coverage in Asia was also expanded; Continental introduced a nonstop daily flight from Newark to New Delhi, India. With the immense success of this Newark-New Delhi route, Continental elected to open a second gateway in India. With the recent announcement of daily nonstop service to Mumbai, Continental will offer the most nonstop flights from the United States to India by any carrier. Continental also began new non-stop service to Cologne, Germany in 2006 and to Athens, Greece in 2007.

By May 2006, Continental passenger traffic surpassed that of Northwest Airlines, and Continental became the fourth-largest U.S. carrier, the first change in the top-five rankings since 2001.

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, and the divestiture of Continental's Guamanian hub. A deal was not "certain or imminent," with the talks being in a preliminary state.[10][11]

In mid-2007, Continental will feature docking capability for Apple Computer's iPod portable music and video player. Not only does the dock allow the device's battery to be charged, but also it allows 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.[12]

Recognizing operational capacity limits at Newark, Continental has begun further utilizing its Cleveland hub by developing more international services at Cleveland, altering its role from that of a reliever hub. On September 14, 2007, Continental announced a major two-year expansion of its Cleveland hub, including new service from Cleveland to Paris commencing May 22, 2008. Additional international routes are expected to follow, pending the completion of a newly-expanded Federal Inspection Services station in Continental's primary concourse in Cleveland. Domestically, the expansion will proceed in two phases. The first phase involves twelve new destinations to be served from Cleveland primarily on regional jets, with the new service in place by May 2008. Later, in 2009, up to 20 new destinations will be added, primarily on mainline aircraft. Continental states that the expansion will be complete in time for the summer 2009 travel season, and will result in up to 700 new jobs at its Cleveland hub.[13]

In May 2008, Continental Airlines sold its remaining 4.38 million shares of Copa for $35.75 a share, for net proceeds of approximately $149.8 million.[14]

Continental said on June 5, 2008 that it will cut 3,000 jobs and that the chief executive and president will decrease their salaries for the remainder of the year.

The airline also said it would reduce capacity and trim 67 mainline aircraft from its fleet by the end of 2009, retiring all of its 737-300s and all but 35 of its 737-500s.

[edit] Awards

Continental has recently earned other noteworthy recognitions and awards:

  • No. 1 Most Admired Global Airline; FORTUNE magazine (2004, 2005, 2006 and 2007)
  • No. 1 Most Admired U.S. Airline; FORTUNE magazine (2006)
  • Best Executive/Business Class; OAG Airline of the Year Awards (2003, 2004, 2005, and 2006)
  • Best Airline Based in North America; OAG Airline of the Year Awards (2004, 2005, and 2006)
  • Best Trans-Atlantic and Trans-Pacific Business Class among U.S. airlines; Condé Nast Traveler (1999, 2000, 2001, 2002, 2003, 2004, 2005, and 2006)
  • 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 (December 2006)
  • "Airline of the Year" by OAG
  • Continental was also named "World's Most Admired Airline." by Yahoo!
  • Award for Highest-Ranked Network Airline by J.D. Power and Associates

[edit] Destinations

Continental operates domestic mainline flights from Lewis W. Cutrer Terminal C at George Bush Intercontinental Airport in Houston, Texas.
Continental operates domestic mainline flights from Lewis W. Cutrer Terminal C at George Bush Intercontinental Airport in Houston, Texas.
Continental operates international flights from Terminal E at George Bush Intercontinental Airport in Houston, Texas.
Continental operates international flights from Terminal E at George Bush Intercontinental Airport in Houston, Texas.
Continental operates international flights and domestic flights from Terminal C at Newark Liberty International Airport
Continental operates international flights and domestic flights from Terminal C at Newark Liberty International Airport
Further information: Continental Airlines destinations

Continental Airlines operates primarily a hub and spoke route network with North American hubs in Cleveland, Houston, and Newark, and a mid-Pacific hub in Guam. Continental operates most of its flights from its hubs, with the exception of some notable routes (most notably Seattle-Anchorage and Los Angeles-Honolulu). Some airlines using the Continental Connection name also operate flights not involving hubs, such as Gulfstream International Airlines, which operates intra-Florida and Florida-Bahamas services.

