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CAL-2005 9 MTHS
CAL-2005 INTNL 9 MTHS
CAL-2006 WLD TOP RPK
CAL-2009-10 757 SAL
CAL-2009-10 SAL MEMBER
CAL-2009-12 3Q STATS
CAL-2010-12-NEW MERGER LIVERY 777
CAL-2011-01-2010 WORLD TOP TRAFFIC
CAL-2013-01 - UPDATE-A
CAL-2013-01 - UPDATE-B
CAL-PAPERLESS TRAVEL-A - 2011-12
CAL-PAPERLESS TRAVEL-B - 2011-12
FORMED IN 1934. BEGAN OPERATIONS AS VARNEY SPEED LINES, TAKING ITS PRESENT NAME IN 1937. TEXAS AIR, PARENT COMPANY OF TEXAS INTERNATIONAL AIRLINES, ACQUIRED A CONTROLLING INTEREST IN 1982. IT FOUND ITSELF SEVERAL TIMES IN CHAPTER 11 BANKRUPTCY IN THE 1980'S AND EARLY 1990'S, AND IN BETWEEN, ACQUIRED THE OPERATIONS OF "PEOPLE EXPRESS" AND "NEW YORK AIR." DOMESTIC, REGIONAL & INTERNATIONAL, SCHEDULED & CHARTER, PASSENGER & CARGO, JET AIRPLANE SERVICES.
16000 SMITH STREET, 19TH FLOOR
HOUSTON, TX 77002, USA
USA (United States of America) was established in 1776, it covers an area of 9,363,123 sq km, its population is 280 million, its capital city is Washington DC, and its official language is English.
JANUARY 1993: LEWIS JORDAN, 48 YEAR OLD, PRESIDENT RESIGNS. BOB FERGUSON, 43 YEAR OLD, NEW PRESIDENT & CEO, SAYS CONTINENTAL AIRLINES (CAL) WILL EMERGE FROM BANKRUPTCY BY MEANS OF CASH INFUSION: 28.7% AIR CANADA (ACN) ($235 MILLION); +41% AIR PARTNERS ($215 MILLION), INCLUDING ALFREDO BRENER (FAMILY CONTROLS MEXICANA (CMA); DAVID BONDERMAN; & JAMES COULTER = 6 MEMBERS ON 18 MEMBER BOARD.
1992 = -$299.4 MILLION (NET LOSS) (-$340.9 MILLION): +2.8% (RPM) TRAFFIC; +2.6% (ASM) CAPACITY; -3% (FTK) FREIGHT TRAFFIC.
1 727-200 (JT8D-17A), EX-ALASKA AIRLINES (ASA).
MAY 1993: EMERGES FROM CHAPTER 11 WITH SUBSIDIARIES: CONTINENTAL EXPRESS, SYSTEM ONE, & CONTINENTAL MICRONESIA (MCR) WHO OPERATE 3 727-030'S & 6 DC-10-10'S.
CANCELLING $4.6 BILLION, 13 ORDERS A330'S & 7 A340'S (26 OPTIONS).
INSTEAD, PLACES $4.5 BILLION, 50/50 ORDERS 737-500'S, 25/25 ORDERS 757-2TO'S, 12/18 ORDERS 767-300ER'S, AND 5/5 ORDERS 777'S.
SELECTED ALLIEDSIGNAL FOR WINDSHEAR DETECTION RADAR RDR-45, TCAS-II, MODE-S TRANSPONDERS & NAVIGATION SYSTEMS FOR ALL 293 AIRPLANES +190 ORDERS. ALSO ALLIEDSIGNAL (APU)'S, $30 MILLION ORDER FOR 50/50 737'S & 56 EXISTING 737'S.
JULY 1993: TO START 757 & 767 (ETOPS).
AUGUST 1993: TO RETIRE 30 OLDER AIRPLANES, INCLUDING 9 727-200'S BY MAY 1994.
CUTTING SERVICE TO AUSTRALIA/NEW ZEALAND.
-2,500 (6%) OF 38,300 EMPLOYEES.
SEPTEMBER 1993: 2 ORDERS (NOVEMBER 1993) ATR72-210 (PWC127) FOR CONTINENTAL EXPRESS.
DALFORT AVIATION DOING 737-300 "D" CHECKS & OTHER "C" CHECKS ON NARROWBODIES.
OCTOBER 1993: STARTED "CALITE" TO 14 CITIES IN SOUTHEAST USA TO COMPETE WITH "NO FRILLS" SOUTHWEST AIRLINES (SWA).
NOVEMBER 1993: 3RD QUARTER = +$12.4 MILLION (NET PROFIT) (-$29.5 MILLION).
1ST ATR72-210, 60 PASSENGERS (PAX) FOR SKI RESORTS (ASPEN) TO CONTINENTAL (CAL) EXPRESS (350TH ATR).
JANUARY 1994: 1993 = -$39 MILLION (NET LOSS): -1.7% (RPM) TRAFFIC; -1.3% (ASM) CAPACITY; 63.2% LF LOAD FACTOR.
FEBRUARY 1994: GORDON BETHUNE, PRESIDENT & COO.
4 LEASED 727-200'S RETURNED. 3 737-500'S (CFM56-3-B1) DELIVERIES & +2 ORDERS 737-500'S.
MAY 1994: 1ST 757 DELIVERY. TO GROUND 16 727-200'S IN 1995.
OCTOBER 1994: LEASING 4 BAY HANGAR AT PAGE AVJET, ORLANDO.
NOVEMBER 1994: -1,640 MAINTENANCE EMPLOYEES IN WEST, AT LOS ANGELES (LAX) & DENVER (DEN).
DECEMBER 1994: GAINS 180 MINUTES EXTENDED TWIN-ENGINE OPERATIONS (ETOPS) APPROVAL ON 757.
1 737-300, 2 737-500'S (19TH IN LAST 12 MONTHS), AND 3 757'S (8 IN LAST 12 MONTHS) DELIVERIES.
JANUARY 1995: 1994 = -$613.3 MILLION (-$639.5 MILLION): -1.68% (RPM) TRAFFIC (+O.7% DOMESTIC; -8.0% INTERNATIONAL); -1.64% (ASM) CAPACITY (+0.2% DOMESTIC; -6.8% INTERNATIONAL), 63.1% LF (-.1) (62.5% DOMESTIC; 65.2% INTERNATIONAL) = -7% TO -10% CUTS IN 1995 = -4,000 EMPLOYEES (200 MANAGERS & 30 @ SENIOR EXECUTIVES & VP LEVEL OF -4,000 EMPLOYEES).
1ST 767 IN FINAL ASSEMBLY.
FEBRUARY 1995: 2 737-524'S (27527; 9), 18 YEAR LEASED & 1 757-224 (27302), 20 YEAR LEASED, 11TH IN LAST 12 MONTHS.
APRIL 1995: RETURNED 3 LEASED 727-232'S (LINE NUMBER L/N 920; 936; 1036). WITHDREW FROM USE (WFU): 3 727-227'S (L/N 1113; 1167; 1175), 727-243'S (L/N 1532; 1568; 1620), 737-2C0 (L/N 142), 2 A300B4-103'S, 1 A300B4-203 (RETURNED TO EASTERN AIRLINES (EAL). 4 737-500'S (PT831 -4) & 1 757-224 (ND312) DELIVERIES. 1 A300B4-200 (CF6-50C2) TO AIR ALFA (ALV).
AUGUST 1995: 1 A300B4-203 (CF6-50C2), EX-SHOROUK AIRLINES (SHK). 2 727-224'S (L/N 1684; & 1740) LEASED TO AIR MICRONESIA (MCR).
NOVEMBER 1995: A300B4 LEASED TO FAUCETT (FCT) BY ING LEASING, NETHERLANDS.
DECEMBER 1995: SOME A300B4-203'S NOW OPERATED BY (PRS).
APPROVAL FOR NEWARK - BOGOTA - LIMA (757'S).
1 737-300 DELIVERY.
JANUARY 1996: 4TH QTR 1995 = +$41M (-$523M): -$447M TO UNWIND (CAL) LITE): 65% LF. 1995 = +$224M (-$613M), -15% EMPLOYEES IN 1995.
TO CODE SHARE WITH CZECH AIRLINES (CSA), CZECH REPUBLIC TO USA. CODE SHARE WITH AIR CHINA (CHI), FROM LATIN AMERICA/USA, SAN FRANCISCO (SFO) TO TAIPEI.
2 737-500'S DELIVERIES. PURCHASED 3 DC-10-30'S FROM KOREAN AIR (KAL).
FEBRUARY 1996: IN 6/96, TO GUATEMALA CITY, VIA SAN SALVADOR (757). PROPOSES NEWARK TO MANCHESTER, ENGLAND (757). APPLIED FOR NEWARK TO QUITO, ECUADOR (757'S).
+1 DC-10-30 (CF6-50C2) (46911), EX-AMERICAN AIRLINES (AAL), (POL) LEASED.
MARCH 1996: NOW OUTSOURCES 65% FLEET MAINTENANCE FOLLOWING CLOSURE OF 3 OF 4 BASES SINCE 1993. NOW MAINTENANCE ONLY AT HOUSTON (HOU) HOBBY.
NEWARK TO LIMA NONSTOP (757). CODE SHARE WITH WORLD AIRWAYS (WLD) FOR USA, ISRAEL, SOUTH AFRICA & IRELAND. APPLIED FOR HOUSTON (HOU) TO TOKYO, AND NEWARK TO OSAKA (777).
2 737-500'S DELIVERIES. 1 757-200 (ND316) DELIVERY.
APRIL 1996: FLS AEROSPACE (ATD) "D" CHECK CONTRACT, INCLUDING CHECK, PAINT, INTERIOR REFURB ON DC-10-30 (461250, EX-AMERICAN AIRLINES (AAL).
1ST Q = +$88M RECORD! (-$30M): +20% RPM (TRAFFIC), +13% ASM (CAPACITY).
AIR CANADA (ACN) TO SELL ITS 18% IN CONTINENTAL AIRLINES (CAL) WITH HALF OF SHARES FOR $108M, WITH REST IN 1997.
2 737-500'S (PT825; PT973) DELIVERIES. 1 757 DELIVERY.
MAY 1996: NEWARK TO TORONTO (737).
JUNE 1996: 1 DC-10-30 (46958) (CF6-50C2), EX-(LEI), (GUI) 7 YEAR LEASED & 1 DC-10-30 (46922) (CF6-50C2R), EX-IBERIA (IBE).
JULY 1996: ROUTE TO ECUADOR APPROVED (757'S). NEWARK TO PITTSBURGH AND SYRACUSE 9/96.
2ND Q = +$167M RECORD!
AUGUST 1996: IN 2/97 NEWARK TO DUSSELDORF (DC-10-30) AND IN 5/97 NEWARK TO LISBON (757).
1ST US ORDER FOR 737-800'S. PART OF REORDERING PRIORITIES TO REPLACE 31 AGING 737'S, WITH 48/15 ORDERS 737-700/-800'S, REPLACING PREVIOUS 18 737-300'S/-500'S & 12 767 ORDERS.
SEPTEMBER 1996: MARY MINOR, TECHNICAL OPERATIONS ADMINISTRATION PLANNER, HONORED BY "DOLLARS AND SENSE" MAGAZINE AS ONE OF "AMERICA'S BEST & BRIGHTEST WOMEN."
GORDON BETHUNE, CHAIRMAN, REPLACES DAVID BONDERMAN WHO STILL HAS INVESTMENTS IN AIR PARTNERS (LARGEST SHAREHOLDERS). ALSO NEW IS GREG BRENNEMAN, PRESIDENT & COO.
ALITALIA (ALI) CODE SHARE, NEWARK TO ROME AND MILAN. POSSIBLE WET-LEASE OF AIRPLANES TO (ALI).
OCTOBER 1996: 9 MONTHS = +$272.9M (NET PROFIT). 3RD Q = +$17.66M.
747-200 (RB006) OUT OF STORAGE TO (HAECO) FOR SECTION 41 PYLON, & "D" CHECK FOR RETURN TO SERVICE.
$1.8B REALIGNMENT OF ORDERS TO 30 737-500'S, 102 PAX & 30 737-600'S, 110 PAX, TO REPLACE 60 737-100'S/-200'S & DC-9'S, ALSO 737-700, 128 PAX, AND 737-800, 162 PAX. FLEET WILL BE 209 737'S; 62 MD-80'S; 25 757'S; & 16 DC-10'S. +1 MD-82 (49363), EX-ALASKA AIRLINES (ASA). 1 DC-10-30 (CF6-50C1) (46981), EX-IBERIA (IBE). CONTINENTAL (CAL) EXPRESS ORDERS 25/175 EMBRAER EMB-145'S, 50 PAX.
NOVEMBER 1996: TO GUAYAQUIL, ECUADOR, NON-STOP (737-500).
IN 1997: 14 737-500'S & 5 757'S DELIVERIES. 14 737-100'S/-200'S FOR DISPOSAL. 727-200'S & DC-9'S TO BE DISPOSED OF IN 1998. 2ND MD-82 (49365), EX-ALASKA AIRLINES (ASA). 2 DC-10-30'S (CF6-50C2) (47927, EX-LUFTHANSA (DLH); 46926, EX-IBERIA (IBE).
DECEMBER 1996: GEORGE MASON, SR VP TECHNICAL OPERATIONS.
SIGNED ALLIANCE WITH ALITALIA (ALI).
JANUARY 1997: 1996 = +$319M: +15.9% RPM (7.71% MKT); +0.9% ASM; 68.1% LF (+2.5); +8.3% FTM. 1996 = 37,344M RPM (#9 HIGHEST IN WORLD). US MARKET SHARE (RPM) = 7.71% (7.86%).
TO VANCOUVER (737, 128 PAX). CLEVELAND TO LONDON GATWICK (DC-10). CODE SHARE WITH AEROFLOT RUSSIAN AIRLINES (ARO), NEWARK TO MOSCOW (DC-10). TO BIRMINGHAM, MIDLANDS, UK (757, 2 CLASS).
PLANS FOR NEW HOUSTON (IAH) MAINTENANCE FACILITY (LINE MAINTENANCE HANGAR 90,000 SQ FT & PARTS WAREHOUSE 80,000 SQ FT).
GROUND PROXIMITY SYSTEM (GPS) BEING INSTALLED ON 727-200 & DC-10-30 FLEETS.
"AIR TRANSPORT WORLD" MAGAZINE AWARDS CONTINENTAL AIRLINES (CAL) "AIRLINER OF THE YEAR" BASED ON OPERATING AND FINANCIAL TURNAROUND.
14 737-500'S & 6 757'S THIS YEAR FOR DELIVERY AND 14 737-1/200'S DISPOSALS. DC-9'S TO BE DISPOSED OF IN 1998.
FEBRUARY 1997: 1 747-200 (JT9D-7F) (20534), EX-TOWER (TOW), FOR AIR MICRONESIA (MCR).
MARCH 1997: 1 DC-10-30 (CF6-50C2) (47861), EX-TAESA (TES), CIT (TCI) LEASED, "D" CHECK BY DEE HOWARD, SAN ANTONIO. 1 DC-10-30 (46991), EX-CANADIAN INTERNATIONAL (CDI).
APRIL 1997: 1ST Q = +$74M (-18%, +$88M). $68M BONUS TO EMPLOYEES FOR PROFIT SHARING (2ND YEAR IN A ROW).
$240M +16 ORDERS FOR TOTAL 41 757'S (ENGINES).
MAY 1997: NEWARK TO LISBON (757, DAILY).
FLS AEROSPACE (ATD), HAS HEAVY MAINTENANCE CONTRACT FOR 3 CONTINENTAL DC-10-30'S.
OPENS NEW $24M MAINTENANCE CENTER IN HAWAII.
J D POWERS AWARD FOR "BEST LONG-HAUL CARRIER."
POSSIBLE $4B, BIG TWIN ENGINE JETS EXCLUSIVE CONTRACT FOR 40 AIRPLANES. 757 DELIVERY. 2 DC-10-10'S (CF6-50C2), EX-SAENA (SAB) & EX-FINNAIR (FIN).
JUNE 1997: NONSTOP TO VANCOUVER. NEW YORK/NEWARK TO MOSCOW (DC-10-30).
BUYS +9% OF AIR MICRONESIA (MCR) FOR $73M.
757 DELIVERY. $3B, 30/? 767-400ERX'S & 5/? 777'S SOLE SUPPLIER, 3RD USA AIRLINE AFTER AMERICAN AIRLINES (AAL) & DELTA AIRLINES (DAL) TO SIGN BOEING SOLE DEAL FOR NEXT 20 YEARS TO REPLACE 37 DC-10'S. PURCHASED 6 737-300'S & 4 MD-82'S OFF LEASE. 1 DC-10-30 (CF6-50C2) (47957), EX-(LBE).
JUNE 1997: ACCDT: TAXIING FROM MAINTENANCE AREA AT NEWARK COLLIDED WITH TERMINAL BUILDING INJURING 2 MECHANICS AT AIRPLANE CONTROLS AND WROTE OFF 727-200 ADVANCED (N571PE).
JULY 1997: 1ST 6 MONTHS = +1.2% RPM (TRAFFIC), +8.7% ASM (CAPACITY), 70.6% LF (LOAD FACTOR) (+2.3). 2ND Q = +$128M (-23.4%): +8.8% ASM.
MARKETING ALLIANCE WITH HAWAIIAN AIRLINES (HWI).
AUGUST 1997: TO HONOLULU & ONTO GUAM (DC-10-30, 280 PAX). CODE SHARES WITH ACES (ACE) TO MEDELLIN, CALI, BOGOTA, QUITO, FROM NEWARK, AND WITH (EVA) AIR.
2 737-524'S & 2 757'S DELIVERIES (RB211-535E4). EXERCISED 5 OPTIONS (6/98) 757'S. 1 DC-10-30 (CF6-50C2) (46553), EX-KRASAIR (ZXD).
SEPTEMBER 1997: TO RELOCATE HQ TO DOWNTOWN SOUTHEAST HOUSTON AT GEORGE BUSH INTERCONTINENTAL AIRPORT, MOVING 3,000 EMPLOYEES.
CODE SHARE WITH AIR CHINA (CHI), BETWEEN TAIPEI & SAN FRANCISCO (SFO). HOUSTON (HOU) - ARUBA IN 5/98.
1 737-500 DELIVERY.
OCTOBER 1997: 38,700 EMPLOYEES, 30,332 (3RD Q).
CODE SHARE WITH VIRGIN ATLANTIC (VAA), LOS ANGELES (LAX), MIAMI (MIA), NEW YORK (JFK), NEWARK, SAN FRANCISCO (SFO), WASHINGTON DULLES, TO LONDON HEATHROW. NEWARK TO DUBLIN, SHANNON (757, 172 PAX, 2 CLASS).
3RD Q = +$110M: +9.7% ASM (DOMESTIC +3.4%, LATIN AMERICA +35.8%, EUROPE +46%), 73.7% LF (LOAD FACTOR). MAINTENANCE COSTS +24.6% WITH +20 AIRPLANES TO 334 JETS. 1ST 9 MONTHS = 57.68B RPK (6TH HIGHEST IN WORLD).
2 737-130'S (19020; 19024) & 1 737-217 (19888) SCRAPPED. 2 737-500'S DELIVERIES.
757 180 MINUTES (ETOPS): 120 FLIGHTS/MONTH OVER NORTH ATLANTIC, & 80 FLIGHTS OVER PACIFIC
NOVEMBER 1997: VENEZUELAN GOVERNMENT OK'S HOUSTON - CARACAS (737, 2 CLASS). CODE SHARE WITH AEROFLOT (ARO). SAN ANTONIO - MEXICO CITY (MD-80, 141 PAX).
E-TICKETING NOW 70% OF USA BOOKINGS, SAVES $1 ON EACH TRANSACTION OVER PAPER TICKET. EXPECTS MORE SAVINGS WITH LATER DEVELOPMENTS INTO ELECTRONIC CONFIRMATION & CHECK-IN.
NEW PILOT CONTRACT = +20%, TO COST $100M IN 1ST YEAR.
1 737-524 (28908) DELIVERY. PURCHASES 2ND DC-10-30 (46550), EX-(KRA).
DECEMBER 1997: PLANS DAILY NONSTOPS IN 6/98 (757-200ER) NEWARK - SHANNON/ - DUBLIN, - GLASGOW MAKING 12TH, 13TH & 14TH EUROPEAN DESTINATIONS.
TO ERECT NEW LINE MAINTENANCE HANGAR AT GEORGE BUSH INTERNATIONAL AIRPORT, HOUSTON, WITH 2 AIRPLANE BAYS FOR WIDEBODY 777 & NARROWBODY, TO BE COMPLETED BY MID 1998.
3 737-130'S (98-19028; 19029; 19031) SCRAPPED. 2 DC-10-30'S (CF6-50C2) (46917; 46928), EX-CONDOR (CDF), AVIATION INVESTORS LEASED.
JANUARY 1998: 4TH Q PRE-TAX = +$122M (+$80M). 4TH Q NET = +$73M RECORD! (+55.3%). 1997 PRE-TAX = +$640M (+$428M). 1997 NET = +14.3% RPM, +9.8% ASM, 70.9% LF (+2.8). DOMESTIC: +9.7% RPM, +4.5% ASM; INTERNATIONAL: +25.8% RPM, +23.4% ASM. TOTAL 47.91B RPM (41.91B). USA MARKET SHARE 1997 = 5TH 7.89% RPM, 8TH LF.
IN 2/98, WILL REWARD EMPLOYEES WITH $105M, IN PROFIT-SHARING = 7% ANNUAL WAGES, IN ADDITION TO $21M, PAID OUT IN ON-TIME BONUSES
DEPARTMENT OF TRANSPORTATION (DOT) OK'S CODE SHARE WITH EVA AIRWAYS (EVA), LOS ANGELES (LAX), SAN FRANCISCO (SFO), SEATTLE (SEA), HONOLULU (HNL), TO TAIPEI. NEWARK TO MONTROSE, NASSAU, HALIFAX, AUSTIN, CARACAS.
TAKES 4 727'S & 1 757 FROM CONTINENTAL AIR MICRONESIA (MCR) TO SUPPORT "ROBUST" DOMESTIC ECONOMY.
NORTHWEST AIRLINES (NWA) TAKES 14% STAKE IN CONTINENTAL AIRLINES (CAL) AS PART OF NEW CODE SHARE ALLIANCE, TO MAKE COMBINED CARRIERS AS LARGE AS UNITED AIRLINES (UAL), AMERICAN AIRLINES (AAL) & DELTA AIRLINES (DAL). TOGETHER THEY WOULD CONTROL 19% OF USA DOMESTIC CAPACITY COMPARED TO (UAL) 19.6%, (AAL) 17.8%, & (DAL) 16.9%.
3 YEAR, $30M, DC-10, HEAVY MAINTENANCE CONTRACT, TO FLS AEROSPACE (ATD).
23 757'S FLYING 120 NORTH ATLANTIC, & 68 PACIFIC 180 MINUTES (ETOPS) FLIGHTS/MONTH.
3 737-500'S (PT914; PT915; PT916) & 2 757-200'S (NT752; NT753) DELIVERIES. 3 DC-10-30'S (46850; 46917; AND 47928) DELIVERIES.
MARCH 1998: NORTHWEST AIRLINES (NWA) NOW BUYS EXTRA STOCK FOR 15.4%, & 57.8% VOTES, WORTH $59.5M, OR $60.82 PER SHARE.
RANDY MILLER, STAFF VP MAINTENANCE RETIRES, AND JOINS (NWA) AS VP MAINTENANCE.
CODE SHARE WITH VASP (VSP), TO 14 BRAZILIAN CITIES.
727-232 (961-20645) & 2 DC-10-10'S (46900, 2) RETURNED FROM AIR MICRONESIA (MCR). SOLD 737-247/-291 (154-20129; 415-1069) TO (RFC), (21069) SCRAPPED. 1 737-524 (3026-28918) & 1 757-224 (799-28970) DELIVERIES. $800M, 15/25 ORDERS (2001) 737-900'S. 64 BOEING JET DELIVERIES IN 1998 = 1 BOEING AIRPLANE EVERY 5.7 DAYS.
APRIL 1998: 40,000 EMPLOYEES.
1ST Q = +$81M: MAINTENANCE EXPENSES = $183.62M (11.85% OF TOTAL OPERATIONS EXPENSES).
(FAA) REGIONAL AVIATION SAFETY INSPECTION (RASIP), 3 WEEKS BY 7 INSPECTORS. FINDINGS OK.
1ST 2 737-724 DELIVERIES.
MAY 1998: BUYS 49% STAKE IN COPA (COP), PANAMA, INCLUDING CODE SHARE TO MIAMI (MIA), NEWARK & HOUSTON.
BUYS 19% OF ACES (ACE), COLOMBIA.
CONVERTS SOME 737 OPTIONS TO 15 ORDERS 737-900'S (/01). CANCELLED 4 767-400ER'S. 2 737-500'S, 4 737-700'S, 3 737-800'S, & 2 757-200'S DELIVERIES. +4 ORDERS 777-200'S (GE90) FOR TOTAL 14.
JUNE 1998: CLEVELAND - SEATTLE. NANTUCKET - NEWARK.
JULY 1998: STARTS CODE SHARE WITH VASP (VSP), TO RIO DE JANEIRO AND SAO PAULO (DC-10 WITH BOTH LOGOS). LAUNCH CEREMONY OF NEWARK TO GLASGOW, SCOTLAND (757), INCLUDING ROBERT BURNS, POETRY READING.
1ST 6 MONTHS = 25.75B RPM (+12.9%), +11.7% ASM, 71.3% LF (+.7). 2ND Q = +$167M (+30% RECORD!
HAS ADDED 25 E-TICKETING INTERNATIONAL CITIES THIS YEAR.
1ST US CUSTOMER TO RECEIVE 1 737-800 DELIVERY. 33 BOEING AIRPLANES TO BE DELIVERED IN 2ND HALF OF YEAR.
1997 TOP WORLD AIRLINES COMPARISONS:
EMPLOYEES (K): 1 FED 94; 2 UAL 92; 3 AAL 86; 4 DAL 63; 5 DLH 58; 6 BAB 53; 7 NWA 50; 8 CAL 40; 9 USA 42; 10 AFA 36.
NET ($M): 1 AMR 985 (1,016); 2 UAL 949 (533); 3 DAL 934 (248); 4 BAB 754 (876); 5 SIA 670 (731); 6 NWA 597 (536); 7 FED 583 (371); 8 USA 494 (263); 9 DLH 482 (371); 10 CAL 385 (319); 11 SWA 318 (207); 12 AFA 314 (-28); 13 ACN 308 (109).
RPK (TRAFFIC) (B): 1 UAL 195; 2 AAL 172; 3 DAL 160; 4 NWA 116; 5 BAB 106; 6 JAL 77.2; 7 CAL 77.0; 8 DLH 71; 9 AFA 70; 10 USA 67.
PASSENGERS (PAX) (M): 1 DAL 103; 2 UAL 84; 3 AAL 81; 4 USA 59; 5 NWA 55; 6 SWA 50; 7 ANA 41; 8 CAL 39; 9 DLH 35; 10 BAB 34.
(ETOPS) 180 MINUTES FLIGHTS/MONTH (TOTAL): 31 757'S = 143 (2,840) NORTH ATLANTIC, 381 (1,793) PACIFIC.
AUGUST 1998: CODE SHARE WITH AIR FRANCE (AFA), TO PARIS, KENYA, TURKEY & UNITED ARAB EMIRATES (UAE).
4 737-500'S, 2 737-700'S, & 8 737-800'S DELIVERIES. EXERCISES OPTIONS FOR 2 737-700'S & 4 757-200'S.
SEPTEMBER 1998: SUBSIDIARY CONTINENTAL EXPRESS, BUYS +25 EMBRAER ERJ-135, 50 PAX, FOR TOTAL 100 ORDERS IN 2 YEARS, TO MEET GOAL OF ALL-JET BY 2003.
PLANS FOR 4/99 NONSTOPS FROM NEWARK TO ZURICH (DC-10-30, 242 PAX, 2 CLASS) & TO BRUSSELS (757, 172 PAX) FOR TOTAL 15 EUROPEAN POINTS OF SERVICE.
ALLIANCE WITH ASERCA (SEZ) TO CARACAS, VENEZUELA, AND DOMESTIC POINTS, & ALSO WITH AIR ARUBA (AAU), WHO WAS RECENTLY ACQUIRED BY (SEZ), LINKING HOUSTON TO ARUBA. (SEZ) GREW WITH DEMISE OF VIASA (VIA).
4 DC-9-32'S (730-47638; 923-8111; 635-7520; 381-5793), RETURNED.
OCTOBER 1998: IN 2/99, BIRMINGHAM, ALABAMA - NEWARK (737-300). (DOT) OK'S CLEVELAND - LONDON GATWICK.
RECORD EARNINGS FOR 14TH CONSECUTIVE QUARTER, 3RD Q = +$73M (+$110M): MAINTENANCE COSTS = $192.37M (10.83% OF OPERATING EXPENSES).
1ST 6 MONTHS = 41.43B RPK (+12.9%), 71.3% LF (+.7), 543.8M FTK (+37.9%), 21.33M PAX (+5.6%).
1 737-524 & 4 737-724'S DELIVERIES. 737-291 (216-20362) PARTED OUT. 1 747 WITHDRAWN FROM SERVICE. 1ST 777 DELIVERY, 2ND 777 US OPERATOR. 2ND 777 REDUCED AVERAGE (CAL) AIRPLANE AGE, FROM 13.6 YEARS TO 6.8 YEARS. BY END OF 2002, WILL HAVE 415 AIRPLANES. RETIREMENT OF 13 727'S, 4 747'S, & 32 EMBRAER TURBOPROPS. TOOK DELIVERY OF 19 737'S, 1 757, & 2 777'S.
12 MONTHS END 9/98 USA AIRLINES TRAFFIC RPM B:
1 UAL 123.3; 2 AAL 108.3; 3 DAL 102.6; 4 NWA 67.6; 5 CAL 49.7; 6 USA 41.1; 7 SWA 29.7; 8 TWA 25.0; 9 AMW 16.2; 10 ASA 11.0B.
32 757'S 180 MINUTES (ETOPS) FLIGHTS/MONTH (TOTAL FLIGHTS) = NORTH ATLANTIC 236 (3,543); PACIFIC 472 (3,253).
NOVEMBER 1998: IN 5/99, NEWARK TO ZURICH AND BRUSSELS.
NORTHWEST AIRLINES (NWA) FINALIZES BUY, OF 8.66M SHARES OF CLASS "A" CONTINENTAL AIRLINES (CAL) STOCK, FROM AIR PARTNERS, HEADED BY DAVID BONDERMAN, & ITS AFFILIATES. WILL THUS CODE SHARE WITH (NWA) ON 850 DOMESTIC & INTERNATIONAL FLIGHTS TO 95 CITIES.
10/28 ORDERS (/00) 767-200ER TO REPLACE OLDER 747'S AND DC-10'S AS THEY RETIRE. 2 777-224'S (167-27579; 169-27580) DELIVERIES.
DECEMBER 1998: LAUNCHES YEAR-ROUND NONSTOPS TO SAN JUAN. NONSTOP NEWARK - TOKYO NARITA (777). CODE SHARE WITH AVANT (LIC), NEWARK - SANTIAGO.
$75M TO ROLLS ROYCE FOR (RB211-535E4B) ENGINES FOR +5 757-200'S (12/99).
"FORTUNE 500" MAGAZINE RATES CONTINENTAL AIRLINES (CAL) ONE OF TOP 100 "BEST COMPANIES TO WORK FOR" IN USA, BASED ON "DISTRIBUTION OF >1/4$B IN PROFIT SHARING & ON-TIME BONUS, ABSENTEEISM -31%, EMPLOYEE TURNOVER -52%, INJURIES -48%, EMPLOYEES & FAMILIES ATTEND COMPANY PICNICS TO CELEBRATE CORPORATE CAMARADERIE, PURCHASES OF (CAL) LOGO ITEMS +400%."
1 737-700, 6 737-800'S, 1 757, 2 777-200'S DELIVERIES.
JANUARY 1999: 4TH Q = +$66M (-9.6%). 1998 = +$383M (-.5%), $86M IN PROFIT SHARING (6.7% ANNUAL WAGES) TO EMPLOYEES NEXT MONTH, -$158M FUEL COST: 50.94B RPM (+15.6%); +10.6% ASM; 72.1% LF (+1.2); 5.85B FTM (+15.8%).
FLIES 777-200 ON NEWARK - LONDON, AND SOON ON ROUTES TO PARIS, FRANKFURT, AND MANCHESTER, UK. STARTED CODE SHARE WITH NORTHWEST AIRLINES (NWA) ON 850 DOMESTIC FLIGHTS, 28 WEEKLY FLIGHTS TO JAPAN, & 21 WEEKLY FROM TOKYO TO SINGAPORE, BANGKOK, & SEOUL. CODE SHARE ON NEW YORK KENNEDY (JFK) - TOKYO, SAN FRANCISCO (SFO) - TOKYO, & DETROIT - OSAKA. (DOT) OK'S 2 YEAR EXEMPTION FOR SCHEDULED COMBI SERVICE, USA TO BUDAPEST, HUNGARY. IN 8/99, NEW YORK/NEWARK - TEL AVIV (777-200, 48C, 235Y).
ELECTRONIC TICKETING = 32% REVENUE (23%).
TOOK DELIVERY OF 65 LARGE AIRPLANES, & 18 RJ'S IN 1998, AND IN 1999, WILL BE 60 & 20, OWNING HALF, LEASING REST. IT WILL RETIRE 57 AIRPLANES. IN 1999, WILL RECEIVE 45 737'S, 4 757'S, AND 8 777'S. 2 737-724'S & 1 757-200 DELIVERIES.
FEBRUARY 1999: IN 6/99, TO OPEN $90M, REGIONAL JET, CONCOURSE AT CLEVELAND, WITH 12 JET GATES, & 24 TURBOPROP, LOADING GATES. DAILY NONSTOPS TO TOKYO (777, 283 PAX), TAKING 14.5 HOURS. NEW ROUTES CLEVELAND - WEST PALM BEACH; CLEVELAND - SARASOTA; CLEVELAND - CANCUN; & NEWARK - COZUMEL. IN 6/99, CLEVELAND TO LONDON GATWICK (LGW) (757-200, 172 PAX).
DISTRIBUTES 6.7% ANNUAL WAGES PROFIT-SHARING TO 43,000 EMPLOYEES.
IN 7/99, NEWARK - AMSTERDAM (DC-10, 38C, 204Y PAX). CODE SHARE WITH ALASKA AIRLINES (ASA).
727-224 (1772-22452) & 727-227 (1217-21247), AND 727-2F9 (1285-21426) RETURNED TO INTREPID. SCRAPPED 2 737-130'S (15-19021; 35-19026), 1 737-217 (109-19887) & 1 737-2C0 (170-20074). 2 777-200'S (WB377; WB378) DELIVERIES.
MARCH 1999: HOUSTON - GATWICK NONSTOP (777).
RETIRED ITS LAST 737-200 AND 747. 1 737-724 (219-28940, N23721), 757-224 (856-29285, N19136), & 777-224 (200-29478, N78008) DELIVERIES. 737-291 (20361) & 737-2CO (20070) PARTED OUT. 737-524 (28904) WRITTEN OFF (W/O). 2 747-238B'S (20534; 20535) RETIRED TO MOJAVE. DC-10-10 (92-47800) SOLD TO INVESCO. IN 1999, WILL RETIRE 57 AIRPLANES, AND RECEIVE 60 NEW BOEING JETS, TO LOWER AVERAGE AIRPLANE AGE TO 7.6 YEARS, BY END OF 1999.
APRIL 1999: (DOT) AWARDS ROMANIA ROUTE WITH AIR FRANCE (AFA) CODE SHARE, VIA PARIS, AND CZECH AIRLINES (CSA), VIA PRAGUE, TO BUCHAREST.
1ST Q = +13.8% RPM, +9.7% ASM, +$84M (+3.7%).
1998 TOP WORLD AIRLINES TRAFFIC RPK (B):
1 UAL 200 (195); 2 AAL 175 (172); 3 DAL 166 (160); 4 BAB 117 (106);
5 NWA 107 (116); 6 CAL 87 (77); 7 DLH 72 (71); 8 USA 66 (67); 9 SIA 58 (55); 10 KLM 57 (55).
2 737-700'S, 1 757, & 1 777 DELIVERIES.
MAY 1999: 37,299 EMPLOYEES.
1 737-700, 2 737-800'S, & 1 777 DELIVERIES.
JUNE 1999: CREDITORS FROM GROUNDED AEROPERU (PER) ARE EXPECTED TO ACCEPT CONTINENTAL AIRLINES (CAL) BID TO REORGANIZE AIRLINE AND ACQUIRE 49% FOR APPROXIMATELY $30 - $45M. LATER, (CAL) WITHDRAWS ITS OFFER FOR AEROPERU (PER).
IN 1998, NEWARK HUB DEVELOPMENT, IS +22% WITH TRANSCONTINENTAL FLYING, FROM 4 DESTINATIONS, IN 1994 TO 1998: ZURICH, AMSTERDAM, BRUSSELS, AND TEL AVIV, TO TOTAL 17 DESTINATIONS.
CODE SHARE WITH NORTHWEST AIRLINES (NWA), DETROIT TO CANCUN, MEXICO CITY, PUERTO VALLARTA & IXTAPA, MEMPHIS - CANCUN, AND FROM MINNEAPOLIS & ACAPULCO, CANCUN, COZUMEL, PUERTO VALLARTA, SAN JOSE DEL CABO & IXTAPA, PLUS TAMPA - CANCUN. ALSO, ALASKA AIRLINES (ASA) CODE SHARE, LOS ANGELES (LAX) - LA PAZ, MAZATLAN, PUERTO VALLARTA, SAN JOSE DEL CABO & IXTAPA; SAN DIEGO - SAN JOSE DEL CABO, SAN FRANCISCO (SFO) - MAZATLAN, PUERTO VALLARTA & SAN JOSE DEL CABO.
1 737-724, 4 737-824'S, 1 777-224ER, DELIVERIES. 3 DC-9-32'S (47110; 47218; 47219), RETURNED TO LESSOR.
1998 TOP WORLD AIRLINES TRAFFIC RPM (B):
1 UAL 124.54; 2 AAL 108.87; 3 DAL 103.24; 4 BAB 72.08; 5 NWA 66.71; 6 CAL 50.94; 7 JAL 48.97; 8 DLH 46.88; 9 AFA 46.35; 10 USA 41.25; 11 SIA 35.87.
JULY 1999: 1ST 6 MONTHS = +11.3% RPM, +9.1% ASM, +1.5% LF. DOM: +7.8% RPM; +6% ASM, 72.6% LF (+1.2); INTERNATIONAL: +18.1% RPM, +15.2% ASM, +1.8% LF. 2ND Q = +$137M (+$163M): +9.1% RPM, +8.6% ASM, 74% LF (+.4); MAINTENANCE COSTS $216.78M (11.87% (DOC).
LAUNCHES 16TH TRANSATLANTIC CITY, AMSTERDAM, FROM NEWARK (DC-10).
727-232 (918-20635, N77780) RETURNED TO LESSOR. 2 777-200'S (GE90-90B), (ILF) 12 YEAR LEASED, FOR TRANSATLANTIC ROUTES TO REPLACE 2 DC-10-30'S RECENTLY SOLD. 2 DC-9-32'S (45793; 47094) PARTED OUT.
AUGUST 1999: DAILY NONSTOP TO SAO PAULO (DC-10-30, 38C, 204Y).
IN 1999, HAS RETIRED 11 727-200'S, 2 737-200'S, 1 737-500, 3 747-200'S, 9 DC-9-30'S, & 3 DC-10-10'S. BY END OF 1999, WILL RETIRE +31: 16 727-200'S, 11 DC-9-30'S, 2 DC-10-10'S, & 2 DC-10-30'S. 727-200 (20638) PARTED OUT. 727-243 (21662) RETURNED TO LESSOR. 727-232 (917-20364), RETURNED. 737-800 (28943), GECAS (GEH) LEASED. 3 737-724'S (338-28798, N17730; 346-28799, N17731; 352-28948, N17732), 2 737-824'S (334-28946, N16234; 342-28947, N16235) & 1 777-224ER (234-29860, N77012) DELIVERIES. DC-9-32 (582-47424, N17557), RETURNED TO LESSOR.
SEPTEMBER 1999: 2 727-224'S (1151-20666; 1760-22450) RETURNED TO LESSOR. 727-2F9 (1291-21427, N75429) RETURNED FROM AIR MICRONESIA (MCR). 3 737-724'S (364-28800, N27733; 371-28949, N27734; 376-28950, N14735), 2 737-824'S (367-28801, N35236; 374-28802, N14237), & 1 777-224ER (243-29861, N78013) DELIVERIES. 3 DC-9-32'S (394-45847; 582-47424; 900-47765) PARTED OUT.
OCTOBER 1999: 3RD Q = +$110M (+$73M): +9.7% RPM, +9.7% ASM, 73.9% LF (+.9). +14.9% FUEL COSTS.
1 727-224 (934-20655), RETURNED. 6 737-824'S (386-28804, N12238; 391-28951, N27239; 394-28952, N14240; 395-28953, N54241; 402-28805, N14242; 403-28806, N18243) & 1 777-224ER (253-29862, N77014) DELIVERIES.
NOVEMBER 1999: 37,299 EMPLOYEES.
NEWARK - MILAN (777).
3 737-824'S (409-28954, N17244; 411-28955, N17245; 413-28956, N17246) & 1 757-224 (899-30229, N24137) DELIVERIES. DC-9-32 (918-47799, N12510) SOLD TO (RFC). 2 DC-10-30'S (331-47850, N68060; 334-47851, N12061), LEASED TO HAWAIIAN AIRLINES (HWI).
DECEMBER 1999: DAILY, HOUSTON GEORGE BUSH AIRPORT, TO TORREON, MEXICO (ERJ-145), TO HANDLE HEAVY BUSINESS TRAFFIC, TO/FROM THE AGRICULTURAL, MINING, INDUSTRIAL, & CATTLE-GROWING AREA. CONTINENTAL AIRLINES (CAL) OPERATES 250 WEEKLY DEPARTURES TO 16 CITIES IN MEXICO, INCLUDING CHIHUAHUA AND SALTILLO.
44,000 EMPLOYEES (INCLUDING 5,200 FLIGHT CREW (FC).
5 737-800'S & 1 757-200 DELIVERIES. PLANS TO ACCELERATE RETIREMENT OF 6 DC-10-30'S TO EARLY 2000.
JANUARY 2000: 4TH Q = +$167M: 4TH Q MAINTENANCE COSTS = $211.38M (10.52% (DOC). 1999 = +$359M (+$464M): 60.02B RPM (+11.3%), +9.7% ASM; 73.2% LF (+1.1); +43% FUEL COSTS. USA TRAFFIC MARKET SHARE = 9.8%, 5TH (9.3%).
IN 1998, NORTHWEST AIRLINES (NWA) HAD BOUGHT 8.66M CONTINENTAL AIRLINES (CAL) SHARES OF CLASS A STOCK FROM AIR PARTNERS, HEADED BY DAVID BONDERMAN & ITS AFFILIATES, & ALTHOUGH ONLY 14% OF (CAL) STOCK, FOR $500M, IT CARRIED "SUPER VOTING RIGHTS" GIVING (NWA) 51% CONTROL OF AIRLINE. GORDON BETHUNE, CEO, IS NOW TRYING TO PURCHASE BACK THESE SHARES, SINCE (CAL) ENDED 1999 WITH $1.6B IN CASH & INVESTMENTS.
IN 6/00, DAILY NEWARK - PUERTO PLATA, DOMINICAN REPUBLIC (737-300). (DOT) OK'S NEWARK - BELO HORIZONTE, BRAZIL (START 9/00).
1 727-212 (1329-21459) & 4 727-232'S (961-20645; 967-20646; 968-20647; 935-20640), RETURNED TO LESSOR. DC-9-32 (199-47112; 635-47520) SOLD. IN 2000, WILL RETIRE 6 DC-10-0'S.
FEBRUARY 2000: 4.3% ANNUAL WAGES PROFIT-SHARING TO 51,500 EMPLOYEES, FOR 5TH STRAIGHT YEAR. IN 1999, PAID $26M, IN ON-TIME, BONUSES.
2 757-224'S (911-30352, N17139; 913-30353, N41140) DELIVERIES.
MARCH 2000: IN 6/00, TO OAKLAND (737-500, 2/DAY). IN 12/00, NEWARK - GRAND CAYMAN, CAYMAN ISLANDS (737-700, 12F, 112Y, 4/WEEK) (48TH DESTINATION IN LATIN AMERICA & CARIBBEAN).
