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Continental Airlines

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Continental Airlines (IATA: CO, ICAO: COA, and Callsign: Continental) (NYSE: [CAL]) is an airline of the United States. Based in Houston, Texas, it is the 6th largest airline in the U.S. and the sixth largest in the world. Continental's tagline, since 1998, has been Work Hard, Fly Right.

Continental flies to destinations throughout the Americas, Europe, and Asia from its three hubs at George Bush Intercontinental Airport (in Houston, Texas), Newark Liberty International Airport (in Newark, New Jersey near New York City), and Hopkins International Airport (in Cleveland, Ohio). With a lack of focus cities, the airline is arguably the most concentrated of all 6 major U.S. carriers around the hub and spoke system of airline travel. Additionally, Continental Micronesia, covers cities in Hawaii, Polynesia, Micronesia, Australia, East Asia, and Southeast Asia from its hub at Antonio B. Won Pat International Airport in Guam. (Continental Micronesia was a wholly-owned subsidiary operation as an affiliate carrier until it was folded-into the Continental mainline operation after September 11, 2001.)

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

Since September 2004, Continental has been a member of the SkyTeam Alliance, which it joined alongside Northwest Airlines and KLM. Previously, it was part of the planning stages for the Wings Alliance, which never actually solidified as a functioning airline alliance. In addition to extensive code-share arrangements with SkyTeam partner airlines such as Delta Air Lines, the airline also code-shares with Amtrak to some cities in the northeastern United States, and with SNCF French Rail to stations in France.

History

Early history

Continental Airlines 777 at Narita International Airport
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Continental Airlines 777 at Narita International Airport

Continental Airlines began service in 1934 as Varney Speed Lines, named after its initial owner, Walter T. Varney operating out of El Paso International Airport. Varney Speed Lines changed name to Continental on 1 July 1937 after new owner Robert Six had taken over. Six moved the airline headquarters to Stapleton Airport in Denver, Colorado in October of that same year and went on to preside over the airline for 40 years.

In the 1940s Continental's Denver headquarters became a conversion center where the airline converted B-17s and B-29s for the United States military during World War II.

The airline's route network was limited to the southwestern United States for many years. In 1953, Continental merged with Pioneer Airlines, gaining access to 16 more cities in Texas and New Mexico. In 1957 it flew for the first time from Chicago to Los Angeles. Although the airline took deliveries of its first jet aircraft in 1958, its Boeing 707s did not fly to the East Coast.

Continental subsidiary Air Micronesia operated in a similar livery to its parent company.
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Continental subsidiary Air Micronesia operated in a similar livery to its parent company.

In 1963 the company's headquarters moved to Los Angeles and in 1968 a new livery was launched, the orange and gold cheatlines adorned with a black global circle on the jet's tails. Later in the 1960s the airline transported American soldiers to Vietnam, and realizing there was a market in the Pacific Ocean, Continental set up an airline in Micronesia, Air Micronesia. This airline is nowadays known as Continental Micronesia and uses Continental's livery on its jets. 1969 saw service to Honolulu begin, and in 1970, Continental's first Boeing 747 arrived. DC-10s were added to the fleet soon after, and the rest of the 1970s saw Continental's trans-Pacific expansion continue, landing in Auckland and Sydney by 1977.

First bankruptcy

In 1978, the Airline Deregulation Act was passed by Congress, creating problems that spurred many airline mergers. After considering a merger with Frontier Airlines, Continental was acquired by Texas International based in Houston in 1982 where the headquarters subsequently moved. The merger gave Continental its current hub at George Bush Intercontinental Airport and its routes to Mexico; it also gave Continental a new CEO, former Texas International chief Frank Lorenzo. In 1983 Continental filed to reorganize under Chapter 11 of the Federal Bankruptcy Code: 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 South Pacific routes.
right
In 1985, Continental made its first rebound by starting flights from Newark and Houston to London. The company emerged from bankruptcy in 1986. Just one year later Lorenzo decided to purchase People Express and its hub at Newark, making Continental the third-largest airline in the U.S. (Ironically, People Express's founder and CEO, Don Burr, had originally resigned from his position at Texas International under Lorenzo to found the airline.) 1987 saw the creation of the OnePass frequent flyer program, and in 1988 Continental made its first partnership ever, with SAS.

Second bankruptcy

Continental filed for bankruptcy again in 1991, shortly after unveiling a new white and blue livery. There were a number of circumstances behind the second bankruptcy: Lorenzo left Continental to dedicate himself full time to Eastern Air Lines, and fuel prices had risen because of Iraq's invasion of Kuwait and the resulting Gulf War. People Express had also been highly leveraged at the time of its merger with Continental, having purchased Frontier Airlines just two years before. In 1993 Air Canada, along with Air Partners and Texas Pacific Group, aided Continental in coming out of chapter 11 once again by investing $450 million dollars in the airline. Under the leadership of Gordon Bethune Continental subsequently ordered new Boeing aircraft - converting to an all-Boeing fleet - and scaled down their expensive Denver hub until it was closed entirely in 1995. Bethune chronicled his experiences in the book From Worst to First.

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

Current history

Continental went on to expand its international operations. In 1998 it launched flights to Ireland and Scotland and in October 1998 the airline received its first Boeing 777, allowing non-stop flights from Newark and Houston to Narita, Japan. Continental also launched partnerships with Northwest Airlines, Copa, Avant Airlines, Transbrasil, and Cape Air, and Continental and America West Airlines became the first two US airlines to launch interline electronic ticketing. In 2002 Continental announced that it would open a hub at Luis Muñoz Marín International Airport in San Juan, Puerto Rico to compete with American Airlines.

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

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

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

Continental has recently earned other noteworthy recognitions and awards:

No. 1 Most Admired Global Airline; FORTUNE magazine (three years in a row)

No. 1 Most Admired U.S. Airline; FORTUNE magazine

Best Executive/Business Class; OAG Airline of the Year Awards (four years in a row)

Best Airline Based in North America; OAG Airline of the Year Awards (three years in a row)

Best Trans-Atlantic and Trans-Pacific Business Class among U.S. airlines; Conde Nast Traveler (eight years in a row)

Destinations

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

Fleet

Continental's all-Boeing fleet consists entirely of two-class aircraft (First and Economy on domestic flights, and "BusinessFirst" and Economy on international flights). The fleet comprises the following aircraft (at June 2006):

Type Number Seats Notes
737-300 48 124 (12/112)
737-500 63 114 (8/106)
737-700 36
(15 on order)
124 (12/112)
737-800 100
(21 on order)
155 (14/141)
150 (18/132)
737-900 12
(3 on order)
167 (18/149)
757-200 41 Domestic flights have 24 regular first class seats
International flights have 16 BusinessFirst sleeper seats
All Continental 757-200s will be reconfigured to the International Configuration by the end of 2006.
757-300 17
767-200ER 10
767-400ER 16 one version is used by Continental Micronesia and is also used for mainland flights to Hawaii
other version has more BusinessFirst seating and is used for flights to Europe and Asia
777-200ER 18
(2 on order)
found on intercontinental flights
787-8 (20 on order) 1st Major US Airlines to order Boeing 787

Rencently, Continental Airlines announced that it will acquire 24 more Boeing Next-Generation 737 (737NG) aircraft, bringing the total number of Boeing 737NGs in its fleet to 213 when these aircraft, and pre-existing firm order 737NG aircraft, are delivered. [link]

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

Affinity programs

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

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

Incidents and accidents

Trivia

References

See also

External links



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