Continental has served Australia in the past with Douglas DC-10[15] and Boeing 747 service from Hawaii; Continental withdrew from much of the Australian market, leaving Boeing 737-800 services between Cairns and Guam. Continental also operated a large hub in Denver and closed the hub in 1995 shortly after Stapleton International Airport was replaced with the current Denver International Airport.

Briefly during the mid-1990s, Continental operated a hub at Piedmont Triad International Airport (Greensboro, High Point and Winston-Salem), primarily as the base of its short-lived Continental Lite experiment. The airline dismantled the Greensboro-High Point-Winston Salem hub by 1995 following the termination of Continental Lite.[16]

Continental was initially a domestic airline. It has served Mexican destinations for many years. During the Vietnam War, it began a presence in the Pacific region that formed the basis of the current Micronesian operation. Service to Japan was initiated in the 1970s from Guam and Saipan, and by the late 1980s, nonstop service between Seattle and Tokyo was briefly offered with 747 equipment, soon to be replaced with a direct Honolulu-Tokyo (Narita) flight. Through the 1990s, Continental maintained a minimal presence in the long-haul transpacific market, until the delivery of 777s in 1998 which saw the addition of nonstop Tokyo service from Houston and Newark. By 2007, Hong Kong and Beijing were added to the network, with Shanghai to follow in 2009, all from its Newark hub.

It entered the transatlantic market in April, 1985, with the introduction of the Houston-London Gatwick flight. Long restricted from Heathrow due to the provisions of the Bermuda II agreement, Continental has focused its London operation on Gatwick, where in 2007 as many as six flights a day were offered to Newark, Houston, and Cleveland.

In March 2008, a new Open Skies Agreement with the EU takes effect, effectively invalidating Bermuda II restrictions limiting the number of carriers and cities in the US that can serve Heathrow. In November 2007, Continental announced that new, nonstop, twice-daily service from its hubs at Houston-George Bush Intercontinental and Newark-Liberty to London-Heathrow will be offered beginning March 29, 2008. The services will replace select existing frequencies to Gatwick and will be offered with a combination of Boeing 777-200ER and 767-200 equipment culled from other flights around the network.[17]

Continental flies to the most scheduled destinations of any US airline in India, Japan, Mexico, and the United Kingdom, and is the only US airline to fly to the Federated States of Micronesia, Indonesia, Marshall Islands, Norway and Palau. It has the most scheduled international destinations of any U.S.-based airline if Continental Express destinations are included. Continental began service from Newark to Mumbai, India on October 1, 2007 making it Continental's second Indian destination.

On September 24, 2007 the Department of Transportation tentatively awarded Continental permission to begin daily direct service between Newark and Shanghai on March 25, 2009. The transpacific segment of the route is planned to be operated with a Boeing 777-200ER aircraft, while the flight will originate and terminate in Cleveland with a change of equipment at Newark.[18]

Continental is considering routes from its hub in Houston to Dubai, Rome, Milan, and Madrid to start when it starts receiving 787s in 2009.[19]

[edit] Fleet

Continental's all-Boeing fleet with an average age of 10.2 years as of April 2008 consists of the following aircraft:[3]

Continental Airlines Fleet
Aircraft Total Passengers
(First*/Economy)
Routes Notes
Boeing 737-300 47 124 (12/112) Domestic short-medium haul
US, Mexico, Canada
Exit from service: 24 in 2008, 23 in 2009
Will be retired by end of 2009
Boeing 737-500 55 114 (8/106) Domestic short-medium haul Exit from service: 13 in 2008, 7 in 2009
Will retrofit 37 with winglets
Boeing 737-700 36
(44 orders)
124 (12/112) Domestic and Caribbean short-medium haul All configured with winglets
Installing DirecTV[20]
Installing Wi-Fi service offered by LiveTV
Boeing 737-800 111
(6 orders)
150 (18/132)
152 (20/132)
155 (14/141)
157 (16/141)
Domestic and Central America short-medium haul
Continental Micronesia
US, Mexico, Canada, Caribbean
Deliveries: 6 in 2008
All configured with winglets
Installing DirecTV[20]
Installing Wi-Fi service offered by LiveTV
Boeing 737-900 12 167 (18/149)