APRIL 2000: HOUSTON - PARIS (CDG) (777, 283 PAX, REPLACES DC-10, 242 PAX). 14 777'S OPERATE TO LONDON, PARIS, MANCHESTER, ROME, FRANKFURT, MILAN, TOKYO, AND TEL AVIV. IN 6/00, NEWARK - HALIFAX, CLEVELAND - AUSTIN AND HOUSTON (HOU) - OAKLAND (2/DAY NONSTOP). IN 8/00, TO NEW YORK (JFK). NEWARK TO GUATEMALA CITY - SAN SALVADOR (SATS). IN 9/00, TO (JFK).
NEWARK WILL BECOME A MORE IMPORTANT HUB IN NEW YORK, WHEN A NEW TRAIN
CONNECTS THE AIRPORT TO MIDTOWN MANHATTAN, SINCE THERE ARE NO FAST TRAINS TO NEW YORK LAGUARDIA & NEW YORK KENNEDY (JFK).
1ST Q = +$14M (-73%) (+$52M), +120.5% FUEL COSTS, COST SAVINGS FROM NEWER AIRPLANES, AND IMPROVED FLIGHT COMPLETIONS, 99.3% (98.5%).
CURRENTLY HAS 8 FLEET TYPES - WILL REDUCE TO 4 BY 2005: 737; 757; 767; & 777. WILL GET 28 NEW BOEING AIRPLANES IN 2000, WHILE RETIRING 5 727-200'S, 11 DC-10'S, & 3 MD-80'S. THE TRANSITION TO NEW WIDEBODIES (DC-10 TO 767-400) IS WORTH $100M, FROM -17% IN OPERATING COSTS.
777-224ER (273-28678, N27015), (ILF) LEASED.
MAY 2000: CONTINENTAL AIRLINES (CAL) TAKES "TOP FREQUENT FLYER"/J D POWER & ASSOCIATES AWARDS FOR "SHORT DISTANCE (<500 MILES)" & "LONG DISTANCE FLIGHTS." 4TH YEAR IN TOP SPOT FOR "LONG-HAUL," IT JUMPED FROM 3RD FOR SHORT-HAUL. RANKED ESPECIALLY HIGH, IN CUSTOMER SERVICE-ORIENTED CATEGORIES, LIKE AIRPORT CHECK-IN QUALITY. ALSO 1ST IN GATE FACTORS, FLIGHT ATTENDANTS (TIED WITH SOUTHWEST AIRLINES (SWA), AIRPLANE INTERIOR, FREQENT FLYER PROGRAM, & FOOD SERVICE.
IN 8/00, NONSTOP NEWARK - OAKLAND (737-700, 2/DAY).
1 777-224ER (279-28679, N57016) DELIVERY.
JUNE 2000: NEW NONSTOPS PUERTO PLATA, DOMINICAN REPUBLIC, AND TO AGUASCALIENTES, MEXICO. (DOT) OK'S 12/00 NONSTOPS, NEWARK TO ACAPULCO, PUERTO VALLARTA, AND SAN JOSE DEL CABO. ONE-STOP SERVICE, TO SANTA CRUZ, BOLIVIA (757, 2 CLASS), FROM NEWARK AND HOUSTON, WITH 3/WEEK, VIA LIMA.
5-YEAR CONTRACT TO (ARINC) FOR GLOBAL SATELLITE VOICE & DATA SERVICES FOR 767'S & 777'S.
727-243 (1394-21661, /78 51 33, N10408), TO AEROTURBINE (AUB). 2 737-800'S & 1 757-200 DELIVERIES. DC-9-32 (45792) PARTED OUT.
JULY 2000: EXTENSIVE (FAA) SAFETY AUDIT OF ALASKA AIRLINES (ASA) BEING FOLLOWED BY SAME OF (UAL), (AMW), (CAL), (DAL), (NWA), (TWA), (AAL), (SWA), & (USA).
2ND Q = +$149M (+12.9%), 48.1% BUSINESS (C) CLASS OF TOTAL, +101.9% FUEL COSTS.
1999 TOP WORLD AIRLINES COMPARISONS:
TRAFFIC RPK (B): 1 UAL 201.9; 2 AAL 177.3; 3 DAL 168.6; 4 NWA 119.3; 5 BAB 117.5; 6 CAL 93.4; 7 AFA 83.7; 8 JAL 82.9; 9 DLH 81.4; 10 USA 66.9.
EMPLOYEES (K): 1 UPS 308; 2 FED 150; 3 UAL 96.7; 4 AAL 86.1; 5 DAL 72; 6 DLH 66.2; 7 DHL 60; 8 AFA 55.2; 9 BAB 53.1; 10 NWA 51.8; 11 CAL 44.1; 12 USA 41.6; 13 IBE 29.1; 14 SWA 27.7.
3 737-824'S (606-30576, N35204; 615-30577, N27205; 618-30578, N11206) AND 41ST 757-200 DELIVERIES.
AUGUST 2000: 40,811 EMPLOYEES.
$1.2B, GLOBAL, GATEWAY EXPANSION PROJECT AT NEWARK, IS 4 MONTHS AHEAD OF SCHEDULE, EXPECTING COMPLETION IN 2002, WITH NEW 250K SQ FT CONCOURSE, +12 WIDEBODY GATES, NEW BAGGAGE SYSTEM, AN IMPROVED TERMINAL "A," & NEW INTERNATIONAL ARRIVALS HALL.
IN 3/01, PLANS NEWARK - HONG KONG (777, DAILY), 7,337 NM, LONGEST 777 FLIGHT.
1999 = +$455M (+$383M): 93.37B RPK (+13.75); 73.1% LF; 1.11B FTK (+26.8%); 44.01M PAX (+5.6%); 44,091 EMPLOYEES (+7.2%).
1ST 767-400ER DELIVERY. WILL INITIALLY OPERATE DOMESTICALLY NEWARK - ORLANDO, THEN SWITCH INTERNATIONAL NEWARK - RIO DE JANEIRO. AS MORE -400ER'S DELIVER, THEY WILL BE USED ON NEWARK TO PARIS AND LONDON.
1 727-227 (1133-21045, N17773), SOLD TO SPORT HAWK INTERNATIONAL (SHX). 2 737-800'S (30577; 30578), (GEH) LEASED. 3 737-824'S (627-30579, N36207; 644-30580, N36208; 647-30581, N36201), & 1 767-424ER (799-29446, N66051) DELIVERIES. EXERCISED 5 OPTIONS 737-800'S FOR TOTAL 15 INTO FIRM ORDERS IN 2000. BY END OF 2000, WILL HAVE 371 AIRPLANES (305 IN 1995). IN LAST 5 YEARS, 148 AVERAGE SEATS/AIRPLANE (137); AVERAGE FLEET AGE 6.8 YEARS (13.6 YEARS). BY END OF 2002, TO 415 AIRPLANES: 42 WIDEBODIES (767-200/-400, 777) & 375 NARROWBODIES (737, 757, & MD-80'S), WITH 70% FLEET COMMON RATED 737'S & 15 737-900'S.
SEPTEMBER 2000: IN 3/01, NONSTOP NEWARK - HONG KONG (777-200ER), AT 7,337 NM & 16 HOURS 30 MINUTES, LONGEST FLIGHT BY ANY AIRLINE.
1999 TOP US AIRLINES FROM INTERNET REVENUES (M):
1 SWA 877; 2 DAL 671; 3 UAL 505; 4 USA 450; 5 AAL 416; 6 CAL 408; 7 NWA 402; 8 AMW 223; 9 ASA 143; 10 TWA 118.
OCTOBER 2000: 1ST 6 MONTHS TOP WORLD AIRLINES TRAFFIC RPK (B):
1 UAL 100.26; 2 AAL 92.41; 3 DAL 89.82; 4 NWA 62.13; 5 CAL 60.38;
6 USA 35.07; 7 SIA 33.79; 8 SWA 32.84; 9 KLM 28.94.
IN 12/00, NEWARK - AGUADILLA. IN 5/01, NEWARK - STANSTED (757). NEWARK - ROCHESTER.
3RD Q = +$135M (+29.8%): BUSINESS FARES 46.2% OF TOTAL (+3.1%); +72.9% FUEL COSTS.
3 727-224'S (1697-22252; 1702-22253; 1740-22448) RETURNED TO LESSOR. 727-232 (959-20644) RETURNED TO LESSOR. 2 737-824'S (686-30610, N37255; 692-30611, N37256;) & 1 767-424ER (809-29448, N759053) DELIVERIES. +5 ORDERS 737-800'S, AND CONVERTED 2 ORDERS 767-400ER'S TO 777'S. POSSIBLE 35 ORDERS 757-200ERX'S, 201 PAX, 4,600 NM RANGE. 4 737-824'S (650-30582, N73251; 656-30583, N73252; 660-30584, N73253; 667-30779, N73254) & 1 767-424ER (805-29447, N67052) DELIVERIES. $1.2B, 15 ORDERS (11/01) 757-300'S (RB211-535E4), 24F, 186Y PAX. 2 MD-82'S (49222; 1270-49391) RETURND TO (CIS). 1 DC-10-30 (46922) LEASED TO WORLD AIRWAYS (WLD).
NOVEMBER 2000: NORTHWEST AIRLINES (NWA) SELLS TO CONTINENTAL AIRLINES (CAL), 6.7M (CAL) CLASS "A" STOCK SHARES FOR $450M, & (NWA) RETAINS 7% VOTING INTEREST IN (CAL) AND <5% EQUITY STAKE.
NEWARK - BALTIMORE. CLEVELAND - LOS ANGELES (LAX) - ORANGE COUNTY.
1ST 767-200ER DELIVERY. 2 737-824'S (706-30612, N38257; 708-30802, N77258) AND 2 767-224ER'S (811-30430, N76151; 815-30431, N73152) DELIVERIES.
DECEMBER 2000: TO IXTAPA.
TOP WORLD AIRLINES 1ST 9 MONTHS TRAFFIC RPK (B):
1 UAL 154.29; 2 AAL 143.21; 3 DAL 133.04; 4 NWA 97.47; 5 BAB 90.35; 6 CAL 78.55; 7 JAL/AFA/DLH 67.38; 8 USA 56.07; 9 SIA 52.77; 10 SWA 50.48.
1 767-224 (30432, N76153) & 1 767-424 (816-29449, N76054) DELIVERIES.
JANUARY 2000: 4TH Q = +$43.76M. 2000 = +$342M (+$455M): 64.16B RPM (+6.9%), +5.1% ASM, 74.5% LF (+1.2).
IN 2/01, NEWARK - MELBOURNE, FLORIDA (737-500). (DOT) OK'S NEWARK - BUENOS AIRES, STARTING 12/01.
CONTINENTAL AIRLINES (CAL)'S HUB AT HOUSTON'S GEORGE BUSH AIRPORT AIDS "LATINIZATION," BY PROMOTING THE LARGEST PRESENCE IN MEXICO, THAN ANY OTHER USA CARRIER, WITH 53 FLIGHTS SOUTH OF THE BORDER, USING LEON AND AGUASCALIENTES, AS LINKS RATHER THAN MEXICO CITY. ALL SIGNS AT HOUSTON ARE BILINGUAL AND (CAL) USES SPANISH-SPEAKING PERSONNEL.
1 767-224ER (823-30433, N69154) DELIVERY. DC-10-30 (266-46590, N68065), SOLD TO BOEING CAPITAL (TBC), TO BE CONVERTED TO FREIGHTER FOR DAIRO AIR SERVICES (DAR).
2000 TOP WORLD AIRLINES TRAFFIC RPM (B):
1 UAL 126.88; 2 AAL 116.51; 3 DAL 107.78; 4 NWA 79.10; 5 BAB 73.87; 6 CAL 62.31; 7 DLH 58.52; 8 AFA 57.04; 9 JAL 55.30; 10 USA 49.83.
FEBRUARY 2001: CONTINENTAL AIRLINES (CAL) IS AWARDED "AIRLINE OF YEAR" BY "AIR TRANSPORT WORLD." IN "OFFICIAL AIRLINE GUIDE (OAG)" AWARDS, (CAL) WAS TOP IN 5 CATEGORIES: "BEST SHORT-HAUL EXECUTIVE, BUSINESS CLASS;" "BEST LONG-HAUL EXECUTIVE/BUSINESS CLASS;" "BEST TRANSATLANTIC AIRLINE;" "BEST AIRLINE BASED IN NORTH AMERICA;" & "BEST FREQUENT FLYER PROGRAM."
1ST EVER, NEWARK - HONG KONG (777) NONSTOP, 7,337 NM, 15.5 HOURS, ON NEW ROUTE OVER THE NORTH POLE, RUSSIA, AND CHINA, ONE OF LONGEST SCHEDULED FLIGHTS EVER FLOWN FROM NEW YORK (LONGEST IS SOUTH AFRICAN AIRWAYS (SAA), NEW YORK KENNEDY (JFK) - JOHANNESBURG AT 7,969 NM). SOUTH AFRICAN AIRWAYS (SAA), ALSO HAS LONGEST IN WORLD, WITH ATLANTA - JOHANNESBURG AT 8,739 NM.
2 767-224ER'S (825-30434, N68155; 827-30435, N68156) & 1 767-424ER (826-29450, N76055), DELIVERIES.
MARCH 2001: IN 12/01, NEWARK TO MONTEGO BAY AND KINGSTON, JAMAICA (737-900).
DISTRIBUTES POOL OF $98M IN PROFIT SHARING TO EMPLOYEES (REPRESENTS 4.1% OF 2000 EARNINGS).
APRIL 2001: 1ST Q = +$9M (-36%) (+$34M); MAINTENANCE COSTS = $218.7M (-1.1%).
IN 6/01, NEWARK TO HALIFAX. NEWARK - VANCOUVER.
1 767-224ER & 1 767-424ER DELIVERIES. DC-10-30 (46940) PARTED OUT.
MAY 2001: NEWARK - LONDON STANSTED, (757, 2 CLASS), ITS 18TH TRANSATLANTIC ROUTE. IN 6/01, TO ANCHORAGE. CLEVELAND - SEATTLE.
GREG BRENNEMAN, PRESIDENT RESIGNS, TO BE REPLACED BY LARRY KELLNER.
1 737-824 (854-30803, N732590, 1 737-924 (820-30118, N30401) & 1 767-224ER (839-30437, N67158) DELIVERIES. 1 MD-83 (49392) RETURNED TO WATCH HILL.
JUNE 2001: CODE SHARE WITH TRANSBRASIL (TBL).
1 737-824 (862-30855, N35260) & 1 767-424ER (842-29451, N66056) DELIVERIES. DC-10-30 (287-46591), STORED AT VICTORVILLE.
JULY 2001: IN 5/02, TO AMSTERDAM (767-400ER, DAILY NONSTOP). IN 9/01, NEWARK TO HOUSTON.
2ND Q = +$42M (-71.8%), DUE TO SLOW ECONOMY AND CONTINUED HIGH FUEL PRICES (+7.3%), 82.6% ON-TIME PERFORMANCE (+5.6%), -40% IN ATC DELAYS; MAINTENANCE COSTS = $212.19M (-12%).
1ST 6 MONTHS US AIRLINES MARKET SHARE (RPM'S M, SHARE %):
1 UAL 61.5 (19.1%); 2 AAL 55.9 (17.4%); 3 DAL 54.2 (15.9%); 4 NWA 38.7 (12.1%); 5 CAL 32.2 (10.0%); 6 USA 24.9 (7.7%); 7 SWA 22.5 (7.0%); 8 TWA 12.1 (3.8%); 9 AMW 10.1 (3.1%); 10 ASA 6.2 (1.9%).
IN 9/01, NEWARK TO ANCHORAGE VIA PORTLAND, OREGON (737-800, DAILY).
3 737-824'S (897-31582, N77261; 901-32402, N33262; 906-31583, N37263), 3 737-924'S (857-30119, N79402; 884-30120, N38403; 893-30121, N32404) DELIVERIES (INCLUDING 4TH 737-900 DELIVERY, ALSO THE 100TH 737 NG AIRPLANE). REMAINING 5 DC-10'S TO BE PHASED OUT BY 5/02.
AUGUST 2001: IN 11/01, TO CODE SHARE WITH AIR EUROPA (ARE) TO MADRID, BARCELONA, AND PALMA DE MALLORCA.
42,468 EMPLOYEES (INCLUDING 4,656 (FC); 8,082 (CA); 3,443 (MT); 59 GENERAL MANAGEMENT; 104 AIRPLANE CONTROL; 13,111 PASSENGER HANDLING; 1,710 CARGO HANDLING; 114 TRAINEES/INSTRUCTORS; 1,668 RECORDKEEPING; 9,521 OTHERS). EMPLOYEE PRODUCTIVITY (ASM/EMPLOYEE) = 1,983,258.
TOP 10 (CAL) AIRPORTS:
1 NEW YORK NEWARK 14,471; 2 HOUSTON (HOU) 9,744; 3 CLEVELAND 4,984; 4 ORLANDO (ORL) 2,099; 5 LOS ANGELES (LAX) 1,965 6 LAS VEGAS 1,767; 7 BOSTON 1,692; 8 FORT LAUDERDALE 1,688; 9 ATLANTA 1,495; 10 SAN FRANCISCO (SFO) 1,474.
TO BATON ROUGE.
3 737-824'S (916-31584, N33264; 928-31585, N76265; 930-32403, N33266) & 1 737-924 (911-30122, N72405) DELIVERIES.
SEPTEMBER 2001: FOLLOWING ISLAMIC, TERRORIST ATTACK ON NEW YORK WORLD TRADE CENTER (WTC) TOWERS AND PENTAGON, RESULTING IN GROUNDING OF ALL AIRPLANES IN USA, CONTINENTAL AIRLINES (CAL) FURLOUGHS -12,000 EMPLOYEES. (CAL) LOST $30M/DAY, WHILE FLEET WAS GROUNDED. WILL CUT MINIMUM 20% ASM'S CAPACITY. PARKS ITS DC-10'S, -31 NARROWBODIES, & -14 (CAL) EXPRESS TURBOPROPS.
1 737-824 (957-31587, N38268), 2 737-924'S (943-30123, N73406; 951-30124, N35407) DELIVERIES.
OCTOBER 2001: 3RD Q = +$3M, INCLUDING $243M FEDERAL GRANT LOAN & $85M SEVERENCE PACKAGE. WITHOUT THESE, WOULD HAVE BEEN -$97M. STILL LOSING -$4-5M/DAY: MAINTENANCE COSTS = $188.43M (-15%).
2 737-824'S (966-31588, N76269; 970-31632, N73270), 1 737-924 (962-30125, N37408), & 1 767-224ER (851-30439, N68160) DELIVERIES. 6 MD-82'S (49127; 49250; 49441; 49465; 49493; 49581), WFU AT MOJAVE. 13 MD-82'S, 1 737-3TO (23574) TEMPORARILY GROUNDED AT MOJAVE. 1 MD-81 (48044) & 4 DC-10-30'S (47864; 47926; 47957; 48292), WFU. 1 DC-10-30 (47867) RETURNED TO (PSS).
TOP WORLD AIRLINES 1ST 9 MONTHS TRAFFIC RPK (B):
1 UAL 149.50; 2 AAL 135.28; 3 DAL 123.87; 4 NWA 94.04; 5 BAB 82.06; 6 CAL 77.83; 7 AFA 66.52; 8 DLH 61.32; 9 USA 59.63; 10 JAL 55.73.
NOVEMBER 2001: 2 737-824'S (982-31589, N35271; 987-31590, N35272) AND 1 737-924 (1004-30126, N37409) DELIVERIES. MD-82 (49229) RETURNED TO (PSS).
DECEMBER 2001: NEWARK - AGUADILLA (4/WEEK). HOUSTON - IXTAPA. NEWARK - COZUMEL. CLEVELAND/HOUSTON - NASSAU.
12 MONTHS, END 6/01, 3RD PARTY OUTSOURCED MAINTENANCE = $385M (65.2%).
1 737-824 (1012-31591, N37273), 1 737-924 (1021-30127, N75410), & 2 757-324'S (990-32810, N75851, 995-32811, N75852), DELIVERIES.
JANUARY 2001: 4TH Q = -$149M, INCLUDING $174M FROM FEDERAL BAILOUT PROGRAM; MAINTENANCE COSTS = $155.03M (-11.7%). 2001 = -$95.14M (+$340.91M): 61.14B RPM (-4.7%); +1.9% ASM; 72.4% LF (-2.1).
IN 3/02, TO LAY OFF -100 FLIGHT CREW (FC) EMPLOYEES FOR TOTAL -539 (FC) SINCE 9/11.
HAS MARKETING AGREEMENT WITH (KLM) AND CODE SHARE, NEWARK - AMSTERDAM, AND ON TO 35 EUROPEAN DESTINATIONS. IN 4/02, CLEVELAND - LONDON GATWICK (LGW) (757-200ER, DAILY).
IN 3/02, WILL LAUNCH US'S, 1ST DOMESTIC, AIR/RAIL CODE SHARE, LINKING AMTRAK RAIL STATIONS AT PHILADELPHIA; WILMINGTON DELAWARE;, STAMFORD; & NEWHAVEN CONNECTICUT; TO AIRLINE SERVICES AT NEWARK (NJ) INTERNATIONAL AIRPORT. PASSENGERS AT AIRPORT RAIL STATION MAY BOARD THE RECENTLY OPENED, AIRTRAIN MONORAIL TO CONNECT TO THE AIRLINE TERMINALS.
2001 TOP 50 WORLD AIRLINES - TRAFFIC B RPM
1 UAL 116.60; 2 AAL 106.15; 3 DAL 97.60; 4 NWA 73.11; 5 BAB 64.24; 6 AFA 59.54; 7 CAL 58.76; 8 DLH 56.76; 9 JAL 50.77; 10 USA 45.93; 11 SWA 44.50; 12 SIA 42.76; 13 QAN 42.14; 14 ACN 41.49; 15 KLM 35.76; 16 ANA 33.16; 17 CAT 27.81; 18 TII 27.43; 19 IBE 25.64; 20 KAL 23.73; 21 ALI 22.45; 22 MAS 22.29; 23 AMW 19.06; 24 VAA 17.65; 25 VAR 16.02; 26 CHI 16.00; 27 EAD 14.37; 28 SAS 14.26; 29 ANZ 13.54; 30 SAA 12.70; 31 SVA 12.56; 32 BEJ 12.39; 33 ASA 12.23; 34 JAS 10.06; 35 THY 9.35; 36 AMX 8.51; 37 PAL 8.36; 38 GIA 8.15; 39 CMA 7.99; 40 ELA 7.79; 41 GUL 7.65; 42 PIA 7.24; 43 AIN 7.10; 44 TAP 6.43; 45 EGP 5.53; 46 OLY 5.24; 47 AUL 5.06; 48 FIN 4.93; 49 IND 4.52; 50 CQT 4.51.
1 737-924 (1052-30128) & 2 767-424ER'S (859-29452, N66057; 862-29453, N66058) DELIVERIES. 1ST OF 15 757-300 DELIVERIES, 24F, 186Y (CARGO VOLUME IS 40%> 757-200).
FEBRUARY 2002: TO PALM SPRINGS. CLEVELAND - SARASOTA. IN 4/02, SAN ANTONIO - LOS ANGELES (LAX). IN 6/02, TO MONTREAL (737, SEASONAL). TO GULFPORT - BILOXI, MS (737-500).
HAS ELECTRONIC, DOCUMENT MANAGEMENT SYSTEM, WHICH HAS ALL TECHNICAL DOCUMENTS IN ELECTRONIC FORM, AND ACCESSIBLE FROM THE INTERNET. IT ALLOWS FOR REVISION CONTROL, AND PROVIDES TOOLS FOR AUTHORING. THE SYSTEM (NOW 2 YEARS OLD) HAS BEEN SUCCESSFUL. ANOTHER MAINFRAME SYSTEM, IS THE TECHNICAL OPERATIONS COMPUTER SYSTEM, WHICH MANAGES AND TRACKS, SCHEDULED AND UNSCHEDULED MAINTENANCE.
3 737-800'S, 2 757-300'S, & 2 767-400ER'S DELIVERIES. 74TH 737-824 DELIVERY. 3RD 757-324 DELIVERY. 9TH 767-424ER DELIVERY, 35C, 200Y. (CAL)'S DEAL WITH BOEING CUTS AIRPLANE DELIVERIES IN 2002 BY -60%. NOW WILL TAKE 20 OF PREVIOUSLY SCHEDULED 48 IN 2002: 4 737-800'S, 2 737-900'S, 2 757-300'S, 10 767-400ER'S, & 2 777-200ER'S.
MARCH 2002: DECIDES TO NOT RETURN ANY DC-10-30'S BACK TO SERVICE, AND HAS 5 FOR SALE, AND WILL RETURN REST TO LESSORS.
APRIL 2002: IN 12/02, NEWARK - MONTEGO BAY (737-800, NONSTOP) WITH ONTINUING SERVICE TO KINGSTON. IN 5/02, NEWARK - SAN SALVADOR (EL SALVADOR) (737-700, 4/WEEK).
1ST Q = -$166M: -10.1% RPM, -11.7% ASM, 74% LF. 1ST Q = 21.66B RPK (-7.47%); -12.07% ASK; 73.8% LF (+3.7); 9.76M PAX (-9.64%); 245.21M FTK (-16.52%).
(TELEPHONE: +1 (713) 324 5000). (FAX: +1 (713) 324 2087).
MAIN BASE: HOUSTON BUSH INTERNATIONAL (IAH).
HUBS: NEWARK (LIBERTY INTERNATIONAL) (EWR); & CLEVELAND (HOPKINS INTERNATIONAL) (CLE), & GUAM INTERNATIONAL (GUM).
NEWARK - MYRTLE BEACH. CLEVELAND - LONDON GATWICK (LGW).
MAY 2002: HOUSTON - AMSTERDAM (DAILY NONSTOP).
OPENS $24M 62,500 SQ FT CARGO HANDLING FACILITY AT (JFK).
2 767-424ER'S (876-29460, N76065; 878-29461, N76066) DELIVERIES. DC-10-30 (73-46576) SOLD TO MEMPHIS GROUP.
June 2002: To Montreal.
2001 Top World Airlines by Traffic (RPK B):
1 UAL 187.67; 2 AAL 170.88; 3 DAL 163.66; 4 NWA 117.66; 5 BAB 106.27; 6 CAL 98.37; 7 AFA 94.42; 8 DLH 86.70; 9 JAL 84.27; 10 USA 73.93; 11 SWA 71.59; 12 SIA 69.15; 13 QAN 67.89; 14 ACN 67.03; 15 KLM 57.85; 16 ANA 56.90; 17 CAT 44.79; 18 TII 44.04; 19 IBE 41.30; 20 KAL 38.45; 21 MAS 38.31; 22 ALI 36.52; 23 SWS 32.98; 24 TWA 31.85; 25 AMW 30.69.
CONTINENTAL AIRLINES (CAL) 2001: -$95M (-$342M): 98.37B RPK (-4.7%); 72.3% LF (-2.1); 44.20M PAX (-5.8%); 1.10B FTK (-15.3%); 48,000 EMPLOYEES (-10.1%).
July 2002: In 11/02, Newark - San Diego.
2nd Q = -$139M. 6 months = 45.76B RPK (-8.05%); -10.68% ASK; 74.7% LF (+2.1); 20.23M PAX (-10.71%); 515.66M FTK (-8.99%).
August 2002: Proposed broad marketing alliance & 10-year pact between Delta Airlines (DAL) and codeshare partners Northwest Airlines (NWA) & Continental Airlines (CAL) brings together USA airlines ranked No 3, 4, & 5 respectively, in a deal countering a similar pact between United Airlines (UAL) and US Airways (USA). If the deal gets the OK of all 3 airlines' pilots and the (DOT), these airlines will codeshare on each other's route networks, offer reciprocal frequent flyer programs and coordinate airport and interline activities. There is the likely possibility that (CAL), & (NWA), could join the SkyTeam alliance, presently anchored by (DAL), Air France (AFA) and Korean Air (KAL), a step, that could lead to (KLM) joining as well. (KLM) already operates a transatlantic, joint venture with (NWA), and codeshares with (CAL).
(CAL) has joined 6 other major airlines, that pay a 3rd party, to tap into airport surveillance radar data, to help pilots decide if they have enough fuel to wait out a delay. (CAL) Signed on with Megadata Corp, to use the Passur software suite, which is designed to help prevent, among other ills, unnecessary and costly diversions of inbound airplanes. Passur gives airline dispatchers, the same information, that the air traffic controllers see in the terminal environment. This allows them to gauge air traffic control delays, and provide pilots in holding apatterns, with accurate assessments of when they'll be next in line to land. United Airlines (UAL) prevents up to 3 diversions/week, saving up to $29,000 per event, for a narrowbody jet, and as much as $180,000 per event for a widebody.
Will ground (WFU) +11 MD-80'S by end of 2003, reducing capacity by -4%. 2002 had already been reduced by -6.5% capacity. 737-524 (26319) returned to (ILF).
September 2002: In 12/02, to Jackson Hole, Vail (Eagle), Steamboat Springs (Hayden) and Montrose. Also, Newark - Hayden (daily).
October 2002: 3rd Q = -$37M (+$3M) (Gordon Bethune, Chairman & CEO, said "Winning is defined as outperforming your competition, and we clearly have."
1st 6 months Top World Airlines Traffic B RPK:
1 AAL 95.18; 2 UAL 84.56; 3 DAL 74.53; 4 NWA 56.50; 5 BAB 49.30; 6 AFA 48.21; 7 CAL 47.49; 8 DLH 42.06; 9 JAL 39.44; 10 SWA 36.03; 11 SIA 36.00; 12 ACN 33.69; 13 USA 33.06; 14 KLM 27.54; 15 CAT 23.07; 16 IBE 19.53; 17 KAL 16.47; 18 CHI 15.70; 19 AMW 15.20; 20 ALI 14.21; 21 EAD 13.45; 22 VAR 12.68; 23 GUN 12.49; 24 SAS 12.01; 25 BEJ 10.32.
Will attempt to avoid layoffs and furloughs through a hiring freeze, retirements, voluntary leaves and attrition.
In 12/02, Newark - Belize - San Pedro Sula (Sats); Newark - Guatemala City (Sats), & Newark - Caracas (daily).
6 737-3Q8's (26310; 26311; 26312; 26313; 26314; 26321), returned to (ILF), leased to "buzz." 737-3TO (1328-23574, N14336), removed from storage. 737-524 (25319) returned to (ILF). 3 MD-82's (48066; 49120; 49125) returned to lessor. MD-82 (49486) WFU at Mojave.
November 2002: In 12/02, to Veracruz. In 2/03, Newark - Jackson Hole. Weekly charter flights for Sandals Resorts, from Newark, New York Kennedy (JFK), and Philadelphia, to Providenciales and St Lucia. In 5/03, to Grand Cayman (4/week).
1st 9 months Top World Airlines Traffic RPK B:
1 AAL 148.39; 2 UAL 132.89; 3 DAL 123.75; 4 NWA 88.26; 5 BAB 76.23; 6 AFA 74.00; 7 CAL 73.12; 8 DLH 67.07; 9 SIA 55.60; 10 SWA 55.20; 11 JAL 54.81; 12 ACN 54.41; 13 USA 50.38; 14 KLM 48.87; 15 QAN 43.76; 16 CAT 36.14; 17 IBE 30.78; 18 KAL 28.06; 19 AMW 23.82; 20 TII 19.76; 21 ALI 19.68; 22 SAS 18.82; 23 CHI 18.23; 24 VAR 17.47; 25 GUN 17.21.
MD-82 (49249) WFU at Mojave. DC-10-30 (201-47957) sold to Omni Air (OAE).
December 2002: Newark to Hayden (Steamboat Springs). Houston to Jackson Hole. Houston to Colorado Springs. Cleveland to West Palm Beach. In 5/03, to Grand Cayman, Cayman Islands (737-700, 12F, 112Y, 4/week).
727-232 (20644) sold to AeroDirect. 6 737-3Q8's (2674-26309; 26310; 26311; 26312; 26313; 26314; 764-26321) returned to (ILF), leased to (BZZ). MD-82 (1352-49490, N72830) removed from storage. DC-10-30 (82-46553), sold to Universal Asset Management.
January 2003: 4th Q = -$109M (+27%) (-$149M, was -$220M, excluding special items). Ended the Q with $1.3B in cash. Burn rate was around $1.5M/day. 2002 = -$451M, was -$290M, excluding special items (-$95M, was -$266M, excluding special itemms): 59.35B RPM (-2.9%); -5.2% ASM; 74.1% LF (+1.7).
Houston - Veracruz.
In 2/03, code share with French rail operator SNCF, Paris (CDG) to 13 French cities.
In 5/03, Houston - Edmonton (737-500, daily nonstop). In 6/03, Houston - Jackson Hole.
737-3Q8 (2681-26311) returned to (ILF). MD-82 (1317-49486, N69826), removed from storage.
February 2003: Cleveland - Nassau (Sats). In 3/03, Houston - Nassau (Sats). In 6/03, Newark - Port of Spain, Houston - Aruba (3/week).
Began interline e-ticketing with US Airways (USA), enabling customers to use a single e-ticket when their itineraries include travel on both carriers.
737-3Q8 (2674-26309, N73380) returned to (ILF).
March 2003: As war with Iraq starts, Continental Airlines (CAL) eliminates -1,200 positions by end of 2003, including -125 pilots (FC), -500 reservation agents, -350 airport agents, & -225 other employees. Also cuts 5 senior management postions, including George Mason, Senior VP Technical Operations. These reductions are on top of -4,300 staff currently on furlough or company-offered leaves of absence and attrition.
Jim Compton, Senior VP Marketing. Glen Hauenstein, Senior VP Network. Deborah McCoy, Senior VP Flight Operations, Safety, & Food Service.
Newark - Myrtle Beach. In 5/03, Houston - Grand Cayman. Newark - Vancouver. Houston - Anchorage. In 6/03, Houston (IAH) - Hartford/Springfield, Connecticut (BDL) (737-500). Newark - Salt Lake City (737-700).
Intends to eliminate paper tickets worldwide by 2004.
MD-82 (1323-49444) returned to Pegasus (PSS).
April 2003: Will trim additional jobs on top of -1,200 announced last month following an approx -2% RPM capacity cuts.
In 6/03, Newark - Salt Lake City.
1st Q = -$221M (-$166M): -$140M travel avoidance due to Iraq war; +6.3% labor costs; +16.7% maintenance costs; +63.7% fuel costs; 69.6% LF (-4.4).
World Top 20 Airlines 1st Q Traffic (B) (RPK):
1 (AAL) 44.67; 2 (UAL) 39.66; 3 (DAL) 36.82; 4 (NWA) 26.65; 5 (BAB) 23.31; 6 (AFA) 23.27; 7 (CAL) 21.35; 8 (DLH) 20.62; 9 (SWA) 17.53; 10 (KLM) 14.04; 11 (USA) 13.28; 12 (SIA) 12.20*; 13 (ACN) 9.65*; 14 (CAT) 8.51*; 15 (AMW) 7.84; 16 (QAN)* 7.18; 17 (KAL)* 6.72; 18 (IBE) 6.17*; 19 (EAD) 5.69*; 20 (AAT) 5.42. * 2 mths only.
May 2003: In 9/03, code share with TAP Portugal (TAP), from Lisbon and 18 cities in Europe and Africa, to Newark and 51 cities in USA & Canada.
June 2003: Houston - Morelia (daily nonstop). Houston (IAH) - Maui, Hawaii (767-400, daily).
2002 = -$451M (-$95M): 92.19B RPK (-2.5%); -4.9% ASK; 74.2% LF (+1.8); 40M PAX (-6.5%); 1.38B FTK (-1.8%); 48,000 EMPLOYEES (+9.1%).
2002 TOP 25 WORLD AIRLINES - TRAFFIC - B - RPK
1 (AAL) 195.81; 2 (UAL) 176.15; 3 (DAL) 152.66; 4 (NWA) 115.91; 5 (BAB) 99.71; 6 (AFA) 96.80; 7 (CAL) 95.51; 8 (DLH) Group 88.57; 9 (JAL) 83.54; 10 (QAN) 75.23; 11 (SWA) 73.05; 12 (SIA) 71.12; 13 (ACN) 69.42; 14 (USA) 69.42; 15 (KLM) 58.89; 16 (ANA) 52.97; 17 (CAT) 49.04; 18 (TII) 48.51; 19 (KAL) 41.80; 20 (IBE) 40.47; 21 (MAS) 36.90; 22 (AMW) 31.98; 23 (SAS) Group 30.91; 24 (EAD) 30.17; 25 (ALI) 29.84.
MD-82 (1207-49371, N33817), returned to lessor.
July 2003: Defers 36 firm 737 orders previously scheduled for delivery in 2005-2007 and is negotiating with Boeing re-11 757-300's on order.
Selects the Amadeus Electronic Ticket Server Interline Gateway for interline e-ticketing with other carriers (Hawaiian Airlines (HWI) is the first).
2nd Q = +$79M (-$139M), including +$176M in pre-tax security rebates.
August 2003: In 9/03, code share with Emirates (EAD), London Gatwick (LGW) - Dubai and Newark - Houston. In 10/03, Houston - Greensboro.
September 2003: Houston - Colorado Springs. In 10/03, Newark - San Jose. In 11/03, Newark/Houston - St Louis. In 12/03, Newark - Bridgetown, Barbados (737-700, 124 PAX, 4/week). Houston George Bush Intercontinental - Ciudad del Carmen (ERJ-145, daily). Cleveland - West Palm Beach. In 6/04, Newark - Edinburgh (757, 172 PAX 2 class, daily nonstop). Code share with (KLM) between Amsterdam and Almaty, Budapest, Casablanca, Dar Es Salaam, Doula, Istanbul, Kiliminjaro, Malabo, Prague, and Trondheim, with increase in (KLM) US destinations to 68.
Completed installation of Verizon Airfone JetConnect, including 2-way e-mail, instant messaging & text messaging on its fleet of 737's, 757's & MD-80's. Passengers can pay $15.98/flight for Verizon Airfone JetConnect with e-mail, including unlimited use of e-mail as well as text & instant messaging, or $5.99/flight for JetConnect, including all services except e-mail.
MD-82 (1206-49370) returned to lessor. DC-10-30 (221-46922, N14075) returned from World (WLD).
October 2003: 3rd Q = +$133M (-$37M): 16.46B RPM (+3.2%); -2.3% ASM; 80% LF (+4.3). 1st 9 months = -$9M (-$342M): 44.38B RPM (-2.3%); -2.9% ASM; 75.5% LF (+.5).
Cleveland - Miami (Suns). Cleveland - San Juan (weekends). In 12/03, Newark - Barbados. In 1/04, Houston George Bush Intercontinental Airport to Liberia, Costa Rica (737-700, 124 PAX, 3/week). In 3/04, Newark - Geneva. In 5/04, Newark - Norfolk.
With Boeing news that the 757 production line has ended, Continental Airlines (CAL) will take the 5 already built, but will switch the remaining 6 orders to 737-800's.
737-824 (1390-31596, N73278) delivery.
November 2003: Newark - Belize - San Pedro Sula - Newark (Sats). Houston - Ixtapa (Sats). Code share with Delta (DAL), Atlanta - Santiago. In 12/03, Newark - Tucson (Sats). Houston - Vail (Eagle). Houston - Guadalajara. Houston - Colorado Springs. Newark - Tucson (Sats). In 2/04, code share with Maersk (MRS), between both Copenhagen & Billund to London Gatwick, and between Billund and Amsterdam.
December 2003: Newark - Los Cabos (weekends). Newark - Cozumel. Signed 10-year alliance agreement with Aeromexico (AMX) for flights between the USA & Mexico starting 1st Q 2004.
Records a $13M charge related to the permanent grounding of 5 MD-80's and expects to end the 4th Q with roughly $1.5B in cash. Will remove all MD-80's from service by 01/05.
MD-82 (49634) WFU at Goodyear.
January 2003: Gordon Bethune, Chairman & CEO, 62, will retire at the end of 2004 and be succeeded by Larry Kellner, 44.
4th Q = +$47M (-$109M): +6.3% RPM; 0.00% ASM; 75.5% LF (+4.4). 2003 = +$38M (-$451M): 92.66B RPK (+.5%); 75.7% LF; 38.9M PAX (-2.8%); 1.12B FTK (+1%).
737-3TO (23368) returned to lessor. 737-824 (1440-31634, N34282) & 2 757-324's (1038-327814, N57855; 1039-32815, N57856), deliveries.
February 2004: Delta Airlines (DAL) will begin code sharing on Continental Airlines (CAL)'s flights from Newark to the Caribbean, Halifax, and Quebec City.
Newark - Myrtle Beach. In 3/04, Houston - Nassau (Sats). In 5/04, Newark - Sacramento. Newark - Albuquerque (Sats). In 6/04, Newark - Oslo (757, daily nonstops). In 9/04, Newark - Houston (Hobby) (HOU).
3 737-3TO's (23357; 23359; & 23365), returned to lessors. 737-824 (1456-31606, N73283) & 757-324 (1040-32816, N57857) deliveries.
March 2004: Cleveland - Nassau (Sats). In 5/04, Newark - Pittsburgh. In 6/04, Houston to Quito and Guayaquil (737-700, 124Y, daily nonstops). Houston to Montego Bay and Port of Spain (737, 124 PAX, 4/week). Newark to Punta Cana (Dominican Republic) (737-700, daily). St John's to Newark (daily nonstop). Newark - Portland (Maine). Cleveland - Hartford. Newark - Halifax.
737-824 (1475-31635, N33284) & 757-324 (1042-32817, N73858) deliveries. MD-82 (1360-49491) returned to Potomac Leasing. MD-83 (1340-49525) returned to Ansett Worldwide (AWW). DC-10-30 (47981) sold to Omni Air International (OAE).
April 2004: A partnership between Continental Airlines (CAL) and COPA (COP) has emerged to contest Brazil's Grupo Sinergy for control of a reorganized Avianca (AVI).
Aviation Partners Boeing (APB)) has an agreement in principle with Continental Airlines (CAL) to put blended winglets on 11 737-800'S & 11 757-200's. Includes options for additional winglets that could potentially be installed on (CAL)'s entire fleet of over 200 737-700's, 737-800's & 757-200's. The order would make (CAL) the launch customer for the 757 Blended Winglet program. (CAL) will play a significant role during the certification flight testing which is scheduled to conclude with winglets installed and in service by 6/05.
Houston-Hartford. In 5/04, Cleveland - Hartford. Cleveland - London Gatwick (LGW).
1st Q = -$124M (+44%) (-$221M): +10.8% RPM; +6.3%; 72.6% LF (+3); 9.43M PAX (+4.26%); 309.88M FTK (+8.39%); loss due to the "outrageously high" cost of fuel.
Jim Summerford, VP International will relocate from the Houston HQ to the UK to oversee the continuing expansion of transatlantic services.
5 orders 737-800's, Pegasus (PSS) leased. Last Boeing 757-324 (1043-32818, N56859) delivery. 3 MD-82's (49265; 49488; 49490), WFU at Goodyear (BFG). MD-82 (49478) returned to lessor.
May 2004: 2 737-824's (1506-31600, N33286; 1509-31636, N37287) deliveries. 2 MD-82's (49487; 49493) WFU at (BFG). 2 MD-82's (49486; 49490), returned to lessor.
June 2004: Houston - Fayetteville (XNA); - Colorado Springs. Cleveland - Salt Lake City. Newark to Edinburgh, Oslo, Little Rock, and Punta Cana (daily). Houston to Port of Spain (4/week); to Roatan (weekly); to Montego Bay (4/week); to Oaxaca (daily); & to Toluca (daily). Code share with Maersk (MRS), Copenhagen to Billund, & London Gatwick, + Billund to Amsterdam. In 8/04, Newark - Washington Dulles.
Continental Airlines (CAL) at the (IATA) 60th Annual General Meeting (AGM) in Singapore applauded the carrier resolution to have (IATA) lead the effort to ensure 100% e-ticketing by end of 2007. The move will "drive paper tickets out of the system, reduce airline costs and at the same time improve customer service." Other projects are common-use self-service check-in kiosks; bar codes; and radio frequency baggage tag identification, commonly called (RFID). (IATA) is also leading the Simplifying passenger Travel campaign, which focuses on working with govts to move towards biometric identification technology for security purposes. (CAL) has terminated interline agreements with 10 additional carriers who could not support e-ticket interlining. Earlier (CAL) terminated interline agreements with 45 other carriers.
USA and China have signed a landmark air services agreement that will more than double the number of US airlines that may serve China and will permit a nearly 5-fold increase in weekly flights between the 2 countries over the next 6 years.
The agreement allows for +5 airlines from each country, the US may name +1 additional all-cargo carrier, while China may name either a passengeror cargo carrier, to start service later in 2004. The other 4 new-entrant airlines may be either passenger or cargo carriers, with 1 new carrier entering the market in each of the years 2005, 2006, 2008, & 2010. United Airlines (UAL), Northwest Airlines (NWA), FedEx (FED), & United Parcel Service (UPS) currently serve China.
