Company Watch - Continental Airlines

Dec 18, 2006

Continental Airlines flew 7.03 billion RPMs in November, up 9.8% from the year-ago month. Capacity grew 7.1% to 8.71 billion ASMs and load factor increased 2 points to 80.7%. Domestic RPMs rose 8.1% to 3.53 billion against a 4.2% increase in capacity to 4.19 billion ASMs, raising load factor 3 points to 84.2%. International traffic climbed 12.5% to 2.67 billion RPMs, capacity was ahead 10.8% to 3.45 billion ASMs and load factor gained 1.1 points to 77.4%. CO said consolidated November RASM rose an estimated 2.5%-3.5% year-over-year. October unit revenues lifted 5.3%. Dec 17, 2006

In the event of a United Airlines/Continental Airlines merger proposal were added to the proposed US Airways/Delta Air Lines combination, the organization said, then it "would mandate that the DOJ and Congress shift from a one-off analysis of specific merger transactions and instead closely examine the future construct for domestic US and international commercial aviation marketplaces." It warned that business passengers would be charged "higher ticket prices" yet consolidation would not achieve its main purpose: "What's more, these potential transactions represent a near-term fix to the industry's difficulties and do not address systemic profitability problems and root causes." Dec 15, 2006

Airlines Press US To Revise China Route Review. An influential group of corporate travel managers has asked the US Transportation Department to reopen its decision-making process for new services to China now that United and Continental are in preliminary merger talks, a group spokesman said. Dec 15, 2006

Team Up Or Be Left Behind. A wave of consolidation talk across the US airline industry has left all the players in the sector with a choice of either teaming up with former bitter rivals or being left behind with inferior routes and costs, experts said on Wednesday. The recent merger talks between UAL, parent of United Airlines, and Continental Airlines could further jump-start the process and spur any laggards into the game. Sources familiar with the talks say the two airlines are just in preliminary discussions about a merger. Although the carriers reportedly have discussed their consolidation prospects before, they resumed discussions following US Airways' November 15 unsolicited bid for Delta Air Lines. Dec 14, 2006

United Airlines and Continental do not seem interested in being left out of a possible consolidation wave, said Joe Schwieterman, transportation expert at DePaul University. When airlines merge, the combined entity often has competitive advantages over rivals related to their operational reach and cost structures. The airline industry has been rife with consolidation speculation this year as carriers continue to grapple with low fares and overcapacity. Industry leaders are almost unanimous in the view that there are too many major airlines. Rumored potential couplings have included, United and Continental, United and Delta, and American Airlines and Northwest Airlines. Dec 14, 2006

United, Continental In Early Merger Talks. United Airlines parent UAL and Continental Airlines are in preliminary talks about a merger that would create the largest airline in the world, sources familiar with the situation said on Wednesday. Dec 13, 2006

Continental Airlines Sees Higher Q4 Costs. Continental Airlines on Tuesday forecast higher fourth-quarter operating costs and said revenue growth would slow in December. Dec 12, 2006

Continental Shares Rise On Merger Talk. Shares in Continental Airlines rose more than 8 percent on Monday, sparking a broader sector rally, amid speculation that the number 4 US carrier could be the target of a takeover offer. Dec 11, 2006

Editor: Aram Gesar, eMail: edit@AirGuideOnline.com

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Dec 11, 2006

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