169 (20/149)

Domestic short-medium haul Will install 2 additional First Class seats
To be configured with winglets
Installing DirecTV[20]
Installing Wi-Fi service offered by LiveTV
Boeing 737-900ER 10
(28 orders)
173 (20/153) Domestic medium-long haul Deliveries: 2008-2010
Installing DirecTV[20]
Installing Wi-Fi service offered by LiveTV
Boeing 757-200 41 175 (16/159) Domestic/international medium-long haul
and
Caribbean
Configured with BusinessFirst seats
Installing AVOD in economy throughout fleet
Boeing 757-300 17 216 (24/192) Domestic medium-long haul, Caribbean
Installing DirecTV[20]
Installing Wi-Fi service offered by LiveTV
Largest operator of the Boeing 757-300
Boeing 767-200ER 10 174 (25/149) International medium-long haul
Europe, South America, Asia
US Domestic (i.e. EWR-IAH)
Boeing 767-400ER 16 235 (35/200)
256 (20/236)
International medium-long haul
Continental Micronesia, Mainland Hawaii, Europe,
South America, Asia
Boeing 777-200ER 20
(8 orders)
283 (48/235)
285 (50/235)
International long haul Deliveries: 2009-2012
Two additional BusinessFirst seats and AVOD
being added to fleet through late 2009
Boeing 787-8 (8 orders) Entry into service: Early 2009
Boeing 787-9 (17 orders) Entry into service: Late 2011/Early 2012

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

Boeing 737 on the ramp at San Diego International Airport.
Boeing 737 on the ramp at San Diego International Airport.

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. Both parties have been adhering to the terms under a gentlemen's agreement.

Continental was one of the first major airlines to fly the Boeing 757 on transatlantic routes. There have been some instances of range limitations on west-bound transatlantic flights due to strong headwinds resulting in a fuel stop which does not appear on the timetable, but these stops are not common. The use of the 757 with its smaller seating capacity has allowed for "thin" routes (routes with less passenger traffic) to be economically viable. It has allowed non-stop service from smaller cities, such as Bristol England, to the New York area. Previously, customers in Bristol had to go to London to cross the Atlantic.

[edit] Former fleet

[edit] Cabin

Boeing 777-200 Economy Class
Boeing 777-200 Economy Class
Boeing 767-400ER Economy Class
Boeing 767-400ER Economy Class
Boeing 737 Economy Class
Boeing 737 Economy Class

Continental Airlines, along with all United States SkyTeam carriers, has a two-class layout, First/BusinessFirst and Economy Class, for aircraft in the mainline fleets.[25]

[edit] BusinessFirst

BusinessFirst is the equivalent of business class on Continental Airlines' international flights.[26] It is currently available on Boeing 757-200, 767-200, 767-400, and 777-200 aircraft. On Boeing 757-200, 767-200, and 767-400 aircraft, seats have 55 inches of pitch and 156 degrees of recline. Boeing 757-200s feature Audio-Video-On-Demand (AVOD), which is planned to be added on the Boeing 767 family aircraft in the future which currently have personal TVs. On Boeing 777-200 aircraft, seats have 55 inches of pitch and 170 degrees of recline. They also have personal TVs, but are gradually being upgraded to AVOD. Passengers aboard this class receive free meals and refreshments, including alcoholic beverages. All seats are equipped with lumbar support, a footrest, an adjustable headrest, and in-seat power. On Boeing 777-200 aircraft, seats are also equipped with a moveable reading light and more storage for personal items.