The agreement allows +195 weekly flights for each side, +111 by all-cargo carriers, & +84 by passenger airlines, resulting in a total of +249 weekly flights at the end of a 6-year phase-in period. A total of +14 of these flights will be available for new passenger services later this year.
Each country's carriers are now allowed to serve any city in the other country. Currently, Chinese carriers are limited to 12 US cities, and US passenger carriers may fly to only 5 Chinese cities. The agreement allows unlimited code-sharing between US and Chinese carriers, thus expanding the current agreement which only allows code-sharing only to a limited number of cities.
The agreement also provides that when carriers establish cargo hubs in the other country, they will be afforded a high degree of operating flexibility, and expands charter opportunities beyond those provided by the existing agreement.
Trade between the countries has grown dramatically fromn $4.8B in 1980 to >$170B in 2003. The USA is China's largest export destination, and China is the USA's fastest-growing market.
SkyTeam: Aeroflot (ARO) (applicant); Aeromexico (AMX); Air France (AFA)/(KLM); Alitalia (ALI); (CSA) Czech Airlines; Continental Airlines (CAL) (agreed to join); Korean Air (KAL); & Northwest Airlines (NWA) (agreed to join).
737-824 (33451, N76288) delivery. 2 MD-82's (49492; 49494) WFU at Goodyear.
July 2004: Last 6 months = -$141M (-$142M): 31.53B RPM (+12.9%); +9.4% ASM; 75.4% LF (+2.3). 2nd Q = -$17M (+$79M), due to the combination of low fares, high fuel costs & a charge for retiring its leasewd MD-80 jets (-$19M).
Agreements with Alaska Airlines (ASA), Aloha (ALO), Delta Airlines (DAL), Hawaiian Airlines (HWI), & United Airlines (UAL) to offer interline electronic ticketing, which allows passengers to use one e-ticket when traveling on itineraries that including (CAL) and one of the cooperating airlines. It eliminates the need for the passenger to obtain a paper ticket to transfer from one airline to another, an important convenience in the event of irregular operations.
Resumes its code share with Copa (COP), Panama City to Guatemala City, Kingston, Lima, Los Angeles, Managua, Miami, Orlando, San Jose (Costa Rica), San Juan, Santiago, and Santo Domingo. In 9/04, Tucson - Newark (737, 104 PAX, daily nonstop).
Selected Rockwell Collins to provide avionics maintenance & repair, plus technical support for its entire fleet (330 airplanes). Under the 5-year agreement, Collins Avionics Services will furnish avionics repairs and guarantee turnaround times for all Rockwell Collins-manufactured units that are owned and operated by (CAL).
2 737-824's (1540-33452, N78285; 1542-31607, N33289), deliveries.
August 2004: Signs up as the first airline to carry the new inflight channel by Film Movement & IKA Media dedicated exclusively to independent films.
Currently serves 63 destinations in 24 Latin American countries and is looking to serve not just vacationers but also business travelers heading to the region.
In 9/04, Newark - Tucson. In 10/04, Cleveland - Philadelphia.
$15M networking contract to AT&T for tollfree services & call center solutions to connect the airline with customers making reservations, changing seat assignments, and checking flight arrivals & departures.
Jeffrey Smisek, currently Executive VP, will become President when Larry Kellner assumes the role of Chairman and CEO at the end of 2004.
Will recall at least 240 of its 436 pilots (FC) on furlough by middle of spring 2005 - - has already recalled 197 pilots (FC) since 1/04.
MD-82 (48581) WFU at Goodyear.
September 2004: Will trim approximately -425 positions, mostly management and clerical.
Northwest Airlines (NWA), (KLM), & Continental Airlines (CAL) become the newest members of the SkyTeam alliance to join Aeromexico (AMX), Air France (AFA), Alitalia (ALI), (CSA) Czech Airlines, Delta (DAL), & Korean Air (KAL).
Houston - Colorado Springs. Applies to (DOT) for service Newark - Beijing in spring 2005, and Newark - Shanghai in spring 2006.
All 4 USA airlines that fly 777's over the North Pacific ocean: American Airlines (AAL), Continental Airlines (CAL), Delta Airlines (DAL), & United Airlines (UAL), plus All Nippon Airways (ANA), Singapore Airlines (SIA), & Korean Air (KAL) are flying 207-minutes (ETOPS). Boeing twin-engine airplanes have dominated flights over the North Atlantic ocean and are now expected to dominate the Pacific. With the current trend of 390 Pacific (ETOPS) flights/day and rising, Pacific (ETOPS) flights will soon outnumber those over the Atlantic ocean.
737-824 (1567-31601, N37290), delivery. MD-81 (1018-48073) & MD-82 (1369-49580) WFU at Goodyear.
October 2004: 9 months = -$157M (-$9M): 49.47B RPM (+11.5%); +8.5% ASM; 77.5% LF (+2). 3rd Q = -$16M, including $22M charge due to retirement of MD-80's mitigated by a $15M mark-to-market gain related to sale of its Orbitz holdings (+$133M).
Cleveland - West Palm Beach. In 12/04, Los Angeles to Aguascalientes, Leon - Guanajuato & Morelia. Newark - Reno (Sats). In 5/05, Newark to Belfast (757, 172 PAX, 2 class, daily nonstop); - Bristol, UK. In 6/05, Newark to Hamburg (757, 172 PAX, daily nonstop). Newark to Stockholm. In 7/05, Newark - Berlin.
Michael Bonds, Senior VP Human Resources replaces Michael Campbell who will retire at the end of 2004.
November 2004: Houston - Guayaquil, Ixtapa (Sats). In 12/04, Houston - Vail (Eagle), Gunnison, Montrose, Steamboat Springs (Hayden). Newark - Vail (Eagle), (daily until 1/05, then (Sats) only). Newark - Steamboat Springs (Hayden), Montrose (Sats). Newark - Cozumel (Sats). In 2/05, Houston - Nassau (Sats). In 3/05, Cleveland - Nassau (Sats).
737-3TO (1144-23359, N14308) removed from storage. 737-824 (1611-33454, N73291), delivery.
December 2004: Houston - Colorado Springs, Guadalajara. Receives approval to launch nonstop flights between New York and Lagos. Newark - Acapulco (Sats).
$1.2B, 10 orders 7E7-8, 200 PAX, 2 class, 8,500 nm range. Will accelerate into 2006 the delivery of 6 737-800's previously scheduled for 2008. 8 orders (7/05) 757-33N's, ex-ATA (AAT), Boeing (TBC) leased.
January 2005: 4th Q = -$206M (+$47M), citing the impact of continued yield erosion, high fuel costs and the growing presence of low-cost carriers: +10.1% RPM; 77.9% LF (+2.4). 2004 = -$363M (+$38M).
737-824 (33455, N33292) delivery. Retired its last MD-80.
February 2005: Code share with Air France (AFA), whereby (CAL) will place its code on (AFA) flights from Paris (CDG) to 12 destinations in Europe & the Middle East, while (AFA) will codeshare on flights from Newark & Houston to 21 destinations in the USA.
April 2005: Recalled last of the 637 pilots (FC) furloughed after 9/11.
1st Q = -$184M (-$124M): +11.4% RPM; +4% ASM; 76.8% LF (+5.1).
In 7/05, Houston George Bush International to Cali (737-700, daily). In 11/05, Houston to Buenos Aires (767-200, 2 class, daily).
May 2005: Continental Airlines (CAL) is one of the largest airlines in the world, with more than 3,000 daily departures throughout the Americas, Europe, & Asia, serving 151 domestic and 120 international destinations from its major hubs in Cleveland, Guam, Houston, and New York (Newark). An additional 400 points are served via SkyTeam alliance airlines.
37,680 employees (including 4,500 Flight Crew (FC)).
(IATA) Code: CO - 005. (ICAO) Code: COA - CONTINENTAL.
Parent organization/shareholders: Publicly held (100%).
Owns: Continental Micronesia (MCR) (100%); Copa Airlines (COP) (49%); ExpressJet (30.9%); & Gulfstream International Airlines (28%).
Alliances: SkyTeam; Air Europa (ARE); Alaska Airlines (ASA); American Eagle Airlines; Atlantic Southeast Airlines; Cape Air; CommutAir; Copa Airlines (COP); Emirates (EAD); (EVA) Air; ExpressJet; FlyBe (BEE); Gulfstream International Airlines; Hawaiian Airlines (HWI); (KLM) Cityhopper; Maersk Air (MRS); Mesaa Airlines; Pinnacle Airlines; SkyWest Airlines; & Virgin Atlantic Airways (VAA).
Main Base: George Bush Intercontinental (IAH).
Hus: Cleveland Hopkins International (CLE); Newark Lierty International (EWR); & Guam International (GUM).
Domestic, scheduled destinations: Albuquerque; Anchorage; Atlanta; Austin; Baltimore; Birmingham; Boston; Buffalo; Chicago; Cleveland; Columbus Ohio; Dallas/Fort Worth; Denver; Detroit; El Paso; Fort Lauderdale; Fort Myers; Greensboro/High Point; Gulfport/iloxi; Gunnison; Hartford; Honolulu; Houston; Indianapolis; Jacksonville Florida; Kahului; Kansas City; Las Vegas; Los Angeles; Lubock; Manchester; Manhattan; Mcallen; Memphis; Miami; Minneapolis/St Paul; Montrose; New Orleans; New York; Oakland; Oklahoma City; Omaha; Ontario; Orlando; Palm Springs; Pensacola; Philadelphia; Phoenix; Pittsurgh; Portland; Providence; Raleigh/Durham; Reno; Sacramento; Salt Lake City; San Antonio; San Diego; San Francisco; San Jose; Santa Ana; Sarasota/radenton; Seattle; St Louis; Steamoat Springs; Syracuse; Tampa; Tucson; Tulsa; Vail; Valparaiso; Washington; & West Palm Beach.
International, scheduled detsinations: Acapulco; Aguadilla; Amsterdam; Antigua; Arua; Barbados; Belize City; Bermuda; Birmingham; Bogota; Brussels; Calgary; Cancun; Caracas; Cozumel; Dublin; Edinburgh; Edmonton; Frankfurt; Geneva; Glasgow; Governors Harbour; Grand Cayman Island; Guam; Guatemala City; Guayaquil; Hong Kong; Ixtapa/Zihuatanejo; Kingston; Leon/Guanajuato; Liberia; Lima; Lison; London; Madrid; Managua; Manchester; Manzanillo; Mazatlan; Merida; Mexico City; Milan; Montego Bay; Monterrey; Nagoya; Nassau; Oslo; Panama City; Paris; Port of Spain; Puerto Plata; Purto Vallarta; Punta Cana; Quito; Rio de Janeiro; Roatan; Rome; San Jose; San Jose Cabo; San Juan; San Pedro Sula; San Salvador; Santiago; Santo Doningo; Sao Paulo; Shannon; St Maarten; St Thomas Island; Tegucigalpa; Tel Aviv; Tokyo; Toronto; Vancouver; & Zurich.
Code share with Island Air from Honolulu to Kahului, Kapalua West Maui, Kona, Hilo, Lihue, & Molokai.
Newark to Belfast (nonstop, daily), & Bristol. In 6/05, Newark to Stockholm.
June 2005: Changes its 757-300 seating configuration by doubling the number of its first class seats: 24 (F) & 192 (Y) from 12 (F) & 210 (Y). The first 757-300 will be reconfigured this summer and the rest will be reconfigured by early 2006.
Its 1st 757-200 equipped with Aviation Partners Boeing (APB) blended winglets enters revenue service. The 8 foot 2 inch winglets reduce the amount of drag on the airplane to achieve up to -5% fuel savings, as much as -300,000 gallons per airplane per year, and give approximately +200 nautical miles of additional range. 11 of Continental Airlines (CAL)'s 41 757-224's to be equipped with winglets this year.
Newark - Beijing (777, daily nonstop). Newark - Hamburg (daily nonstop).
Mike Bonds, Senior VP Human Resources & Labor Relations replaced Michael Campbell who retired.
In 12/05, Houston George Bush International Airport to Bonaire in the Netherlands Antilles (737, 2 class, weekly nonstop).
July 2005: Newark to Berlin Tegel (daily nonstops). Houston George Bush Intercontinental Airport - Cali (737-700, 2 class, daily). In 11/05, Newark to Delhi. In 12/05, Newark - Curacao (737-700, 2 class, Sats, nonstop). New York LaGuardia - Aruba (Sats, nonstop). Newark - Liberia (Costa Rica) (737-700, 2 class, Sats, nonstop). Currently operates Houston - Liberia (daily nonstop).
2nd Q = +$100M (-$28M): +48.6% fuel costs (+.9% fuel consumption); +4.2% ASM; +2.3 LF. 1st 6 months = -$86M (-$183M): 38.4B RPM (+9.7%); +4.8% ASM; 78.3% LF (+3.6).
Is doubling size of first class (F) on its 757-300's to 24, with 192Y.
In 2nd half of 2005, will deliver 7 737-800's, & 6 757-300's, plus 2 757-300's in 1/06. $391M, 2 orders (2/07) 777-224ER's.
737-824 (1743-33452, N37293) delivery. 737-824 (33453, N37293), sold to RBS Aviation and leased back. 757-33N (32590, N57868), Boeing (TBC) leased.
August 2005: In 11/05, will begin daily nonstop service between Newark and Ponce. It will serve the route with a 737-800 seating 14 in first class (F) and 141 in coach (Y). During the off season, it will substitute a 737-700 seating 12 in first class and 112 in coach. In 12/05, Houston George Bush Intercontinental Airport - Punta Cana (2/week).
38,255 employees (+1.5%).
US airlines cancelled dozens of flights across the Gulf Coast region as Hurricane Katrina came ashore yesterday. As of midday Monday, Continental (CAL) said it had cancelled 111 flights at airports in Alabama, Florida, Mississippi and Louisiana. A spokesperson for American Airlines (AAL) said (AAL) had cancelled 36 flights. US Airways (USA) cancelled 40 flights over Sunday and Monday, a spokesperson said, while United Airlines (UAL) dropped 63. AirTran (CQT) cancelled 24 flights yesterday to New Orleans, Gulfport/Biloxi and Pensacola and all flights to New Orleans and Gulfport/Biloxi for Tuesday, a total of 18. Delta (DAL) declined to provide a specific number but suspended most or all service to nine cities in Alabama, Louisiana and Mississippi.
2 737-824's (34000, N33294; 34001, N77295) and 1 757-33N (32585, N551TZ), ex-ATA (AAT), deliveries.
September 2005: Continental Airlines (CAL) planned to cease operations at Houston by noon today in the face of what is expected to be the second Category 4 hurricane to hit the USA Gulf Coast in less than a month. (CAL), which maintains its largest hub at George Bush Intercontinental Airport and has limited operations at close-in Houston Hobby, said flight cancellations for the mainline and Continental Express are expected to total 1,089 on Friday and 828 on Saturday.
(CAL) will begin daily nonstop service between Newark and Barcelona May 18 subject to government approval, using a 172-seat 757.
Focus Aviation (FOS), on behalf of Continental Airlines (CAL), arranged the sale of a third MD-82 to Khors Aircompany (KHO) of Ukraine. Like the first two airplanes, this one will be put through a maintenance check by MNG (IST) in Turkey prior to delivery.
737-824 (34002, N77296), delivery.
October 2005: Continental Airlines (CAL) mainline flew 5.52 billion RPMs (traffic) in September, up +9.1% over the year-ago period on a +6.1% increase in ASMs (capacity) to 7.14 billion. Load factor rose +2.1 points to 77.3% LF. Strongest traffic growth occurred on the Pacific, up +17.3% RPM, followed by the transatlantic, up +16% RPM. Latin America traffic declined -1.5% RPM and domestic traffic rose +6.6% RPM. (CAL) said mainline passenger RASM is estimated to have increased 7.5% - 8.5% in September compared to September 2004, much improved over the 4.7% year-over-year gain recorded in August.
Continental Airlines (CAL) will launch a daily service from Newark Liberty International Airport to Copenhagen Airport May 24 with a 172-seat 757-200 airplane in a 16/156 configuration for the 7 hr 55 min flight (eastbound). Frequency of the service will drop to 5X weekly during the winter. (CAL) received approval from the Department of Transportation (DOT) to launch daily nonstop service between Houston and Buenos Aires. (CAL) confirmed it will inaugurate nonstop service from Houston to Buenos Aires on Dec 14th. The flight, to be operated with a Boeing 767-200, will originate and terminate at Newark. (CAL) said that it will launch daily nonstop service between Newark and Cologne May 10 using 757-200s in two-class configuration.
(CAL) overcame soaring fuel prices and back-to-back hurricanes, one of which forced a 36-hour shutdown of its largest hub, to post a profit of +$61 million for the third quarter ended Sept 30.
In the year-ago period, the Houston-based carrier had a loss of -$18 million net of a $22 million charge primarily related to the retirement of three leased MD-80s. "My co-workers did an incredible job to overcome tremendous challenges posed by Hurricanes Katrina and Rita," said Chairman and CEO Larry Kellner. (CAL) estimated that the day-and-a-half closure of its Houston hub during Rita cost it -$36 million.
Passenger revenue during the quarter rose +15.3% to a record $2.768 billion while total revenue grew at a similar rate to $3 billion. Yield per (RPM) climbed 5.5% to 11.7 cents on a +6.3% RPM increase in passenger traffic. With load factor up fractionally, passenger unit revenue rose 5.6% to 9.56 cents.
On the cost side, a -8.1% reduction in labor costs largely owing to pay and benefit cuts that began in April helped to soften the impact of a +65.2% jump in fuel expense. As a result, operating expenses rose 12.1% to $2.89 billion. Operating profit jumped from +$22 million last year (net of +$22 million in special charges) to +$109 million ($3 million in special charges).
Unit cost climbed 3% to 9.93 cents per (ASM) but declined 7.8% to 8.89 cents holding the fuel rate constant, in large part owing to the reductions in pay and benefits. (CAL) said it expects to achieve approximately $300 million of savings in 2005 from the cuts and approximately $418 million of savings on an annualized basis when they are fully implemented.
For the nine months ended Sept 30, (CAL) reported a net loss of -$25 million compared to a deficit of -$201 million in the 2004 period. Revenues rose +12.1% to $8.36 billion and operating expenses climbed +10.2% to $8.31 billion. As a result, operating profit strengthened to +$55 million from a loss of -$75 million a year ago.
(CAL) noted that despite improving revenue trends, it expects to incur "a significant loss" for the fourth quarter and full year.
(CAL) priced a public offering of 18 million shares of Class B common stock at $11.35 per share, which would raise gross proceeds of $204.3 million if all shares are taken up. The offering includes an overallotment option of 2.7 million shares. UBS Investment Bank is acting as the sole underwriter. (CAL) reported a third-quarter profit of +$61 million, surpassing Wall Street's expectations.
Continental Airlines (CAL) completed the sale of 18 million shares of Class B Common Stock at a price of $11.35 per share, raising gross proceeds of $204.3 million. Sole underwriter UBS Investment Bank has a 30-day option to purchase an additional 2.7 million shares to cover overallotments, if any.
(CAL) selected General Electric's (GEnx) engine to power its recently ordered fleet of 10 787s, becoming the first North American customer for the powerplant on the 787. (GE) valued the order at more than $250 million. Deliveries are set to begin in 2009. The other customer for the GEnx on the Dreamliner is First Choice (ATZ) of the UK with six airplanes on order. The (GEnx) still is the exclusive engine being offered on the proposed A350 and (GE) and Airbus have signed agreements to transition to firm orders for 122 aircraft with seven customers.
737-824 (34003, N39297), sold to RBS Aviation and leased back on delivery. 757-33N (32587, N57863), ex-ATA Airlines (AAT), Boeing (TBC) leased.
November 2005: Continental Airlines (CAL) will become the first carrier to inaugurate scheduled nonstop service between the USA and India with the launch of daily flights between its hub at Newark Liberty International Airport and Delhi's Indira Gandhi International. It will use a 283-seat 777-200ER. (CAL) said that it will launch daily nonstop service between Newark and Cologne May 10 using 2-class 757-200s.
Continental Airlines (CAL) inaugurated nonstop service from Newark to Ponce (Puerto Rico). The airline now operates a daily flight using a 737-800. Continental Airlines (CAL) will discontinue its daily service between Houston and Kahului Feb 16, replacing it with Los Angeles - Kahului service. Continental Airlines (CAL) will increase service to Ireland from the 2006 summer schedule. Besides the daily nonstop from Newark to Dublin and Newark to Shannon the airline will start an additional flight on May 3rd operating from Newark to Dublin and on to Shannon using a 757-200. As a result, Dublin will have 2 daily nonstops, Shannon a daily nonstop as well as a daily direct flight.
(CAL) lost approximately -$115 million last month and expects to post a "significant loss" for the fourth quarter and all of 2005, Chairman and CEO Lawrence Kellner said in a recorded message to employees, the Associated Press reported.
The ten largest USA passenger airlines in aggregate lost -$3.24 billion in the third quarter ended Sept 30, a threefold increase over a loss of -$1.04 billion in the third period of 2004. However, current-period results include more than $2.5 billion in bankruptcy-related charges at Northwest (NWA), Delta (DAL) and United (UAL). Revenue for the group, which comprises AirTran (CQT), Alaska Air Group (ASA), AMR Corp (AAL), Continental (CAL), Delta (DAL), JetBlue (JBL), Northwest (NWA), Southwest (SWA), United (UAL) and US Airways (USA), rose +13.6% to $25.32 billion while expenses climbed just +11.4% in spite of the dramatic run-up in fuel prices throughout the quarter. The result was an industry operating profit of +$213.3 million compared to a loss of -$180.8 million in the year-ago period. Excluding fuel, the third-quarter operating costs grew less than +3% compared to last year, while unit costs dropped -2.3% excluding fuel and special charges.
Continental Airlines (CAL) and its flight attendants, represented by the International Association of Machinists (IAM), edged closer to a possible strike early next year after the two sides adjourned mediated talks in Washington last week without a new contract. In a statement, the airline said that "the issues have been narrowed to a few remaining items," and another bargaining session has been scheduled for Dec 7 - 8 in the offices of the National Mediation Board (NMB). According to Continental (CAL), (NMB) stated it will consider releasing the parties from mediated talks if no agreement is reached in next month's round of negotiations. That would start a 30-day cooling-off period after which the company would be free to impose a new contract on cabin staff and the attendants would be able to strike. The carrier reached consensual wage and benefit agreements last spring with all of its unionized employees except the flight attendants and the savings have helped it to lead its peer group in financial performance this year.
2 737-824's (34004, N37298; 34005, N37299), deliveries. 757-33N (32588, N57864), ex-ATA Airlines (AAT), Boeing (TBC) leased.
December 2005: SkyTeam members Delta Air Lines (DAL), Northwest Airlines (NWA), and Continental Airlines (CAL) announced that their club members will have access to each others' airport lounges beginning today. The three carriers have more than 90 lounges worldwide.
Continental Airlines (CAL) announced it has implemented interline e-ticket capability with 33 carriers and anticipates adding 24 additional airlines in the first half of next year and eliminating paper tickets "well ahead" of (IATA)'s year-end 2007 deadline. (CAL) also said it recently ended 12 interline ticketing and baggage agreements with carriers "either unwilling or unable to implement electronic interline capabilities."
Continental Airlines (CAL) reported strong unit revenue growth for November, with consolidated passenger revenue per (ASM) estimated to have increased +9.5% - +10% compared to November 2004 with mainline (RASM) up +8% - +9%. By comparison, October 2005 consolidated RASM rose +5.1% year-over-year with mainline (RASM) up +4%. Continental (CAL) said it flew 5.6 billion (RPM)s (passenger traffic) in November in mainline operations, up +8% over the year-ago period. Mainline (ASM)s (capacity) rose +6% to 7.1 billion and load factor climbed 1.4 points to 78.7% LF. By division, international (RPM)s rose +11.2% on a +13.3% gain in (ASM)s while domestic (RPM)s grew +5.7% against a +1% increase in capacity. Strongest traffic growth was recorded on transatlantic routes, up +16.2%, although this was eclipsed by a +20.3% jump in capacity.
Continental Airlines (CAL) launched daily nonstop service between Houston and Buenos Aires. Flights originate and terminate at (CAL)'s Newark hub. It is using a 767-200ER on the route.
Continental Airlines inaugurated 5 new routes as follows:
Houston - Bonaire = 1x a week (Fri) 737-700;
Houston - Punta Cana = 2x a week (Fri/Sat) 737-700;
Newark - Curacao = 1x a week (Sat) 737-700;
Newark - Liberia (Costa Rica) = 1x a week (Sat) 737-700;
New York (LGA) - Aruba = 1x a week (Sat) 737-800.
Continental Airlines (CAL) announced yesterday that it earned $172 million from the sale of 9 million shares of common stock in the Dec 15 Initial Public Offering (IPO) of Copa (COP) Holdings, and that it will contribute $50 million of the proceeds to its pension plans, bringing its 2005 pension contributions to $354 million. Continental (CAL) still owns 12 million shares in Copa (COP).
2 757-33N's (32588, N57864; 32589, N555TZ), ex-ATA (AAT), Boeing (TBC) leased.
January 2006: Continental Airlines (CAL) full year 2005 = Passenger traffic 114.66 Billion (RPK) (6th highest in world).
A fourth-quarter net loss of -$43 million, representing a significant improvement over a -$208 million loss in the year-ago quarter, allowed Continental Airlines (CAL) to close 2005 just -$68 million in the red and in far better shape than it was one year ago, when it posted a -$409 million deficit. Still, airline executives said yesterday that when combined with crippling fuel prices and competition from both encroaching Low-Cost Carriers (LCC)s and revamped legacy carriers, the improvement was not sufficient to forecast a return to profitability anytime soon.
"We expect to record a significant loss for the first quarter of 2006," Chairman & CEO, Larry Kellner said, adding, "The price of oil still hovers at record prices, JetBlue (JBL) has invaded our Newark hub, Delta (DAL) is using its bankruptcy advantage to expand into our profitable international markets and United Airlines (UAL), flush with $3 billion in exit financing and greatly reduced costs, is coming out of bankruptcy."
(CAL) posted a net loss of -$205 million last year excluding special items, including a +$106 million gain from the sale of its stake in Copa Holdings (COP) and +$98 million in earnings on disposition of shares in ExpressJet Holdings, among other items. Yearly operating revenue rose +13.2% to $11.21 billion. Expenses climbed +10.9% over 2004 to $11.25 billion, led by a +53.9% jump in fuel cost, and operating loss narrowed -83.6% to -$39 million.
Mainline passenger traffic (RPM)s rose +8.4% to 71.3 billion and yield increased +3.2% to 11.73 cents. Capacity climbed +5.9% to 89.7 billion (ASM)s and load factor gained +1.9 points to 79.5% LF, driving mainline (RASM) up +6.4% to 10.46 cents. Mainline (CASM) excluding special items, meanwhile, grew +4.9% to 10.15 cents but fell -5.3% to 9.32 cents holding fuel rate constant.
President, Jeff Smisek said domestic capacity will grow "moderately" in 2006. He expects lower fares on routes between New York and Florida to drive domestic capacity growth of approximately +3.6% while international capacity increases by more than +12%.
Fourth-quarter revenues rose +17.3% to $2.59 billion, growth that Continental (CAL) attributed in part to its international expansion and higher fares. Operating expenses climbed +13% over the year-ago quarter to $2.94 billion and operating loss decreased -42.3% to -$94 million. The bottom line was buttressed by last fall's Copa (COP) sale. Yield per (RPM) rose +6% to 11.77 cents on a +8.7% increase in traffic. Capacity was up +8.4% and load factor lifted +0.2 point to 78.1% LF, leading to a +6.5% growth in (RASM) to 10.39 cents.
(CAL) will discontinue service from Newark to Barbados on January 14th. The airline operated a weekly Saturday flight using a 737-700. Continental Airlines (CAL) will discontinue its Newark - Panama City - Quito service. The Quito leg will end on January 24th while the Panama City flight will end in early February.
Port Authority of New York and New Jersey said (JFK), Newark and LaGuardia airports handled nearly 100 million passengers last year, a new record. A final tally is still a couple of weeks away, but preliminary figures suggest a +6% rise in passenger throughput, the Port Authority said. (JFK) handled nearly 41 million, Newark 33 million and LaGuardia about 26 million.
(CAL) signed a five-year agreement to use Carmen Systems' preferential bidding software for scheduling its 4,000 pilots (FC).
757-33N (32592, N558TZ), ex-ATA Airlines (AAT), Boeing (TBC) leased.
February 2006: Continental Airlines (CAL) said it will return to its pre-Hurricane Katrina departure frequency from New Orleans (MSY) by May. It operated 111 flights per week from (MSY) prior to the storm, and now has reached 86% of its former capacity.
Venezuela's Instituto Nacional de Aeronautica Civil said in a statement on its website that it is reducing dramatically the number of flights USA carriers American Airlines (AAL), (CAL), Delta Air Lines (DAL), and FedEx (FED) will be allowed to operate into the country beginning March 30.
The statement indicated that Venezuelan authorities felt the USA was not living up to the terms of the bilateral agreement between the countries. Representatives from the Venezuelan and USA governments, along with airline officials, met but apparently were unable to resolve their differences. The four carriers had not canceled any flights, according to press reports.
(CAL) (daily service to Caracas from Houston and weekly from New York) and Delta (DAL) (daily Atlanta - Caracas service) will be prohibited from flying to Venezuela. American (AAL), which operates daily flights from Dallas/Fort Worth, Miami, New York (JFK) and San Juan, will lose -70% of its frequencies, according to the Financial Times. The effect on FedEx (FED) was unclear.
Venezuela, along with several neighboring countries, lost its USA (FAA) Category 1 rating in the mid-1990s due to problems with airport security. However, it is the only nation that has remained in Category 2, meaning its airlines can continue to fly to the USA but can't add frequencies or new routes.
The USA carriers said the announcement came as a surprise. "We are very disappointed by this unilateral action by the Venezuelan government and we are working closely with the USA Departments of State and Transportation, as well as the airlines who received similar notice, to resolve the issue as quickly as possible," a Delta (DAL) spokesperson told the Associated Press.
March 2006: Continental Airlines (CAL) broke the silence on the USA side in the standoff between USA and Venezuelan authorities, announcing that it "will try to accommodate travel needs of passengers flying to and from Caracas through its extensive network into the region" if Venezuela follows through with its threat to restrict access of USA carriers from the end of this month. (CAL) said it will allow passengers to exchange tickets without penalty or apply for refunds. "(CAL) remains committed to the Venezuela market and to providing its regular, consistent, high-quality service from its Houston and New York area hubs, and hopes that the negotiations between the National Institute of Civil Aviation and the (FAA) will develop positively," it said.
Venezuela later apparently agreed to rescind a proposed ban on most USA airline operations into the country that was set to take effect March 30, although it was unclear at press time whether the decision was in fact final. Currently, American Airlines (AAL), (CAL), Delta Air Lines (DAL) and FedEx (FED) operate services between the countries.
Wire services initially quoted USA Ambassador to Venezuela, William Brownfield as saying that the ban would not take effect and in return (FAA) would send a technical team to the South American nation to help it achieve a Category 1 safety rating. "I think our two governments have resolved, at least for the moment, the civil aviation problem," Brownfield said on Venezuelan television, the Associated Press (AP) reported. However, late Friday officials of Venezuela's National Aviation Institute said they had not finalized their decision, (AP) stated.
The country has had a Category 2 rating since 1995. The rating means that Venezuelan carriers must wet-lease USA-registered airplanes or airplanes from airlines operating out of Category 1 countries to serve USA destinations.
Later, Venezuela, following negotiations with USA aviation officials, announced it had agreed to postpone placing restrictions on incoming USA flights until April 25, when (FAA) officials release the results of a safety audit, that Venezuela hopes will return it to Category 1 status. Instituto Nacional de Aeronautica Civil said in a release on its website that (FAA) officials visited two airlines operating domestic and international services as well and inspected operational and legal security measures amid a "cordial atmosphere."
(CAL) signed a seven-year contract renewal for air/ground data link services with (ARINC). The deal includes GLOBALink VHF, HFDL and satellite.
April 2006: Significant improvement in operational performance and a -64.5% narrowing of the first-quarter loss to -$66 million (-$46 million excluding special items) from -$186 million in the year-ago quarter left Continental Airlines (CAL) executives in a confident mood. "Our plan is working," Chairman & CEO, Larry Kellner said during a conference call with analysts and media. "It's a great time to grow our network," President, Jeff Smisek said, adding, "Our customers clearly prefer us over the competition."
Their mood was understandable despite the red ink. Passenger revenue increased +18.4% and operating revenue climbed +17.6% to $2.95 billion, while expenses rose just +9.6% to $2.94 billion even as fuel costs soared +40.6%. A +$11 million operating profit, or +$5 million excluding a special credit, largely related to negotiated settlements on three leased and grounded MD-80s, compares to a -$173 million operating loss in the first quarter of 2005 that reduces to a -$130 million loss excluding a curtailment charge related to the freezing of the pilots (FC)'s portion of the company's defined benefit pension plan.
(CAL) said it is committed to countering the current trend among USA network carriers that are cutting domestic capacity as it looks to take advantage of market demand, higher yields and its presence at Newark, where it is developing a transatlantic narrowbody operation finding success servicing secondary European destinations.
Passenger traffic increased +11.5% last quarter to 18.02 billion (RPM)s against a +10.5% rise in capacity to 23.04 billion (ASM)s, lifting mainline load factor +0.7 point to 78.2% LF. Domestic load factor improved +2.4 points to 81% LF. Unit performance was strong: Mainline passenger (RASM) increased +5% to 9.43 cents and yield climbed +4.1% to 12.06 cents. (CAL) said the sustained demand for its services and an improving economy, were indications the market could continue to produce higher yields. Unit costs fell -2.1% to 10.35 cents, or -8.5% to 9.67 cents, holding fuel rate constant.
Cash receipts from advance ticket sales during the quarter allowed (CAL) to pre-pay $96 million of high-interest-rate debt and pre-fund $103 million of airplane deposits, which it said will produce interest savings.
(CAL) and Alitalia (ALI) launched a code share agreement, effective immediately, that will see (CAL) put its code on select Alitalia (ALI) flights from Rome Fiumicino and Milan, and have Alitalia (ALI) place its code on (CAL) flights from Newark to 11 USA cities.
(CAL) signed a five-year comprehensive content distribution agreement with Worldspan. (CAL) participates in Worldspan Airline Source, the (GDS)'s highest level of connectivity.
(CAL) Cargo will install the latest application of the Manugistics Cargo Revenue Management suite, comprising upgraded versions of Capacity Management, Sales and Allocation Planning, Flight Management and Real-time Booking Evaluation. The upgrade is expected to be completed in about 17 months.
Singapore Airlines (SIA) now offers interline e-tickets for connections to American Airlines (AAL), British Airways (BAB), (CAL), Delta Air Lines (DAL), and Varig (VAR), bringing to 17 the number of carriers with whom (SIA) has partnered for interline e-ticketing.
Venezuela's threat to restrict flights by USA airlines into the country, appears to have been successful, as the USA (FAA) raised the nation's safety rating to Category 1, meaning it complies with (ICAO) standards. USA aviation officials conducted a safety audit and inspections last month, after the South American country agreed to postpone until April 25 its ban on all operations conducted by (CAL) and Delta Air Lines (DAL) and some American Airlines (AAL) flights. Venezuela had been a Category 2 country since 1995, the last time (FAA) conducted a safety assessment. The action meant that Venezuelan airlines could not add flights to the USA. Venezuela said when it proposed the ban in February that the USA was ignoring its progress on safety and regulatory issues and was not living up to the terms of the bilateral agreement between the countries. (FAA) said that two (ICAO) audits conducted since 1995 have uncovered "increasing improvements."
May 2006: Continental Airlines (CAL) estimated it paid $2 per gallon for fuel including taxes in April, and will pay $2.09 in the second quarter.
(CAL) launched daily Newark - Cologne/Bonn service aboard a two-class 757-200. Flights will operate five-times-weekly during the winter. (CAL) launched a daily Newark - Moncton, New Brunswick, service aboard a Continental Express ERJ-145. It is the first nonstop service in the market. (CAL) will begin daily Newark - Barcelona service aboard a 172-seat 757-200. This route will be served five-times-weekly during the winter.
(CAL) and Orlando International Airport successfully completed testing of (SITA)'s AirportConnect Open program, which allows airlines to use the same application software on common-use terminal workstations.
(CAL) and the Air Line Pilots Association (ALPA) issued statements protesting the USA Department of Transportation (DOT)'s revised Notice of Proposed Rulemaking (NPRM), that clarified its position on foreign control of USA airlines. (CAL), which opposed the original (NPRM) issued last fall, said (DOT) "abdicated its responsibility," that the plan "failed to resolve the significant legal and policy concerns raised by Congress, industry and labor," and that it "makes it clear that foreign investors will be allowed to control all significant decisions at a USA air carrier and highlights the unworkable nature of bifurcating control of a corporation." (ALPA) President, Duane Woerth called on (DOT) to "halt this misguided effort and let Congress act [because] erecting a firewall around safety and security operations within the corporate governance of a USA airline is simply not possible" and because "the dominant investor wields the power . . . no matter what the fine print of federal regulations may say."
(CAL) signed five-year, full-content agreements with Sabre Travel Network and its Travelocity online travel site, as well as with Expedia.
June 2006: Continental Airlines (CAL) inaugurated nonstop service from Newark to Copenhagen. The airline now operates a daily 757-200 flight. In Winter, (CAL) will reduce to 5 flights a week increasing back to 7 in Spring 2007.
(CAL) and Galileo International signed a five-year, full-content distribution agreement.
Copa Holdings, parent of Copa Airlines (COP) and AeroRepublica (REU), filed a registration statement yesterday with the USA Securities and Exchange Commission for the sale of 6.6 million nonvoting shares held by (CAL), which would hold a 12.3% stake in Copa (COP) following the sale or 10% if the overallotment is exercised. Copa (COP) said it will not receive any of the proceeds.
Copa Airlines (COP) said that it has priced (CAL)'s offering of 6.56 million Class A nonvoting Copa (COP) shares at $21.75 per share. It added that underwriters will have a 30-day option to purchase an additional 984,375 Copa (COP) shares from (CAL) to cover overallotments, if any.
In a rare commitment by a USA Major for widebody airplanes, (CAL) announced an order for +10 additional 787s, doubling the order it placed in December 2004, and making it the largest USA customer for the Dreamliner. (CAL) also said it will acquire +24 more 737NGs, bringing the number of firm orders for the type to 66. The 20 787s begin delivery in 2009, with the first additional 737 arriving in 2008.
"These airplanes will give us the ability to seize long-haul market opportunities, remove less efficient airplanes from our fleet, and maintain our role as a global network leader," Chairman & CEO, Larry Kellner said. "We continue to target +5% - +7% (ASM) annual growth in capacity. Our fleet plan remains flexible, permitting us to respond appropriately to market conditions."
The carrier currently operates 299 737s, including 147 NGs, 17 757-300s, 26 767 family airplanes and 18 777-200ERs. It has two 777s on order.
July 2006: Continental Airlines (CAL) said it received $156 million from its recent sale of 7.5 million shares of Class A common stock of Copa Holdings, parent of Copa Airlines (COP). Continental (CAL) will contribute $75 million to its pension plans, bringing its 2006 contribution to $172 million. It still holds 4.4 million shares in Copa (COP).
(CAL) concluded its best quarter since 2001 with a net profit of +$198 million, nearly double the +$100 million earned in the second quarter of 2005. "After five years of challenges and hard work, it's great to see a payoff for everyone's efforts. But, even with the progress made, we must continue our focus on eliminating unnecessary costs," Executive VP & CFO, Jeff Misner said.
While expenses did rise +19.2% to $3.26 billion, (CAL)'s ability to attract more passengers and implement "several fare increases" boosted turnover +22.8% to $3.51 billion, more than doubling operating income to +$244 million from +$119 million in the year-ago quarter. It recorded $10 million in special charges, comprising a $14 million settlement charge related to lump-sum payments to retiring pilots and a $4 million reduction of an older charge related to the grounding of leased MD-80s.
Consolidated passenger traffic during the quarter grew +15.2% to 23.37 billion (RPM)s. Capacity rose +10.9% to 28.26 billion (ASM)s and load factor climbed +3.1 points to 82.7% LF, a record for the period. Passenger (RASM) went up +11% to 11.42 cents and yield increased +6.9% to 13.81 cents. On mainline operations, unit costs rose +8.1% to 10.72 cents but went up just +1.3% to 10.05 cents holding fuel rate constant. (CAL) paid $2.11 per gallon of fuel, a +26.4% increase.
The airline said it is in "advanced discussions" on a capacity purchase agreement for 40 - 50 regional jets to partially replace the 69 retained by ExpressJet. With the addition of two 777s early next year, it anticipates growing mainline capacity +5% and consolidated capacity +3% - +4% in 2007.
For the first six months of 2006, net profit was +$132 million compared to a -$86 million loss in the year-ago period. Revenues rose +20.3% to $6.45 billion, expenses increased +14.4% to $6.2 billion and operating result improved from a -$54 million loss to a +$255 million profit.
737-824 (31602, N78501) delivery.
August 2006: Continental Airlines (CAL) will launch weekly Newark - Bonaire service aboard a 737-700 from December 16. Continental Airlines (CAL) will launch weekly on Saturdays, Newark - Roatan (Honduras) service from December 16 aboard a 737-700. (CAL) and Alitalia (ALI) expanded their code share agreement to include (CAL) flights from Newark to three Canadian destinations and Mexico City.
AirBridge Cargo (ABC) signed an interline agreement with (CAL) and appointed general sales agent partners in the USA as it prepares to launch 747F flights to the USA next year. (ABC) said (CAL) will provide "an important link into its network, notably for the movement of oil and gas equipment from Texas to Sakhalin Island off the coast of Russia." (ABC), the scheduled services arm of heavy freight specialist Volga-Dnepr (VDA), operates two IL-76 freighters weekly from its Krasnoyarsk hub to Sakhalin. It named Platinum Air Cargo as its GSA representative for Houston, Dallas and Washington and Heavy-weight Air Express as its GSA for New York and Chicago. "It is no secret that AirBridge Cargo (ABC) plans to commence operations to the United States," airline head, Stan Wraight said. "This is one reason why we have two new 747-400ER freighters on order with first delivery scheduled for 2007."
(CAL) converted 12 existing firm orders for 737NGs to 737-900ERs, becoming the first USA carrier to order the type. The airplanes are slated for delivery in 2008. "These new planes will have among the lowest operating costs in our fleet, allowing us to serve high-demand markets more efficiently," Chairman & CEO, Larry Kellner said.
(CAL) ordered 24 737NGs in June and now has firm commitments for 65. It said it has the ability to convert more of those orders to 737-900ERs. It also has firm orders for 20 787s that will begin delivering in 2009.
Boeing (TBC) is in the final assembly and flight-testing phase of 737-900ER development and is scheduled to deliver the first of the type to Indonesia's Lion Air (MLI) next year. Lion (MLI), the 737-900ER launch customer, has firm orders for 30 plus 30 options. The 737-900ER has the same exterior dimensions as the 737-900 but will have the capacity to carry 26 more passengers and the capability to fly a further 500 nm. It will be powered by (CFM56-7B)s.
3 737-824's (31603, N76502; 31604, N76504; 33461, N76503), deliveries.
September 2006: Aloha Airlines (ALO) parent Aloha Airgroup named Gordon Bethune, Chairman. He retired as Continental Airlines (CAL) as Chairman & CEO in December 2004.
Continental Airlines (CAL) said that its application to launch daily Newark - Shanghai service in March 2007 should be approved by the USA Dept of Transportation, because it "has made the best case for the route award." (CAL) argued that there are no nonstop flights to Shanghai from the US Northeast and that the New York metropolitan area has a "far larger" population than the bases of its competitors Northwest Airlines (NWA) (Detroit), United Airlines (UAL) (Washington Dulles) and American Airlines (AAL) (Dallas/Fort Worth). (CAL) is following American (AAL)'s lead and establishing an online petition for people to register their support for the route.
(CAL) said it plans to launch seasonal Cleveland - Paris Charles de Gaulle flights in 2008, marking the first direct service on the route.
(SAS) Cargo became the eighth airline to join Cargo Portal Services (CPS), the Unisys-operated online booking portal that gives freight forwarders free Internet access to member carriers' schedules and space availability and the ability to book and confirm shipments in real time. (CPS) membership includes American Airlines (AAL), Air Canada (ACN), Austrian Airlines (AUL), (KLM), Northwest Airlines (NWA), and United Airlines (UAL). (CAL) is in the process of going live.