[edit] Domestic First Class

Domestic First Class is offered on domestic flights. It is available on all Boeing 737 family aircraft, as well as Boeing 757-300 aircraft. Seats range from 20.75 to 21 inches wide, and have between 37 and 38 inches of pitch. Passengers aboard this class receive free meals, refreshments, and alcoholic beverages. Passengers can watch movies on overhead TV screens located throughout the cabin. Beginning in 2009, Continental plans to add LiveTV television and Wi-Fi services to all next-generation Boeing 737s and Boeing 757-300s which will be free of charge to First Class customers.[20]

[edit] International Economy Class

Economy Class is available on all international flights. Seats range from 17.2 to 17.9 inches wide, and have between 31 and 32 inches of pitch. Passengers aboard this class receive free meals, snacks, and non-alcoholic refreshments; alcoholic beverages can be purchased for five United States dollars per drink or one Continental Currency coupon per drink.[27]

Passengers aboard Boeing 757-200 aircraft can watch movies on overhead television screens located throughout the cabins. Continental plans to add new, ergonomic seats which will feature AVOD in every seat back. As of May 2008, 21 planes out of 41 have been fitted with the new seats and seat back televisions in Economy class. Boeing 767 and 777 family aircraft are equipped with a personal television located in every seat back. Continental plans to add AVOD to all Boeing 777-200 aircraft by 2009. Passengers seated in rows 7-16 (B757-200), rows 19-23 (B767-200), rows 16-23 (B767-400), rows 17-23 (B777-200) have a power-port located below their seats. On select Boeing 777-200 aircraft, all seats are equipped with power-ports that do not require special power adapters or cables; ordinary US, Japanese, and European mains plugs will work.

[edit] Domestic Economy Class

Economy Class is available on all domestic flights. Seats are 17.2 inches wide, and have between 31 and 32 inches of pitch. Passengers aboard this class receive free meals, snacks, and non-alcoholic refreshments. Continental Airlines is one of the few US airlines that still serves meals at traditional meal times free of charge. Alcoholic beverages may be purchased for $5 or one coupon per drink. Passengers on select Boeing 737-300 and all Boeing 737-700, 800, 900, 900ER, and 757-300 aircraft can watch movies on overhead television screens located throughout the cabin and headsets for these are $1 each. Beginning in January 2009, Continental plans to add LiveTV television and Wi-Fi services to all next-generation Boeing 737s and Boeing 757-300s which will cost $6.00 to use for Economy Class customers. It will take 18 months to fully install this service aboard all 250+ aircraft that will receive the service.[20]

[edit] OnePass

Established in 1987, OnePass is Continental Airlines', Copa Airlines' and AeroRepública's frequent flyer program. OnePass offers regular travelers the privilege to obtain free tickets, First Class upgrades on flights, discounted membership for its airport lounge (President's Club), and other types of rewards. Customers accumulate miles from flight segments they fly or through Continental Airlines partners. OnePass elite tiers are Silver, Gold, and Platinum Elite which have benefits such as free upgrades, mileage bonus, priority check-in, priority boarding, and much more. Continental previously had a frequent flyer program prior to OnePass, which was started not long after American Airlines started its frequent flyer program in 1981 and when most large United States airlines followed, but this was merged with Eastern Airlines' frequent flyer program in 1987 to form OnePass.[28][29] The name "OnePass" refers to the ability to accumulate miles on two major airlines, namely Continental and Eastern, in one frequent flyer program.

In addition to its Continental Express, Continental Connection, and SkyTeam alliance partnerships, Continental has frequent flyer partnerships with the following airlines:

Continental Airlines also offers frequent flyer partnerships with the following car rental companies:

[edit] Presidents Club

The Presidents Club is the membership airport lounge program of Continental Airlines and Copa Airlines. The clubs all have open bars, but have also started a premium bar service where higher end wines can be purchased by the glass. Continental was the first airline to offer free wi-fi in their lounge.[30] There are 27 clubs throughout the world and members have full reciprocal privileges at over 40 additional locations including lounges operated by selected SkyTeam partners including Delta Air Lines, Aeroméxico, Alitalia, and Northwest Airlines. Presidents club members also have access to Alaska Airlines lounges and Amtrak Acela clubs. The Presidents Club offers lifetime memberships, something that as of 2008 costs non-elite OnePass members $5,100.[31] BusinessFirst customers flying an international itinerary as well as International Business Class customers are allowed access to the clubs. BusinessFirst customers may bring up to two guests and Presidents Club members may bring two guests or their immediate family (spouse and children under 21 years of age). American Express Platinum and Black card members are granted access to Presidents Clubs if they are flying on a Continental operated flight that day under a Continental flight number.

[edit] Locations

The Presidents Club locations are listed below:

[edit] Continental Currency

At airport kiosks Continental Airlines allows customers to buy "Continental Currency," a prepaid credit for audio headsets and alcoholic beverages on flights.[32]

Continental allows customers to buy "Continental Currency" in the following quantities:

  • 1 coupon for $5USD
  • 2 for $10
  • 3 for $13 (airline advertises this as a $2 discount)
  • 6 for $25 (airline advertises this as a $5 discount)

[edit] Codeshare agreements

Continental Airlines has codeshare agreements with the following airlines as of May 2008:
(This list does not include SkyTeam airlines)

[edit] Continental Connection codeshares

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

  • CommutAir operates mostly from Continental's Cleveland hub.
  • Colgan Air operates out of Houston, Newark, and Cleveland. Colgan, as a subsidiary of Pinnacle Airlines (which currently flies as the largest operator of Northwest Airlink flights), operates Bombardier Q400 aircraft out of Newark and Cleveland and Saab 340B aircraft out of Houston as 'Continental Connection'.
  • Cape Air operates (Continental also has a codeshare with the mainstream Cape Air) in Southern Florida and from Guam to Saipan, Saipan to Rota and Rota to Guam.
  • Gulfstream International Airlines operates in the Bahamas, Miami, Ft. Lauderdale, Orlando, Tampa, and West Palm Beach, Jacksonville, Fort Walton, Tallahassee, Fort Myers, Key West, and Sarasota-Bradenton International

[edit] Environmental Record

Continental Airlines has made efforts to minimize their negative effects on the environment.[33] The U.S. Environmental Protection Agency’s (EPA) Design for the Environment Program recognized Continental Airlines in 2008 for their use of a non-chromium surface pretreatment that is environmentally friendly on their airplanes.[33] Continental Airlines is the first airlines to integrate this technology within their airplanes.[33] The product, PreKote, helps eliminate toxins and hazardous chemicals that are usually used in the pretreatment phase before repainting airplanes.[33] This technology provides employees with improved safety conditions, while also reducing wastewater.[33] In addition to this recent award by the EPA, Continental Airlines has previously been awarded by the EPA, and they have also been recognized by NASA and Fortune Magazine for their positive environmental conditions.[33] Continental Airlines has also made other efforts to reduce their environmental impact. The company’s employees have made efforts to focus their operational procedures and 12 billions dollars worth of investment funds into acquiring 270 fuel-efficient airplanes and other related equipment.[33] These efforts have helped to decrease their greenhouse gas emissions and fuel consumption by 35% per mainline revenue passenger mile over the past 10 years.[33] In addition to these projects, Continental Airlines has also begun a program that provides their passengers with the opportunity to cancel out the damage they might pose on the ozone layer during their flight for two additional dollars.[34] This is the cost that it takes to purchase a “carbon offset,” which helps pay to plant trees.[34] In addition to this, passengers can also contribute 50 dollars or more, which funds renewable-energy projects like wind or solar power and also works to plant algae in oceans or trees in forests.[34]

Another environmentally-friendly idea that Continental Airlines is trying to bring to fruition is flying a biofuel airplane.[35] In 2009, the airline plans to partner with GE Aviation to conduct a demonstration flight.[35] This makes Continental Airlines the first major United States carrier that is publicly releasing plans to conduct a technological advancement using sustainable biofuels.[35]

[edit] Incidents and accidents

The following are major incidents and accidents that occurred on Continental Airlines mainline aircraft.