Officials from Dallas/Fort Worth International Airport (DFW) said yesterday that American Airlines (AAL)'S proposed (DFW) - Beijing service would generate $180 million annually for the state economy and plans to submit its own economic impact study to the USA Dept of Transportation (DOT) in support of (AAL)'s application to win the new route authority.
The (DFW) salvo is the latest volley in an all-out campaign by four USA carriers competing for a new route to China made available in the most recent air services agreement between China and the USA.
In other proposals, United Airlines (UAL) wants to link Beijing to its Washington Dulles hub, Northwest Airlines (NWA) has proposed service between Detroit and Shanghai and (CAL) would like to serve Shanghai from Newark. All are making their cases to (DOT), which likely will choose a carrier by year end.
"It's very competitive every time a new route opens up," (AAL) spokesperson Tim Wagner said. "Especially for Asia and particularly China, which is one of the last wide-open markets that is completely underserved."
Earlier in the week, (UAL) launched a campaign titled "Capital-to-Capital Coalition" with a team of former USA trade officials on its side. "We are unanimous in our belief that it is very much in our nation's public interest to do everything possible to strengthen the relationship between the USA and China," wrote the group of eight former USA trade representatives, who collectively worked for Presidents Nixon, Carter, Reagan, both Bushes and Clinton.
Recently, (CAL) held a press conference in New York extolling the importance of linking two of the world's leading financial centers and pointed to the large population of Chinese living in the New York area. It currently offers service from Newark to Beijing and Hong Kong. "We have support from all over the country - - not just the New York area - - for the connecting service," (CAL) spokesperson, Mary Clark said.
In its filing with (DOT), (NWA) declared that its "Detroit hub wins hands down" for the new service, saying it will provide better connections than others, "especially (DFW) which is absurdly circuitous for large areas of the United States." (NWA) currently has authority for passenger service to Shanghai, Beijing and Guangzhou via Tokyo Narita. Spokesperson Dean Breest said more than 70,000 people have signed the carrier's online petition in support of the new service.
Amadeus said it reached an agreement with (CAL) that will extend current access to full content for travel agents in the USA, Puerto Rico and the US Virgin Islands.
(CAL) signed a five-year, $258 million contract with the USA Postal Service to carry priority, first class and express mail within the USA and Puerto Rico. "We have made substantial investments in our postal facilities, employees and technology," said VP Cargo, Jack Boisen.
737-824 (32834, N76505), delivery.
October 2006: Rising yields, record load factors and a significant gain resulting from the sale of a portion of its stake in Panama's Copa Airlines (COP), helped Continental Airlines (CAL) post a +$237 million third-quarter profit, nearly four times the +$61 million earned in the three months ended September 30, 2005.
Revenues rose +17.2% year-over-year to $3.52 billion against a +15% increase in operating expenses to $3.33 billion. Fuel costs jumped +25.4% to $858 million. Operating income surged +76.1% to $192 million from $109 million in the third quarter of 2005. (CAL) sold 63% of its holding in Copa (COP), or 7.5 million shares, over the summer and realized a +$92 million gain on its third-quarter balance sheet as a result.
Consolidated traffic during the quarter grew +10.5% to 24.04 billion (RPM)s as capacity climbed +9.1% to 29.26 billion (ASM)s, lifting load factor +1.1 points to a third-quarter record 82.2% LF. Mainline yield rose +5.5% to 12.34 cents and passenger (RASM) gained +6.8% to 10.21 cents. (CASM) increased +5.9% to 10.52 cents, or +0.9% to 10.02 cents, holding fuel rate constant. "Our cost control performance remains on target, and we'll keep our focus, even in this improved revenue environment," Executive VP and CFO, Jeff Misner said.
Consolidated yield, combining mainline and Regional operations, was up +6% to 13.44 cents as passenger (RASM) climbed +7.4% to 11.04 cents.
(CAL) also announced that it signed an agreement to acquire winglets for 37 737-500s and 11 737-300s, with installation beginning next year. Combined with the winglets already on its 737-700s and 737-800s and those scheduled to be installed on the rest of its 757-200 fleet during the current quarter, the airline will operate 230 winglet-equipped narrowbodies.
For the nine-month period, (CAL) posted a net profit of +$370 million compared to a loss of -$25 million in the year-ago period. Revenue was ahead +19.2% to $9.97 billion against a +14.6% increase in costs to $9.52 billion. Operating income soared to +$448 million from +$55 million.
(CAL) said in a filing to the USA Securities and Exchange Commission that it will report a third-quarter profit and had accrued an employee profit-sharing pool of more than $100 million through September 30. "The actual amount of profit-sharing that the company will be able to distribute to employees on February 14, 2007, depends on the company's full-year financial results," (CAL) said. The third quarter will be its second straight three-month period in the black.
(CAL) said it is contributing an additional $70 million to its pension plans, bringing its 2006 contributions to $246 million, a total it said exceeded the minimum funding requirement. "I'm pleased that we have achieved a solid record for making our required contributions, plus some," Chairman & CEO, Larry Kellner said.
(CAL) said its ramp, operations and cargo agents rejected representation by the Transport Workers Union. "We are pleased that our employees recognized the value of our direct working relationship," (CAL) Senior VP Airport Services, Bill Meehan said.
737-824 (32832, N78506), delivery.
November 2006: Continental Airlines (CAL) Chairman & CEO, Larry Kellner told employees in a taped message cited by several media outlets, that (CAL) would consider some kind of merger if the US Airways (AMW)/(USA)/Delta Airlines (DAL) deal goes through and it concludes the new carrier would diminish its ability to be competitive as a standalone operator. "If the landscape of the USA airline industry does indeed change, we will do what we need to do," he said, emphasizing that his preference is to remain independent.
CTT Systems said (CAL) ordered 41 Zonal Drying Systems for installation on 757-200s. Installation began in October.
December 2006: Continental Airlines (CAL) has discontinued and will suspend 4 routes from its Houston hub as follows:
To Flores: Discontinued on November 25th;
to Hartford: To be suspended on January 10th;
to Palm Springs: To be suspended on May 5th;
to Punta Cana: Discontinued on November 26th.
(SITA) launched "AirportConnect Open," its next-generation check-in application that had been tested with (CAL) in Orlando. The system permits airlines "for the first time" to have their own proprietary applications running on common use terminal equipment, (SITA) said, adding that this will reduce "pressure on airport space and provide] airlines with greater flexibility in how they operate within the airport." AirportConnect Open "has reduced our training costs and we no longer have to go through certification or to maintain two sets of applications, which is a major benefit," (CAL) Senior Manager Technology, Robert Sloan said. (SITA) currently manages an estimated 30,000 CUTE workstations for 285 customers at airports worldwide.
(CAL) converted 12 737NG orders to orders for the 737-900ER, raising its firm commitment for the new variant to 24. It has 60 737s on order, with an option to convert more to the 737-900ER, which can fly up to 3,200 nm, or 500 nm farther than the 737- 900. It made the initial 12-airplane conversion four months ago, becoming the first USA carrier to order the type.
United Airlines (UAL) and (CAL) each declined to confirm numerous USA media reports that they are discussing a potential merger. (UAL) Chairman, President & CEO, Glenn Tilton said that the carrier is actively exploring consolidation "options available" but did not name any potential partners.
(CAL) Chairman & CEO, Larry Kellner told employees in a recent taped message, that he would consider some kind of merger if other USA airlines begin consolidating and altering the "landscape" of the industry. "We will do what we need to do," he said, but noted that his preference would be to remain independent.
Northwest Airlines (WA), another potential consolidation player, has the right under its partnership agreement with (CAL) to block "any (CAL) change of control," defined as "a merger, reorganization, private purchase, business combination, recapitalization or similar transaction." Press reports of (UAL)/(CAL) talks were cautious, based on unnamed sources and noted that discussions are at a very early stage.
January 2007: Continental Airlines (CAL), the highest earning USA carrier in the 2006 third quarter with +$237 million in net income, said it expects to report a "modest loss" for the fourth quarter, adding that consolidated (RASM) likely will increase +4.1% to +4.4% with mainline (RASM) growing +5.5% to +6.5%.
Despite a fourth-quarter net loss of -$26 million, Continental Airlines (CAL) reported 2006 net income of +$343 million, a strong turnaround from a 2005 loss of -$68 million, as full-year revenue jumped +17.1% to $13.13 billion.
The 2006 profit was helped by a +$92 million gain on the sale of a portion of the carrier's holding in Panama's Copa Airlines (COP), but was hurt by $53 million in special charges. Excluding special items, (CAL) had a net profit of +$304 million, a big improvement over 2005's net loss of -$205 million excluding special items.
"In 2006, we grew revenue at almost twice the rate we grew capacity, and we grew mainline capacity more than any of the other major [US] network carriers," President, Jeff Smisek said.
Full-year expenses were $12.66 billion, +12.6% higher than in 2005, but revenue improvement led to an operating profit of +$468 million, a turnaround from an operating loss of -$39 million in 2005. Fuel costs surged +24.2% to $3.03 billion, (CAL)'s highest expense category in 2006.
Mainline traffic grew +11.1% to 79.19 billion (RPM)s on a +8.9% increase in capacity to 97.67 billion (ASM)s, producing a load factor of 81.1% LF, up +1.6 points. Yield rose +4.8% to 12.29 cents as (RASM) lifted +6.8% to 11.17 cents and (CASM) climbed +3.3% to 10.56 cents.
The $26 million fourth-quarter loss was narrowed from -$43 million in the year-ago quarter. Revenues grew +11% to $3.16 billion, while expenses rose +6.7% to $3.14 billion, producing an operating income of $20 million, improved from an operating loss of -$94 million in the prior-year quarter.
Chairman & CEO, Larry Kellner said (CAL) is focused on achieving "sustained profitability" and noted that it will pay out $111 million in profit sharing to workers next month. In a conference call, he declined to comment on potential mergers in the USA market, but conceded that (CAL) has "looked at a lot of scenarios." He added that it is "not overly clear" how things will shake out.
Continental Airlines (CAL) said that it has contributed a further $71 million to its pension plans.
Amadeus signed a new five-year agreement with Continental Airlines (CAL) making the carrier's full content available, without surcharges (Amadeus's new Content Plus program) to users in the USA, Puerto Rico, and the US Virgin Islands.
Starting May 3rd, Newark - Madrid increased to 2/day using 757/767s. Starting June 7th, new daily Newark - Athens, using 767-200s.
American Airlines (AAL), Continental Airlines (CAL), and United Airlines (UAL) filed a lawsuit in the USA District Court against the city of Los Angeles in an attempt to fight a retroactive increase in Los Angeles International Airport (LAX) "terminal maintenance fees" that the carriers say will cost a combined $15 million, the Associated Press reported. The fee hikes reportedly are designed to cover increased security costs. Earlier this month, the Air Transport Assn (ATA) called an increase in (LAX) rental rates "arbitrary" and said that "there was no sincere effort to reach agreement on fair and reasonable rental rates" and that "(LAX) has demonstrated that it has no interest in a long-term rational business partnership" with the airlines.
February 2007: Continental Airlines (CAL) said it will distribute $111 million in profit-sharing to employees. It marks the carrier's first profit-sharing payment since 2001, and is the highest in its history. (CAL) reported a 2006 net profit of +$343 million.
The USA Senate Commerce and Transportation Committee approved legislation to require the screening of all cargo in the bellies of passenger airplanes within three years. The Transportation Security Administration last May approved a rule that did not include such a strict requirement. "The steps proposed in this bill will both improve our existing security system and give the Transportation Security Administration the flexibility to combat new and emerging threats," committee Chairman, Daniel Inouye (Democrat-Hawaii) said in a statement. It was not clear what types of screening will be acceptable. Passenger airlines have strongly opposed 100% screening of belly cargo on grounds that it is impractical and will slow airfreight flow greatly. While yesterday's legislative action was a first step toward possible passage, the proposed bill still is a long way from becoming law, which requires passage by the full Senate and House as well as President Bush's signature.
Continental Airlines (CAL) became the eighth carrier to have its cargo booking system go live on the Unisys-operated Cargo Portal Services (CPS), a Web-based booking tool used by more than 2,500 freight forwarders. "Our customers want choice and convenience. (CPS) fills this need because of its rapid adoption by forwarders, its multicarrier model and its capability to handle virtually all types of cargo products," (CAL) VP Cargo, Jack Boisen said. (CAL) joins American Airlines (AAL), Air Canada (ACN), Air France (AFA)/(KLM), Austrian Airlines (AUL), Northwest Airlines (NWA), Scandinavian Airlines (SAS), and United Airlines (UAL) on (CPS).
Continental Airlines (CAL) completed its installation of on-demand entertainment systems and in-seat power ports in the business class (C) cabins of its 41 757s, which are used primarily on transatlantic flights from Newark. Audio Visual On Demand (AVOD) and power ports will be installed in economy class (Y) starting this summer.
March 2007: Continental Airlines (CAL) released an investor update saying it expects first-quarter yield to be "up slightly" from the year-ago quarter despite a drop in mainline domestic and regional yields. "Strong improvement" in transatlantic and Latin American yields will help compensate, it said. Full-year capacity is expected to climb +4.9% (ASM), driven by a +10.3% growth in transatlantic operations. (CAL) said first-quarter consolidated (CASM) will be 11.44 to 11.49 cents, rising to 11.45 to 11.50 cents for the full year. Operating expenses are expected to be $3.14 to $3.15 billion in the first quarter and $13.24 to $13.3 billion for the full year, up from the $12.66 billion spent in 2006.
Continental Airlines (CAL) will launch daily Newark - Mumbai (BOM) flights October 30, aboard two-class 777-200s. (BOM) will be (CAL)'s second Indian destination following Delhi. (CAL) will launch daily Newark - Athens flights June 7 aboard 174-seat, two-class 767-200ERs. Service will be five-times-weekly in April, May, September and October, and thrice-weekly from November through March.
The USA and European airlines largely hailed the (EU) transport ministers' approval of the "open skies" agreement, though British Airways (BAB) and Virgin Atlantic Airways (VAA) led a chorus on the European side cautioning that the deal is just a "first step" toward creation of a truly open transatlantic air market by 2010. (IATA) Director General, Giovanni Bisignani called the agreement "a step in the right direction," but added that "it's time to set aggressive targets to create even more opportunities on both sides of the Atlantic." The Assn of European Airlines (AEA) Secretary General, Ulrich Schulte-Strathaus said it "establishes a framework which includes, but goes beyond, market opportunities . . . but it is only a first step towards the ultimate goal." Air Transport Assn President & CEO, James May said the deal has the "potential to provide enormous benefits to our respective customers and economies."
Much attention is being focused on London Heathrow (LHR), where transatlantic operations currently are limited to (BAB), Virgin (VAA), American Airlines (AAL), and United Airlines (UAL). "Access to Heathrow (LHR) for USA airlines is at the heart" of the deal, (BAB) CEO, Willie Walsh said. He encouraged the UK government to "stand by its right of automatic termination of traffic rights" and employ that power "if America doesn't play ball" by negotiating further liberalization. (LHR) was the (EU)'s "most valuable negotiating asset," Walsh insisted. With that chip "given away," it is "naive" to think the USA will pursue greater freedoms, including more USA market access for (EU) carriers by 2010, he added. According to the Official Airline Guide (OAG), (BAB) operated 44% of transatlantic flights in and out of (LHR) March 1 to 19, with (AAL) at 16%, Virgin (VAA) at 14%, and United (UAL) at 11%. (AAL) and (UAL) have said they support open skies even though it may hurt them in the short term in London. Continental Airlines (CAL) already has applied to the USA Dept of Transportation (DOT) for permission to launch service from Houston Intercontinental to (LHR) before summer 2008. Bmi (BMA) CEO, Nigel Turner called the agreement's approval "a brave move in the face of stiff opposition from the two UK airlines that have for years enjoyed a protected transatlantic market from Heathrow."
The International Air Carriers Assn (IACA) Director General, Sylviane Lust said the agreement is imbalanced in the USA carriers' favor: "The [EU's] shopping list for the second phase negotiations remains substantial while the USA side has obtained everything it wanted in the first phase."
USA legacy airlines do not plan to ramp up capacity this year despite posting their best full-year financial results since 2000. "I think you'll continue to see very modest capacity growth, particularly domestically," Continental Airlines (CAL) Chairman & CEO, Larry Kellner told the JP Morgan Aviation and Transportation Conference, which was made available via webcast. The 11 largest USA carriers (including America West Airlines (AMW), part of US Airways (USA)Group) reported a -1% decrease in domestic capacity in 2006. American Airlines (AAL), Chairman & CEO, Gerard Arpey agreed that capacity growth again will be minimal, revealing that (AAL) plans a -1% domestic capacity reduction in 2007. "We're filling a greater number of seats than ever before and we're doing it without giving away the store," he said, noting (AAL)'s 80% LF load factor. "We've reached some hard truths about what customers are willing to pay for."
United Airlines (UAL) Executive VP & CFO, Jake Brace told the conference that there has been "what we would describe as a softening in demand" in the first quarter, a trend that argues for continued checks on (ASM) capacity growth. "We don't think it makes sense to add capacity in the domestic market," he said. Added US Airways (AMW)/(USA) President, Scott Kirby: "Right now capacity remains pretty benign and . . . that pretty benign capacity environment I think remains in place for the rest of the year."
Sensis said Continental Airlines (CAL) has subscribed to its Aerobahn Service of Web-based tools to monitor and manage taxiway and ramp traffic at Houston Intercontinental.
777-224ER (35547, N77019), delivery.
April 2007: Continental Airlines reported first-quarter net income of +$22 million, reversed from a net loss of -$66 million in the year-ago quarter, on a +7.9% lift in revenue to $3.18 billion. Excluding special items such as the sale of its remaining investment in ExpressJet and unusual charges, (CAL) posted a +$26 million profit for the quarter, an improvement over a -$46 million net loss for the prior-year period on a similar basis. "Strong revenue growth, continued cost discipline and a slight decrease in fuel prices contributed to the quarterly profit, the first time since 2001 that the company has posted a first-quarter profit in what is a seasonally weak period," (CAL) said in a statement. Chairman & CEO, Larry Kellner told analysts in a conference call, that demand is "very good . . . as long as we price it right." Expenses rose +6.1% to $3.12 billion, leading to a nearly sixfold gain in operating income to $64 million from $11 million last year. Fuel expense climbed +3.5% to $684 million. Mainline traffic grew +5.9% to 19.09 billion (RPM)s on a +4.7% increase in capacity to 24.12 billion (ASM)s, producing a load factor of 79.1% LF, up +0.9 point. Yield was ahead +4.1% to 12.55 cents as (RASM) lifted +4.8% to 11.14 cents and (CASM) rose +2% to 10.56 cents. (CAL) projects a +4.4% capacity increase for the second quarter, with a target of +5% to +7% capacity growth for the year. "Over a 10-year period, I'd like to see us average +6% growth," Kellner said.
The carrier is eagerly eyeing service to London Heathrow (LHR) following the recent (EU)-USA "open skies" accord and announced plans to launch Houston Intercontinental - (LHR) service on March 30, 2008, subject to regulatory approval and slot and facility availability at (LHR). "We've always been hampered by our lack of access to Heathrow," President, Jeff Smisek said. Added Kellner, "We're comfortable we can find the facilities and slots [at (LHR)] for at least one flight and we'll work to find more. Clearly, we'd like to get more than one flight in there to start," including service from its Newark hub. (LHR)'s slot coordinator has warned that access to the crowded airport will remain limited despite the open skies agreement.
Continental Airlines (CAL) contributed an additional +$30 million in cash to its defined benefit pension plans, bringing its year-to-date contribution to $136 million. It expects to put in $320 million this year.
Continental Airlines (CAL) announced the sale of $1.15 billion worth of pass-through certificates, issued in three separate series, that will be used to finance its purchase of 30 737-800s and 737-900ERs scheduled for delivery in the January 2008 to March 2009 timeframe. The proceeds initially will be held in escrow by an unidentified depository institution. The escrowed funds will be used to acquire equipment notes issued by (CAL) to finance the airplanes. The three classes have coupons of 5.983%, 6.903% and 7.339% per annum.
Continental Airlines (CAL) will launch twice-weekly Houston Intercontinental - Loreto flights on June 7 aboard ERJ-145s.
(CAL) hired 64 pilots (FC) in March, and expects to hire +40 this month. Plans to hire +400 pilots (FC) in 2007.
777-224ER (31687, N69020), delivery.
May 2007: Starts Cleveland - London Gatwick (LGW), using 757-200s. Stops Houston - Palm Springs. Starting June 7th, Cleveland - San Diego, using 737-800s; Newark - Athens, using 767-200s. Starting October 30th, Newark - Mumbai, using 777-200s.
American Airlines (AAL), Continental Airlines (CAL), and Alaska Airlines (ASA), "along with a few smaller carriers," according to the Associated Press, will be allowed to reduce contributions to their defined benefit pension plans by a combined -$2 billion over the next decade, thanks to a provision in the Iraq War spending bill approved last week by the USA Congress. The Dallas Morning News reported that airlines will be permitted to assume an 8.25% annual discount rate in calculating the value of their pension obligations, up from the current 6%. Delta Air Lines (DAL) and Northwest Airlines (NWA)discount at 8.85%, the paper said.
Calling it a "tipping point for performance-based navigation," USA (FAA) Administrator, Marion Blakey said that Southwest Airlines (SWA) informed the agency that it will equip its entire fleet for Required Navigation Performance (RNP), including retrofitting its 737 Classics. The airline confirmed the plan, which Air Transport Assn President & CEO, James May said was an indication that "the entire industry is migrating as rapidly as possible to NextGen." A Southwest spokesperson said that the carrier "has made the decision to move forward internally, but all the specifics are not in place. We've been researching the capabilities for more than a year, the possibilities and efficiencies that we would gain and the benefits from our fleet being (RNP)-capable." The airline will start with its 737-700s, which come (RNP)-ready but would require "some switches to be flipped" before flying for (SWA). There is no timetable on the retrofit, the spokesperson revealed, saying, "we don't have a clear plan of how we're going to move forward." Nevertheless, Southwest (SWA) is the first airline to commit to (RNP) capability across its entire fleet. Blakey said 37 (RNP) approaches currently are available at 17 airports, with an additional 34 scheduled to be in place by year end and another 25 published next year.
Delta Air Lines (DAL) Executive VP Operations, Joe Kolshak was on hand to detail the benefits performance-based navigation has brought to his carrier. (DAL) received approval in March for its 737-800s to fly (RNP) approaches, joining Alaska Airlines (ASA), Horizon Air and Continental Airlines (CAL), and Atlanta Airport (ATL) has been (RNAV)-equipped since Fiscal Year (FY) 2005. Kolshak said average delays have been reduced at (ATL) by 3 minutes, which he said was the equivalent of adding three airplanes to the fleet. (DAL) ranked sixth among USA legacy carriers in ontime performance two years ago and stands second so far this year. The fifth runway and new taxiway also have been key contributors.
Kolshak said Delta (DAL) is conducting constant descent approach beta testing on early morning transcontinental arrivals at Atlanta and that initial indications are that it will save 400 lbs of fuel per flight, or 13 million gallons per year.
June 2007: Continental Airlines (CAL) said in an investor update that second-quarter mainline unit cost is expected to rise just +1.2% to +1.6% year-over-year to 10.84 to 10.89 cents on a +6.1% lift in capacity.
Mainline (CASM) excluding fuel and related taxes is expected to be 7.74 to 7.79 cents. Full-year unit cost will stay nearly in line as well, from 10.56 cents in 2006 to 10.66 to 10.71 cents in 2007, an increase of 0.9% to 1.4%. Growth rate is less than half of last year's +3.3%.
(CAL) said that advance mainline bookings for the next six weeks "are in line to slightly ahead of last year's levels" except for its transpacific routes, which are running "moderately behind." It estimates a second-quarter consolidated load factor of 83% LF to 84% LF compared to the year-ago quarter's record 82.7% LF.
(CAL) will partner with Brazil's Gol (GOT) and sell tickets to (CAL) customers for Gol (GOT) flights throughout Brazil and South America.
Continental Airlines (CAL) and future SkyTeam (STM) partner China Southern Airlines (GUN) unveiled a "strategic partnership" under which the carriers will offer loyalty program and lounge reciprocity and "extensive codesharing." Frequent-flier programs will be linked in September, with lounge access to become available when (GUN) joins SkyTeam (STM) later this year. From November, (CAL) will place its code on (GUN) flights connecting to the USA carrier's daily Newark - Beijing service as well as (GUN)'s Guangzhou - Los Angeles (LAX) service. China Southern (GUN) will place its code on (CAL) flights from (LAX).
Avionica won orders from Continental Airlines (CAL) to outfit nine 737-800s with its new satLINK Iridium system. Avionica said the initial installations will provide an Iridium phone handset in the cockpit, which is expected to be augmented by a wireless cabin handset and integration with the airplane's communications management unit.
July 2007: Continental Airlines (CAL) posted second-quarter net income of +$228 million, up +15.2% over a profit of +$198 million in the year-ago quarter, on a +5.8% lift in revenue to $3.71 billion. Chairman & CEO, Larry Kellner said the result was achieved despite a "tough domestic revenue environment," that has led the carrier to scale back its planned 2008 mainline capacity growth from +5% to +7% to +3% to +4%. "We expect the domestic environment . . . to continue to exhibit low yields," he said, pointing to the 25 additional airplanes projected to be deployed by USA Low Cost Carriers (LCC)s in the second half of 2007. He added that 2007 - 2008 growth will be focused on (CAL)'s international network.
Second-quarter expenses rose +5.6% to $3.45 billion, including a +3.8% increase in fuel cost to $821 million. Operating income was +$263 million, up +7.8% over +$244 million in the year-ago period. Mainline traffic jumped +6.9% on a +6.1% rise in capacity, producing a load factor of 83.5% LF, up +0.6 point and (CAL)'s highest-ever in the second quarter. Mainline yield was ahead +1.5% to 12.78 cents as (RASM) lifted +2.1% to 11.85 cents, and (CASM) increased +0.9% to 10.82 cents.
Kellner said (CAL) endured severe weather at its Houston, Newark (ewr) and Cleveland hubs during the quarter, and that the USA Air Traffic Control (ATC) system is "at capacity." He noted that there were ground delays 29 out of 30 days in June at (EWR), even though there were just 10 days of poor weather at the airport last month, "so clearly there's pressure on the system." He added that the airline is doing what it can to increase fuel efficiency given the situation and noted that it will have installed winglets on more than 200 airplanes by year end. He also said that (CAL) plans to serve London Heathrow from both Houston and Newark and is in negotiations to obtain slots. It already has a "good idea" where it will get at least one "primetime slot," he said.
Continental Airlines (CAL) and Kingfisher Airlines (KFH) announced a partnership under which they will offer loyalty program and lounge reciprocity effective October 1. Codesharing is scheduled to begin by year end. (CAL) operates a daily Newark (EWR) - Delhi service and plans to launch daily (EWR) - Mumbai flights on October 1.
Continental Airlines (CAL), Delta Air Lines (DAL), Northwest Airlines (NWA) and US Airways (AMW)/(USA) launched formal bids to operate new services to China, that will become available as the result of the expanded aviation agreement with the USA recently signed. The USA Dept of Transportation (DOT) will award six new routes between 2007 and 2009, and each of the aforementioned carriers just filed official applications. (CAL) applied to operate a daily Newark - Shanghai service aboard a 285-seat 777 starting in the spring of 2009. The flight would originate in Cleveland. (CAL) currently flies to Beijing from Newark and said the new service would "serve the large Asian and Chinese-American population residing in the New York City/Newark area, and the largest population base in the USA in which passengers have been forced to use connecting flights or less-than-daily foreign carrier service . . . between the USA financial capital and the rapidly expanding Chinese financial capital."
Delta (DAL), which in January applied to serve Shanghai from Atlanta next year, expanded its application to include a daily flight to Beijing as well. "Both routes would fill a critical gap in air service for the 65 million residents of the USA Southeast, who currently lack nonstop air service to China," (DAL) said, adding that it is the largest USA international carrier without nonstop service to China. It plans to operate dual-class 777s, including lie-flat seats in business (C), on the routes.
(NWA) intends to serve both Beijing and Shanghai from Detroit (DTW), and said it is "ready to start flying right away." It will use 747-400s if selected to operate to Shanghai this year ((DOT) has said it may award an expedited service in 2007). If selected for the 2009 award, it would use 787s to both Shanghai and Beijing. President & CEO, Doug Steenland said (DTW) offers an "unmatched combination of broad network coverage of the entire eastern half of the USA, convenient direct routings and a new, state-of-the-art terminal facility." (NWA) currently offers connecting service to Beijing, Shanghai and Guangzhou from Tokyo Narita.
US Airways (AMW)/(USA) previously applied to operate a Philadelphia (PHL) - Shanghai service in 2008, and now expanded its application to include daily (PHL) - Beijing service on a 269-seat A340, originating in Charlotte starting in March 2009.
Later, the four USA legacy carriers: Continental Airlines (CAL), Delta Air Lines (DAL), Northwest Airlines (NWA) and US Airways (AMW)/(USA), that announced earlier their intention to compete for the right to operate new routes to China were joined by American Airlines (AAL), United Airlines (UAL) and a surprise entrant - - all-business-class (C) carrier, MAXjet Airways (MXJ).
(AAL) proposed to add a daily Chicago O'Hare (ORD) - Beijing flight to its daily (ORD) - Shanghai service beginning March 25, 2009. It proposed to operate the Beijing service on 245-seat, three-class 777-200ERs and said passengers would benefit from a codeshare arrangement with China Eastern Airlines (CEA).
(UAL), which won the USA Dept of Transportation's 2007 competition, and launched daily Washington Dulles - Beijing service in March, said it will file an application to operate daily San Francisco - Guangzhou flights in 2008 - - the first nonstop service from the USA to that Chinese city - - aboard a 253-seat 777, and a daily Los Angeles - Shanghai service, the following year aboard a 347-seat 747. (UAL) said Los Angeles (LAX) is the largest USA city without nonstop Chinese service by a USA carrier. "Our East meets West proposal is simple. Add capacity to those urban areas with the least service and most pressing demand," Senior VP, Michael Whitaker said.
MAXjet (MXJ) applied to operate Seattle - Shanghai flights aboard a 92-seat 767-200ER beginning March 25, 2009. Service would originate and terminate at (LAX) and would be the airline's first transpacific route. It currently flies to New York (JFK), Washington Dulles (IAD) and Las Vegas from London Stansted, and plans to start serving (LAX) on August 30. MAXjet (MXJ) said the flight would "link two vital commercial centers with the only nonstop service from the Pacific Northwest to China" and the only "same-plane direct service on a USA flag airline from Los Angeles to Shanghai."
(CAL) said it contributed an additional +$75 million in cash to its defined benefit pension plans, bringing its year-to-date contribution to $211 million. It expects to put in $328 million this year.
(CAL) and representatives of the Air Line Pilots Assn (ALPA) this week signed a Protocol Agreement that "sets the stage for the parties to begin talks about changes to the pilots' contract," (CAL) said. The current contract becomes amendable on December 31, 2008, and (ALPA) requested that discussions begin earlier than the originally scheduled April 2008 date.
The Carlyle Group, a private equity firm, reached a definitive agreement to acquire (ARINC) from its current shareholders, which include more than a dozen major airlines and Boeing (TBC). (ARINC), which generates more than >$900 million in annual revenue, specializes in transportation communications technology, and its Air Traffic Control (ATC) support systems are used by carriers and airports throughout the world. Primary shareholders in the 77-year-old company based in Annapolis, include American Airlines (AAL), United Airlines (UAL), Delta Air Lines (DAL), (CAL), Northwest Airlines (NWA), US Airways (AMW)/(USA), Air Canada (ACN), Air France (AFA)/(KLM), Lufthansa (DLH), British Airways (BAB), Mexicana (CMA), Swiss International Air Lines (CSR), TACA (TAC), FedEx (FED), Hawaiian Airlines (HWI), and Philippine Airlines (PAL). (AAL) said it would receive $194 million from the sale of its stake and (UAL) expects $125 million. Other carriers did not immediately disclose expected proceeds and (ARINC) did not release financial details. The company said the transaction is expected to close in the third quarter subject to regulatory approval. "This is an important step in the evolution of (ARINC)," Chairman & CEO, John Belcher said. "We have worked very hard to find a partner, who shares our vision and believe that Carlyle's international presence, financial resources, and expertise in the aerospace, defense and communications sectors will be instrumental in the continued expansion of our business." Carlyle Managing Director & Head Global Aerospace & Defense, Peter Clare said, "We believe that (ARINC) is well positioned to capitalize on several favorable macro trends in both its commercial and government market segments." (ARINC) earned net income of +$10.2 million in 2006, a +14.3% decrease from +$11.9 million in 2005. Its annual revenue has risen steadily this decade, increasing +72.7% from $532 million in 2000 to $919 million last year.
(CAL), Northwest Airlines (NWA), and Delta Air Lines (DAL) jointly launched SkyCorp Direct, an online travel management tool designed to provide companies with a "one-stop solution" for corporate travel needs. "The site allows employees to easily book their own flights, hotels and rental cars while providing corporations with the ability to track and manage employee travel costs," said John Slater, (CAL) Managing Director Distribution Planning & e-Commerce. The site has no user or booking fees, unless a ticket is booked on an airline other than the three sponsor carriers, and can be used by companies of all sizes. It also will allow companies and their employees to book hotels and rental cars when purchasing flight tickets.
(CAL) confirmed that it reached an agreement earlier this month to sell 10 737-500s to Transaero (TRX) for delivery later this year and in 2008. It also said it is in discussions with another airline regarding the sale of five more 737-500s. The sales are in line with the carrier's decision to slow 2008 capacity growth to +3% to +4% from the +5% to +7% (ASM) capacity growth rate originally planned, with most of the slowdown coming on domestic services. "It's also necessary to keep turning over the fleet to keep it young," a spokesperson said. "We want to phase out some of our older planes."
August 2007: 2006 Results: Continental Airlines (CAL) is the world #4 airline by passenger operations ranked by traffic: 127.42 billion (RPK) (+11.1%); 157.15 billion (ASK) capacity (+8.8%); 81.1% LF (+1.6); 48.8 million passengers (+8.6%); 41,090 employees (-2.6%); 1.57 billion (RTK) (+5.5%) cargo traffic; 368 airplanes (see link to world airline (RPK) comparison chart).
Jeppesen and (CAL) finalized an agreement for Class 2 and 3 electronic flight bag (EFB) applications and data for the carrier's entire fleet of 368 airplanes.
Sensis announced that (CAL) will subscribe to the Sensis Aerobahn Service for Newark (EWR) "to enable more efficient management of air traffic flows, particularly during periods of abnormal delay." (CAL) already uses Aerobahn at Houston Intercontinental. At (EWR), it will use Aerobahn TaxiView, OpsView and QuickView.
September 2007: Continental Airlines (CAL) will expand capacity at its Cleveland Hopkins International Airport hub by +40% over the next two years, starting with +50 new flights operated primarily by regional jets and the addition of +20 new nonstop destinations by next summer. Cleveland is (CAL)'s No 3 hub, behind Newark and Houston Intercontinental. Many of the RJs will be reallocated to Cleveland from the Newark hub; new 70-seat DHC-8-Q400s operated under an agreement with Colgan Air will take over some of the Newark service. (CAL) will be aided in its expansion plans by the state of Ohio, which is providing an incentive package valued at more than >$16 million. The buildup is expected to add more than >700 new jobs to the Cleveland area. "This growth strengthens Cleveland and gives customers more options when connecting within the Continental (CAL)system," said Chairman & CEO, Larry Kellner. In early 2008, (CAL) will add 27 flights to 12 new nonstop destinations, and in May, it will begin seasonal service between Cleveland and Paris. By June, it expects to provide 300 daily departures from Cleveland. In 2009, a number of additional mainline airplanes will be allocated there. To accommodate the increases, the airport will expand its security checkpoint area, add more ticket counters and revamp its concession program.
The USA Dept of Transportation (DOT) awarded coveted new China route authorities to all six USA legacy carriers. Two of the route awards, going to Delta Air Lines (DAL) and United Airlines (UAL) for service that can begin on March 30, are "final decisions," (DOT) said. Four additional routes, on which service can begin in 2009, are "proposed" designations, that likely will become final "in the near future." (DAL) won authority to operate direct flights between Atlanta and Shanghai beginning next year; no airline currently flies the route. (UAL) was cleared to start San Francisco - Guangzhou service in 2008. The proposed routes, to be launched in 2009, if final approval is given, went to American Airlines (AAL) (Chicago - Beijing), Continental Airlines (CAL) (Newark - Shanghai), Northwest Airlines (NWA) (Detroit - Shanghai) and US Airways (AMW)/(USA) (Philadelphia - Beijing). All six awards are for daily service. "By bringing China and the USA one step closer, we increase our ability to compete, boost our success in the global marketplace, and make international travel for all passengers easier and more affordable," Transportation Secretary, Mary Peters said. The new routes are possible owing to an expanded aviation agreement signed by the two nations in July, that doubles the number of daily flights allowed between the USA and China over the next five years. (CAL) said it plans to use Cleveland - Newark service to feed flights to Shanghai.
(CAL) said that it contributed an additional +$50 million in cash to its defined benefit pension plans, bringing its total year-to-date pension contribution to $261 million. It expects to contribute more than >$325 million for the full year.
October 2007: Continental Airlines (CAL) launched Newark - Mumbai flights and initially will operate the service four-times-weekly with frequency increasing to daily from October 28.
(CAL) hired 64 pilots (FC) in September.
(CAL) announced the contribution of an additional +$75 million to its defined benefit pension plans, lifting to $336 million, its year-to-date contribution.
The Transport Workers Union (TWU) said it filed documents with the USA National Mediation Board on behalf of (CAL)'s 8,000 nonunionized fleet service workers, seeking to provide representation for them. (CAL)'s pilots (FC), mechanics (MT), flight attendants (CA), and dispatchers are unionized. Ground service workers "know firsthand what happens, when you go without a contract and representation," (TWU) President, James Little said. "Over the past couple of years they've seen very deep cuts. In 2005, each ground worker saw his or her pay cut by an average of nearly -10%. " The (TWU) similarly attempted to unionize the workers in 2006, but failed to garner enough votes from the employee group. (CAL) said, "We have been through these union organization efforts many times. The (TWU) and other unions have been unsuccessful in their efforts to unionize our employees over the last 11 years." The (TWU) conceded, "In 2006, the union narrowly lost a representation election for (CAL) ground workers because of low turnout."
(CAL) granted multiyear Information Technology (IT) service contracts to (EDS) and Hewlett-Packard. Some of the work will involve migration of legacy applications to modern platforms and integration of servers, storage and software. Enaxis Consulting helped (CAL) through the selection and award process.
Qantas (QAN), the largest customer for the 787, was among several carriers that offered generally muted responses to Boeing (TBC)'s announcement that it will delay first flight and first delivery by at least six months. (QAN) said the delivery delay will not "materially impact the operations of the Qantas (QAN) Group of airlines." CEO, Geoff Dixon said Boeing (TBC) had assured the carrier that the 15 Dreamliners scheduled for delivery between August 2008 and December 2009 all would arrive by the 2009 date. "Boeing (TBC) said the August 2008 airplanes would slip, but not by six months. Once that airplane arrives, the remaining 14 airplane deliveries will be staggered until December 2009," he said. The group has 65 firm orders for the 787, 20 options and 30 purchase rights, with the first 15 scheduled for Jetstar Airways (IMU)'s long-haul operation. Dixon said Qantas (QAN) had contingency plans for any short-term capacity shortages. "Once Boeing (TBC) confirms a revised deliv
ery schedule, we will assess the need for any other measures, such as delaying the retirement of airplanes." (QAN) has struggled with the A380's two-year delay. The first of those airplanes now is scheduled for delivery in August 2008 - - the same date as the 787 originally was set to arrive. The airline has been forced to keep 747-300s in service longer than expected to make up for the capacity shortfall.
Meanwhile, North American customers were not anticipating a significant impact. A Northwest Airlines (NWA) spokesperson said, "We are disappointed by Boeing (TBC)'s delay, but we can adapt. It will be very important that Boeing (TBC) meet its new deadline, and we expect them to do so. A six-month slide in the test flight does not necessarily mean a six-month slide in all deliveries. Boeing (TBC) has committed to giving us an updated delivery schedule in the next few weeks." (NWA) has 18 787s on firm order.
Air Canada (ACN), which has 37 on order, said it has "not been advised of any impact on our deliveries," and that it still expects its first airplane to arrive in 2010. (CAL) (25 on order) said it was "too early to tell" if the slip would impact its 2009 scheduled delivery date. Chairman & CEO, Larry Kellner maintained the 787 still "is destined to be a game-changer."
737-524 (28921, N14660), sold to TransAero (TRX).
November 2007: 1st 6 months = 63.91 billion (RPK)s (+6.78%) traffic; +5.76% (ASK)s capacity; 81.8% LF (+.8); 606.13 million (FTK)s (-5.09%) freight traffic; 24.39 million passengers (+5.03%).
(CAL) hired 64 pilots (FC) in October; and expects to hire 48 in November.
Continental Airlines (CAL) will launch twice-daily flights to London Heathrow (LHR) from Newark and Houston Intercontinental beginning March 29, aboard 777s and 767-200ERs, subject to government and slot approval.
NavAero said Continental Airlines (CAL) chose its Class 2 navAero tBagC2-2 computer and display hardware, as the electronic flight bag (EFB) flight deck hardware, for the carrier's 757 and 767 fleets. Installation will start next year.
(CAL) has ordered Aviation Partners Boeing (APB) winglets for its 737-900s.
December 2007: Continental Airlines (CAL) hired 48 pilots (FC) in November. The carrier is accepting applications and interviewing. Continental (CAL) expects to hire through April, 2008.
Continental Airlines (CAL) named Managing Director Distribution Planning & Electronic Commerce, John Slater, as Managing Director Latin America, effective January 1.
USA airlines warned of rising fuel costs and a slowing USA economy, with Continental Airlines (CAL) and Southwest Airlines (SWA) reducing planned 2008 capacity (ASM) growth and Delta Air Lines (DAL) projecting that it could post an operating loss in the fourth quarter. USA carriers, which have returned to profitability in the past 18 months, appear to be bracing for a weak USA economic environment in the new year. (CAL) lowered its capacity growth estimate for full-year 2008 to 2% to 3% from previous guidance of 3% to 4%, and said mainline domestic capacity will be slightly down for the year. It said the "recent significant rise in the cost of jet fuel" caused it to reassess its capacity growth plans for next year.
(CAE) won orders for full-flight simulators (FFS) and related (CAE) Simfinity training devices valued at more than >C$126 million/$124.1 million from Continental Airlines (CAL), US Airways (AMW)/(USA), Etihad Airways (EHD), Air Algerie (ALG), and Alteon Training. (CAL) purchased a (CAE) 7000 Series, 787 (FFS) and a set of (CAE) Simfinity training devices. Deliveries are slated for next year.
January 2008: 2007 statistics: 135.65 billion (RPK)s passenger traffic +6.5%; +5.6% capacity (ASK)s; +.7 load factor for 81.7% LF. SEE ATTACHED COMPARISON CHART TO SELECTED OPERATORS - "CAL-2007-STATS."
Continental Airlines (CAL) said mainline and consolidated unit revenue each climbed +5.5% to +6.5% in December, compared to the year-ago month. Consolidated traffic rose +1.9% to 7.62 billion (RPM)s against a +3% climb in (ASM)s to 9.69 billion. Load factor fell -0.8 point to 78.7% LF.
Continental Airlines (CAL) reported pre-tax income of +$566 million for 2007, up +53.4% over earnings of +$369 million on a similar basis in 2006, but the company is resolving a "noncash tax" issue related to pilot (FC) pensions that prevented it from disclosing net income.
The issue relates to the new USA law that lifts the pilot (FC) retirement age to 65. (CAL) said that for actuarial purposes it has assumed its pilots (FC) will continue working beyond 60 and will not begin receiving pension payments as soon as previously expected. As a result, it recorded a decrease in its pension liabilities as of the end of 2007 and, consequently, recorded a special noncash tax charge in the fourth quarter to increase its tax valuation allowance, which acts as a reserve against its deferred tax assets. But it has not yet "finalized the amount given the technical nature of the issue" and will not report its net results until mid-February. Nevertheless, executives insisted the company's full-year and fourth-quarter performance was "outstanding." Its pre-tax fourth-quarter income was +$71 million, reversed from a -$26 million loss on a similar basis in the year-ago period. Full-year revenue rose +8.4% to $14.23 billion, while expenses increased +7% to $13.55 billion, producing operating income of +$687 million, up +46.8% from +$468 million in 2006. Full-year mainline traffic lifted +6.5% to 84.31 billion (RPM)s on a +5.6% boost in capacity to 103.14 billion (ASM)s, producing a load factor of 81.7% LF, up +0.6 point. Yield increased +4.1% to 12.8 cents as (RASM) rose +4.3% to 11.65 cents, and (CASM) escalated +2.6% to 10.83 cents. "We continued to grow our passenger revenue at a pace significantly greater than our capacity growth, which is a testament to our excellent pricing and revenue management, operational and marketing performance," President, Jeff Smisek said.
Looking ahead to 2008, he said (CAL) will be helped by hourly flight caps to be imposed at its Newark (EWR) hub, that it hopes will lower congestion and increase operational efficiency at the airport. It also expects to benefit from launching service to London Heathrow (LHR), when the new transatlantic air services agreement takes effect at the end of March. "Access to Heathrow (LHR) has [for more than a decade] been on our most wanted list," Smisek said. The carrier plans to launch twice-daily flights to (LHR) from (EWR) and Houston Intercontinental aboard 777s and 767-200ERs.
US Airways (AMW)/(USA) received final approval from the USA Dept of Transportation (DOT) to launch its first service (Philadelphia - Beijing) to China in 2009. The (DOT) granted additional rights to American Airlines (AAL) (Chicago O'Hare - Beijing), Continental Airlines (Newark - Shanghai), and Northwest Airlines (NWA) (Detroit - Shanghai), as well. The agency issued a tentative decision in September. All 2009 flights must be launched by March 25 of that year, the (DOT) said.
Continental Airlines (CAL) field service employees, comprising ramp, operations and cargo agents, rejected representation by the Transport Workers Union (TWU), (CAL) said. The (TWU) filed an election application with the National Mediation Board last October.
Regarding current merger talks amongst major USA carriers, notably Delta Airlines (DAL), United Airlines (UAL), and Northwest Airlines (NWA), Continental Airlines (CAL) Chairman & CEO, Larry Kellner said that his carrier is happy with its current position, but noted that "relative size" is important in a "network" business, and that a change in the structure of the USA industry could alter (CAL)'s view of its position. He promised that (CAL) will monitor consolidation talks among competitors carefully and will be prepared to make a move regarding mergers if necessary.
Continental Airlines (CAL) pilots (FC) represented by the Air Line Pilots Assn (ALPA) took a harder stance against consolidation than some of their USA counterparts, issuing a statement saying, "We agree with management that we are content as a profitable, standalone entity." The union launched a response team center in reaction to recent speculation and said, "the pilots (FC) of Continental (CAL) must be key in the decision to welcome or reject any merger candidate."
Continental Airlines (CAL) will join the roster of carriers offering live television and wireless connectivity inflight, announcing an agreement with JetBlue Airways (JBL) subsidiary "LiveTV" to provide 36 channels of DirecTV at "every seat" of (CAL)'s 737NGs and 757-300s, and inflight Wi-Fi services beginning in January 2009. First class (F) customers will receive the television service free, while economy (Y) passengers will be charged $6. Wi-Fi service, featuring e-mail and instant messaging will be free and is similar to the "BetaBlue" product debuted by JetBlue (JBL) last month.
737-824 (31637, N87507), and 4 737-924ERs (31664, N47413; 32825, N47414; 32826, N39415; 32827, N47416), deliveries.
February 2008: Continental Airlines (CAL) finalized its full-year and fourth-quarter financial report and said it posted a profit of +$459 million in 2007, up +33.8% from +$369 million in 2006. Fourth-quarter result was a net loss of -$32 million, widened from a -$26 million deficit in the year-ago period. It had delayed its report, while calculating a noncash tax charge related to pilot pensions. That figure was $31 million.
Continental Airlines (CAL) reported an estimated +9% to +10% year-over-year increase in consolidated (RASM) in January. It flew 7.22 billion consolidated (RPM)s, up +2.9% on the year-ago month, against a +2.1% rise in (ASM)s to 9.4 billion. Load factor lifted +0.5 point to 76.8% LF.
Continental Airlines distributed $158 million in profit-sharing payments to employees on February 14. It paid $111 million to employees last year. It said its profit-sharing plan shares 30% of the first $250 million in pre-tax income, 25% of the next $250 million , and 20% of amounts over >$500 million. It claimed its 2007 profit-sharing payout was tied for the highest among the six USA legacy carriers. Delta Air Lines (DAL) also paid out $158 million, followed by United Airlines (UAL) ($110 million), Northwest Airlines (NWA) ($80 million), US Airways (AMW)/(USA) ($49 million), and American Airlines (none), according to (CAL) figures. It paid an additional $33 million to employees in ontime performance incentives.
EDS reached agreement with Continental Airlines (CAL) to provide its fare quote solution Electronic Fares Services aimed at streamlining access to accurate and dependable airfares. The agreement is a supplement to an Information Technology (IT) contract announced in October.
Neolane was contracted by Continental Airlines (CAL) to provide customer marketing software featuring digitized profiles, automated campaigns and other outreach tools. Technology will target frequent business (C) and leisure fliers.
Consolidation speculation is rampant in the world's biggest air transport market, but the widespread talk about possible USA airline tie-ups generally breezes past or altogether ignores the multitude of obstacles faced by carriers attempting to form complicated combinations. In June 2007, US Airways (AMW)/(USA)'s failed $10.2 billion hostile takeover bid for Delta Air Lines (DAL) highlighted the myriad issues associated with attempted airline mergers - - and that proposal didn't even reach the point where the USA Dept of Justice (DOJ) was forced to render a judgment. The current speculation centers on (DAL)'s reported talks with Northwest Airlines (NWA) and, if such a tie-up were to be formed, a subsequent follow-up deal between Continental Airlines (CAL) and United Airlines (UAL). "That scenario seems less likely than popular perception," (AMW)/(USA) Chairman & CEO , Doug Parker recently argued. "Delta (DAL) and Northwest (NWA) getting together makes lots of sense [based on their route networks], but taking Continental (CAL) out of the [SkyTeam] Alliance (STM) doesn't make sense . . . There's more behind all these transactions than just looking at two route maps. It's a lot more complicated than that." (DAL), (NWA), and (CAL) are all SkyTeam (STM) members, and a merged (DAL)-(NWA) obviously would be a SkyTeam carrier (STM). But presumably, (UAL) is not leaving the Star Alliance (SAL), of which it is a founding member, and therefore (CAL)'s Newark and Houston hubs would become part of Star (SAL) under the (DAL)-(NWA)/(CAL)-(UAL) consolidation scenario. "Why would you go through all the trouble [of a merger] to lose [Newark and Houston] from the alliance?" asks Parker, wondering aloud whether non-USA SkyTeam (STM) members would be ready to embrace a merger that could cost them (CAL)'s network.
(NWA) currently holds a "golden share" in (CAL), that allows it to block the latter from entering into a merger. But once (NWA) enters into a merger agreement, (CAL) has the right to buy back the golden share for a mere $100 and would be free to pursue its own merger deal (even if (NWA)'s merger ultimately was rejected). "If the golden share would become redeemable, that would change our circumstances," (CAL) Chairman & CEO, Larry Kellner said. While (CAL) is content with "our position relative to the industry today," Kellner said, it "won't hesitate to act" if the industry landscape changes and rivals combine to form a mega-airline. "We do pay attention to [our] relative size," he said. "Size is important in a network business." In terms of traffic, (CAL) ranked fourth among USA airlines in 2007 at 84.31 billion (RPM)s, trailing American Airlines (AAL) (138.45 billion (RPMs), (DAL) (122.07 billion (RPM)s, including regional operations), and (UAL) (117.4 billion (RPM)s). However, it had the most balanced network in terms of international and domestic services and the best service reputation among network carriers.
USA airline executives continue to argue that the industry is too fragmented and that six legacy carriers will be unable to grow capacity and keep costs down absent consolidation. "I cannot see any logic in [that argument] whatsoever," Avitas Senior VP, Adam Pilarski, a longtime industry observer, said. "If you can't grow capacity with six, I don't see how going from six to three changes it in any way. Six becoming three doesn't create more Americans that want to fly."
And the problems associated with mergers would create operational difficulties, that could push passengers to Low Cost Carrier (LCC)s and new entrants, Pilarski contends: "I don't see any synergies that get translated into cost savings or revenue enhancement. Yes, a few consultants, a few banks, a few executives will make money off of mergers, but the negatives for the industry are obvious. You are trying to merge two different cultures, which never works well. You are talking about airlines that may belong to two different alliances, that have very different fleets, different operating systems . . . How do you integrate the pilot (FC) lists? There are a lot of headaches that could cost you a lot in productivity. I'm fairly confident that [mergers] will be problematic."
While (AAL) Executive VP Finance & Planning & CFO, Tom Horton believes that consolidation could "lead to greater efficiency," he acknowledges that "there are a lot of challenges to consolidation in our industry."
Of course, any merger agreement will face scrutiny from the (DOJ) and members of Congress, several of whom already have vowed to fight consolidation on the grounds that it will result in lost jobs and diminished service. While USA airline officials appear to believe that the (DOJ) is more likely to approve a merger than in 2001, when it blocked (UAL)'s proposed acquisition of then-USAir (USA), the fact that a new President (and a new attorney general) will take office next January may be driving the latest round of talks. "Since there is going to be a change in administration, there will be some delay" in clearing a merger unless an agreement is submitted by the end of this month, Parker says, predicting that any later submission likely would get caught up in the changeover. But he adds that such approval would still come: "It's more of a timing issue. Irrespective of the administration, the arguments for consolidation are so compelling that I'm not overly concerned that the next administration is going to be against mergers." Other factors affecting potential mergers are the ongoing decline of USA airline stock prices and the credit crunch. Airline shareholders are unlikely to be enticed by the prospect of "cashing out" underperforming stocks in a merger, though Parker insists that they would be interested in moving their shares "to a stronger airline." And the state of credit markets means a carrier will have more difficulty raising money to finance an "acquisition" of another carrier. "It doesn't change the likelihood of mergers, just the structure," Parker says. "The structure will move from debt financing to equity financing" and merger agreements will be "equity-equity transactions."
(CAL) announced that it placed firm orders for 19 737NGs and eight 777s, increasing its commitment for Boeing airplanes to 111 for delivery over the next six years. (CAL) now has 25 787s, eight 777s and 78 737s on its order book along with 102 options. The carrier said it has taken delivery of five 737s already this year, and plans to add +27 more by year end. It currently flies 20 777s and said the launch of its London Heathrow (LHR) service next month is the principal driver behind the widebody order. It will fly to (LHR) twice-daily from Newark and Houston.
2 737-824s (31638, N78509; 31639, N76508) and 2 737-924ERs (32826, N39415; 37093, N39416), deliveries.
March 2008: Continental Airlines (CAL) said February consolidated and mainline (RASM) rose +5% to +6% over the year-ago month. It flew 6.77 consolidated (RPM)s passenger traffic last month, up +4.5% from the year-ago month. Capacity rose +5.8% to 8.91 billion (ASM)s, dropping load factor -1 point to 76% LF.
Continental Airlines (CAL) paid $209 million for four pairs of slots at London Heathrow, according to a USA Securities and Exchange filing cited by several press reports. (CAL) did not identify the seller of the slots. It plans to serve the airport from both Newark and Houston Intercontinental. The "Financial Times" said GB Airways (GBA) (two), Air France (AFA), and Alitalia (ALI) sold the slots and that (CAL) will pay $116 million for the summer season and an additional +$93 million for the next winter schedule.
Avionica said Continental Airlines (CAL) secured its (ACARS) communications in passenger service over the Iridium satellite network. One of (CAL)'s satLINK-equipped 737-800s reached its Houston headquarters as it flew over the Pacific. The carrier also plans to install satLINK on 757-200s.
Jeppesen won USA (FAA) authority for its Airport Moving Map application for Class 2 Electronic Flight Bag (EFB) devices. The technology features Ground Proximity System (GPS) capabilities, an airport surface map database and positional awareness functionality. Integration with Continental Airlines (CAL)'s (EFB) system by NavAero is slated for this month.
Continental Airlines (CAL), in partnership with Boeing (TBC) and (GE) Aviation (GEC), will conduct a biofuels demonstration flight in the first half of 2009, using one of its 737NGs. It will be the first such flight in North America and the third overall. Virgin Atlantic Airways (VAA) carried out a demonstration flight last month on a 747-400 with one engine partially powered by a blend of babassu oil and coconut oil and Air New Zealand (ANZ) will conduct one later this year with an undisclosed fuel mix. Whereas Virgin (VAA) used an 80/20 mix of conventional and biofuel, (CAL) Executive VP Operations, Mark Moran said that its test may involve a mixture of as much as 50/50 kerojet and biofuel on one of the test airplane's two engines. The choice of biofuels is pending, according to Boeing Director Environmental Strategy, Bill Glover. "One thing we're seeing is a lot of innovation around biofuels for aviation," he said. "There's work going on in all these areas and progress is pretty rapid." He stressed that the fuel will be a so-called "second generation" biofuel ,that does not compete with food crops, adding, "Algae is certainly on the list. Other things on the list are babassu nuts, halophyte plants, jatropha plants or even switchgrass." Moran cited "two critical issues facing the aviation industry, that biofuel technology addresses. The first is the impact of aviation on the environment" and the second is "the high cost of fuel." He said (CAL) has achieved a -35% reduction in greenhouse gas emissions and fuel consumption per mainline (RPM) passenger traffic over the past 10 years.
3 737-924ER (31665, N38417; 31666, N37419; 33456, N39418), deliveries.
April 2008: Continental Airlines (CAL)'s March consolidated and mainline (RASM) each rose an estimated +5.5% to +6.5%, year-over-year. (CAL) flew 8.29 billion consolidated (RPM)s passenger traffic last month, up +4.3%, against a +4.6% increase in capacity to 10.07 billion (ASM)s. Load factor slipped -0.3 point to 82.3% LF.
Continental Airlines (CAL) reported a first-quarter net loss of -$80 million, reversed from a +$22 million profit in the year-ago period, and confirmed that it has redeemed Northwest Airlines (NWA)'s "golden share" that prevented (CAL) from entering into merger agreements. (NWA)'s golden share was contingent on the former not entering into any merger agreement. Its tie-up pact with Delta Air Lines (DAL) earlier, allowed (CAL) to buy back the share for $100, leaving the Houston-based carrier free to explore a merger of its own. Chairman & CEO, Larry Kellner said that an approved (NWA)-(DAL) merger "will change the competitive landscape" of the USA industry, adding that the proposed combination has caused (CAL) to consider its "strategic" options. "We're reviewing our continued participation" in the SkyTeam (STM) alliance, he said, but emphasized that it remained "important that we're a major player in one of the three alliances." He declined further comment on any merger possibilities but said, "We have flexibility." Kellner insisted the first-quarter loss was a "solid" result given high fuel costs, "excess capacity" in the domestic market, the USA credit crisis and a weakening economy. To contend with the difficult environment, (CAL) will cut domestic mainline capacity by -5% on an annual run-rate basis beginning this fall. It said it will remove from service an additional 14 737-300s as their leases expire from September 2008 to April 2009. It already had planned to remove 34 737-300s/-500s from service this year and next.
First-quarter revenue increased +12.3% to $3.57 billion but expenses jumped +16.7% to $3.64 billion, led by a +53.2% leap in fuel costs to $1.05 billion, producing an operating loss of -$66 million, reversed from a +$64 million profit last year. Mainline traffic grew +4.4% to 19.92 billion (RPM)s on a +4.8% rise in capacity to 25.28 billion (ASM)s, resulting in a load factor of 78.8% LF, down -1.1 points. Yield increased +7.2% 13.45 cents as (RASM) lifted +7.1% to 11.93 cents, and (CASM) climbed +11.6% to 11.79 cents.
Promoted Diedra Fontaine to Director Diversity & Sales Development.
Delta Air Lines (DAL) and Northwest Airlines (NWA) announced a merger agreement to create a mega-airline, that would be the world's largest, absent divestitures with aggregate annual revenue of more than >$35 billion, a fleet of more than >800 airplanes and 75,000 employees worldwide. Delta Air Lines (DAL) and Northwest Airlines (NWA) announced a merger agreement to create a mega-airline, that would be the world's largest, absent divestitures with aggregate annual revenue of more than >$35 billion, a fleet of more than >800 airplanes and 75,000 employees worldwide. The merger agreement is likely to spark negotiations between Continental Airlines (CAL) and United Airlines (UAL) regarding a potential tie-up. (NWA)'s "golden share" in (CAL), which allows it to block its rival from entering into a merger, now can be bought back by (CAL) for $100. (UAL) repeatedly has voiced its support for industry consolidation.
The announcement of the merger agreement between Delta Air Lines (DAL) and Northwest Airlines (NWA) rippled across the USA commercial aviation landscape as the respective pilot (FC) groups took opposing sides and the identity of future consolidation candidates was scrutinized. Initially the principal roadblock to a (DAL)/(NWA) combination, the respective pilot (FC) groups represented by the Air Line Pilots Assn (ALPA) remained at odds, with the Northwest (NWA) Master Executive Council (MEC) announcing that it "strongly opposes the merger . . . as it stands." With Delta (DAL)'s approximately 6,000 pilots (FC) agreeing to new contract terms independently, the (NWA) (MEC) said its roughly 5,000 pilots (FC) "will be disadvantaged in obtaining a joint contract, and potentially in the seniority list integration process" and that without parity, they potentially could be "on a B-Scale for years." (MEC) Chairman, Dave Stevens said he met with (DAL) executives and unsuccessfully "suggested" they delay the merger announcement "and spend a short period negotiating a joint contract with a focus on their harmonization issues." Having previously rejected arbitration as a means to settle the seniority dispute, (DAL) pilots (FC) now favor the process, he said, and "may choose not to cooperate on a joint contract for the benefit of the Northwest (NWA) pilots (FC), while they seek an agreement on seniority that favors the Delta (DAL) pilots." He warned that "no pilot (FC) group is going to put up with this" and that "no amount of money can sustain a carrier which creates this level of discord . . . We will be turning our efforts to stopping this merger." Delta (DAL) pilots (FC) approved of the deal, saying that their new contract includes "improvements and financial returns for the value the pilots (FC)'s participation provides to the merger" and is a "far super solution" to the "traditional merger scenario."
The International Assn of Machinists (MT) and Aerospace Workers, which represents (NWA)'s 12,500 ground employees, said it opposed the merger on the grounds that failure would result in the liability for each airline's frozen, underfunded pension plans falling on the government's Pension Benefit Guaranty Corp. (NWA) cabin staff (CA) represented by the Assn of Flight Attendants-CWA will "demand an end to concessions and a stake in the merged [airline] equal to equity granted other labor groups." It did not oppose the combination but promised it would look to recover concessions granted during (NWA)'s bankruptcy and "immediately begin to seek to negotiate improvements to our collective bargaining agreement."
Meanwhile, the consolidation spotlight shifted toward United Airlines (UAL) and Continental Airlines (CAL), considered by many to be the candidates most likely to merge in the wake of this merger announcement. Merrill Lynch said that "all fingers are pointing to a Continental (CAL)-United (UAL) tie-up." (CAL) Chairman & CEO, Larry Kellner acknowledged that the (DAL)/(NWA) merger "will change the competitive landscape for Continental (CAL) and the entire airline industry" and that (CAL)'s "preference" to remain independent will be reviewed. (DAL)'s agreement with (NWA) will allow (CAL) to recover the latter's "golden share" and pursue its own combination. (UAL) Chairman, President & CEO, Glenn Tilton said "the old paradigms no longer apply" and echoed his support for industry consolidation.
While press reports and analysts said a (CAL)/(UAL) merger could come soon, the pilots (FC) from both carriers issued a joint statement warning that they will "not allow any merger unless management meets or exceeds our demands to be treated fairly and equitably."
Later, Continental Airlines (CAL) said it will not merge with another airline, squelching speculation that it was interested in a tie-up with United Airlines (UAL), which conversely said that it would "pursue all options" and reportedly is in talks with US Airways (AMW)/(USA) about a possible combination. The recent merger agreement announcement between Delta Air Lines (DAL) and Northwest Airlines (NWA) rendered (NWA)'s "golden share" in (CAL) void and allowed the Houston-based carrier to pursue a merger of its own. But in a weekend message to employees, Chairman & CEO, Larry Kellner said, "The best course for Continental (CAL) is to not merge with another airline at this time . . . The board very carefully considered all the risks and benefits of a merger with another airline, and determined that the risks of a merger at this time outweigh the potential rewards [of remaining independent]." Responded (UAL) Chairman, President & CEO, Glenn Tilton: "With Continental (CAL)'s announcement . . . the dynamics in the USA airline industry continue to evolve." He added that (UAL) management will do what is "right" for shareholders and employees. Tilton repeatedly has called consolidation a "strategic imperative" for the industry. (AMW)/(USA) also has been a strong proponent of consolidation and unsuccessfully attempted to acquire (DAL) last year. Neither carrier responded to widespread media reports that the two are in serious talks regarding a merger.
British Airways (BAB) issued a statement confirming that it is "exploring opportunities for cooperation with American Airlines (AAL) and Continental Airlines (CAL)" and that "further details will be announced when appropriate." (CAL) said two weeks ago that it was reconsidering its membership in SkyTeam (STM) and would examine other potential alliances as well as a merger. Over the weekend, (CAL) declined an offer to merge with United Airlines (UAL).
Unisys R2A Transportation & Management Consulting VP. Ron Kuhlman, a longtime industry observer, said that (CAL) was wise to shy away from the "crowd mentality" in favor of consolidation. "They have taken a step back and looked at the ramifications of a merger and said, 'Wait a minute, the current wisdom that bigger is better maybe is not true. Maybe being a smaller, nimble airline is actually better.'" He added that the history of airline mergers in the USA "is neither pretty nor enviable" and predicted a "very long period of instability" for (DAL) and (NWA) as they attempt to combine "significantly different cultures." Kellner said that despite high fuel prices and "tough times" for USA airlines, "we have great strengths," including solid hubs in Newark and Houston and a growing international presence, with a particularly strong Latin American network. "We fly the youngest, most fuel-efficient fleet [in the USA] and have the best new airplanes order book among the major network carriers," he added.
Continental Airlines (CAL) became the fifth major USA carrier to raise its fees for a second checked bag, announcing that economy class (Y) passengers who are not premium members of (CAL)'s "loyalty program" will pay $25 for the second piece, effective May 5. The policy applies to flights in the USA, Canada, Puerto Rico, and the USA Virgin Islands.
1 737-824 (32828, N77510), and 2 737-924ERs (33457, N37420; 37094, N27421), deliveries.
May 2008: Continental Airlines (CAL) reported an estimated +3% to +4% year-over-year increase in consolidated April (RASM). It flew 7.84 billion consolidated (RPM)s during the month, down -0.2% from the year-ago month. Capacity rose +3.4% to 9.86 billion (ASM)s, dropping load factor -2.9 points to 79.4% LF.
Continental Airlines (CAL) launched seasonal daily, Cleveland - Paris Charles de Gaulle, which will operate through September 1, aboard a two-class 757.
Continental Airlines (CAL) Executive VP & CFO, Jeff Misner will retire effective August 31 to be replaced by Senior VP Network Strategy, Zane Rowe. Misner has served as (CAL)'s CFO since 2001. He joined the company in 1995 as VP-Treasury Operations. Rowe, 37, has been with (CAL) since 1993, and has held his current post since September 2006.
Opposition from some quarters to potential moves by USA airlines in response to the recent Delta Air Lines (DAL)/Northwest Airlines (NWA) merger announcement, is fierce, with Virgin Atlantic Airways (VAA) vowing to fight a British Airways (BAB)/American Airlines (AAL)/Continental Airlines (CAL) transatlantic alliance and United Airlines (UAL)'s pilots (FC) expressing strong disapproval of management's reported merger negotiations with US Airways (AMW)/(USA).
(CAL) said that it has ruled out a merger, but the current SkyTeam (STM) member is on the outside looking in at a (DAL)-(NWA)-Air France (AFA)-(KLM) transatlantic alliance and, according to (BAB), is exploring the possibility of leaving SkyTeam (STM) and joining with (BAB) and (AAL) in those carriers' long-proposed transatlantic partnership.
Virgin (VAA) Group, Chairman, Richard Branson said that he would "fight tooth and nail" against such an alliance. "When (BAB) and (AAL) first tried to get together nearly 10 years ago, the regulators ruled it was against the consumer interest," he said. "A link-up between (BAB) and (AAL) is still anticompetitive, and now they have the cheek of trying to add Continental (CAL) to the mix too. This triple whammy would reduce effective competition across the Atlantic and the regulators should make it absolutely clear that it would have no chance of getting off the starting grid."
Meanwhile, a possible (UAL)-(AMW)/(USA) combination, apparently being explored in the aftermath of the (DAL)-(NWA) announcement, would have to overcome considerable misgivings by pilot (FC) groups. (USA) still is struggling to integrate former America West Airlines (AMW) and former US Airways (USA) pilots (FC) into one group, creating a problematic East-West split among its flight deck (FC) crews. Air Line Pilots Assn (ALPA) (UAL) (MEC) Chairman, Steve Wallach said in a statement that a merger with (AMW)/(USA_ "would be extremely negative," adding: "Continued difficulties [after more than two-and-a-half years] associated with [(AMW)-(USA)] pilot (FC) seniority integration are well chronicled. Even those reports grossly underestimate the complexity of seniority integration, which likely will not be solved without years of litigation. US Airways (AMW)/(USA)'s pilot (FC) integration problems have created a toxic stew, as any carrier that seeks to merge with it will quickly discover." (AMW)/(USA) pilots recently rejected (ALPA) representation over frustration with the union's lack of progress in negotiations with management.
(CAL) hired 4 pilots (FC) in April; is hiring 2 pilots (FC) in May. (CAL) is is no longer interviewing. The carrier is still accepting resumes through http://www.airlineapps.com.
2 737-824s (33458, N87512; 33459, N78511), and 737-924ER (31620, N37422), deliveries.
June 2008: Following in the footsteps of United Airlines (UAL) and American Airlines (AAL), Continental Airlines (CAL) became the latest USA carrier to announce a major downsizing, revealing plans to retire 67 737s, lower 2008 fourth-quarter mainline domestic capacity by -11% and reduce its workforce by -3,000. In a message to employees, Chairman & CEO, Larry Kellner and President, Jeff Smisek said, "The airline industry is in a crisis. Its business model doesn't work with the current price of fuel and the existing level of capacity in the marketplace. We need to make changes in response." (CAL) will retire 24 737-300s and 13 737-500s by year end and an additional 23 737-300s and seven 737-500s in 2009. By year end 2009, it no longer will operate 737-300s and will fly just 35 737-500s. It cited the lack of fuel efficiency of the older 737s compared to newer versions, as a main reason for the groundings. It will operate 149 737-800s/-900s at year end, and is scheduled to take delivery of 18 737-900ERs in 2009. "Overall fuel efficiency will improve measurably" with the shift away from 737 Classics to 737NGs, it said.
Mainline system capacity will be down -6.8% year-over-year in the 2008 fourth quarter with international capacity, which it had been growing, lowered -1.6%. Mainline capacity will be reduced by an additional -0.7% to -2.7% in 2009, with domestic (ASM)s down -3.4% to -5.4%, and international (ASM)s flat to up 2%.
Continental Airlines (CAL) announced a public offering of 11 million shares of class "B" common stock priced at $14.80 per share. It granted underwriter UBS Investment Bank a 30-day option to purchase an additional 1.65 million shares to cover any overallotments. Issuance and delivery of the shares is scheduled for June 25.
Kellner and Smisek, who will decline their salaries and incentive payments for the remainder of the year, insisted they would "do our best to minimize furloughs and involuntary terminations" and hope most job cuts are able to be achieved via "voluntary programs." It said jobs and destinations will begin to be cut in September following the summer peak season, though some management-level job reductions could come sooner. "Although these changes will be painful, we must adapt to the reality of today's market," Kellner and Smisek said, adding that the moves announced "are necessary to secure our future." United Airlines (UAL earlier said it was lowering its cumulative 2008 TO 2009 mainline capacity by -17% to -18% and (AAL) said last month it would park "at least" 75 airplanes this year.
Continental Airlines (CAL) detailed route closures stemming from its decision to downsize, leading to a mainline system capacity reduction of -6.8% year-over-year in the fourth quarter. From September 3, it will discontinue a number of routes. Most prominently, it will stop flying Houston Intercontinental (IAH) - Washington Dulles (IAD), (IAH) - Oakland, Newark (EWR) - Cologne/Bonn, (EWR) - Salt Lake City, Cleveland (CLE) - (IAD), and Guam - Bali. Other destinations it will stop serving from its (IAH) hub, include Cali, Chattanooga, Guayaquil, Hartford, Monclova, Montgomery, Palm Springs, Reno, Sarasota, and Tallahassee. It also will cease flying from (CLE) to Austin, Birmingham, Charleston (South Carolina), Charleston (West Virginia), Cincinnati, Des Moines, Detroit, Green Bay, Greensboro, Lexington, Little Rock, Memphis, Nashville, Norfolk, Oklahoma City, Omaha, Ottawa, San Antonio, San Diego, Sarasota, Savannah, Toledo, and Tulsa.
Continental Airlines (CAL) and United Airlines (UAL) signed a "framework agreement to cooperate extensively, linking their networks and services worldwide," and (CAL) revealed that it will leave SkyTeam (STM) to join the Star Alliance (SAL), with (UAL) and (CAL) planning to form joint venture operations with other Star (STM) carriers for transatlantic services, as well as flights to Latin America and Asia.
Both airlines recently said they would not enter into any merger agreements and both will remain independent and retain their brands. But the pact goes "well beyond a traditional codeshare agreement," (UA L) Chairman, President & CEO, Glenn Tilton said. It will include "significant cooperation" on frequent-flier programs, airport lounges, facility utilization, information technology (IT), and procurement, the carriers said. The deal stems from "efficiency opportunities identified and relationships developed during the parties' earlier merger discussions," the airlines said. Domestically, (CAL) and (UAL) plan "a coordinated process for reservations/ticketing, check-in, flight connections, and baggage transfer."
(CAL) said it will ask the USA Department of Transportation (DOT) to allow it to join (UAL), Lufthansa (DLH), Air Canada (ACN), and six other Star (STM) carriers in an already-established antitrust-immunized alliance. "This will enable Continental (CAL) . . . to establish transatlantic and other international joint ventures" with Star (STM) members, that will include pooled revenue, it said. Joint ventures also are planned for Latin America and Asia.
(CAL) has been considering leaving SkyTeam (STM), since Delta Air Lines (DAL) and Northwest Airlines (NWA) announced a merger agreement. It explored partnering with Oneworld (ONW)'s British Airways (BAB), and American Airlines (AAL). "In a network business, there is significant value gained from linking with larger networks to provide truly national coverage and expanded global reach," (CAL) Chairman & CEO, Larry Kellner said. He and Tilton met in Chicago to sign a framework accord outlining a "systemwide alliance and cooperation principles," the carriers said. Both antitrust immunity and codesharing agreements are subject to approval by applicable USA and foreign government agencies. "Continental (CAL) intends to terminate its existing agreements with SkyTeam (STM) members . . . although Continental (CAL) may not be successful," (CAL) cautioned.
(UAL) and (DAL) attempted to form a similar extensive cooperation agreement in 1998, but the deal died in the face of strong opposition by the Air Line Pilots Association (ALPA). They formed a more limited marketing partnership that ended in 2003.
The USA and Brazil announced an enhanced air services agreement that will provide for a nearly +50% increase in passenger flights between the countries, while eliminating restrictions on the number of airlines that can fly the routes. "This agreement will help air carriers meet the growing demand for passenger and cargo services between the USA and Brazil," USA Secretary of Transportation, Mary Peters said. "Now more than ever, it is crucial that we give USA carriers every possible opportunity to compete and succeed wherever passengers want to fly." The previous agreement allowed only four airlines from each country to fly to the other, while the new deal removes those limits. In addition, the number of permissible weekly flights between the nations will increase in four stages to 154 from the current 105 between next month and October 2010.
USA carriers will gain access to Fortaleza, Curitiba, and three additional new cities to be selected by USA authorities. At present, American Airlines (AAL), Continental Airlines (CAL), Delta Air Lines (DAL), and United Airlines (UAL) fly to Sao Paolo and Rio de Janeiro Galeao. USA and Brazilian carriers also now will be permitted to provide certain codeshare services with partners from third countries.
Weekly cargo flights will increase to 35 from 24 immediately, and to 42 in 2010, while the number of cargo charters allowed, also will rise. USA cargo companies now will be permitted to transfer freight from airplanes to ground vehicles for home and office delivery in Brazil. The terms of the agreement will be applied on a reciprocal basis until it enters into force.
Continental Airlines (CAL) pilots (FC) represented by the Air Line Pilots Association announced an agreement with (CAL) management, that will reduce the number of layoffs due to recently announced capacity cuts. The union said the parties "resolved the need for staffing reductions by using a combination of voluntary programs" comprising an enhanced retirement window, company-offered leaves of absence and voluntary reduced flying. In addition, a systemwide change in schedule rules will reduce flight time and save -100 to -150 jobs. Pilots (FC) have until early August to decide whether to participate in the voluntary programs.
Continental (CAL) hired 2 pilots (FC) in May. (CAL) is is no longer interviewing. The carrier is still accepting resumes through its http://www.airlineapps.com.
737-824 (31621, N87513), and 3 737-924ERs (32829, N39423; 33460, N75425; 37095, N38424), deliveries.
July 2008: Continental Airlines (CAL) flew 8.63 billion consolidated (RPM)s traffic in June, a -0.1% slip from the year-ago month. Capacity rose +2.5% to 10.32 billion (ASM)s, dropping load factor -2.1 points to 83.6% LF. June consolidated (RASM) rose an estimated +4% to +5% year-over-year.
Continental Airlines (CAL) said it expects to make an announcement regarding special charges recorded for the recently completed quarter related to the capacity reductions planned for the second half of this year, plus "other special items" recorded during the second quarter related to gains on the sale of its stake in Copa (COP) Holdings and other moves.
Continental Airlines (CAL) said it will report a +$22 million special gain when it announces its second-quarter results. The gain is the result of a variety of special items. (CAL) took a $58 million charge representing impairment charges recorded for owned airplanes and related spare parts, including a $51 million writedown in the value of its 737-300/-500 airplanes and related assets. It reported a +$78 million gain on the $149 million May sale of its remaining stake in Copa (COP) Holdings, a $29 million writedown in the value of student loan-related auction rate securities, and a noncash income tax credit of $28 million.
Continental Airlines (CAL) escaped the second quarter in far better financial shape than rivals American Airlines (AAL) and Delta Air Lines (DAL), reporting a -$3 million net loss, that compared to a +$228 million profit in the year-ago period.
While (AAL) and (DAL) were hit hard by impairment charges and reported a combined second-quarter net loss of -$2.49 billion, (CAL) benefited from $22 million in special gains driven by income related to the sale of its stake in Panama's Copa Holdings (COP). It lost -$25 million excluding the gain. "Despite solid operational and financial performance, we were unable to generate enough revenue to keep pace with the stratospheric increase in fuel prices," President, Jeff Smisek said. "We will continue to take actions to increase our revenue and decrease our costs, while preserving our culture and core product integrity."
Second-quarter revenue climbed +9% year-over-year to $4.04 billion against a +19.4% surge in costs to $4.12 billion. Fuel rose +60.2% to $1.36 billion. Operating loss of -$71 million compared to a profit of +$263 million in the second three months of 2007. (CAL) has hedged approximately 63% of its second-half fuel requirements.
The company flew 24.75 billion consolidated (RPM)s traffic during the quarter, up +0.5%, while capacity grew +2.7% to 30.38 billion (ASM)s. Load factor was down -1.8 points to 81.4% LF. Yield climbed +7% to 14.75 cents and unit revenue rose +4.6% to 12.01 cents.
Capacity reductions scheduled to be implemented from September will result in approximately -3,000 layoffs and a -6.7% fall in consolidated fourth-quarter (ASM)s. (CAL) took delivery of six 737-900ERs and four 737-800s during the quarter and plans to remove 27 737-300s/-500s from service in September.
For the first half of 2008, net loss of -$83 million represented a reversal from a +$250 million surplus in the year-ago period. Operating result swung to a -$137 million loss from a +$327 million profit.
United Airlines (UAL) and Continental Airlines (CAL) pilots (FC) released a joint statement in which they pledged to "align efforts" as the carriers move toward implementing an operating alliance. (UAL) and (CAL) decided against a merger but instead have announced plans "to cooperate extensively, linking their networks and services worldwide." Both pilot (FC) groups are represented by the Air Line Pilots Association (ALPA). (UAL) and Delta Air Lines (DAL) attempted to form an extensive cooperation agreement in 1998, but the deal died in the face of strong (ALPA) opposition.
The six largest USA network carriers announced a partnership with Sojern Inc, an Omaha company funded by Norwest Venture Partners and Trident Capital, that will offer advertising on boarding passes. Delta Air Lines (DAL) launched the service for passengers flying to Las Vegas and "shortly" will roll it out to its remaining domestic gateways. "With millions of our passengers checking in online . . . the boarding pass becomes an increasingly valuable tool for sharing relevant, timely offers and destination-specific content with our customers before they travel," (DAL) General Manager Global Partnerships, Marc Ferguson said. American Airlines (AAL), Continental Airlines (CAL), Northwest Airlines (NWA), United Airlines (UAL) and US Airways (AMW)/(USA) will roll out the service before year end. Sojern Founder Gordon Whitten said passengers have indicated that they "love the concept" and that "advertisers are also clamoring to get involved." It confirmed that individual airlines will continue to operate and develop their respective websites, while Sojern will provide the advertising and other "content" directly on the boarding passes. Content will include items such as destination-specific weather forecasts, restaurants "that fit [passengers'] budget and lifestyle," event schedules and targeted advertising. The carriers will hold an equity stake in Sojern. (AMW)/(USA) VP Sales & Marketing, Travis Christ said Sojern "has found the right formula" for the project.
Eight years to the month after the crash of an Air France (AFA) Concorde began the countdown to the end of the age of supersonic air travel, a French judge ruled that five individuals as well as Continental Airlines (CAL) should stand trial for manslaughter in the disaster. The decision, announced by the prosecutor's office in the Paris suburb of Pontoise, did not specify when the trial will start.
All 109 people onboard AF4590 and four persons on the ground were killed in the July 25, 2000, accident at Paris Charles de Gaulle. The crash occurred after debris from a burst tire punctured the Concorde's wing tank, causing fuel to escape and ignite as the airplane was taking off. It briefly became airborne before crashing into a hotel. It later was determined that the tire burst after the airplane ran over a strip of titanium believed to have fallen off a (CAL) DC-10 that took off ahead of Concorde. According to "Agence France Presse," those going to trial are Henri Perrier, 79, Director of the first Concorde Program at Aerospatiale in 1978 through 1994; Jacques Herubel, 73, Concorde's Chief Engineer in 1993 to 1995; and Claude Frantzen, 71, Technical Services Director at the French DGAC in 1970 through 1994. Also named were John Taylor, a (CAL) mechanic (MT) who allegedly installed the suspect titanium strip, and Maintenance Chief, Stanley Ford.
In a statement, (CAL) said, "These indictments are outrageous and completely unjustified. Continental (CAL) remains firmly convinced that neither it nor its employees were the cause of the Concorde tragedy and we will defend ourselves vigorously against these charges." Citing the pending litigation, (CAL) declined to confirm the identity or employment status of Taylor or Ford.
Following the accident, UK and French aviation authorities grounded the Concorde fleet until modifications could be made to reduce its vulnerability to such events, which had been a chronic problem, including a "potentially catastrophic" double tire burst in 1979, according to the USA National Transportation Safety Board. The airplane reentered service with British Airways (BAB) and Air France (AFA) in 2001, but "9/11" and the bursting of the "dot.com" bubble spelled doom and they were retired in 2003. In announcing the 2001 grounding, (UKCAA) Chairman, Malcolm Fields stated, "It is clear to all of us in the (UKCAA) that a tire burst alone should never cause the loss of a public transport airplane."
Sensis Corp announced that its Aerobahn Service is now operational with Continental Airlines (CAL) at Houston Intercontinental (IAH). Sensis said the Web-based service provides (CAL) with "real-time situational awareness into their hub operation at (IAH) by integrating flight schedule and operational data with Sensis' Multistatic Dependent Surveillance ground surveillance." (CAL) already uses Aerobahn at Newark.
Goodrich (BFG) extended its landing gear overhaul agreement with Continental Airlines (CAL) to cover 737NG, 767 and 777 airplanes in addition to the 757-200s and 737s already under contract. Addendum is expected to generate +$49 million in revenue over five years. The work will take place in Opa-Locka, Florida.
August 2008: 1st 6 months = 67.48 billion (RPK)s traffic - - see "CAL-08TOPWLD6MTHSRPK."
Continental Airlines (CAL) reported a July consolidated (mainline plus regional) load factor of 84.2% LF, -2.2 points below the July 2007 consolidated load factor, and a mainline load factor of 85.3% LF, -1.7 points below the July 2007 mainline load factor. In addition, the carrier reported a domestic mainline July load factor of 85.5%, -2.5 points below the July 2007 domestic mainline load factor, and an international mainline load factor of 85%, -1.0 point below July 2007. During the month, (CAL) recorded a USA Department of Transportation on-time arrival rate of 76.1% and a mainline segment completion factor of 99.1%. In July 2008, (CAL) flew 9.2 billion consolidated revenue passenger miles (RPMs) and 10.9 billion consolidated available seat miles (ASMs), resulting in a consolidated traffic increase of +1.6% and a capacity increase of +4.3% as compared to July 2007. In July 2008, Continental flew 8.3 billion mainline (RPM)s and 9.7 billion mainline (ASM)s, resulting in a mainline traffic increase of +1.1% and a mainline capacity increase of 3.2% as compared to July 2007. Domestic mainline traffic was 4.2 billion (RPM)s in July 2008, down -1.7% from July 2007, and domestic mainline capacity was 4.9 billion (ASM)s, up 1.2% from July 2007. For July 2008, both consolidated and mainline passenger revenue per available seat mile (RASM) are estimated to have increased between +4.5% and 5.5 % compared to July 2007. For June 2008, consolidated passenger (RASM) increased +4.1% compared to June 2007, while mainline passenger (RASM) increased +3.5% compared to June 2007.
Continental Airlines (CAL) began selling seats for its new Newark - Shanghai 777-200 service that begins in March 2009. (CAL) has
served Hong Kong from Newark since 2001 and Beijing from Newark since 2005. China Eastern (CEA) is the only other airline flying between New York and Shanghai, but it only does so three times per week (with A340-600s). That’s remarkable considering each city is the respective financial capital of the two most important economies in the world.
Continental Airlines (CAL) is the world's fifth largest airline. (CAL), together with Continental Express and Continental Connection, has more than >3,000 daily departures throughout the Americas, Europe, and Asia, serving 140 domestic and 139 international destinations. More than >550 additional points are served via the SkyTeam (STM) alliance airlines. With more than >46,000 employees, (CAL) has hubs serving New York, Houston, Cleveland, and Guam, and together with Continental Express, carries approximately 69 million passengers per year.
Exits Houston - Guayaquil service.
B/E Aerospace subsidiary, FSI won USA (FAA) Supplemental Type Cetificate (STC) status for retrofit installation of its Door 3 Overhead Attendant Crew Rest (OHAR) on Continental Airlines (CAL)'s 777-200s. The (OHAR) is 800 lbs lighter than the Lower Lobe Crew Rest it replaces, and is expected to generate revenue through additional seat and cargo capacity. Installation will take place in Hong Kong.
Continental (CAL) will eliminate -500 pilot (FC) positions. The carrier hopes to reduce the number of pilots (FC) placed on furlough through voluntary leaves of absences and early retirements.
September 2008: Continental Airlines (CAL) reported an estimated 4.5% to 5.5% year-over-year increase in August consolidated (RASM). It flew 9.14 billion (RPM)s traffic during the month, up +0.7%, against a +2.4% rise in capacity (ASM)s to 10.89 billion. Load factor fell -1.4 points to 83.9% LF.
Continental Airlines (CAL) expects to record a -$50 million hit on its third-quarter operating results, owing to the impact of Hurricane Ike on its operation at its Houston Intercontinental (IAH) hub. It reported the "preliminary estimate" in a filing with the USA Securities and Exchange Commission. (CAL) suspended service at (IAH) beginning midday September 12 and recommenced September 15. It noted that much of Houston was without power the following week.
Continental (CAL) managed to obtain slots for a third daily frequency to London Heathrow from Newark. At the same time, it’s discontinuing all service to London Gatwick, which it currently serves from Newark and Houston. The changes take effect late next month. (CAL), also
codeshares with Virgin Atlantic (VAA) on some flights to Heathrow, and the new frequency may help diminish regulatory resistance to the proposed British Airways (BAB) - American Airlines (AAL) alliance.