Continental Airlines Reported Incidents
Flight Date Aircraft Location Description Casualties
Fatal Serious Minor/Uninjured Ground
11 [2] May 22, 1962 Boeing 707-100 Unionville, MO A passenger looking to claim money from life insurance planted a bomb on the aircraft which departed Chicago-O’Hare destined for. Kansas City Municipal Airport. The bomb exploded, the tail broke off, and the plane crashed on a farm near Unionville, Missouri. All 45 on board died. The aircraft had previously been subject to an attempted hijack to Cuba, although the hijackers were captured in El Paso, TX. 45
290
[3]
January 29, 1963 Vickers Viscount Kansas City, MO Flight 290 was flying from Midland, TX to Kansas City when it crashed on approach. The plane crashed near the south end of the runway and burst into flames. 8
N/A [4] April 13, 1973 NA-265 Sabreliner Montrose, CO The thrust reverser of the aircraft was deployed in flight shortly after takeoff. The Sabreliner descended from 1000 feet and struck the ground. 2
603
[5]
March 1, 1978 McDonnell Douglas DC-10 Los Angeles, CA Flight 603 was scheduled to fly to Honolulu, HI from Los Angeles. The DC-10 overran the runway during an aborted takeoff as a result of a tire explosion resulting in a fire engulfing the aircraft. The aircraft was declared a total loss. 2 31 167
1713 [6] November 15, 1987 McDonnell Douglas DC-9 Denver, CO Flight 1713 bound for Boise, Idaho crashed on take-off during a snowstorm. 28 28 26
55
[7]
July 25, 2000 McDonnell Douglas DC-10 Paris, France Flight 55 contributed to the crash of Air France Concorde Flight 4590 in Paris. The Continental jet dropped a strip of titanium alloy from its thrust reverser on the runway. When AF4590 departed, Concorde's left main landing gear tires struck the strip of metal and were punctured. The tires exploded as Concorde began its takeoff roll. The tire rubber fragments penetrated Concorde's wing fuel tanks, starting fires in engines 1 and 2, leading to the crash which killed all aboard. According to the official report on the accident, the strip of metal installed on the Continental jet was made from a different alloy than had been approved by the US Federal Aviation Administration or the engine manufacturer. This led French authorities to begin a criminal investigation into Continental Airlines.[36] 113