Continental (CAL) is also adding more service to Brazil, following the lead of other USA airlines like American (AAL), Delta (DAL), and Spirit (SPR). Thrice-weekly, 767-400 flights between Houston and Rio de Janeiro will operate just during the peak mid-December through February season. Rio is best known for its beaches and beautiful scenery, but it’s also an oil market. The city is home to "Petrobras," one of the world’s largest oil companies.
Continental (CAL) has 148 pilots (FC) on furlough status.
(CAL) followed other USA majors and announced that it will begin charging $15 for the first checked bag for economy (Y) passengers paying less than full fare, flying within North America. The fees will be applied beginning October 7. (CAL) also said that from January 1, it no longer will credit frequent fliers 500 miles for flights shorter than 500 miles, instead crediting them with the actual mileage flown. (CAL) was not the only USA carrier to revise its baggage policy, as Sun Country Airlines (SCA) said it will begin charging $12 for the first checked bag for all economy (Y) passengers for travel on or after October 1.
Continental Airlines (CAL) launched a PayPal payment option for reservations made on (CAL)'s website.
October 2008: Continental Airlines (CAL) reported a September consolidated (mainline plus regional) load factor of 76.5% LF, -2.5 points below the September 2007 consolidated load factor, and a mainline load factor of 77.4% LF, -1.8 points below the September 2007 mainline load factor. In addition, the carrier reported a domestic mainline September load factor of 78.5%, -2.6 points below the September 2007 domestic mainline load factor, and an international mainline load factor of 76.3% LF, -0.9 points below September 2007.
During the month, (CAL) recorded a USA Department of Transportation (DOT) on-time arrival rate of 82.1% and a mainline segment completion factor of 94.4%. (CAL)'s operational performance was negatively impacted by Hurricane Ike in mid-September.
In September 2008, Continental flew 6.5 billion consolidated revenue passenger miles (RPMs) traffic and 8.5 billion consolidated available seat miles (ASMs) capacity, resulting in a consolidated traffic decrease of -10.9% and a capacity decrease of -8.1%, as compared to September 2007. In September 2008, Continental flew 5.8 billion mainline (RPM)s and 7.5 billion mainline (ASM)s, resulting in a mainline traffic decrease of -10.9% and a mainline capacity decrease of -8.8% as compared to September 2007. Domestic mainline traffic was 2.9 billion (RPM)s in September 2008, down -16.2% from September 2007, and domestic mainline capacity was 3.7 billion (ASM)s, down -13.4 percent from September 2007. (CAL) ended the third quarter with an unrestricted cash, cash equivalents and short-term investments balance of approximately $2.76 billion. This balance excludes all student loan-related auction rate securities.
Continental Airlines (CAL) reported a third-quarter net loss of -$236 million, reversed from a +$241 million profit in the year-ago period, and announced that it has pushed back delivery of 18 airplanes scheduled to arrive over the next two years. Two 777s will be delivered in 2010 instead of 2009, and 16 737NGs slated for 2009 through 2010, have been deferred to 2011 and beyond, with no new schedule set. (CAL) still is scheduled to take delivery of 14 737NGs next year, though executives concede that the Boeing (TBC) machinists (MT) strike could push some of those back as well.
Chairman & CEO, Larry Kellner called the delayed deliveries "prudent moves in uncertain times" and said the carrier is hunkering down for a difficult period. "We know that demand for air travel will be adversely affected by the recession," he told analysts and reporters.
(CAL) CEO, Larry Kellner recently discussed some of the difficulties the aviation industry has faced this year, and what's in store for (CAL) moving forward. In response to questions about whether airlines will lower fares now that oil prices have come down, Kellner said, "If you look at history, as the economy softens you tend to see more fare sale activity. We'll have to see what happens this time." Continental will continue to differentiate its product with free meals and pillows, he said, though competitive pressures forced the carrier to adopt menu pricing for checked bags and other items. As for Continental merging with another carrier, Kellner insisted it's not in the cards. "It's not just a spreadsheet analysis," he said. "There are huge people impacts and huge customer impacts."
(CAL)'s fourth-quarter mainline capacity will be down -7.8% (ASM) year-over-year including a -11% domestic cut. Full-year 2009 mainline capacity is expected to decline another -1% to -3%, compared to this year including a -4% to -6% domestic down-gauge. Kellner said the cuts provide a "cushion" against likely reduced demand.
(CAL)'s third-quarter revenue increased +8.8% year-over-year to $4.16 billion, while expenses jumped +21.7% to $4.31 billion, including a +67.7% leap in fuel costs to $1.5 billion, producing an operating loss of -$152 million, reversed from an operating profit of +$280 million last year. (CAL) said last month's Hurricane Ike adversely affected operating results by -$50 million.
Mainline traffic dropped -2.5% to 22.32 billion (RPM)s on a -0.9% fall in capacity to 26.91 billion (ASM)s, producing a load factor of 82.9% LF, down -1.4 points. Yield improved +9.8% to 14.1 cents as (RASM) rose +9.6% to 13.07 cents, and (CASM) heightened +21.6% to 13.19 cents. (CASM) excluding fuel, lifted +0.7% to 7.61 cents.
Kellner noted that (CAL) is focused on its transition from SkyTeam (STM) to the Star Alliance (SAL), as part of its partnership with United Airlines (UAL), and believes the shift can be completed by the 2009 fourth quarter.
(CAL) is the world's fifth largest airline. (CAL), together with Continental Express and Continental Connection, has more than >2,500 daily departures throughout the Americas, Europe and Asia, serving 122 domestic and 120 international destinations. More than >550 additional points are served via the SkyTeam (STM) alliance airlines. With more than >44,000 employees, (CAL) has hubs serving New York, Houston, Cleveland and Guam, and together with Continental Express, carries approximately 69 million passengers per year.
Continental Airlines (CAL) will operate seasonal thrice-weekly, Houston Intercontinental - Rio de Janeiro Galeao on December 17 through February 28 aboard a 767-400.
737-824 (37096, N76516), delivery - SEE PHOTO - - "CAL-737-824-OCT08."
November 2008: 1st 6 months = 65.44 billion (RPK)s traffic (+2.41%); +3.85% (ASK)s; 80.7% LF (-1.1); 622.9 million (FTK)s (+2.77); 24.28 passengers (-.44%).
Delta Air Lines (DAL) has filed a protest with the Department of Transportation (DOT), seeking to block Continental Airlines (CAL) from gaining antitrust immunity for its planned alliance with United Airlines (CAL) and Lufthansa (DLH). (DAL) claimed in its filing that the alliance would allow (CAL) to dominate routes to Brazil and China, but (CAL) insists that its application is based on a desire to deepen its relationship with the other two carriers. The application awaits (DOT) approval.
December 2008: Continental Airlines (CAL) said November consolidated (RASM) rose +1% to +2% year-over-year, and mainline unit revenue climbed +2% to +3%. It flew 6.58 billion consolidated (RPM)s traffic last month, down -10.5%, against a -7.3% fall in (ASM)s capacity to 8.51 billion. Load factor dropped -2.8 points to 77.3% LF.
(CAL) completed installation of Panasonic eFX on-demand in-flight entertainment (IFE) systems in the economy (Y) cabins of its 39 757-200s. All airplanes will be in service by December 23. In-seat power ports also were installed. (IFE) installations continue on (CAL)'s 777s, with 14 of 20 airplanes outfitted and the remainder scheduled to be complete by May. (CAL) also announced an agreement with LiveTV allowing it to offer 80 channels of DirectTV programming throughout its 737NG and 757-300 fleets. The first airplane featuring LiveTV will enter service in February.
(CAL) announced that a new daily, Houston Intercontinental (IAH) - Frankfurt service will launch November 1, 2009, aboard a 174-seat 767-200. It will be (CAL)'s fourth European destination from (IAH).
(CAL) announced plans for a biofuel demonstration flight on January 7 in conjunction with Boeing (TBC), (CFM) International, and Honeywell (SGC), the first of its kind by a USA airline. A 737-800 carrying no passengers "will be powered by a special fuel blend, including components derived from algae and jatropha plants," (CAL) said, calling the fuel sources "sustainable, second-generation . . . that don't impact food crops or water resources, and don't contribute to deforestation." Sapphire Energy will provide the algae-based fuel and Terrasol will supply the jatropha-derived fuel. The fuel used in one of the 737's two (CFM56-7B) engines will be a blend of 50% traditional jet fuel and 50% biofuel. "This flight represents another step in (CAL)'s commitment to reducing carbon emissions and identifying sustainable, long-term fuel solutions for the aviation industry," Chairman & CEO, Larry Kellner said. (CAL) said that it has worked with Boeing (TBC), Honeywell (SGC) refining technology developer (UOP) and (CFM) for more than nine months on the research, production and testing of the biofuel, including laboratory and ground-based jet engine performance testing.
ACCDT: (CAL) 737-500 (/72) (CFM56-3C1) Flight 1404 with 5 (FC)/(CA)/110 passengers on board crashed on takeoff from Denver International Airport, did not get airborne, veered off the runway into a ravine 2,000 feet from the end of the runway, and caught fire on the right hand side. 38 people suffered injuries including broken bones. Two people who had been in critical condition were upgraded, one to serious and one to fair. The 737-500 fuselage was partially buckled and one engine and part of its landing gear ripped off. SEE ATTACHED PHOTO - - "CAL-ACCDT-DEC08."
Later, five passengers remained in the hospital as the USA National Transportation Safety Board (NTSB)'s "Go Team" continued to investigate the crash. The 737-500 was damaged beyond repair (W/O). The left engine separated from the wing, the undercarriage collapsed and passengers were evacuated via slides as the airplane's right side burned.
USA (FAA) records show the same airplane made an emergency landing at (DEN) in 1995 following an engine failure. No injuries were reported and the engine was replaced.
The (FAA) said winds at (DEN) were 31 mph and weather was described as clear. Five of the airport's six runways were open the next day.
According to press reports, investigators are looking into a "rattling" sound on the cockpit recorder that began 41 seconds after the brakes were released and the airplane started down Denver International's 12,000-ft Runway 34R. Four seconds later, one member of the cockpit crew (FC) called for an abort and both thrust reversers were activated. At that point, the 737 had traveled an estimated 2,000 to 2,500 ft, according to reports. At 51 seconds, the recording stopped. (CAL) Flight 1404 was headed to Houston Intercontinental with 110 passengers and five crew. Five occupants were hospitalized overnight, including Captain David Butler, according to the "Houston Chronicle." Butler has been with (CAL) for 11 years.
A USA (NTSB) spokesperson told reporters that no problems have been found so far with the airplane's engines, brakes or tires. "The brakes showed no leaks, no locked brakes," the spokesperson said, according to (CNN), adding that the pads "looked good." According to the "Associated Press," an (NTSB) interview with the copilot (FC) indicated that the airplane drifted from the runway's center as it reached 103 mph. Winds reportedly reached 31 mph, but the spokesperson said the wind was not discussed in the cockpit.
Later, it was stated that the (CAL) 737-500 suffered a ruptured fuel tank in the right wing, causing fuel to spill onto the engine, (NTSB) investigators said, according to the "Rocky Mountain News."
The (NTSB) in a preliminary report offered no scenarios to explain what factors may have caused this accident (ACCDT). The airplane was destroyed (W/O) when it veered from the left side of the runway on its takeoff roll, crashing into a ravine and catching fire, injuring 38. The (NTSB) said the runway "was bare and dry and free of debris." Winds of 24 kt gusting to 32 kt were reported, noting that otherwise the weather was good. "Both pilots (FC) remarked that all appeared normal until the airplane began to deviate from the runway centerline. The Captain (FC) noted that the airplane suddenly diverged to the left, and attempts to correct the deviation with the rudder were unsuccessful." The (NTSB) said that physical inspection of the engines and information from the (FDR) "has not indicated any evidence of pre-impact malfunctions with either engine" and that a preliminary examination of the rudder system "revealed no abnormalities or malfunctions."
The following is a report issued in July 2010:
The probable cause of the December 2008 runway overrun of a Continental Airlines (CAL) 737-500 at Denver International was "the captain (FC)'s cessation of right rudder input, which was needed to maintain directional control of the airplane, about four seconds before the excursion," the USA National Transportation Safety Board (NTSB) concluded.
The 737-500 en route to Houston Intercontinental veered from Runway 34R while on its takeoff roll, crossed a field and a taxiway, careened down a 40-ft hill and caught fire after it encountered a "strong and gusty crosswind that exceeded the captain's training and experience," according to the (NTSB). The captain (FC) and five of the 110 passengers on board were seriously injured in the accident.
Contributing to the December 20, 2008, accident was an Air Traffic Control (ATC) system "that did not require or facilitate the dissemination of key, available wind information to…controllers and pilots (FC)," the (NTSB) said. It added that "inadequate crosswind training" by airlines owing to "deficient simulator wind gust modeling" also was a factor.
The (NTSB) said, "The captain (FC)'s use of tiller and full right control wheel in the 3 seconds before the excursion likely resulted from acute stress stemming from a sudden, unexpected threat, perceived lack of control, and extreme time pressure."
Among other recommendations, the (NTSB) asked the (FAA) to gather data on crosswinds at various airports including those like Denver International airport (DEN) "located downwind from mountainous terrain." It said the (FAA) should use the data to develop "realistic, gusty crosswind profiles" for airports and then establish a standard for "empirically embraced, type-specific maximum gusting crosswind limitations for transport category airp[lanes." The (FAA) should require manufacturers to assign each airplane type a maximum crosswind standard, the (NTSB) said, adding that in the meantime manufacturers should provide "interim crosswind takeoff guidelines."
4 737-2TOs (23670; 23588; 23589; 23590), returned to lessor. 2 737-524s (28927; 28928) sold.
January 2009: Continental Airlines (CAL) said December consolidated (RASM) rose +3.5% to +4.5% year-over-year. Traffic fell -6.7% to 7.11 billion (RPM)s against a -8.1% decline in capacity to 8.9 billion (ASM)s. Load factor rose +1.2 points to 79.9% LF.
(CAL) said it will report $234 million in special charges for the full year, including $170 million in the fourth quarter, when it releases its 2008 financial results on January 29. Full-year charges comprise $52 million related to pension plan settlement charges, $40 million resulting from the grounding and sale of owned and leased 737s, $34 million in severance, $55 million in route impairment expenses, a -$125 million fuel hedge loss and a $34 million write down in the value of auction rate securities. The full-year total was affected by a $78 million gain from the sale of its remaining interest in Copa (COP) Holdings and a $28 million income tax credit.
(CAL) reported a 2008 net loss of -$585 million, reversed from a profit of +$459 million in the year-ago period, citing a deteriorating demand environment, a severe and "unprecedented" December winter storm at its Houston Intercontinental hub and special charges related to fuel hedging contracts and pension settlements.
(CAL) said it would have posted a net loss of -$351 million absent special charges, which included $125 million related to a fuel hedging contract with bankrupt Lehman Brothers and $52 million related to pension settlements. (CAL) stated that it will operate is last flight as a member of SkyTeam (STM) on October 24 and "anticipates that participation in Star (SAL) [Alliance] will begin promptly after we leave SkyTeam (STM)."
(CAL) said that international premium class demand is suffering, particularly on transatlantic flights, with "many business (C)-class passengers appearing to have shifted from the front to the back of the airplane," President & COO, Jeff Smisek told analysts and reporters. Forward bookings are down -6% to -7% on transatlantic flights and also are declining on flights to other regions, he said. "Our international business is still pretty solid, it's just not as profitable as it used to be," Chairman & CEO, Larry Kellner conceded.
Full-year revenue rose +7.1% to $15.24 billion, while expenses increased +14.8% to $15.56 billion, producing an operating loss of -$314 million, reversed from an operating profit of +$687 million in 2007. Mainline traffic dropped -1.8% to 82.81 billion (RPK)s on a -0.6% cut in capacity to 102.53 billion (ASM)s, sending load factor down -0.9 point to 80.8% LF. Yield lifted +7.4% to 13.75 cents as (RASM) rose +7.4% to 12.51 cents and (CASM) jumped +14.9% to 12.44 cents.
(CAL) plans to reduce mainline capacity -3.5% to -4.5% in 2009, representing a -6% to -7% domestic cut and a -1% to -2% international drop. Kellner said it may be forced to make further reductions owing to "a tremendous amount of uncertainty."
(CAL) will retire 67 737-300s/-500s by year end and will take delivery of 13 737-900ERs this year and another 11 737NGs in 2010. (CAL) also will take two 777s in 2010 and has reached a deal with Boeing Capital Corporation (TBC) to lease four 757-300s, three of which will be placed into service in the first half of next year.
A (CAL) 737-800 took off from Houston Intercontinental and flew for approximately 1 hour 45 minutes with the No 2 (CFM56-7B) powered by a biofuel blend, including algae oil supplied by Sapphire Energy and jatropha oil provided by Terasol Energy. The flight follows Air New Zealand (ANZ)'s 747-400 test flight last month that featured one engine powered by a jatropha blend. The (CAL) airplane burned 3,600 lbs of 50/50 mix of jet fuel and biofuel in one engine and 3,700 lb. of standard jet fuel in the other, officials told the "Houston Chronicle." Pilots (FC) performed a midflight engine shutdown and restart, among other maneuvers. The flight was conducted in partnership with Boeing (TBC), (GE) Aviation (GEC)/(CFM) International and Honeywell (SGC) subsidiary UOP.
(CAL) will operate a daily, Cleveland - London Heathrow service from May 2 through September 26 aboard a 757, replacing the former flight to London Gatwick.
(CAL), which has firm orders for 25 787 Dreamliners said it does not expect to take delivery of its first 787 until 2011 and will receive three that year at best. It originally expected to start receiving 787s this year. Chairman & CEO, Larry Kellner told reporters and analysts that he fears the delivery rate of (CAL)'s remaining 22 787s will be "slower" than previously anticipated. "We're clearly going to be two or three years behind our [original 787 deployment] plan," he said. (CAL) has slowed international growth owing to both 787 delays and the weak global economy. Kellner said it "won't go to +5% to +7% growth [its targeted international capacity expansion rate] until we get those planes" regardless of how fast the economy recovers. He said that despite the delays, the 787 will be a "game changer" and give (CAL) the "flexibility" in long-haul flying it now lacks.
737-3TO (24943, N14358), WFU at Goodyear. 737-524 (27314) stored at Cleveland. 737-524 (27326) returned to service. 2 737-924ERs (32833, N77431; 37098, N77430), deliveries. 757-324 (32810, N75851), leased to Aviation Partners.
February 2009: Continental Airlines (CAL) said January consolidated (RASM) fell -5% to -6% year-over-year. Traffic dropped -11% to 6.43 billion (RPM)s against a 6.5% decline in capacity to 8.79 billion (ASM)s. Load factor was down -3.6 points to 73.2% LF.
Jeppesen and (CAL) are working together to define "a multiyear Required Navigation Performance program" for (CAL) under a recently signed letter of intent (LOI). "Jeppesen has provided navigation services for (CAL) for many years and we look forward to working with them on implementation of this technology," VP Flight Operations, Fred Abbott said. (CAL) is deploying electronic flight bag (EFB) services from Jeppesen. Jeppesen said that (CAL) completed the first flight using the company's Airport Moving Map on a Class 2 electronic flight bag (EFB). Jeppesen's Airport Moving Map "uses a high-resolution database to dynamically render maps of the airport," employing Global Positioning System (GPS) technology to show pilots (FC) their own-ship position on runways and taxiways, the company said, adding that (CAL) plans to retrofit its 757s and 767s with navAero Class 2 (EFB)s that will include the Airport Moving Map technology.
737-924ER (32835, N75432), delivery.
March 2009: Continental Airlines (CAL) said that February consolidated (RASM) fell an estimated -11.5% to -12.5% year-over-year. It flew 5.88 billion consolidated (RPM)s traffic, down -13.2%, against a -8.9% fall in capacity to 8.11 billion (ASM)s. Load factor dropped -3.5 points to 72.5% LF.
(CAL) said the percentage of available seats sold across its consolidated domestic network is 4 to 5 points higher over the next six weeks than in the year-ago period but that the fall in yield and (RASM) since January 1 has "accelerated sequentially" and "has become significant." In a filing with the USA Securities & Exchange Commission, (CAL) said transatlantic bookings also are rising - - up 5 - 6 points in the next six weeks over the year-ago period - - and mainline Latin American sales are up +1 point. However, first-quarter consolidated and mainline load factors are expected to fall -3 to -4 points, while declining business travel has played a key role in the aforementioned yield and unit revenue shortfalls.
First-quarter consolidated capacity is expected to be down -7.3% from the first three months of 2008, comprising a -10.7% domestic cut and a -3% international reduction. Mainline (ASM)s will be down -7.7%. Full-year consolidated and mainline capacity each will be down -4% to -5% from 2008, the latter an increase from the -3.5% to -4.5% forecast in January. First-quarter consolidated load factor should be 74% LF to 75% LF, with mainline loads at 75% LF to 76% LF. First-quarter consolidated (CASM) now is expected to be 11.49 to 11.54 cents and full-year unit costs are forecast at 11.38 to 11.43 cents.
(CAL) received tentative approval from the USA Department of Transportation to operate daily, Houston Intercontinental - Rio de Janeiro Galeao (GIG) service beginning this summer aboard a 174-seat 767-200. It currently serves (GIG) via Sao Paulo Guarulhos.
(CAL) Chairman & CEO, Larry Kellner told the "Houston Chronicle" that "if the government wanted to re-regulate the business, I wouldn't be opposed to it" and that "what we've got today doesn't work. It isn't creating a stable industry." He told the paper that managing labor costs was key and "the structure of the [Railway Labor Act] creates a very cumbersome process."
US Airways (AMW)/(USA) Chairman & CEO, Doug Parker, responding to reports that his counterpart at (CAL), Larry Kellner, did not oppose re-regulation of commercial airlines, said, "In general, [re-regulation] is exactly the wrong direction." Parker said one of the industry's major problems is that it has not been truly deregulated. "We've spent 31 years trying to get deregulated."
2 737-3TOs ((23355; 23579), WFU. 737-924ER (33527, N75433), delivery.
April 2009: Continental Airlines (CAL) provided further evidence of the collapse in USA air travel demand, reporting that March consolidated revenue per (ASM) plunged an estimated -19.5%to -20.5% year-over-year while mainline unit revenue fell -18.5% to -19.5%. In February, consolidated unit revenue was down -11.5% and mainline dropped -10%. (CAL) flew 7.48 consolidated (RPM)s in March, down -9.7%, against a -6.4% fall in capacity to 9.43 billion (ASM)s. Load factor was down -2.9 points to 79.4% LF and passenger numbers declined -10.2% to 5.5 million.
Drops in both business (C) travel and economy (Y) class yields dragged (CAL) to a $136 million first-quarter loss, widened +65.9% from a -$82 million deficit in the year-ago period. "It was a very tough quarter, no matter how you look at it," Chairman & CEO, Larry Kellner said in a conference call with analysts and reporters. But (CAL) sees some light on the horizon as it firms its plans to join the Star Alliance (SAL) by October 25 and "the rate of decline in (RASM) appears to be decelerating compared to the first quarter," according to President & CFO, Jeff Smisek.
Operating revenue dropped -17% to $2.96 billion against an identical fall in expenses to $3.02 billion. Operating loss narrowed -16.7% to -$55 million from -$66 million in the first quarter of 2008. Kellner said the "cost side of the ledger looks a lot better than it did last year." Consolidated average fares declined -7.4% during the period and -16.3% in March, owing to what Smisek called an "adverse shift in mix" caused by a falling number of business travelers and leisure customers "who would have traveled anyway" taking advantage of sales designed to spur demand. "Until industry capacity is again resized . . . or until demand picks up again, we expect to see pressure on yields," he said.
(CAL) flew 19.79 billion consolidated (RPM)s, down -11.2%, against a -7.2% fall in capacity to 26.32 billion (ASM)s. Load factor slipped -3.3 points to 75.2% LF. Passenger (RASM) was down -12.5% to 9.94 cents and yield dropped -8.6% to 13.23 cents. (CAL) did not detail its consolidated unit costs, but mainline (CASM) lowered -10.4% to 10.56 cents, rising +1.3% to 11.94 cents holding fuel constant.
(CAL) will operate daily, Newark - Athens service, May 2 through September 7 aboard a 767-200ER.
(CAL) took delivery of four 737-900ERs during the quarter, returned two 737-500s to service and removed three 737-300s. It plans to take delivery of nine more 737s this year and remove 27 737-300s/-500s from the fleet. Second-quarter mainline capacity is expected to be down -7% year-over-year, with full-year (ASM)s dropping -4% to -5%, Smisek said.
(CAL) announced the contribution of an additional $50 million to its defined benefit pension plans, bringing year-to-date contributions to $100 million. (CAL) expects to contribute $150 million this year.
The USA Department of Transportation approved (CAL)'s entry into the Star Alliance (SAL), granting tentative antitrust immunity (ATI) to the carrier and certain (SAL) partners and to (CAL)'s proposed transatlantic joint venture (JV) with Air Canada (ACN), Lufthansa (DLH) and United Airlines (UAL).
The (SAL) alliance and the four carriers seeking the (JV), to be called "Atlantic Plus-Plus," petitioned for (ATI) last summer. (ATI) enables airlines to coordinate their operation and act as a single carrier for international air services, sharing capacity, sales and marketing and revenue. In a statement recently released, the (DOT) said (CAL)'s entrance into (SAL) and the quartet's (JV) "would be in the public interest because it would support increased levels of service in international markets served by the carriers, give consumers more travel options and shorter travel times, and reduce fares." (UAL) and (DLH) have held transatlantic (ATI) since 1996.
Atlantic Plus-Plus must be implemented within 18 months as a condition of immunity, the (DOT) said, adding that airlines would remain subject to antitrust regulations with respect to their domestic services.
"(CAL)'s entrance into the (SAL) will provide substantial benefits for consumers worldwide while preserving domestic competition and jobs" (CAL) Chairman & CEO, Larry Kellner said. "In addition, a timely final approval will allow (CAL) to provide a seamless transition for its customers from the SkyTeam (STM) alliance to the (SAL) Alliance this fall."
(ATI) granted to the alliance covers the aforementioned four carriers as well as Austrian Airlines (AUL), bmi (BMA), (LOT) Polish Airlines, the (SAS) Group, Swiss International Air Lines (CSR) and (TAP) Portugal.
The (DOT) said objecting parties will have three weeks to file their statements regarding the latest ruling. Oneworld (ONW) members: American Airlines (AAL), British Airways (BAB), Finnair (FIN), Iberia (IBE) and Royal Jordanian (RJA) expect the (DOT) to issue its decision on their (ATI) application in the second half of this year.
Swissport Fueling was awarded (CAL)'s into-plane refueling contract at Dallas-Fort Worth effective August 1.
EDS announced an agreement with (CAL) to develop, implement and deliver enhanced EDS Flight Planning Services as a software-as-a-service model based on the EDS Airline SOA platform.
737-3TO (23352, N59302) WFU at Opa Locka.
May 2009: Continental Airlines (CAL) said April consolidated (RASM) dropped -12.5% to -13.5% and mainline unit revenue fell -10.5% to -11.5%. (CAL) flew 7.57 billion consolidated (RPM)s traffic, down -3.4% from the year-ago month, against a -6.8% fall in capacity to 9.19 billion (ASM)s. Load factor rose +2.9 points to 82.3% LF.
(CAL) will close its Tampa reservations office on July 19 with the elimination of -500 jobs. (CAL) said it is offering "a number of voluntary programs to employees, including an early-out severance program and "Company Offered Leaves of Absence." Tampa employees who would not otherwise be furloughed will have the option of transferring to other reservations centers located in Houston and Salt Lake City." (CAL) said the step is necessary in "response to reduced call volumes" caused by a "shift towards Web self-service" and the global recession.
(CAL) launched a seasonal daily, Cleveland - London Heathrow service scheduled to operate through September 26 aboard a 757.
The "Swine" flu fears continue to affect the industry, with (CAL) cutting capacity on service to Mexico by -50%, France calling for the European Union (EU) to restrict flights to Mexico, United Airlines (UAL) acknowledging a worker contracted the disease and Southwest Airlines (SWA) admitting that bookings last week were "erratic" owing to fears that the flu could be spread in airplane cabins. "Our Mexico routes in particular have extra weakness," (CAL) Chairman & CEO, Larry Kellner said, adding that the capacity cut is likely temporary. (CAL) operates around 450 flights weekly to Mexico and said it still will connect to all 29 destinations it serves.
Meanwhile, a French government spokesperson said President, Nicolas Sarkozy wants a "stronger initiative at [the] European level" and is "calling for the suspension of flights to Mexico." (UAL) said a ramp worker in Denver contracted the flu and was not working. It claimed there was no evidence that other workers were infected. The Latin American & Caribbean Air Transport Association said there is "no rationale" for disallowing flights to Mexico, noting that the World Health Organization "advises there should be no restrictions to travel or closure of borders." According to the organization, Argentina, Cuba, Ecuador and Peru imposed "unilateral" restrictions on travel to/from Mexico that it warned "go against the WHO's recommendations . . . [and are] negative to the economic well-being of countries in the region."
(CAL) CEO, Larry Kellner hinted that (CAL) may migrate to the Star Alliance (SAL) Common Information Technology (IT) Platform at some point after it joins (SAL) in October. In a conference call to discuss first-quarter earnings, Kellner said, "I and other members of the (CAL) management team meet regularly with Glenn Tilton [United (UAL) Chairman, President & CEO] and his team at (UAL) as we develop plans to co-locate at airports, deliver mutual cost savings, share airport lounges, bring benefits to each other's elite customers and ultimately move to a single (IT) platform so that we can provide excellent service to each other's customers." Following the (CAL) conference call, a spokeswoman responded to an email enquiry that "We are evaluating a number of options and no decision has been made, but having commonality around one system with (UAL) would facilitate our work together."
In 2005, the (SAL) selected Amadeus to build a common (IT) platform (CITP). The (SAL) (CITP) is a customized version of its Alt￩a platform.
(UAL) and Lufthansa (DLH) were the first (SAL) carriers to commit to migrating to the (CITP). (UAL) is slated to begin migration in 2010. (DLH) was already using the Alt￩a reservations module when the (SAL) deal was signed, and it implemented the inventory module a year ago.
(CAL)'s reservations system has been managed by EDS since 1991. In October 2007, it awarded a new seven-year, (IT) services contract to EDS and (HP).
(CFM) International President & CEO, Eric Bachelet said that the Continental Airlines (CAL) 737-800 that operated a test flight early this year with one of its (CFM56-7B) engines powered by a biofuel blend including algae oil and jatropha oil performed well and predicted that such blends "will be a significant component of the fuel used" by commercial aviation within 5 to 7 years. "By the middle of the next decade, you will start to see biofuels used by the industry," he said in an interview this week in Peebles, Ohio. "If you want [commercial aviation] to be sustainable in the medium-to-long future, you can only go so far with improving engine performance . . . and so you have to come to biofuel," he said, adding that producing biofuel to power flights is "becoming more of a supply issue than a technology issue." He noted that testing has revealed no airplane engine hardware changes that would be necessary to accommodate biofuel.
CSafe said Continental Airlines (CAL) Cargo selected its AcuTemp RKN air cargo container with both cooling and heating capabilities as part of its structured cold chain program.
737-524 (27315, N69602), WFU and stored at Cleveland. 737-924ER (33529, N75435), delivery.
June 2009: 75th anniversary!
In celebration, applied a retro livery to newly delivered 737-900ER (33531, N75436) which was originally used on airplanes beginning in 1947 - - SEE PHOTO - - "CAL-737-924ER-JUN09."
Continental Airlines (CAL) estimated that May consolidated unit revenue declined -19.5% to -20.5% year-over-year, with mainline (RASM) falling an estimated -19% to -20%. It attributed part of the decrease to the swine flu scare, which it said reduced consolidated passenger revenue by -$30 million last month. Consolidated April (RASM) was down -13.1%, while mainline unit revenue fell -11.3%. Last month, (CAL) flew 7.53 billion consolidated (RPM)s traffic, a -9% drop from May 2008. Capacity was down -8.8% to 9.31 billion (ASM)s, lowering load factor -0.3 point to 80.9% LF.
(CAL) said that its 737-800 biofuel demonstration flight conducted January 7 resulted in a +1.1% increase in fuel efficiency in the engine fueled by a 50/50 blend of algae-derived biofuel and traditional jet fuel. Greenhouse gas emissions from the (CFM56-7B)s were estimated to be reduced -60% to -80%. The flight was conducted over Houston in partnership with Boeing (TBS), (GE) Aviation (GEC)/(CFM) International and Honeywell (SGC) subsidiary (UOP) and was the first such test conducted by a commercial airline in North America.
(CAL) will launch daily, Houston Intercontinental - Rio de Janeiro Galeao on August 1 aboard a 767-200.
FltOps.com, an assistance service for professional pilots (FC), recently released a report of what each major USA carrier pays its captains and first officers. For the eleven largest USA airlines, including freight carriers FedEx (FED) and (UPS), the average annual pay for a first-year first officer flying the smallest mainline airplane is about $36,000. But the range between the best and worst paying airlines is large, with (FED) paying $51,000 and US Airways (AMW)/(USA) just $22,000. Southwest Airlines (SWA) is the second highest paying at the entry level ($50,000), while Continental Airlines (CAL) and United Airlines (UAL) are tied for second last at $27,000. At the other end of the scale are long tenured captains flying the largest airplanes, who earn an average of $165,000 per year. Again, the cargo carriers are tops with (UPS) and (FED) paying $231,000 and $211,000, respectively. The best paying passenger airline is (SWA) ($181,000), quite remarkable considering its pilots (FC) only fly narrow body 737s. The worst is JetBlue (JBL) ($123,000). Flt.Ops.com notes that pilots (FC) can earn considerably more than their base pay through international overrides, overtime work, per diems and other items.
Recently released federal government employment figures for airline pilots (FC) and mechanics (MT) run counter to data compiled by private organizations and the personal stories of highly-trained pilots (FC) standing in unemployment lines. FltOps.com recently held a pilot (FC) recruiting conference in Dallas-Fort Worth in which only a handful of airlines were on hand to interview pilots (FC). Last year’s event drew 35 airlines, spelling out how drastic the drop in pilot (FC) hiring has been, as air carriers quit hiring and in many case furlough pilots (FC). FltOps.com says the 15 largest USA airlines it tracks hired 2,300 pilots (FC) in 2006 and 2,440 in 2007. But last year, only 1,300 pilots (FC) found jobs. Through the first four months of 2009, only 28 new pilots (FC) joined the 15 air carriers. FltOps.com’s figures jive with that of AIR Inc, the aviation career information service, that for two decades served as a reservoir of data on pilot (FC) hirings. But if anyone needed more evidence of the worsening condition of the airline industry, Air Inc in February this year, shuttered its operation as a result of the sorry state of the economy worldwide, which has produced a dearth of new commercial pilot (FC) jobs as legacy airlines shed capacity, implementing pilot (FC) furloughs and layoffs while also putting off new flight deck crew (FC) hiring.
By the end of 2008, as the recession deepened, it became clear that the future would be bleak for newly minted flight school graduates. Air Inc said airline pilot (FC) hiring totals for 2008 were less than half of what they were the previous year, 6,479 compared to 13,157 in 2007.
However, the federal government says USA scheduled passenger airlines employed +2.3% more pilots (FC) and +5.9% more maintenance (MT) workers in 2008 than in 2007, while total industry jobs declined by -3.0%. According to the USA Department of Transportation (DOT)’s Bureau of Transportation Statistics (BTS), the seven large network carriers employed +1.1% more pilots (FC) and +8.6% more maintenance (MT) workers in 2008 than in 2007. The seven largest low-cost carriers (LCC)s employed +5.2% more pilots (FC) and -6.8% fewer maintenance (MT) workers from 2007 to 2008.
Delta Air Lines (DAL) had the largest increase in pilots (FC) of any network airline from 2007 to 2008,K while Alaska Airlines (ASA) had the greatest percentage decrease in pilot (FC) employment of the network airlines. United Airlines (UAL) had the largest increase in maintenance workers of any network airline from 2007 to 2008, while Northwest Airlines (NWA) had the smallest increase.
All of the low-cost carriers (LCC)s except Frontier Airlines (FRO) added pilots (FC) from 2007 to 2008. Spirit Airlines (SPR) had the largest increase in pilot (FC) employment followed by Allegiant Airlines (WJE). (WJE) had the largest increase in maintenance (MT) workers of any low-cost airline from 2007 to 2008, while (SPR) had the largest reduction. The seven network carriers employed 13.2 pilots per airplane in 2008, down from 13.5 pilots (FC) per airplane in 2007. The (LCC)s employed 11.2 pilots (FC) per airplane in 2008, down -1.8% from 11.4 pilots (FC) per airplane in 2007.
Alaska Airlines (ASA) had 12.0 pilots (FC) per airplane in 2008, down from 12.9 (FC) per airplane in 2007, the fewest of any network airline. Delta (DAL), with 14.9 per airplane, up from 14.3 per airplane in 2008, had the largest increase in the number of pilots (FC) per airplane from 2007 to 2008 and had the most pilots (FC) per airplane of any network carrier.
Allegiant (WJE) had 9.3 pilots (FC) per airplane in 2008, the fewest of any (LCC), compared to 9.6 pilots (FC) per airplane in 2007. Spirit (SPR), with 15.5 (FC) per airplane, up from 12.6 (FC) per airplane in 2007 had the most pilots (FC) per airplane in the (LCC)s group.
As regards airline mechanics (MT), the (BTS) said the passenger airlines had 8.9 maintenance (MT) workers per airplane in 2008, up from 8.3 per airplane in 2007. The network airlines had 12.9 maintenance (MT) workers per airplane in 2008, up from 12.3 (MT) per airplane in 2007. Spending by network airlines for outsourced maintenance increased from 42.5% of total maintenance spending in 2007 to 42.8% in 2008. The (LCC)s had 3.2 maintenance (MT) workers per airplane in 2008, down from 3.7 (MT) per airplane in 2007. Spending by (LCC)s for outsourced maintenance increased from 52.1% of total maintenance spending in 2007 to 54.6% in 2007.
(NWA) had 0.8 maintenance (MT) workers per airplane in 2008, the fewest of any network airline and unchanged from the 0.8 employees per airplane in 2007. (NWA)’s spending for outsourcing maintenance declined from 71.0% of total spending in 2007 to 65.9% in 2008. American Airlines (AAL) had 22.4 maintenance (MT) workers per airplane in 2008, the most of any network airline. (AAL)’s spending for outsourcing was 23.6% of total maintenance spending in 2008, the lowest percentage spending share of the network carriers.
Virgin America (VUS) had 1.7 maintenance (MT) workers per airplane in 2008 the fewest of any (LCC). Of the (LCC)s, Spirit (SPR) spent the smallest portion of its maintenance expense on outsourcing at 22.6%. Southwest (SWA) had the highest percentage share for outsourcing at 61.3%. Frontier (FRO) had 3.9 maintenance (MT) workers per airplane in 2008, the most of any (LCC) but down from 7.7 (MT) employees per airplane in 2007. (FRO)’s spending for outsourcing increased from 20.5% of total maintenance spending in 2007 to 24.9% in 2008.
In the news, Alaska Airlines (ASA) and its mechanics (MT) union produced a tentative agreement on a two-year contract extension, through October 17, 2011. The Aircraft Mechanics Fraternal Association (AMFA) represents 655 airline technicians (MT). (ASA) and the union announced that they expect the results of the ratification vote by late July. (AMFA) is the largest craft union representing airplane maintenance technicians (MT) and related employees and serves members at (ASA), Mesaba Airlines and (SWA).
But (SWA) pilots (FC) rejected a tentative five-year contract that would have increased their salaries and retirement benefits. Work to reopen contract talks with (SWA) will begin immediately, said Carl Kuwitzky, President of the (SWA) Pilots’ Association. Almost 51% of pilots (FC) voted against the agreement, which was reached in January after >2 years of talks. In the interim, the existing contract remains in effect. >95% of pilots (FC) voted. "We are naturally disappointed and acknowledge it was a very close vote," said Chuck Magill, VP Flight Operations for (SWA). "We reached a tentative agreement in good faith, and both sides put a lot of effort into getting to this point. We have an outstanding and highly productive group of Pilots (FC), and we appreciate their active involvement in the voting process. We welcome the opportunity for our negotiating teams to re-engage and work toward an agreement that best meets the needs of our company and our outstanding pilots during these challenging economic times."
Meanwhile, it is reported that the skies aren’t so friendly for Steffan Schmidt and Chris Campbell. They were recently found on a street in Seattle, at rush hour, holding signs more often used by panhandlers. “Two laid-off pilots (FC)” read Schmidt's sign. “Will Fly for Food” Campbell’s sign said. It’s a small industry, and there aren’t a lot of pilot (FC) gigs on Craigslist or Monster, said Campbell, who lost his job flying a corporate airplane. Schmidt was laid off from his job flying a corporate plane three months ago, and figured they would get some “exposure” by standing at a busy freeway ramp. “The normal way to find employment didn’t cut it,” he said. Schmidt said he wanted to get off unemployment, and not “waste any more tax dollars.” They're seeking pilot (FC) jobs, not handouts, but passersby offered them money and books, which they politely declined.
(CAL) Chairman & CEO, Larry Kellner said (CAL) will enter the Star Alliance (SAL) "hours or days" after it exits the SkyTeam (STM) Alliance on October 24. "The difference for us between the (STM) and the (SAL) is that we and Delta (DAL) have a lot of overlap . . . whereas within the (SAL) there's a lot of open area," he said. "So it's a good fit for us."
The USA Department of Justice (DOJ) strongly opposed extension of antitrust immunity (ATI) to (CAL) when it joins the Star (SAL) Alliance this October, arguing that the (ATI) request is "unprecedented in scope and breadth" and would "sanction collusion" between current (SAL) member United Airlines (UAL) and (CAL) "on all international service."
The USA Department of Transportation (DOT) in early April approved (CAL)'s entry into the Star (SAL) Alliance and granted tentative antitrust immunity (ATI) to (CAL) and certain (SAL) partners and to (CAL)'s proposed transatlantic joint venture with Air Canada (ACN), Lufthansa (DLH), and United Airlines (UAL), but the (DOT) agreed to delay its final order (scheduled for May 31) pending comments from the (DOJ). In a 58-page document, the (DOJ) said, "the addition of (CAL) to the immunized (SAL) (ATI) Alliance is likely to result in harm to certain international routes, including routes between the USA and China, routes spanning the USA and the Canadian border, and routes between the USA and Denmark, Portugal, Sweden, and Switzerland."
Additionally, it would eliminate or significantly reduce competition on routes where (CAL) and current (SAL) members provide "the only or almost all of the competitive alternatives" and remove previously imposed protections designed to preserve competition on overlap routes," likely resulting in "substantial" harm to consumers. The
(DOJ) estimated that fares "are likely to increase by roughly +15% on routes where the number of nonstop competitors decreases from two to one, and by roughly +6% on routes where the number of nonstop competitors decreases from three to two." The (DOJ) noted that (CAL) and (UAL) are the only two USA carriers currently offering nonstop service to Beijing from the USA mainland, accounting for a combined 57% of the available nonstop seats to Beijing, and the only USA carriers providing USA mainland - Hong Kong nonstop service. The (DOJ) also believes the proposed agreements "pose harm to domestic competition" where (UAL) and (CAL) have agreed to enter into a marketing relationship. It said that previous (ATI) granted to the major airline alliances typically was a quid pro quo for "open skies" agreements with the USA. Granting (CAL) (ATI) in the (SAL) Alliance and Atlantic++ will not further the goal of "open skies" because the relevant agreements already are in place, it argued.
(CAL) and (UAL) said that they remain "confident" their application for antitrust immunity (ATI) will be approved despite the vehement objections raised recently by the USA (DOJ). "We are confident the application will be approved for the benefit of our employees, customers and the communities we serve," a (UAL) spokesperson said, while a (CAL) spokesperson said, "We appreciate that the (DOJ) has submitted its comments, which will allow [the (DOT)] to close the docket and move forward with the application. We remain confident that the (DOT) will approve our application."
(CAL) went on to argue that the (SAL) (ATI) "is necessary to correct the competitive imbalance that now exists and safeguard our future. Widespread competition will continue to exist as it does with other airlines' participation in antitrust immunized alliances. Domestically and globally, the airline industry is highly fragmented, and antitrust immunity can help airlines serve broad consumer needs in the context of alliances. In this economic crisis, it is more important than ever for the USA government not to hamper our industry's and company's efforts to remain competitive and serve our consumers and communities." (CAL) said it would address the (DOJ)'s specific arguments in its own response to be filed with the (DOT).
Later, current members of the Star Alliance (SAL) and aspiring member Continental Airlines (CAL) pushed back strongly against the USA Department of Justice (DOJ)'s opposition to the extension of antitrust immunity (ATI) to (CAL) when it joins in October, arguing in a filing with the (DOT) that the (DOJ) favors a "myopic policy" that would "abandon almost two decades of highly successful international aviation policy."