[edit] Minor incidents

  • On July 1, 1965 Continental Airlines Flight 12 ran off the runway at Kansas City Downtown Airport landing in heavy rain. All 66 on board survived.
  • On February 19, 1996, Continental Airlines Flight 1943, a Douglas DC-9-32 aircraft flying from Washington, DC to Houston, made a wheels up landing in Houston Intercontinental Airport. There were no fatalities. The cause of the accident was flightcrew’s failure to perform the landing checklist and confirm that the landing gear was extended.[37]
  • On August 2, 1997, aboard a Continental Airlines Boeing 757-200 in Lima, Peru, a passenger in a wheelchair was left at the top of the air stairs while an agent was bringing the wheelchair for loading. The passenger was reportedly instructed to remain in place. The passenger continued to walk and passed through an open door on the right side of the plane used for catering and fell to the tarmac resulting in death [8]. The incident, not a result of an aircraft crash, initiated an FAA investigation and report because it involved a passenger death.
  • On April 25, 2000, a Continental Airlines DC-10 suffered an uncontained engine failure when 2 of its 3 engines burst through the fan casing. The breach also ruptured the primary hydraulic lines, and blew the tires. The aircraft landed 34 minutes after takeoff on one engine.
  • In a mishap on June 14, 2000, a Continental Airlines MD-80's engines were undergoing a test run, at gate C115 at Newark International Airport, which inadvertently caused it to crash into the gate area with six people aboard, all staff members. Nobody was hurt, but the gate area was damaged. The plane was scheduled to be operated as Continental Airlines Flight 481 to be flown between Newark and Detroit.[38]
  • On 2 March 2005, a Continental Airlines Boeing 777-200ER aircraft, with 14 crew and 198 passengers on board, scraped the tail region on take off from Newark Liberty International Airport. The aircraft landed back uneventfully. The rear pressure bulkhead was found to have been damaged (ref: Flight International, July 2005).
  • On January 16, 2006, a Continental Airlines contract mechanic was sucked into the engine of a Boeing 737-500 and killed. The incident took place at El Paso International Airport.[39]
  • On October 28, 2006, Continental Flight 1883, a Boeing 757-200 aircraft carrying 160 passengers, landed on a narrow unoccupied taxiway parallel to runway 29 at Newark Liberty International Airport. No one was injured and both pilots were stripped of their flying duties pending an investigation and have since been reinstated. Potentially confusing runway lighting and pilot error were cited in the investigation.[40]
  • On January 20, 2007, Continental Flight 1838, a Boeing 757, departed George Bush Intercontinental Airport at 11:30 a.m. with 210 passengers. The aircraft bound for Puerto Vallarta, Mexico was forced to divert to McAllen, TX after the captain, who was on his initial operating experience, became incapacitated while in flight. The check captain, who was acting as first officer, executed a safe landing in McAllen where the captain was pronounced dead.[9]
  • On June 13, 2007, passengers aboard Continental Flight 71 from Amsterdam to Newark endured harsh conditions when raw sewage spilled from one of the lavatories on the aircraft, resulting from a passenger flushing a latex glove. The plane landed at Shannon Airport in Ireland, where an overnight repair attempt was made and took off from Shannon as Continental Flight 1970. The problem resurfaced while the plane was flying over the Atlantic Ocean, and passengers were exposed to overflowed human waste for the remainder of the trip.[41]
  • On March 7, 2008 a Continental Boeing 737-300 from Houston slid off the runway into the grass shortly after landing in Columbus, OH. There were no injuries. The accident was caused by poor visibility, due to a major winter storm bringing over a foot of snow to the Columbus area. [42]