Worldwide Flight Services reached agreement with (CAL) to provide cargo warehousing, customer service, mail handling and ramp handling for 45 weekly passenger flights and two cargo flights to/from Honolulu.
737-924ER (33531, N75436) delivery. 3 737-3TOs (23575; 23580; 23943), scrapped. 737-3TO (23593, N76355) sold. 2 737-524s (27314; 27322), WFU at Griffiss.
July 2009: Continental Airlines (CAL) said June consolidated and mainline (RASM) fell an estimated -19.5% to -20.5%. It flew 8.07 billion consolidated (RPM)s traffic last month, down -6.5% year-over-year. Capacity dropped -7.8% to 9.51 billion (ASM)s and load factor rose +1.1 points to 84.8% LF.
(CAL) will record $44 million in special charges for the second quarter, $43 million of which comprises non cash impairments on owned 737-300/-500 airplanes and related assets ($31 million) and non cash charges related to the disposal of three 737-300s ($8 million) and "certain obsolete spare parts" ($4 million). (CAL) decided one year ago to retire all 737-300s and a "significant portion" of its 737-500 fleet by January 2010.
(CAL), which announced -1,700 job cuts this month, told the Air Line Pilots Association (ALPA) that 310 pilots (FC), or 7% of the total, could be furloughed, the "Houston Chronicle" reported. "If reductions are necessary, we expect to begin furloughing pilots (FC) as early as September 23. We expect these furloughs to be temporary but at least six months in duration," (CAL) said in a letter sent to 310 pilots (FC), who were selected based on seniority, (ALPA) told the newspaper.
(CAL) reported a second-quarter net loss of -$213 million, widened from a -$5 million deficit in the year-ago quarter, and announced it will cut -1,700 additional jobs "across the company" to mitigate the impact of "significant declines in high-yield traffic." Speaking to analysts and reporters, (CAL) executives said business (C) passengers have "curtailed travel" or switched to economy-class (Y) tickets. Compounding the -27% year-over-year dip in premium tickets are demand-stimulating low fares on economy seats, President & COO, Jeff Smisek said. "Unfortunately, high load factors were driven by low fares and thus low yields," he explained. "It's clear right now that we're living on the back of strong leisure demand facilitated by low fares." He added that the drop in business (C) passengers appears to have "stabilized," but "at a very low level."
Chairman & CEO, Larry Kellner said (CAL) will "make every effort to minimize the number of involuntary furloughs" but that cuts are needed owing to limited visibility on future demand, particularly in the fall, when leisure demand traditionally declines.
The -1,700 job cuts, which will include management positions, are in addition to -500 reservation agent jobs that were eliminated and 700 flight attendant furloughs. (CAL) also is adding $5 to checked-bag fees for passengers who don't pre-pay online and $5 to telephone booking fees.
Second-quarter revenue declined -22.7% year-over-year to $3.13 billion, while expenses fell -20.3% to $3.28 billion including a -46.1% drop in fuel costs, producing an operating loss of -$154 million, more than double an operating loss of -$71 million last year. It recorded non-cash impairment charges of $44 million largely related to impairment of values on certain 737 Classics.
Mainline traffic lowered -5.7% to 20.77 billion (RPM)s on a -7.3% dip in capacity to 24.96 billion (ASM)s, producing a load factor of 83.2% LF, up +1.5 points. Yield plunged -18.3% to 11.07 cents as (RASM) sank -15.2% to 10.59 cents and (CASM) decreased -12.9% to 10.85 cents. (CASM) excluding fuel and special charges dipped -1.5% to 7.69 cents.
(CAL) CEO, Larry Kellner said (CAL) is planning to develop a common information technology (IT) system with United Airlines (UAL) as part of their new relationship as partners in the Star Alliance (SAL). "What we continue to be focused on is getting (CAL) and (UAL) on a common platform," Kellner said.
Largely overruling last-minute objections by the USA Department of Justice (DOJ), the Department of Transportation (DOT) gave final approval for antitrust immunity (ATI) to (CAL) for its participation in the Star Alliance (SAL) and also granted (ATI) to (CAL)'s entry into "Atlantic Plus-Plus," the transatlantic joint venture with Air Canada (ACN), Lufthansa (DLH), and United Airlines (UAL). The (DOT)'s decision, which confirmed a tentative decision, was welcomed by the affected airlines and the industry at large and signaled that its approach to regulating global airline alliances is unlikely to change under President Barack Obama's administration.
(CAL) Chairman & CEO, Larry Kellner said (ATI) "greatly benefits our customers, employees and shareholders. It ensures global competition with other antitrust-immunized alliances while encouraging the retention and growth of "open skies" between the USA and other nations."
(UAL) Chairman, President & CEO, Glenn Tilton added that "(UAL), (CAL) and the (SAL) carriers will be able to compete more effectively in an increasingly global air travel market." USA Air Transport Association President & CEO, James May said the "decision will increase current levels of service while preserving jobs for thousands of airline employees."
The (DOT) did impose a number of route "carve-outs" that are "anticipated to be temporary" in response to concerns expressed by the (DOJ). But in the main, it was "not persuaded" by the (DOJ)'s argument that granting (ATI) would bring significant harm to consumers, saying that "the full depth and breadth of consumer benefits" could not be realized absent (ATI). The (DOT) also noted that these benefits "are not available [to the airlines] through other means," since "ownership restrictions preclude truly integrated joint ventures or mergers similar to those pursued in other industries." In rejecting the (DOJ)'s concerns over a reduction in competition, the (DOT) argued that "an alliance faces competitive pressure both from other carriers in particular city-pair markets and from other alliances offering global network connectivity." The (DOJ) erred in only analyzing "nonstop routes" to reach its conclusions on competition, the (DOT) said, noting that "the vast majority of transatlantic passengers use connecting services and benefit from the improved connecting products at lower fares that integrated alliances provide." Such "coordinated connecting services" on rival alliances "disciplines fares on nonstop routes."
The (DOT) did agree to remove a number of routes from the scope of (ATI), but it "emphasize[d] that these carve-outs are anticipated to be temporary, lasting only until new entry introduces further competition." The (CAL)/(UAL)/(ACN)/(DLH) (JV) will not be granted (ATI) on routes from New York to Copenhagen, Geneva, Lisbon and Stockholm. Should a new entrant enter one of these markets with at least five weekly round trips for nine months, Atlantic Plus-Plus may seek (ATI) for that route. In addition, the (DOT) is restricting competition among (CAL), (UAL) and (ACN) on additional USA - Canada routes. Also, (UAL) and (CAL) will not have (ATI) on nonstop service between the USA and Beijing, a restriction that will remain "until additional competing service is introduced," the (DOT) said.
Chairman & CEO, Larry Kellner will leave the airline at year end after five years at the helm and 14 with (CAL) and will be succeeded by President & COO, Jeff Smisek, (CAL) announced. Fresh off the USA Department of Justice's decision to grant (CAL) antitrust immunity (ATI) with its future Star (SAL) Alliance partners, Kellner said that "it is the right time for this transition" back to private equity, which will see him head a new Houston-based investment firm called Emerald Creek Group. "I have worked closely with Jeff throughout my tenure, and he is a strong and effective leader. I am confident Jeff will maintain (CAL)'s unique culture and successfully lead the (CAL) team through these challenging times," Kellner said.
(CAL)'s lead director, Henry Meyer, said the board "has consistently focused on succession planning, and Jeff's experience, skills and long partnership with Larry make him the ideal executive to succeed Larry as Chairman & CEO." (CAL) reported a -$136 million first-quarter loss, which followed a net deficit of -$585 million in 2008.
Smisek, 54, joined (CAL) in early 1995 as Senior VP & General Counsel. He became President in December 2004 and added the COO title last September.
The USA (FAA) named former (CAL) Senior VP Customer Experience, David Grizzle as Chief Counsel.
2 737-301s (23352; 23583), scrapped. 737-524 (27322), leased to UT Air (TYU). 2 737-924ERs (33532, N37437; 33533, N78438), deliveries.
August 2009: Continental Airlines (CAL) said July estimated consolidated (RASM) fell 16.5% to 17.5% year-over-year, while mainline unit revenue dropped 17.5% to 18.5%. (CAL) flew 8.89 billion consolidated (RPM)s traffic during the month, down -3.4%, against a -6.9% cut in (ASM)s to 10.17 billion. Load factor climbed +3.1 points to 87.3% LF.
(CAL) announced that October 27 will be its first day as an official member of the Star Alliance (SAL).
(CAL) said it will operate daily, Houston Intercontinental - Edmonton flights beginning November 1 aboard a 737-500, 114 seat.
(CAL) will launch twice-weekly flights to Nadi from Guam and Honolulu on December 18 aboard a Continental Micronesia (MCR) 737-800.
(CAL) will launch flights to Washington Dulles from both Houston Intercontinental (thrice-daily) and Cleveland (twice-daily) on November 1. ExpressJet will operate the Houston flight aboard an ERJ-145 and CommutAir will operate the Cleveland service with a DHC-8-Q200. (CAL) said the new routes are designed to increase connections with future Star Alliance (SAL) partner, United Airlines (UAL).
AirTran Airways (CQT) announced that it will expand operations at New York LaGuardia (LGA) and Washington National (DCA) from November 4, and reportedly it will cease operations at Newark (EWR) on October 25. The "Associated Press (ap)" reported that (CQT) obtained additional slots at (LGA) and (DCA) from Continental Airlines (CAL) in exchange for its slots at (EWR). Neither airline confirmed the deal. (CQT) did say in a statement that it will begin offering (LGA) - Indianapolis service and boost (LGA) - Orlando flights from October 25. It added that it will "increase the frequency of flights to Orlando and Atlanta" from (DCA) on the same date. (AP), citing unnamed (CQT) officials, said (CQT) will give its 10 (EWR) slots, as well its lone gate at the airport, to (CAL), which hubs there. (CAL) in turn reportedly is giving (CQT) four (LGA) and six (DCA) slots.
US Airways (AMW)/(USA) and Continental Airlines (CAL) announced they will follow American Airlines (AAL)'s recent decision to start charging $50 for a second piece of checked baggage on transatlantic flights. As with (AAL), first checked bags will remain free. (AMW)/(USA) also will raise the domestic charge for a first checked bag to $20 from $15 and for a second piece to $30 from $25, matching increases imposed by (AAL) last month. (AMW)/(USA) will tack an additional $5 onto bags checked at the airport rather than on its website. Those changes enter effect on October 7. (CAL)'s new transatlantic policy takes effect for tickets purchased from now for travel on or after September 15. Neither carrier's new fees apply to premium loyalty program members, first (F) and business (C) class passengers or active military.
INCDT: A (CAL) 767-200 scheduled to land at Houston Intercontinental after departing Rio de Janeiro Galeao Sunday night diverted to Miami after severe turbulence injured at least 26 occupants, four seriously. Fourteen passengers were hospitalized, according to officials. A (CAL) spokesperson said the turbulence was "unanticipated" and occurred around 900 miles from Miami, according to press reports.
737-3TOs (23554; 23573) scrapped, (23359; 23362; 23364; 23370; 23371; 23458), WFU, and 737-524s (27328; 27329) WFU. 3 737-524s (27314; 27315; 27316), leased to UT Air (TYU). 2 737-924ERs (33534, N57439; 33535, N45440), deliveries.
September 2009: Continental Airlines (CAL) said August estimated consolidated unit revenue fell -16.5%to -17.5% from the year-ago month, while mainline (RASM) dropped -17% to -18%. (CAL) flew 8.78 billion consolidated (RPM)s traffic last month, a -3.9% drop, while capacity fell -6% to 10.23 billion (ASM)s. Load factor rose +1.9 points to 85.8% LF.
(CAL) said mainline domestic advanced booked seat factor for the next six weeks is running 1 to 2 points higher than the year-ago period, with transatlantic bookings 6 to 7 points higher. It now expects third-quarter consolidated and mainline load factors to be up approximately +3 points year-over-year to 84% LF to 85% LF, and 85% LF to 86% LF, respectively, it said in an investor update. Full-year consolidated load factor is expected to be 80% LF to 81% LF, with mainline loads reaching 81% LF to 82% LF.
Consolidated third-quarter capacity is expected to be down -4.6% from the year-ago period, comprising a -6.4% international cut and a -2.5% domestic reduction. Mainline (ASM)s will fall -4.2% and regional will be down -7.9%. For the full year, consolidated capacity should be down -5.2%, with mainline (ASM)s cut -5.1%. Third-quarter consolidated (CASM) is forecast to be 11.19 to 11.24 cents, with mainline coming in at 10.36 to 10.41 cents. It is forecasting full-year consolidated (CASM) of 11.52 to 11.57 cents and mainline (CASM) of 10.66 to 10.71 cents. The company has $371 million in scheduled debt and capital lease payments programmed for the current quarter and another $60 million planned in the fourth quarter.
(AAR) (ALC) was selected by Continental Airlines (CAL) to install blended winglets on 16 757-300s. Work will be performed in Indianapolis.
6 737-3TOs (23571; 23573; 23586; 23942), scrapped, (23370; 23371), WFU, 4 737-524s (27317; 27318; 27319; 27323), WFU. 2 737-924ERs (30131, N53441; 33536, N53442), deliveries.
October 2009: Continental Airlines (CAL) became the 25th member of the Star Alliance (SAL) in Newark ceremonies attended by leaders of current and future member airlines, at which (CAL) also unveiled a winglet-equipped 757-200ER in alliance livery - - SEE ATTACHED - - "CAL-2009-10 SAL MEMBER." Ahead of the formal induction, (CAL) entered into bilateral commercial agreements with the other 24 members and signed code sharing deals with four - - United Airlines (UAL), Lufthansa (DLH), Air Canada (ACN) and bmi (BMA) - - the first three of which are part of the "Atlantic Plus Plus" antitrust immunized partnership.
"Bringing (CAL) into the Star Alliance (SAL) has been a truly unique experience," (SAL) CEO, Jaan Albrecht told media as he described (CAL) as "one of the finest airlines in the world" and a "perfect fit" for the (SAL) alliance. Both he and (CAL) President & COO, Jeff Smisek observed that this is the first time a major airline has moved directly from one alliance (SkyTeam (STM)) to another. (CAL) officially left the SkyTeam (STM) on October 24, having joined on September 13, 2004.
Speaking to reporters, Smisek, who succeeds Larry Kellner as Chairman & CEO on January 1 after Kellner leaves (CAL) to start his own firm, said the transition to the (SAL) took a lot more work than (CAL) had expected. Discussing the decision to depart the (STM) alliance, he said the die was cast when Delta Air Lines (DAL) and Northwest Airlines (NWA) merged. The alliance "worked well for us when there were three major [USA] airlines [but] once (DAL) and Northwest (NWA) merged, we were relegated in effect to junior partner status." Switching from the (STM) to the (SAL), even without Atlantic Plus Plus, is worth +$100 million per year to (CAL), he said. Monetary costs to leave the (STM) were "negligible."
Kellner said that following the end of merger talks between (UAL) and (CAL) in 2008, (UAL) Chairman & CEO, Glenn Tilton "called the next day to invite (CAL) to join the (SAL)." (UAL) sponsored (CAL)'s admission and Tilton said (UAL) "could not be more proud to welcome (CAL)." He added that the carriers in Atlantic Plus Plus are considering "potentially expanding that to include up to six immunized (SAL) partners."
Addition of (CAL) dramatically increases (SAL)'s presence in the New York metropolitan market. According to (SAL) alliance figures, 17 members operate 696 daily departures and offer 69,000 departing seats at Newark, LaGuardia and (JFK) airports. The (SAL) has a 51% seat share among the airports compared to 28% for the (STM) and 21% for the Oneworld (ONW) alliance.
(CAL) also brings an extensive network into Latin America and particularly Mexico. And it may bring another carrier: Copa Airlines (COP), whose CEO, Pedro Heilbron, attended but did not participate in the ceremonies. The (SAL) has flights to 30 airports where other alliance members have hubs or flight concentrations.
(CAL) signed code share agreements with two more (SAL) members, (ANA) and Asiana Airlines (AAR). (CAL) after officially joining the (SAL) inked code sharing pacts with United Airlines (UAL), Lufthansa (DLH), Air Canada (ACN), and bmi (BMA). (CAL) said that it will start code sharing with (AAR) in December and with (ANA) next year. (AAR) President & COO, Young Doo Yoon said that in the first phase of the agreement, (AAR) and (CAL) will code share on transpacific flights, with the (AAR) code going on (CAL) flights from Tokyo Narita to Newark and Houston, while the (CAL) code will go on (AAR) flights to Seoul Incheon from Los Angeles, Seattle, and San Francisco. Yoon also said the passenger and cargo markets are picking up "and we hope it will continue." The weak South Korean won is boosting traffic from Japanese tourists, who enjoy a stronger yen for shopping, but transpacific traffic remains weak and the carrier is not yet seeing any significant benefit from South Korea's participation in the visa waiver program. "China is still slow," he stated. (AAR) is hoping to launch service to Beijing from Seoul Gimpo but this has to be approved by both governments.
(CAL) revealed that its September mainline (RASM) plunged an estimated -20% to -21% year-over-year, larger than its August mainline year-over-year (RASM) drop of -17.9%, raising concern across the USA industry that carriers could be in for a difficult autumn. The (RASM) numbers were particularly alarming given that its mainline load factor for the month was 82.2% LF, up +4.8 points compared to September 2008. The Centre for Asia Pacific Aviation noted that (CAL)'s monthly (RASM) decline was its third-largest contraction in the past 12 months and eighth consecutive double-digit drop, "reflecting continued discounting and ongoing weakness in premium travel demand." It described (CAL)'s yield performance as "dire."
(CAL) reported a third-quarter net loss of -$18 million, much improved over a loss of -$230 million in the year-ago period, and earned +$2 million excluding special charges, which Chairman & CEO, Larry Kellner described as "basically breakeven." Special charges totaled $91 million in the 2008 third quarter and $20 million in the corresponding 2009 period. "Achieving breakeven results is disappointing in a quarter that should have produced a couple hundred million dollars in profits; however, given the weak revenue environment, our results could have been much worse," Kellner told analysts and reporters.
Operating revenue plunged -20.1% to $3.32 billion, while operating expenses cascaded -20.8% to $3.26 billion, primarily owing to a -51.2% decline in fuel expense to $881 million. Operating profit of +$61 million net of special charges reversed an operating loss of -$152 million a year ago.
President & COO, Jeff Smisek, who will become Chairman & CEO upon Kellner's departure at year end, said revenue "remained weak" throughout the quarter with mainline (RASM) down -19.1% to 9.46 cents. "All regions experienced substantial year-over-year yield declines," leading to a -21.7% fall in mainline yield to 11.04 cents, he said. He added that (CAL) did see "modest sequential improvement" in high-yield performance.
On the cost side, mainline (CASM) excluding special charges sank -21.1% to 10.41 cents - - or -1% on a fuel-neutral basis excluding special items - - on a -4.1% decline in capacity (ASM)s to 25.8 billion. With traffic (RPM)s down -0.9% to 22.13 billion, mainline load factor rose +2.9 points to 85.8% LF.
Regarding the fourth quarter, Smisek said the steep revenue decline, "appears to have flattened out [but] . . . we really have no idea how long the falloff in high-yield traffic will last." However, he added that there are signs suggesting "modest improvements" are forthcoming as companies ease travel restrictions.
Mainline capacity for the fourth quarter will be down about -0.7% with consolidated and mainline (CASM) expected to be up +1% TO +1.5%. For 2010, (CAL) expects mainline capacity to be up +2% to +3%, although mainline domestic capacity will be flat. Smisek also said (CAL) expects to do "quite a bit more" on the ancillary revenue front in 2010 and beyond.
(CAL) on March 7 will launch daily service between Los Angeles and Maui aboard a 737-800 and four-times-weekly flights between Orange County and Honolulu (increasing to daily this summer) aboard a 737-700. (CAL) will also add a 2nd daily 737-900 frequency from Los Angeles to Honolulu. (CAL) together with its Continental Micronesia (MCR) unit, currently serve Hawaii from Los Angeles, Houston, Newark, and Guam.
34% of its passengers at Newark airport are traveling on international flights.
(CAL) Chairman & CEO, Larry Kellner said that while the airline industry has seen slight economic improvement this year as fuel costs have lowered and credit markets have loosened, "we're still bouncing along the bottom." Speaking at the Airports Council International-North America Conference and Exhibition in Austin, Kellner stressed the importance of the relationship between airlines and airports, acknowledging that each makes operational decisions from its own perspective: Airlines focus on the next quarter's revenue, while airports look 3 to 5 years into the future. Regardless of that difference in outlook, he told airport executives attending the conference that airports wanting to attract and retain carriers need to be cognizant of airlines' concern about the bottom line. "The lower your cost per passenger, the likelier we will go there," he said. "Capacity develops around cost. We are very focused on cost." He noted that over the past 12 to 18 months, airlines went from dealing with high fuel prices to weak demand: "So we were having lousy year last year because of what our fuel costs were. We've ended up with a lousy year this year based on what the economy is."
Given the economic environment, Kellner added that it would be a mistake for the USA government to increase passenger facility charges (PFC): "We have huge stress on our system. We support the (PFC) but we want to make sure they are used to the best advantage of the airline and the airport."
(CAL) expects to record $20 million in special charges on its third-quarter balance sheet. The charges comprise $9 million in "unused facilities," $6 million in "airplane-related" charges and $5 million in severance payments. (CAL) will release its third-quarter results on October 21. The facility charge was an adjustment to increase a previously established reserve due to reductions in expected sublease income for unused facilities consisting primarily of a maintenance hangar in Denver, it said. The airplane charges were the difference between the rental payments on five EMB-135s and the fee (CAL) received for subleasing those airplanes.
(CAL) has 148 pilots (FC) on furlough as of October 6. (CAL) is accepting applications but is not reviewing them at this time. (CAL) is moving to the Star alliance (SAL) in October which will create some changes to our gates and operations. (CAL) will be operating more closely with the (SAL) partners.
737-524 (27328, N37615), sold to UTAir (TYU). 737-924ER (33528, N37434), delivery.
November 2009: Continental Airlines (CAL) said October consolidated unit revenue fell an estimated -14% to -15% year-over-year, while mainline (RASM) was down -15% to -16%. It flew 7.26 billion consolidated (RPM)s, up +1.7%, against a -2.6% cut in capacity to 8.8 billion (ASM)s. Load factor rose +3.5 points to 82.5% LF.
(CAL) will issue $644.4 million in equipment notes to finance eight Boeing airplanes already in operation and 11 planes scheduled for delivery in January through June 2010, (CAL) it said in a filing with the USA Securities and Exchange Commission.
bmi (BMA) struck a code share deal with Continental Airlines (CAL) under which it will place its code on (CAL) flights to Newark, and Houston Intercontinental from London Heathrow, Manchester, Birmingham, Glasgow International, Edinburgh, and Brussels. (CAL) will code share on (BMA) flights connecting through the aforementioned destinations as well as Belfast City and Amman.
(CAL) will launch daily, Newark - Munich service on March 27 using a 767-200ER. (CAL) already serves Berlin, Frankfurt and Hamburg from Newark, and recently launched Frankfurt flights from its Houston hub.
SEE ATTACHED "AIRLINE BUSINESS" INTERVIEW - - "CAL-CHMN PRES-2009-11-A/B/C/D/E."
737-3TO (23576, N59338), scrapped. 737-3TO (23374, N10323), WFU at Goodyear. 757-33N (33525, N560TZ), bought from Boeing Capital (TBC).
December 2009: Continental Airlines (CAL) said year-over-year unit revenue declines are down to around 8%, providing some statistical indication that the USA industry has weathered the worst of the demand storm.
(CAL) said consolidated November (RASM) fell an estimated -7% to -9% year-over-year, an improvement from the -14.2% drop in October. Mainline unit revenue was down an estimated -8% to -10%. (CAL) flew 6.77 billion consolidated (RPM)s in November, up +2.9%, against a -1.2% cut in capacity to 8.4 billion ASM)s. Load factor rose +3.2 points to 80.5% LF.
The USA and Japan announced that they reached agreement on an "open skies" accord that will liberalize access, largely removing restrictions on the number of airlines allowed to serve each market as well as the number of flights. The long-elusive pact, agreed to after an intensive fifth round of negotiations this year took place in Washington, is contingent upon approval of antitrust immunity (ATI) for transpacific joint ventures (JV)s between Japanese and USA carriers. (ANA) is seeking to form a (JV) with Star Alliance (SAL) partners United Airlines (UAL) and Continental Airlines (CAL), while Japan Airlines (JAL) intends to form a (JV) with either American Airlines (AAL) or Delta Air Lines (DAL), both of which are negotiating with (JAL) about taking a stake. The pact would replace a bilateral air services agreement that dates back to 1952, though it was expanded in 1998.
No time frame was given for when the new agreement will go into effect, but the sides are eyeing October 2010, when Tokyo Haneda (HND)'s fourth runway will open. A key to the USA side agreeing to an accord was gaining access to (HND), Tokyo's close-in airport that has been closed to USA airlines for more than >30 years. Under terms of the pact, USA carriers will secure four daily round trip slots at (HND) from October.
The USA Department of Transportation said the agreement "would provide opportunities for growth of USA carrier operations at Tokyo's Narita airport and ensure fair competition regarding the new opportunities at [HND]."
Japanese Transport Minister, Seiji Maehara said that reaching the accord "is extremely meaningful" because "the Japan - USA route is the biggest aviation market for Japan." (JAL) said it "intends to apply for (ATI) with a strategic USA partner as soon as possible, so as to seize this opportunity to strengthen our network." It previously has said it hopes to choose between (AAL) and (DAL) by the end of this month.
(AAL) Senior VP Government Affairs, Will Ris said the agreement "will effectively reset the playing field and enable new working relationships, particularly pro-competitive joint ventures granted antitrust immunity (ATI) by the USA and Japanese governments." (DAL) said it "opens the door to antitrust immunity, which would enable Delta (DAL) and (JAL) to engage in deeper and more effective cooperation." (UAL) Chairman, President & CEO, Glenn Tilton said (UAL) looks "forward to forming a joint venture (JV) across the Pacific with our longtime partner [ANA] and Continental (CAL)."
Later, as expected, United Airlines (UAL), Continental Airlines (CAL) and (ANA) filed an application with the USA Department of Transportation for antitrust immunity (ATI) across their combined transpacific network, which the carriers argued would generate "substantial service and pricing benefits for consumers." The application was made possible by the USA - Japan "open skies" agreement, implementation of which is contingent upon the (ATI) approval.
"This joint venture . . . will significantly enhance our ability to serve customers in Japan and throughout Asia and offer new choice and convenience," (UAL) Chairman & CEO, Glenn Tilton said, while (ANA) President & CEO, Shinichiro Ito said the arrangement would allow (ANA) "to strengthen our transpacific network and improve our services."
(UAL) serves Tokyo Narita (NRT) from Chicago O'Hare (ORD), Honolulu (HNL), Los Angeles (LAX), San Francisco (SFO), Seattle, and Washington Dulles (IAD), and flies to Osaka Kansai from (SFO). (CAL) serves (NRT) from Houston Intercontinental and Newark, while (ANA) flies to (ORD), (HNL), (LAX), (SFO), (IAD) and New York (JFK).
(UAL) and (CAL) received immunity (ATI) for a transatlantic joint venture (JV) with Lufthansa (DLH) and Air Canada (ACN) in July.
(CAL) will launch four-times-weekly, Orange County (SNA) - Maui service on March 7 and will increase the four-times-weekly, (SNA) - Honolulu flights scheduled to start the same day to daily. Both routes will be operated with 737-700s.
In frequent flier news, (CAL) is introducing a fourth tier to its "OnePass elite" program. "Presidential Platinum" fliers will receive top priority for "Elite" upgrades and flight standby, an exclusive VIP phone line and annual fee waivers for the Continental Mastercard.
For the first time, (CAL) will look at how much fliers spend with (CAL), accepting only those who spend at least $30,000/year. Fliers with more than >100,000 "elite" status miles (or 120 "elite" status points), will be given four complimentary system-wide upgrade certificates. Typically, (CAL) only grants free premium class upgrades on domestic flights.
(CAL) announced it will offer Aircell's Gogo in-flight Internet on 21 757-300s operating primarily on domestic routes beginning in the 2010 second quarter. Service cost will start at $4.95 and will be based on length of flight, (CAL) said.
1 737-3TO (23356, N63305), scrapped, 3 737-3TOs (23370, N12319; 23375, N14324; 23593, N76355), WFU at Goodyear, and 737-524 (28919, N18658), sold to Transaero (TRX).
January 2010: Continental Airlines (CAL) said December consolidated (RASM) declined an estimated -3.5% to -4.5% year-over-year, while mainline unit revenue was down -4.5% t9o -5.5%. (CAL) flew 7.54 billion consolidated (RPM)s traffic during the month, up +6%, against a +2.1% lift in capacity (ASK)s to 9.09 billion. Load factor rose +3.1 points to 83% LF.
(CAL) reported a 2009 net loss of -$282 million, improved +51.9% from a -$586 million deficit in the year-ago period, and pointed to a fourth-quarter profit of +$85 million as a sign that it is "holding the line on costs and working more efficiently." Chairman, President & CEO, Jeff Smisek warned that (CAL) and the USA airline industry "likely have a long and slow road to recovery ahead," though he noted, "A long and slow recovery is better than what we had in 2008 and 2009."
In his first earnings conference call at the company's helm, Smisek told analysts and reporters that (CAL) will move aggressively to unbundle its product and continue experimenting with new ways of generating ancillary revenue by taking "thoughtful and measured risks." He explained, "We have historically served a pizza with everything on it. Now we're going to let people not only choose their own pie, but order just one slice if that's what they want."
Executive VP & Chief Marketing Officer, Jim Compton said that "business travelers are slowly returning," but he cautioned that "we're still waiting to see any strength in yields." Owing to yield weakness and uncertain prospects for the general economy, (CAL) said it plans to keep capacity in check in 2010, with full-year consolidated capacity projected to rise just +1% to +2% year-over-year. Much of the small increase will stem from "the restoration of the . . . full schedule to Mexico following the capacity pulldown last year related to H1N1." Domestic mainline capacity is expected to lower -0.6%. "We have a bias toward capacity discipline," Smisek said.
Revenue fell -17.4% in 2009 to $12.59 billion, while expenses decreased -18.1% to $12.73 billion, producing an operating loss of -$146 million, narrowed by -53.5% from an operating deficit of -$314 million in 2008. Mainline traffic declined -3.6% to 79.82 billion (RPM)s on a -5% cut in capacity to 97.41 billion (ASM)s, producing a load factor of 81.9% LF, up +1.1 points. Yield dropped -15.8% to 11.58 cents, as (RASM) dipped -12.7% to 10.92 cents and (CASM) lowered -13.6% to 10.75 cents. (CASM), ex-fuel heightened +1.8% to 7.79 cents.
The fourth-quarter profit was turned around from a -$269 million net loss in the prior-year period. Operating income was $1 million, reversed from a -$25 million operating loss in the 2008 fourth quarter, on a -8.3% decline in revenue to $3.18 billion.
(CAL) will operate seasonal service, Portland (Oregon) - Anchorage between June 10 - September 6.
Delta Airlines (DAL) and Continental Airlines (CAL) raised their fees for first and second checked bags on North American flights to $25 and $35 respectively, matching US Airways (AMW)/(USA)'s fee levels imposed in the second half of last year. United Airlines (UAL) and American Airlines (AAL) currently charge $20 and $30, respectively. (DAL) said it now is charging $23 for a first checked bag and $32 for a second checked bag if the passenger checks in online, believed to be the highest fees among USA carriers for online check-in. Premium passengers and military personnel are exempt from the new (DAL) and (CAL) charges.
3 737-524s (27325, N1162; 27326, N14613; 27327, N17614), WFU at Goodyear.
February 2010: Continental Airlines (CAL) will operate daily, Portland, Oregon - Anchorage service June 10 to September 6 aboard a 737-800. (CAL) will launch ERJ service from Cleveland to Green Bay (11-times-weekly) and Norfolk (twice-daily) on May 2.
Airports in the USA Mid-Atlantic and Northeast reopened as the regions began to dig out from back-to-back storms that produced record snow accumulation in some areas. Seven consecutive days of snow removal were required at Washington Dulles and National, the Metropolitan Washington Airports Authority said. Baltimore, Philadelphia and the three major New York area airports also were operational, although airlines continued to cancel flights as they sought to reposition airplanes and employees and return to normal operation.
According to FlightStats, American Airlines (AAL)had canceled 465 of the 1,419 scheduled departures tracked, or 32.8%. The number of departures tracked represented 72.4% of the total. Continental Airlines (CAL) canceled 13.2% of its 675 tracked departures, representing 69.9% of the total schedule. Delta Air Lines (DAL) canceled 10.4% of its 1,658 tracked departures, representing 69.6% of its total. United Airlines (UAL) canceled 13.8% of its 741 tracked departures, representing 64.5% of its total. US Airways (AMW)/(USA) canceled 24.2% of its 921 tracked departures, representing 68.7% of its total. Southwest Airlines (SWA) canceled 22.4% of its 2,012 tracked departures, representing 62.9% of its total, FlightStats reported.
Continental Airlines (CAL) fleet service employees comprising ramp, operations and cargo agents voted in favor of representation by the International Brotherhood of Teamsters.
(CAL) plans to furlough 600 reservations center employees beginning April 11, comprising 350 current employees and 250 currently on leave, according to a company memo cited by numerous press reports. Most of the furloughs will come from its Houston call center.
4 737-3TOs (23359; 23362; 23373), scrapped and (23362) returned to lessor. 737-524 (28922) sold to Traffer Aircraft Leasing for TransAero (TRX).
March 2010: Continental Airlines (CAL) is following the footsteps of other USA legacy carriers by eliminating free economy class (Y) in-flight meal service on North American flights under 6 hours and some shorter Latin American flights beginning in the fall.
Instead, it will offer passengers "a variety of high-quality, healthy food choices for purchase in economy class (Y)." It said an a la carte menu and pricing are still "in development." It noted that all of its "significant USA competitors either do not offer food or have already implemented food sales for economy class (Y) travelers." Pretzels and nonalcoholic beverages still will be complimentary.
Chairman, President & CEO, Jeff Smisek said in January that (CAL) would move aggressively this year to unbundle its product, explaining, "We have historically served a pizza with everything on it. Now we're going to let people not only choose their own pie, but order just one slice if that's what they want"
USA airlines presenting at the Transportation Conference in New York agreed that they see signs of a nascent industry recovery but that they will maintain cost and capacity discipline for now. "We're clearly seeing signs of economic recovery and premium and corporate travelers returning," (UAL) Corporation's CFO, Kathryn Mikells said, adding, "The return of higher quality traffic, combined with the significant reductions in capacity that we undertook in 2009, has really begun to improve our relative revenue results." American Airlines (AAL) Executive VP Finance & Planning and CFO, Tom Horton said first-quarter mainline passenger (RASM) will be up +6.5% to +7.5% year-over-year, while Continental Airlines (CAL) Chairman, President & CEO, Jeff Smisek said (CAL) is "seeing business (C) travel begin to return." Delta Air Lines (DAL) agreed that corporate sales trends are improving, though its system capacity at the end of the first quarter will be down -4% to -5% year-over-year. (DAL) President, Ed Bastian said (DAL) will "continue to maintain that level of capacity restraint."
From the low-cost sector, Southwest Airlines (SWA) said it is taking a slow approach to expanding in new markets, remaining focused on improving profitability rather than increasing fleet size. CFO, Laura Wright said (SWA) wants additional slots at New York LaGuardia and that it will be filing comments in the next few weeks to express interest. "We don't have an expectation to have 100 flights a day at LaGuardia, but we know we've got demand for more than the eight that we have today," she said. Slots might become available if US Airways (AMW)/(USA) and (DAL) proceed with their slot swap agreement. AirTran Airways (CQT) said it expects capacity growth of +3% to +4% over the next year owing to higher utilization and will maintain a conservative fleet plan for the "next couple of years." It expects to take delivery of seven airplanes over the next year. JetBlue Airways (JBL) has decided to take four A320s in 2011 rather than the eight previously planned, along with five EMB-190s, according to the "Associated Press."
(cal) plans to take delivery of four 787-8s in the third quarter of 2011 and two more in the fourth quarter, it said in a USA Securities & Exchange filing. It has 11 787-8s and 14 787-9s on order. The fleet plan included in the filing anticipates the 2010 delivery of two 777-200ERs, three 757-300s, two 737-900ERs, 10 737-800s (one of which will not enter service until 2011) and three 737-500s, plus the disposal of six 737 Classics. By year end, (CAL) will have 350 airplanes in the mainline fleet. The regional fleet will comprise 257 planes owing to the reduction of six ERJ-145s and seven CRJ-200s plus the addition of six DHC-8-Q400s in the second half of this year.
In the same filing, (CAL) said it expects consolidated first-quarter capacity to slip -0.2% year-over-year, with mainline capacity (ASM)s flat and international capacity up +1.5%. Consolidated and mainline load factors each will rise +4 to +5 points to 79% to 80% LF and 80% to 81% LF, respectively. For the full year, both are expected to be 81% to 82% LF as capacity rises +1% to +2%. First-quarter consolidated unit cost is forecast to be 12.18 to 12.23 cents and 12.04 to 12.09 cents for the full year.
April 2010: Continental Airlines (CAL) said that its 111 dispatchers represented by the Transport Workers Union ratified a new four-year collective bargaining agreement.
May 2010: Continental Airlines (CAL) said April estimated consolidated (RASM) increased +14% to +15% from the year-ago month, while estimated mainline (RASM) rose +12% to +13%. (CAL) flew 7.37 billion consolidated (RPM)s traffic last month, down -2.6% year-over-year, as capacity fell -3.2% to 8.89 billion (ASM)s. Load factor rose +0.6 point to 82.9% LF.
In what they described as "a merger of equals," Continental Airlines (CAL) and United Airlines (UAL) announced the two companies will combine in an all-stock transaction in which Continental (CAL) shareholders will receive 1.05 shares of United (UAL) common stock for each (CAL) share they own.
(UAL) shareholders will own approximately 55% of the combined holding company, which will be named United Continental Holdings with "United" the name of the surviving airline. The transaction has a "combined value of over >$8 billion," the companies said.
(UAL) Chairman, President & CEO, Glenn Tilton will serve as the Non-executive Chairman of the board of United Continental through December 31, 2012, or the second anniversary of the deal's closing. (CAL) Chairman, President & CEO, Jeff Smisek will be CEO and will add the title of Executive Chairman upon Tilton's ceasing to be Non-executive Chairman.
In addition to Smisek and Tilton, the 16-member board will include six independent directors from each of the two companies and two union directors, required under (UAL)'s charter. In a statement, the companies said that the management team "is expected to include an equitable and balanced selection of executives from each company with the intention that each will contribute roughly equal numbers."
Corporate and operational headquarters will be in Chicago, current HQ to (UAL), which is approximately +30% larger than (CAL) based on 2009 annual revenues of $16.3 billion versus $12.6 billion for (CAL). Houston-based, (CAL) flew 79.8 billion (RPM)s traffic in 2009 versus 100.5 billion for (UAL). Based on 2009 results, the merged carrier will be slightly larger than Delta Air Lines (DAL)/(NWA) ($28.1 billion in revenues last year).
The companies expect synergies of $1 to $1.2 billion annually by 2013 including $800 to $900 million of incremental annual revenues and $200 to $300 million in net cost synergies. One-time merger costs are expected to total $1.2 billion spread over a three-year period.
"Today is a great day for our customers, our employees, our shareholders and our communities as we bring together our two companies in a merger of equals to create a world-class and truly global airline," Tilton said in a statement.
A more cautious view was taken by the airlines' pilot (FC) unions, which released a joint statement observing that "history has demonstrated that the integration of two airlines is always a difficult challenge. The support of the pilots (FC) is pivotal in determining whether a merger is successful or not, as will be the case with this merger…"
The merger is subject to approval by shareholders of both companies and must be reviewed by the USA Department of Justice. (UAL) and (CAL) expect to complete the transaction in the 2010 fourth quarter.
The merger between (CAL) and (UAL) will, if consummated, create the world's largest airline by traffic (RPK)s, serving 370 destinations in 59 countries with 692 mainline airplanes. "Together we create the world's most comprehensive network. Our networks quite literally complete each other, with little overlap and with strategically located hubs that provide gateways to the Pacific, the Atlantic, Latin America, the Middle East, Hawaii and Micronesia," (UAL) Chairman, President & CEO, Glenn Tilton said in a webcast announcing the deal.
In addition to an extensive domestic network with little nonstop overlap, the combined carriers will serve 31 transpacific destinations in 14 countries with 62 daily departures, 72 destinations in 24 Latin American countries with 156 daily departures and 34 transatlantic destinations in 21 countries with 74 daily departures. "Put simply, (CAL) is strong where (UAL) is weak, and (UAL) is strong where (CAL) is weak," Smisek said, noting that 57% of the carriers' capacity is deployed domestically, 20% across the Atlantic, 15% in the Pacific and 8% in Latin America. "We have no international route overlaps," he stated.
They operate six airplane types, with the 747-400 and the A320 family exclusive to (UAL and the 737 exclusive to (CAL). Both fly the 777, 767 and 757 and each has ordered the 787, while (UAL) also has chosen the A350-900. Commenting on the health of that order, Tilton said, "The A350's utility isn't changed by the fact that we've become one company."
(UAL) will be the surviving airline's name, while airplanes will sport the (CAL) livery, logo and colors (SEE PHOTO - - CAL UAL 787-9 DREAMLINER 2010-05). The combined company will have 10 USA hubs although not all are expected to survive the merger, with speculation centering on (CAL)'s Cleveland hub, which has been downsized over the years and is mostly served by regional jets operated by ExpressJet.
United Airlines (UAL) Chairman, President & CEO, Glenn Tilton told employees in a letter that he and Continental Airlines (CAL) Chairman, President & CEO, Jeff Smisek will head an "integration planning team" that will begin laying the groundwork for combining the two airlines. (UAL) and (CAL) announced earlier this month that they had reached agreement on a merger to create the world's largest airline by traffic (RPK)s, serving 370 destinations in 59 countries with 692 mainline airplanes. Tilton emphasized to (UAL) workers that "integration will not occur until after we have gained approval for the merger and closed the transaction." But he said, "planning for the integration will be critical to ensuring a smooth transition" and the integration planning team "will be focused on defining the process for bringing together our two companies."
The structure includes an Integration Steering Committee composed of Tilton, Smisek, (UAL) Executive VP & CFO, Kathryn Mikells, (UAL) Executive VP & COO, Pete McDonald, (CAL) Executive VP & CFO, Zane Rowe, and (CAL) Executive VP & CMO, Jim Compton. McDonald and Lori Gobillot, (CAL) Staff VP & Assistant General Counsel, will lead integration planning and report to the steering committee, Tilton said. McDonald and Gobillot will head an Integration Management Office "responsible for day-to-day integration planning and recommendations," Tilton wrote. "The Integration Management Office will focus on five significant bodies of work: Commercial, operations, corporate functions, Information Technology (IT) & systems integration, and single air operating certificate (AOC) planning. Each of the functional areas covered will have dedicated co-leaders appointed by each company." Those appointments have yet to be made.
Continental Airlines (CAL) announced plans to serve Auckland, New Zealand from its Houston Intercontinental hub beginning November 16, 2011, using a 787 to operate the 7,400-mile route. (CAL) said it is the first airline to "formally announce specific route plans for its 787 fleet." (CAL), which has agreed to merge with United Airlines (UAL), has 25 787 Dreamliners on order with deliveries beginning in August 2011. Subject to government approval, service will be operated daily, with five-times-weekly service during certain periods in the first year of operation, (CAL) said.
Also, (CAL) fully reopened Terminal C at Houston airport (IAH) following completion of a $65 million redevelopment project begun in 2008. The renovations added 15,000 sq ft to its ticketing and check-in lobby and 56 new self-service kiosks to its existing 59 and upgraded security checkpoints, baggage claim and curbside areas.
"The Terminal C renovation represents the airport of the future," Senior VP System Operations & Real Estate, Holden Shannon said. Though the added kiosks place a larger emphasis on self-service in an effort to "make the check-in process more efficient," (CAL) noted that it has "assigned customer service agents to work in the kiosk areas to guide and help travelers" and that "a full-service check-in counter is still available for those who favor traditional counter service."
Redevelopment began in September 2008 and was completed in three phases. (CAL) managed the construction efforts while its partner, the City of Houston, funded the renovations. It is the first major overhaul to the terminal since it opened in 1981. (CAL) said the facility serves up to 12,000 customers daily.