[edit] References

  1. ^ a b Norwood, Tom; Wegg, John (2002). North American Airlines Handbook, 3rd, Sandpoint, ID: Airways International. ISBN 0-9653993-8-9. 
  2. ^ "Continental now USA's 4th-biggest airline, passing Northwest", USA Today notes Continental overtaking Northwest according to a Bloomberg News study
  3. ^ a b "Directory: World Airlines", Flight International, 2007-04-03, p. 68. 
  4. ^ a b c d e f g h Serling, Robert J., Maverick: The story of Robert Six and Continental Airlines (ISBN 0-385-04057-1), Doubleday & Company, 1974.
  5. ^ a b c d e f g h i Christian, J. Scott, former Continental employee and manager, Bring Songs to the Sky: Recollections of Continental Airlines, 1970-1986, Quadran Press, 2000.
  6. ^ U.S. Supreme Court, COLORADO COMM'N v. CONTINENTAL, 372 U.S. 714 (1963) 372 U.S. 714 COLORADO ANTI-DISCRIMINATION COMMISSION ET AL. v. CONTINENTAL AIR LINES, INC. CERTIORARI TO THE SUPREME COURT OF COLORADO. No. 146. Argued March 28, 1963. Decided April 22, 1963.
  7. ^ a b c d Buckley, William F. Jr., [5] Frank Lorenzo & the free market in National Review, September 17, 1990.
  8. ^ a b c d e 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.
  9. ^ Bethune, Gordon, From Worst to First: Behind the scenes of Continental's remarkable comeback (ISBN 978-0471356523), Wiley & Sons, 1999.
  10. ^ "UAL, Continental Discuss Merger As AirTran Presses Bid for Midwest." Carey, S.; Trottman, M.; Berman, D. K. The Wall Street Journal. December 13, 2006.
  11. ^ "United and Continental Discussing Possible Merger." Sorkin, A. R. and Bailey, J. The New York Times. December 12, 2006
  12. ^ "Apple: 6 Airlines To Offer In-Flight iPod Connection In '07." De Weese, J. The Wall Street Journal. November 14, 2006.
  13. ^ "[1]"Continental Airlines Press ReleaseSeptember 14, 2007.
  14. ^ "Copa says Continental Airlines sold remaining stake in company", Thomson Financial News, Forbes, 2008-05-21. Retrieved on 2008-05-31. 
  15. ^ "Continental to cut Fiji service in response to Australian protest. (Continental Airlines)," Travel Weekly
  16. ^ "COMPANY REPORTS; Continental Is Dropping 'Lite' Service," The New York Times
  17. ^ "Continental Airlines to Launch Twice-Daily Nonstop Flights to Heathrow From Both New York and Houston," Continental Airlines
  18. ^ Continental Airlines Applies to Fly Nonstop Between New York/Newark and Shanghai, China in Spring 2009, Also proposes through flight service between Cleveland and Shanghai
  19. ^ "Continental thinks ahead to next era / When new 787 arrives, carrier may go nonstop to Dubai, elsewhere," Houston Chronicle. December 14, 2007.
  20. ^ a b c d e f g Continental Airlines To Add LiveTV and Wi-Fi To Next-Gen 737 and 757-300 Aircraft (Official Press Release: January 29, 2008)
  21. ^ "F.A.A. Panel Chief Pledges Fast Report on Turbulence." The new York Times.
  22. ^ "Orders & Deliveries." Airbus.
  23. ^ "Company History 1959 to 1977" Retrieved on March 16, 2008, Continental Airlines
  24. ^ a b c d "Our Fleet" as of December 6, 1998, Continental Airlines
  25. ^ Continental Airlines Aircraft Information
  26. ^ Continental Airlines BusinessFirst Information
  27. ^ "In-flight Beverage Selection," Continental Airlines
  28. ^ personal collection of Eastern Airlines frequent flyer program newsletters from 1987.
  29. ^ InsideFlyer.com: The First Frequent Flyer Programs
  30. ^ Continental Airlines First to Offer Free Wi-Fi in Airport Lounges
  31. ^ "Membership & Passbook Rates," Continental Airlines
  32. ^ "Airport Kiosks," Continental Airlines
  33. ^ a b c d e f g h "Continental gets EPA award for PreKote use", Saipan Tribune, 2008-04-18. Retrieved on 2008-05-06. 
  34. ^ a b c Gogoi, Pallavi. "Carbon Offsets Take Flight", BusinessWeek, 2008-03-28. Retrieved on 2008-05-06. 
  35. ^ a b c Airline industry advances use of biofuels. Biodiesel Magazine. Retrieved on 2008-05-06.
  36. ^ "Judge places Continental under investigation in Concorde crash." USA Today
  37. ^ NTSB - Abstract AAR-97/01
  38. ^ ASN Aircraft accident McDonnell Douglas DC-9-81 N16884 Newark International Airport, NJ (EWR)
  39. ^ "Mechanic sucked into jet engine". CNN.com, January 16, 2006
  40. ^ Weiss, Murray & Jeremy Olshanp. "Airline Pilot in Blunder Land", NYPOST.COM, October 31, 2006. Accessed June 21, 2007.
  41. ^ Continental apologizes for sewage overflow, MSNBC, Updated June 21, 2007.
  42. ^ "Plane slides off runway at Port Columbus, The Columbus Dispatch, Updated March 8, 2008.
  • Continental Airlines, Customer Service Manual, 1970 edition.
  • Vietor, Richard H. K. "Contrived Competition: Airline Regulation and Deregulation, 1925-1988," The Business History Review, Vol. 64, No. 1, Government and Business (Spring, 1990), pp. 61-108

[edit] External links