The USA (FAA) proposed a $325,000 civil penalty against Continental Airlines (CAL) for operating a 737 on "at least" 12 commercial flights before an abnormal gear indication was addressed by mechanics (MT). The (FAA) said that on December 20, 2008, the crew of a 737 en route from Houston to Los Angeles elected to continue their flight after noticing a warning light on the right main landing gear indicator after the gear retracted, and diverted to Phoenix only once it became apparent the airplane was burning "an excessive amount of fuel." Upon landing, (CAL) maintenance (MT) workers inspected the landing gear but failed to record the incident and the airplane allegedly flew a dozen passenger flights before being inspected by mechanics (MT).
"Air carriers cannot let maintenance issues lapse," (FAA) Administrator, Randy Babbitt said. "When a problem is discovered, it needs to be corrected immediately." (CAL) has 30 days to respond to the (FAA). (CAL) was fined earlier by the USA Department of Transportation for filing incomplete disability complaints.
June 2010: Continental Airlines (CAL) said May estimated consolidated (RASM) increased +23% to +24% from the year-ago month while estimated mainline (RASM) rose +22.5% to +23.5%. It flew 7.81 billion consolidated (RPM)s traffic last month, up +3.7% year-over-year, as capacity lifted +0.2% to 9.33 billion (ASM)s. Load factor rose +2.9 points to 83.8% LF.
Continental Airlines (CAL) said it plans to start daily 787 flights between Houston Intercontinental (IAH) and Lagos (LOS) on November 10, 2011, launching what would be its first-ever service to Africa.
The flights, which also would be the first daily scheduled service between Texas and Africa by any carrier, are subject to government approval. (CAL) currently serves 63 international destinations from (IAH) and recently announced plans to begin service between (IAH) and Auckland, New Zealand on November 16, 2011.
Chairman, President & CEO Jeff Smisek said the (IAH) - (LOS) flights "will link two energy capitals and fill the growing demand for nonstop service between the two cities, a route which is currently not served by any other airline."
The approximately 6,500-miles flight will be operated with a 787-8 seating 36 passengers in first/business class and 192Y in economy, (CAL) said, noting that flying time will be about 11 hours eastbound and 12 hours 30 minutes westbound.
July 2010: Continental Airlines (CAL) said June consolidated (RASM) grew an estimated +21% to +22%, while mainline consolidated (RASM) grew +20.5% to +21.5%. It flew 8.44 billion consolidated (RPM)s traffic last month, up +4.7% year-over-year. Capacity lifted +2.2% to 9.72 billion (ASM)s and load factor rose +2.1 points to 86.9% LF.
(CAL) continued the trend of USA majors reporting strong financial results, posting second-quarter net income of +$233 million, reversed from a -$213 loss in the year-ago period. But the carrier stressed it does not view the results as justification for increasing capacity. With an emphasis on "rigorous capacity discipline," it projects full-year capacity will rise just +0.5% to +1.5% year-over-year, including a -0.5% to -1.5% drop in domestic mainline (ASM)s.
It credited a rebounding revenue environment for the profitable performance in the three months ended June 30. (CaAL) "has seen a modest improvement in business demand and stronger leisure yields" in 2010, (CAL) stated. Second-quarter revenue jumped +18.6% to $3.71 billion, while expenses rose +3% to $3.38 billion, producing operating income of +$328 million, reversed from an operating deficit of -$154 million in the prior-year period. Mainline traffic lifted +1.5% to 21.08 billion (RPM)s on a -0.7% dip in capacity to 24.79 billion (ASM)s, producing a load factor of 85% LF, up +1.8 points. Passenger yield increased +16.3% to 12.87 cents as (PRASM) grew +18.8% to 10.94 cents and (CASM) heightened +3.9% to 11.27 cents.
United Airlines (UAL) and Continental Airlines (CAL) announced the executive management team for the merged carrier (CAL)/(UAL) and it will not include (UAL) President, John Tague or (UAL) CFO, Kathryn Mikells. Reporting directly to (CAL) President & CEO, Jeff Smisek, who will lead the merged airline, will be (UAL) COO, Peter McDonald and (CAL) CFO, Zane Rowe. Both will hold the same titles in the successor company. In addition, Keith Halbert, who joined (UAL) in 2008, will be CIO and Tom Sabatino, who joined (UAL) this year, will be General Counsel.
(UAL) Chairman & CEO, Glenn Tilton, who will serve as non-executive chairman, said, "We have exceptional executives across our two companies; this created a superb talent pool from which to determine the senior executive team to take the company forward." Smisek added, "This outstanding team represents a great blend of experience and expertise at both airlines."
(UAL)/(CAL) said they "are developing a talent-selection process for other management and clerical roles and refining the planned organizational structure. The companies expect the merger to close before year-end." In addition to the departures of Mikells and Tague, (UAL) said that Graham Atkinson, President of Mileage Plus, and Rosemary Moore, Senior VP Corporate & Government Affairs, also are leaving the company upon close of the merger.
The European Commission (EC) cleared the proposed merger. In its ruling, the (EC) said (CAL)/(UAL)' networks "are complementary" and that therefore the combination of the two "only leads to small incremental increases in the market shares of the parties." Moreover, the (EC)'s investigation confirmed the "complementary nature" of their transatlantic routes "and the fact that their combination will not give rise to concerns on any specific route." The USA government has yet to issue a decision on the proposed combination.
(CAL) will operate daily, Houston - Gunnison, Colorado service December 16 - April 3, decreasing to four-times-weekly, January 4 to February 16.
TAM (TPR) and Continental Airlines (CAL) reached a code share agreement under which TAM (TPR) will place its code on (CAL)'s Orlando (MCO) and Miami (MIA) service to both Cleveland and Houston Intercontinental (IAH), as well as service to (IAH) from Sao Paulo (GRU) and Rio de Janeiro (GIG). (CAL) will place its code on TAM (TPR)'s (GIG) service to (MIA) and (JFK); (GRU) service to (MCO), (MIA) and (JFK); Manaus - (MIA); (GIG) service to Belo Horizonte, Recife, Vitoria, and Salvador; and (GRU) service to (PLU), Curitiba, Porto Alegre, (SSA), Florianopolis, Foz do Iguacu, Campo Grande, Recife, and Brasilia. The two carriers announced a frequent-flyer partnership in April. "We expect to further consolidate our partnership with TAM (TPR) in the near future," (CAL) VP Latin America & Caribbean, John Slater said.
Six airlines formed a member-based, not-for-profit organization called Open (AXIS) Group to promote a standardized XML (eXtensible Markup Language) schema as the optimal electronic messaging structure for airline system connectivity used in content distribution. The members are Air Canada (ACN), American Airlines (AAL), Continental Airlines (CAL), Delta Air Lines (DAL), United Airlines (UAL), and US Airways (AMW)/(USA). (ATPCO) has been invited to serve as the founding Allied Member and former Frontier Airlines (FRO) VP, Jim Young will serve as Executive Director.
The Open (AXIS) Group’s mission is to expand the adoption, promotion, enhancement and maintenance of a robust airline industry-standardized XML schema that supports a range of airline transactions, including booking and (PNR) management, multiple passenger management, ticketing, exchange, refunds, voids, optional services, bundling and (EMD) management. "Having this standard provides a one-stop shop for modern airline connectivity," said American Airlines (AAL) Director Merchandising Strategy, Cory Garner.
Membership is not a requirement to use the group's messaging standard; the XML schema is available to all on the group's website. "We plan on being an open, transparent and inclusive group," Young said. "The Open (AXIS) Group is structured to respond quickly to the fast-paced needs of the airlines."
The Houston Airport System is completing the final phase of a $250-million makeover of William P Hobby Airport, which features increased space in the lobby, open areas to improve traffic flow to the security checkpoint and display of signature art works. Clark Construction Group LLC started remodeling in 2006 by adding five gates to the central concourse and demolishing several other concourses. A temporary baggage claim area is still in use while a permanent claim area is under construction. Officials dedicated the makeover July 16.
The USA (FAA) proposed a $230,000 penalty against Continental Airlines (CAL) for allegedly operating a 767 not in compliance with (FAA) regulations on 22 flights. The agency charged that (CAL) failed to install a required axle washer after replacing the nose landing gear wheel and tire assembly on August 12, 2008, "despite warnings in the maintenance manual and on the tire assembly itself." It added, "The warning said failing to install the washer could lead to failure of the wheel bearing." The (FAA) said it identified three identical earlier violations when it discovered the discrepancy during a records check. (CAL) has 30 days to respond.
2 777-224ERs (39776, N76021; 39777, N77022) deliveries in "Star Alliance" colors.
August 2010: Continental Airlines (CAL) 2009 World Passenger Traffic = 128,437 Million (RPK)s (-3.6%) (World Highest #5) (#5); World Total Employees = 39,640 (-6.7%) (World Highest #9). SEE ATTACHED - - "CAL-2010-08-WLD RPK-2009."
(CAL) said July estimated consolidated (RASM) increased 20.5% to 21.5% from the year-ago month, while estimated mainline (RASM) rose +21.5% to +22.5%. It flew 9.11 billion (RPM)s in July, a +2.5% increase on the year-ago month, on a +1.7% increase in capacity to 10.35 billion (ASM)s. Load factor fell -0.7 point to 88% LF.
United Airlines (UAL) and Continental Airlines (CAL) unveiled their post-merger livery, which features the "United" name in block capital letters on the fuselage but utilizes (CAL)'s tail logo and colors including its blue-gold-white globe image on the tail. "Both airlines have earned strong brand recognition in one of the world’s most visible and highly competitive businesses," (CAL)/(UAL) said in a statement. "The new visual identity builds upon the significant value of each airline’s current brand, while advancing the combined airline’s future brand image." SEE ATTACHED PHOTO - - "CAL-2010-08-NEW UAL MERGER LIVERY."
The USA Justice Department (JD) said that it has no more antitrust (ATI) concerns about the deal that would combine United (UAL) and Continental (CAL) into the world's largest airline. To win that approval, (CAL)/(UAL) had to open the door to Southwest Airlines (SWA) at Continental (CAL)'s hub in Newark, New Jersey, where it is the dominant carrier. The (JD) said leasing takeoff and landing permission to (SWA) in Newark cleared up its main competitive concern.
Shareholders at Continental Airlines Inc and United (UAL) parent, (UAL) Corporation are set to vote on the deal on September 17, and the Transportation Department (TD) has to approve it. The airlines now expect the deal to close by October 1.
The combined airline would leapfrog Delta Air Lines (DAL) Inc to become the world's biggest airline. (DAL) itself grabbed the top spot by buying Northwest Airlines (NWA) in 2008.
The Justice Department (JD) said it thoroughly investigated the (CAL) - (UAL) deal and concluded that their two networks mostly complemented each other, with overlaps on a limited number of routes.
But Newark stood out. (CAL) had 70.9% of Newark's passengers during the year that ended in June. (UAL) is only Newark's fifth-biggest airline, but most of its hubs also connect directly to Newark.
(CAL) and (UAL) operate 442 daily round trip flights in and out of Newark. The deal with (SWA) will give it enough of (CAL)'s slots to operate 18 round trip flights there by June 2011. The move increases competition for (CAL) at its Newark hub, as well as for (UAL). Currently, (SWA) operates a few flights at New York's LaGuardia Airport but none at Newark or Kennedy.
(SWA) is getting slots at both peak and off-peak travel times, (CAL) Chairman & CEO, Jeff Smisek told workers in a memo. Smisek will be CEO of the combined airline, which is to be called "United" and based in (UAL)'s hometown of Chicago.
(SWA)'s entrance to Newark won't change the estimates for revenue gains and cost savings from combining (CAL) and (UAL), (UAL) Chairman & CEO, Glenn Tilton told employees in a message. "We vigorously compete with (SWA) throughout our network," he said.
Mike Boyd, an airline and airport consultant in Colorado, said giving up a few slots at Newark was an easy decision for the combining giants. "(CAL) and (UAL) want to get this merger done," Boyd said, and if federal regulators "stick their nose in there and say, 'Give something up,' they're going to give it up."
Bob Jordan, (SWA)'s Executive VP Strategy, said Newark would complement (SWA)'s service at LaGuardia and increase competition in the New York market. (SWA), which is based in Dallas, said it was still deciding what cities it will serve from Newark. From LaGuardia, it flies only to Chicago and Baltimore.
Star Alliance (SAL) partners Brussels Airlines (DAT)/(EBA) and Continental Airlines (CAL) on August 9 plan to start code sharing on services between Newark Liberty International Airport and (DAT)/(EBA)’s base at Brussels Airport. With this accord, Brussels Airlines (DAT)/(EBA) will place its ‘SN’ designator code on Continental (CAL)’s daily transatlantic services, as well as on domestic services to Cleveland, Dallas/Fort Worth, Fort Lauderdale, Houston, and Orlando. The deal also places Continental(CAL)’s ‘CO’ code on Brussels Airlines (DAT)/(EBA)’s flights to Bologna, Italy; Bristol, London Heathrow, and Newcastle, UK; Hannover, Germany; and Lyon, Marseilles, Paris Charles de Gaulle, and Toulouse in France.
Continental (CAL) will also code share on 12 cities with Brussels
Airlines (DAL)/(EBA)’s extensive African network. These are Accra,
Ghana; Banjul, Gambia; Bujumbura, Burundi; Cotonou, Benin; Dakar, Senegal; Douala and Yaounde, Cameroon; Entebbe, Uganda; Kigali, Rwanda; Monrovia, Liberia; Nairobi, Kenya; and Ouagadougou, Burkina Faso.
Star Alliance (SAL) partners Continental Airlines (CAL) and Aegean Airlines (CRM) announced plans to start code sharing on (CAL)'s flights between its Newark (EWR) hub and Athens (ATH). (CAL) will also place its code on selected flights operated by (CRM) in Europe. Effective immediately, (CRM) will place its A3 code on (CAL) flights between (EWR) and (ATH). Pending government approval, (CRM) also will code share on (CAL) flights from (EWR) to/from Paris Charles de Gaulle and Rome Fiumicino.
(CAL) will place its code on (CRM) domestic flights from (ATH) to Thessaloniki, Heraklion, Rhodes, Mykonos, Santorini, Chania, as well as on (ATH) - Larnaca flights. (CAL) said it will eventually code share on (CRM) flights from (ATH) to London Heathrow, Munich, and Frankfurt.
9 737-824s (30132, N76519; 31642, N78524; 31658, N77520; 31659, N77525; 31660, N76522; 31662, N79521; 37101, N76523; 38700, N76526; 38701, N87257), deliveries.
September 2010: Shareholders of the (UAL) Corporation and Continental Airlines (CAL) both voted to approve a merger between (UAL) and (CAL). The $3.2 billion deal would create the world's biggest airline carrier by passenger traffic. "We are grateful for our stockholders' strong vote of confidence in this merger," said Jeff Smisek, (CAL)'s Chairman, President & CEO.
United Airlines (UAL) and Continental Airlines (CAL) have agreed on a path to obtain a single operating certificate (SOC) from the (FAA) that will see the merged carriers retain the "legacy Continental (CAL) operating certificate and the legacy United (UAL) repair station certificate," according to (UAL) VP Corporate Safety, Security, Quality & Environment, Michael Quiello.
The information was contained in a communication from Quiello to (UAL) employees. Achieving an (SOC) "is a long-term process that will follow a series of steps in a transition plan that we will submit to the (FAA) later this month," he said. It will "be the third and final stage in the merger process," following Closing Day, when the merger is legally completed, and Customer Day One, set for sometime next spring, when the two airlines' customer service systems are expected to be able to handle passengers from either airline. It is anticipated the (SOC) will take at least a year to accomplish from the date of the closing of the merger, expected by October 1.
Although both operating certificates contain "unique" advantages, the (CAL) certificate was selected "because of its enhanced technology authorizations and close conformity to standard (FAA) language as well as other regulatory and commercial considerations," Quiello stated. (UAL)'s maintenance certificate was selected because it "enables increased maintenance capabilities, enhanced repair station authorizations and greater maintenance volume."
As part of the merger process, the Continental Micronesia (MCR) operation will be combined with Continental (CAL)'s ahead of the (UAL) - (CAL) (SOC) transition. At present, Continental Micronesia (MCR) has its own air operating certificate (AOC).
The Air Lines Pilots Association (ALPA) representing Continental Airlines (CAL) pilots (FC) said that it has been informed that (CAL) will be “recalling all of its pilots (FC) from furlough.” According to (ALPA), (CAL) furloughed 147 pilots (FC) in September 2008. Fifteen were recalled earlier this year and the remaining pilots (FC) are “expected to begin returning for training sometime during the last quarter of 2010."
“With the increases in flying due to increased passenger traffic and anticipated airplane deliveries, combined with normal pilot (FC) attrition rates, we have been saying for months that we needed our pilots (FC) back in order to adequately maintain the level of service that Continental (CAL) is known for,” said Captain Jay Pierce, Chairman of the Continental (CAL) pilots (FC) unit of (ALPA).
Continental Airlines (CAL) announced it reached a tentative agreement on a new labor contract with (IBT), which represents 3,700 airplane maintenance technicians (MT) and related employees. In a statement, (CAL) said the agreement will be voted on for ratification in the coming weeks. "This is a good agreement that recognizes the hard work of our technicians," said Senior VP Human Resources (HR) & Labor Relations, Mike Bonds.
The cities of Houston and Chongqing, China, have signed an airport cooperation agreement to enable a mutual exchange that is part and parcel of a long-term strategy of the Houston Airport System to develop air service at George Bush Intercontinental Airport (IAH).
Airport officials will look first to transpacific service by Continental Airlines (CAL), which plans to continue and perhaps grow its hub at the oil city as it merges with United Airlines (UAL). But other airlines, including Asian carriers, will be among those that Houston will bargain with for new service. Houston’s strategy to build international service appears to be working; next month, Emirates (EAD) will add a second daily flight from Houston and Singapore Airlines (SIA)’s service will go to daily. China is the next big target.
The city of Houston is participating in the World Expo currently underway in Shanghai. Mayor, Annise Parker and Mario Diaz, Houston’s Director of Airports, recently visited the expo and made a side trip to Chongqing, a central Chinese city that technically has the world’s largest population, some 32 million people. The Houston business community has been connecting with China since that nation opened itself to foreign interests decades ago, says Genaro Pena, Air Service Development Director for the airport. That effort, coupled with the sizable and growing population of Asia-connected people in Houston, has established Houston as a major candidate for service to Asia.
Cargo service to Asia was launched by Taiwan-based carriers to Taipei and took a big bounce two years ago, when Cathay Pacific (CAT) began operating to Hong Kong. “Houston is a global city with large Fortune 500 companies based here,” Pena notes. It expects to report a
population of 6 million, based on the recent USA census, that can support industries such as its broad-based oil and gas production companies, manufacturing, engineering and infrastructure development.
Chongqing is growing as a high-technology manufacturing city, an obvious target for service to Houston, Pena adds. In the past year, Chongqing has reported $3 billion in direct foreign investment.
Houston is using its (HAS) Development Corporation, an airport
consultancy and educational service, to strengthen its tie
to Chongqing. The corporation typically trains 250 airport professionals each year. In recent years, a majority has come from China, Africa, and Latin America. The focus of the exchanges will be airport management, operations safety, emergency and contingency management, operations, runway safety and air traffic management.
“This is a recipe for air service down the line,” Pena says. “Chongqing may not be the first, but it is one that we have our eye on. Vehicles [such as agreements] help us make an investment in the future, connecting with the right people and agencies to support air service to cities.”
October 2010: United Airlines (UAL) reported third-quarter net income of +$387 million, reversed from a -$57 million loss in the year-ago period, while affiliate Continental Airlines (CAL) posted a third-quarter net profit of +$354 million, reversed from a -$18 million net deficit in the 2009 September quarter.
United Continental Holdings (UCH) earlier this month became the parent of the two carriers, which continue to operate independently for the time being.
(UAL)'s third-quarter revenue jumped +21.7% year-over-year to $5.39 billion, while expenses increased +11.8% to $4.86 billion, producing operating income of +$535 million, widened significantly from an operating profit of +$88 million in the year-ago period. (CAL) reported +19.2% year-over-year quarterly revenue growth to $3.95 billion. Expenses heightened +7.9% to 3.51 billion and operating income was +$441 million, a more than sevenfold increase over +$61 million last year.
(UCH) President & CEO, Jeff Smisek said the company aims to achieve 25% of the projected $1.2 billion in annual post-merger synergies in 2011. The overall integration is expected to take 12 to 18 months, but Smisek said the company will "start to bring home some quick wins," citing a route optimization process that has already started. He did not get into specifics regarding the post-merger fleet, saying, "We each bring a lot of value [in terms of airplanes]. We also have a lot of flexibility because (UAL) has [older] airplanes that, in a tough time, you can put down."
Executive VP & CFO, Zane Rowe said that "both (UAL) and (CAL) experienced [third-quarter] (RASM) strength in all regions." He noted that (UAL)'s premium transatlantic (RASM) lifted +18% year-over-year and that both carriers posted (RASM) growth of more than >15% on transatlantic economy (Y) seats.
(UAL) third-quarter mainline traffic rose +1.9% to 28.15 billion (RPM)s on a +0.7% upping of capacity to 32.43 billon (ASM)s, producing a load factor of 86.8% LF, up +1 point. Yield improved +17.6% to 13.86 cents as (RASM) heightened +19.4% to 13.31 cents and (CASM) rose +9.6% to 12.16 cents. (CASM) ex-fuel was up +6.7% to 8.11 cents. (CAL)'s third-quarter mainline traffic increased +1.6% to 22.48 billion (RPM)s on a +0.6% rise in capacity to 25.96 billion (ASM)s, producing a load factor of 86.6% LF, up +0.8 points. Yield leaped +19.6% to 13.2 cents as (RASM) grew +19.2% to 12.92 cents and (CASM) rose 8.3% to 11.27 cents. (CASM) ex-fuel increased +7.3% to 8.06 cents.
All Nippon Airways (ANA) and Japan Airlines (JAL) have both secured regulatory approval from the Japanese Ministry of Land, Infrastructure, Transportation and Tourism for their respective transpacific joint ventures (JV)s with Continental Airlines (CAL) and United Airlines (UAL), on one hand, and American Airlines (AAL) on the other.
The approvals follow tentative Anti Trust Immunity (ATI) clearance for both alliances earlier this month from the USA Department of Transportation. On receipt of final (DOT) approval, the airlines say they will accelerate preparation of their joint network, with implementation expected in the first half of 2011.
(JAL) says that following the formal signing of "open skies" between the USA and Japan, which is anticipated shortly—and upon obtaining the final (DOT) approval—the two airlines will enter into a joint business agreement as two independent legal entities, enabling them to cooperate commercially on routes between North America and Asia.
(JAL) President, Masaru Onishi said, "There has been and will be more developments in the Japanese aviation sector and we are intent on keeping the marketplace competitive so that customers can benefit from more travel options and enhanced services. I look forward to taking our partnership with American Airlines (AAL) to a deeper level so that we can more effectively serve the needs of our valuable customers." (AAL) CEO, Gerard Arpey called the (JV) "a win-win situation for all involved."
Air Canada (ACN) and United Continental Holdings (UCH), the parent of merger partners United Airlines (UAL) and Continental Airlines (CAL), said they've concluded a Memo of Understanding (MOU) "setting out the principles for a comprehensive revenue-sharing joint venture (JV)" on USA/Canada trans-border services.
(UAL), (CAL), and (ACN) are all members of the Star Alliance (SAL). "Working cooperatively with our partner Air Canada (ACN), we can create a more streamlined travel experience for customers traveling between the United States and Canada, providing more travel options and benefits while reducing travel times," (UCH) President & CEO, Jeff Smisek said.
(ACN) President & CEO, Calin Rovinescu added the (JV) would "provide many benefits and revenue synergies. By managing pricing, scheduling and sales through a stronger joint venture (JV), the carriers will be better able to serve customers by offering more travel options."
(ACN) operates flights to 59 USA cities while (UAL)/(CAL) operates to 16 Canadian destinations. (ACN) said the (JV) "is expected to come into effect in early 2011" and is subject to relevant regulatory approvals in Canada and the USA and "finalizing documentation."
As co-members of the Star (SAL) Alliance, the carriers already have received antitrust immunity (ATI) from the USA Department of Transportation.
(UCH)’ Continental Airlines (CAL) division and Star Alliance (SAL) partner (TAP) Portugal from October 11 started code sharing on
flights across Africa, Central America, Europe, and the USA. (CAL)'s ‘CO’ designator code is placed on (TAP)’s services to Newark
Liberty International Airport from Lisbon, as well as (TAP)’s
domestic flights between Lisbon and Faro, Madeira and Oporto. The ‘CO’ code is also placed on (TAP)’s African destinations of Praia, Sal, and Sao Tome, as well as services to Spain, Germany, France, and the UK. Once government approvals have been granted, the code share will be expanded to include (TAP)-operated flights to Angola, Guinea-Bissau, Morocco, and Mozambique.
In return, (TAP)’s ‘TP’ code is placed on (CAL)’s Lisbon flights from Newark, as well as 20 across the USA and Mexico, and on (CAL)’s daily transatlantic flights between Lisbon and Newark Liberty.
(CAL) will launch daily, 737-500 Los Angeles – Leon service on November 1, subject to Mexican government approval. It also applied to the USA Department of Transport (DOT) for permission to begin weekly Saturday service to Cancun from Austin, San Antonio and Raleigh on February 19 aboard a 737-700. United (UAL) will code share on the flights. (CAL) will begin nonstop 737-800 flights between Newark and Providenciales, Turks and Caicos Islands on February 18, 2011, subject to government approval and will operate Mondays, Fridays, Saturdays, and Sundays initially, converting to daily service on March 6.
Continental Airlines (CAL) announced it reached a tentative agreement on a new labor contract with its 9,300 (CAL) flight attendants (CA) represented by the International Association of Machinists (IAM) & Aerospace Workers. In a statement, (CAL) said the (IAM) is expected to hold a ratification vote in the coming weeks.
“We appreciate the (IAM)’s leadership in reaching this important agreement that recognizes the interests of our flight attendants (CA) and the company,” said (CAL) Senior VP Human Resources & Labor Relations, Mike Bonds.
(CAL) reached a tentative labor contract with its maintenance technicians (MT).
(CAL)'s merger with United Airlines (UAL) is expected to close this month.
November 2010: The USA Department of Transportation gave final approval for antitrust immunity (ATI) to Oneworld (ONW) alliance members American Airlines (AAL) and Japan Airlines (JAL) and, separately, to Star (SAL) Alliance members United Airlines (UAL), Continental Airlines (CAL) and All Nippon Airways (ANA), to operate their respective transpacific joint ventures (JV)s.
The (DOT)'s official clearance of both (JV)s follows tentative approval last month and enables the implementation of the USA - Japan "open skies" accord to which the two nations agreed late last year. The Japanese government has already approved both partnerships.
(ANA) President & CEO, Shinichiro Ito said, "The clearance enables us to begin the preparatory work necessary to launch our joint venture (JV) next spring, and to cooperate more closely with United (UAL) and Continental (CAL) for the benefit of customers." (UAL)/(CAL) parent, United Continental Holdings President & CEO, Jeff Smisek added that the (JV) will allow for "more convenient, more seamless" transpacific travel.
(JAL) President, Masaru Onishi noted that the (DOT)'s approval of its (JV) with (AAL) "clears all regulatory procedures necessary" for the carriers to begin working "expeditiously" toward implementation. (AAL) said the companies "anticipate launching their transpacific joint business in early 2011. It will provide enhanced travel options and experiences for passengers of both (AAL) and (JAL)."
(AAL) plans to launch daily, New York (JFK) - Tokyo Haneda (HND) service on January 20. (JAL) launched daily, (HND) - San Francisco service at the end of October. The carriers will code share on the flights.
Continental Airlines (CAL) launched a fifth daily, 757-200 Newark - London Heathrow flight. (CAL) will launch daily, Chicago O'Hare service to Ft Lauderdale (737-800) and West Palm Beach (737-900), as well as daily Denver - Ft Lauderdale (737-900) service on February 17.
Travelers will soon see one of the first visible signs of the merger between Continental Airlines (CAL) and United Airlines (UAL) as Continental (CAL) moves its ticketing and check-in counters to the United (UAL) terminal at Chicago O'Hare (ORD).
December 2010: Continental Airlines (CAL) has unveiled a new "FareLock" feature that allows passengers to hold a quoted fare for up to a week before deciding to purchase. Customers using FareLock can guarantee against price increases by paying an up-front fee that starts at $5 for a three-day hold. Though some European airlines offer a similar service, (CAL) is the first carrier to unveil it in the USA.
ACCDT: A Paris court has said Continental Airlines (CAL) was “criminally responsible” for the crash of an Air France (AFA) Concorde supersonic jet 10 years ago, and fined it 200,000 euros and ordered to pay 1 million euros to Air France (AFA), which operated the doomed flight. (CAL) Mechanic (MT), John Taylor received a fine of 2,000 euros and a 15-month suspended prison sentence.
Continental Airlines (CAL) vows it will appeal a French judge’s ruling that the airline and one of its employees was guilty of involuntary manslaughter in the July 25, 2000, crash of an (AFA) Concorde, in which 113 persons died, including four on the ground. (CAL) was fined €200,000/$268,234 and ordered to pay Air France (AFA) €1 million related to the accident. A (CAL) mechanic (MT) was also found guilty and received a suspended jail sentence of 15 months. Three French officials — a former Aerospatiale executive and two representatives, at the time, of the French civil aviation agency (DGAC) — were also cleared of contributing to the crash. The French officials were accused of not addressing known Concorde design flaws. During its takeoff run for a flight to New York, AF4590 ran over a metal piece that the court determined fell off a Continental (CAL) DC-10 that had taken off immediately before the Concorde. The supersonic airplane’s fuel tank was struck by debris and caught fire. It crashed shortly after takeoff to the west of Paris Charles de Gaulle Airport as it tried to divert to Le Bourget Airport. All 113 people on board were killed. The airplane never recovered after a 16-month grounding and was finally taken out of service in 2003.
United Continental Holdings’ Continental Airlines (CAL) unit from June 9 will operate daily nonstop service between Los Angeles International Airport and Hilo International Airport, and a weekly flight to the Hawaiian airport from San Francisco International Airport. (CAL) will serve both markets with 160-seat 737-800 airplanes configured with 16F seats in first class and 144Y seats in economy. “We are excited to provide customers the only direct flights to Hilo from the mainland,” says Executive VP & Chief Revenue Officer, Jim Compton in a statement. “These flights will offer customers convenient, nonstop service to the Big Island without having to connect in Honolulu.”
Continental Airlines (CAL) reached a code share agreement with Spanair (SPP) under which it will place its CO code on (SPP) service from Barcelona to Alicante, Bilbao, Madrid, Malaga, Menorca, Palma de Mallorca, Valencia, and Banjul, as well as on service from Madrid to Alicante, Barcelona, Bilbao, Ibiza, La Coruna, Las Palmas, Menorca, Palma de Mallorca, Tenerife, and Valencia. Subject to government approval, it will also place its code on Barcelona - Nador flights. Spanair (SPP) will place its JK code on (CAL) daily service from Newark to Barcelona and Madrid. Both carriers are members of the Star Alliance (SAL).
United Continental Holdings (UCH), following a review of technology used by United Airlines (UAL) and Continental Airlines (CAL), as well as solutions used by neither currently, recently informed employees which systems will be used by the merged airline in the future. "After a thorough study, we have made the technology systems decisions that will create the best technology platform for the new United," Executive VP Technology, Keith Halbert said in a communication with workers.
(UAL) decided that its reservation, check-in, e-commerce and inventory operations will deploy the Shares system used by (UAL). The revenue management and network departments will use Orion, (ARORA) and (SDO) from (UAL). Human Resources (HR) and payroll will use (UAL) systems, while contact centers will use voice technology from (CAL). Finance will use a hybrid solution from (UAL). Sales will use Sales Insight from (CAL). Flight profitability will use (FPS) from (CAL).
Airport resource management and mail scanning will use (UAL) tools, while gate management and baggage scanning will use (CAL) tools. Flight Operations will use (UAL) systems, while crew management will use (CAL) systems, and Maintenance will use (CAL) systems. Which system will be used by the cargo operation is still under review.
"Testing and implementation of technology systems will occur on varying time lines depending on the complexity of the project, resource availability and system inter-dependencies," (UAL) stated. "Migration to the selected systems will occur throughout 2011 and into 2012."
Continental Airlines (CAL) next year expects to retrofit most of its 767s with its new BusinessFirst seat-beds. The lie-flat seat was introduced in November 2009 and has already been installed across all of (CAL)’s 777-200s. The business-class (C) cabin is also being offered on (CAL)’s 757-200s. “Customers flying to international destinations on our 777s are now assured a flat-bed seat whenever they choose to fly with us,” says United Continental Holdings (UCH)’s Executive VP & Chief Revenue Officer, Jim Compton. “These seats are highly popular with customers from all over the world, and we will begin installing them on the rest of our wide body fleet beginning next year.”
Continental Airlines (CAL) took delivery of a 737-800 fitted with Boeing (TBC)’s new "Sky Interior," becoming the first North American carrier to receive the improved cabin. (TBC) said the December 29 flight completed 13 deliveries of the new 737 interior to the first five launch customers. The airplane also marks a new record for 737 yearly deliveries of 376. The previous record was 372 deliveries in 2009.
“We are proud to be the first carrier in North America to introduce the brand-new Boeing Sky Interior to our customers,” said Ron Baur, United Fleet VP. “The new lighting and sculpted side panels give the 737 a modern and more spacious look, while providing increased overhead storage space.” The 737 Boeing Sky Interior is part of (TBC)’s strategy to continuously improve the 737 for both airlines and passengers by making it more efficient and economical to operate and maintain and more comfortable for passengers. Today’s Next-Generation 737 operators fly 737s that are 5% more fuel-efficient than the first Next-Generation 737s delivered in 1998, and another 2% improvement is on the way.
In mid-November, another 737-800, also in the new United Airlines (UAL)/Continental Airlines (CAL) livery, successfully completed an early flight test to begin certification of the aerodynamic and engine changes that will result in the 2% improvement. Testing and certification will continue through April 2011. (TBC) is phasing into production the performance improvement package, beginning in mid-2011 through early 2012. 1% of the savings comes from reducing resistance as air flows around the airplane. The upper and lower anti-collision lights change from round to a more aerodynamic, elongated teardrop shape. Wheel-well fairings are re-contoured to smooth the air flow near the main landing gear. A redesign of the environmental control system, exhaust vent and streamlined wing slat and spoiler trailing edges round out the aerodynamic changes.
(CFM) is introducing the new (CFM56-7BE) engine enhancement program to coincide with (TBC)’s airframe changes. Low- and high-pressure turbine modifications will result in a -1% reduction in fuel consumption. In addition, (TBC) is optimizing the engine’s primary nozzle and plug. Together, the changes result in cooler-running engines that may provide up to -4% lower maintenance costs. The (CFM56-7BE) engine is currently undergoing a 10,000 cycle endurance test at Snecma facilities in Villaroche, France. The test should be complete in early 2011. These tests simulate conditions far more extreme than would be experienced in commercial service to validate the reliability and durability of the hardware.
United Airlines (UAL) currently has 1,437 pilots (FC) on furlough. (UAL) recently announced orders for the 787 and A350. Continental Airlines (CAL) and United Air Lines (UAL), Inc. are now wholly owned subsidiaries of United Continental Holdings (UCH), Inc.
737-824 (31652, N76529), and 2 737-924ERs (31643, N36444; 31655, N38443), deliveries.
January 2011: SEE ATTACHED "CAL-2011-01-2010 WORLD TOP TRAFFIC."
United Continental Holdings (UCH), parent of merger partners United Airlines (UAL) and Continental Airlines (CAL), reported pro forma 2010 net income of +$854 million, reversed from a combined (UAL)/(CAL) loss of -$718 million in 2009. But despite a +15% rise in pro forma fourth quarter revenue to $8.43 billion, net loss for the period widened 22.2% to -$326 million owing to $485 million in special charges mostly related to the merger which closed last October. President & CEO, Jeff Smisek said (UCH) has made "significant progress integrating (UAL) and (CAL)." Smisek told analysts and reporters that (UCH) is on track to achieve 25% of the projected $1.2 billion in annual merger synergies in 2011.
Executive VP & Chief Revenue Officer, Jim Compton emphasized that (UCH) maintains a "commitment to capacity discipline," noting that full-year 2011 consolidated capacity will rise just +1% to +2% compared to 2010 including a -0.5% to -1.5% cut domestically and a +4.5% to +5.5% increase on international flying. (UCH) estimates that first-quarter fuel prices will be up +18% compared to the 2010 December quarter.
Executives said the company is satisfied with the combined (UAL)/(CAL) airplane order book, which includes 25 A350s (UAL) and 25 787s (CAL. Compton said that despite the 787 Dreamliner program's repeated delays, "We remain big believers in the 787."
Full-year 2010 pro forma revenue heightened +18.9%, compared to 2009, to $34 billion, while expenses increased +12.5% to $32.2 billion, producing a pro forma operating profit of +$1.82 billion, reversed from a combined (UAL)/(CAL) operating deficit of -$17 million in 2009. Consolidated mainline traffic rose +2.3% to 184.58 billion (RPK)s traffic on a 0.1% lowering of capacity to 220.06 billion (ASK)s, producing a load factor of 83.9% LF, up +2 points. Yield jumped +15.6% to 11.21 cents as (RASM) improved +18.3% to 12.74 cents and (CASM) increased +12.3% to 12 cents. (CASM) ex-fuel was up +4.5% to 8.14 cents.
Continental Airlines (CAL) moved its ticket counter, check-in area and curbside check-in at Denver International from Terminal East to Terminal West, in order to be adjacent to United Airlines (UAL), as the two carriers continue to integrate their operations.
For his crucial role in securing regulatory approval for the world's largest airline merger, United (UAL) Continental (CAL) CEO, Jeff Smisek has been named "Person of the Year" by the editors of "Aviation Week and Space Technology." Jeff Smisek has risen from a private practice attorney to the head of Continental Airlines (CAL) and a key architect of its merger with United Airlines (UAL). Smisek's argument in favor of consolidation "was accepted by the world's regulators, and in just six months - - an unprecedented speed in mergers of this magnitude - - they approved a deal that cements the return of USA operators to the top ranks of global aviation."
United Continental Holdings (UCH) announced that Continental Airlines (CAL)’s fleet service employees, represented by the International Brotherhood of Teamsters (IBT), ratified their collective bargaining agreement with the company on December 29. "We are pleased that our fleet service co-workers have ratified this agreement," said United (UAL) Senior VP Airport Operations, Scott Dolan. "This is a positive step forward as we continue to work with all of our employee groups to develop contracts that are fair to our employees and the company."
The (IBT) represents 7,000 (CAL) fleet service USA employees.
Months after rejecting a previous deal, flight attendants (CA) at Continental Airlines (CAL) have reached a tentative accord that includes a +2.5% pay raise retroactive to January 1, 2010. The 20-month contract approved by union negotiators still must be approved by some 9,500 rank-and-file members. "The negotiation teams were able to reach a fair agreement that is another positive step forward as we work to combine our companies," said Sam Risoli, VP In-flight Service at United Airlines (UAL), which merged with Continental on October 1.
United Airlines (UAL) Flight Attendants (CA), represented by the Association of Flight Attendants - (CWA), (AFL) - (CIO) (AFA), will conduct a world-wide protest over the failure of (UAL) management to negotiate a new contract a year after their contract became amendable. (UAL) pilots (FC) from the Air Line Pilots Association (ALPA), as well as members of other unions who stand in support of Flight Attendant (CA) efforts to secure an industry-leading contract, will also be joining the picket line. Over eight years ago, Flight Attendants (CA) took deep cuts in pay only to have management then destroy their working conditions and cancel their pensions. Those cuts were scheduled to conclude a year ago when the contract became amendable. As part of an agreement between (AFA) and management, negotiations began early in April 2009 with the intention of having a new Flight Attendant (CA) contract in place by January 7, 2010. (UAL) Flight Attendants (CA) are working at 1994 wage levels in the year 2011, and working +48% more compared with 2002 schedules and staffing. (AFA) members are angry that after more than seven months since the announcement of the merger with Continental Airlines (CAL), the new management, much like the old, continues to only be interested in offering concessionary proposals and delaying a new contract for the over >15,000 Flight Attendants (CA). If (UAL) wishes to create a new world-class airline, it is imperative they honor the tone and commitment made by management following the merger. For the merger to be a success, they must choose a path of collaboration on negotiating a contract versus continuing a pattern of contention and delay.
One year after a devastating earthquake, Haiti remains a country with extreme economic and political challenges. But rebuilding and aid efforts are generating air traffic into its capital Port au Prince — enough, in fact, for United (UAL)’s Continental (CAL) unit to justify thrice-weekly, 737-800 flights from Newark. The New York area, like Miami and Boston, has a large Haitian immigrant population.
Continental (CAL) moved to amplify its formidable Mexico network with new 737-800 service from Los Angeles to Guadalajara. It’s a busy market served by Aeromexico (AMX), Alaska (ASA), Volaris (VLS) and Delta (DAL), which is trying to establish itself in the Los Angeles market at United (UAL)’s expense.
Aeromar (TRO) and Continental Airlines (CAL) reached a code share arrangement under which (CAL) will place its code on Aeromar (TRO) service from Mexico City to 13 destinations in Mexico beginning February 1.
February 2011: United Continental Holdings (UCH), parent of United Airlines (UAL) and Continental Airlines (CAL), reported strong unit revenue growth in January, with mainline traffic (RPM)s rising just +0.2% to 13.98 billion, while mainline capacity also climbed +0.2% to 17.71 billion (ASM)s. Mainline load factor was flat at 78.9% LF. Consolidated traffic including regional (RPM)s climbed +0.4%, as did (ASM)s, and consolidated load factor was flat at 77.9% LF.
United Continental Holdings, Inc plans to distribute $224 million to employees in profit sharing for 2010. (UCH) reported net profits of +$1.6 billion for last year. "Profit sharing shows that when we work together, we win together," said Jeff Smisek, President & CEO of (UCH).
Reflecting the impact of severe winter weather in the USA, Continental (CAL)'s completion factor dropped from 99.5% a year ago to 97.4% for January 2011, while United (UAL) completed 97.9% of its flights in the month, down from 98.5% in January 2010.
(CAL) plans to reduce about 500 jobs at its former Houston headquarters as the merger with United Airlines (UAL) shifts operations to Chicago. The reduction, scheduled to begin April 1, will affect management and clerical employees rather than front-line workers such as pilots (FC) and flight attendants (CA), (CAL) said. "We're going through a careful process of trying to determine the right organizational structure and location for each department," said spokeswoman, Julie King.
It looks like airlines are charging more to fly. American Airlines (AAL) added fuel surcharges of as much as $5 each way on most routes. And United Continental Holdings (UCH) has its own $3 each-way surcharge. Rick Seaney, the CEO of http://www.FareCompare.com, says it's the fifth increase since December. He says US Airways Group (AMW)/(USA) and Delta Air Lines (DAL) have matched the increases on some routes. The big question is whether Southwest Airlines (SWA) will match the increases. Seaney says airlines haven't used fuel surcharges since 2008, when oil prices spiked.
JP Morgan analyst, Jamie Baker says airlines would need to raise prices further, or cut capacity, to make up for the recent increases in jet fuel prices.
Rather than waiting for the severe winter weather to hit, several airlines canceled flights and eased travel rules as a massive storm developed. Waiting to cancel flights until weather turns bad "makes the problem even bigger. On a big storm, we've canceled two days in advance," said Tracy Lee, VP Operations Planning at United Continental (UCH). Social-networking sites are helping carriers spread the word, saving travelers time and money.
United Continental Holdings (UCH) told employees that airplanes and crews (FC) & (CA) from both United Airlines (UAL) and Continental Airlines (CAL) will begin to operate on "some routes" formerly covered by the other airline, part of the carriers' ongoing integration under (UCH). (UCH) noted in a memo to workers that from February 17, Houston Intercontinental - Lima service "formerly flown with a (CAL) airplane and crew will now be flown with a (UAL) airplane and crew." Other changes will take place starting with the implementation of the summer schedule and continue throughout the year, with flights from Washington Dulles (IAD) and Newark to be most affected initially, according to the memo.
The (IAD) - Amsterdam service will switch from a (UAL) 777 to a (CAL) 757 from September 1 and (IAD) - Paris Charles de Gaulle service will switch from a (UAl) 777 to a (CAL) 757 from September 29. "This effort optimizes our route network, better utilizes our airplane resources, and allows us to better serve our customers," the (UCH) memo said. "Redeploying airplanes places the right size airplane in each market, and doing so maximizes revenue and minimizes cost. Exchanging (CAL) and (UAL) airplanes in markets will not affect the overall balance of scheduled airplane block hours between the two subsidiaries. (UAL) will take over (CAL)'s routes from Newark, New Jersey to Brussels and Zurich later this year. However, the base that is assigned to work a specific flight pairing may change. We will see more changes like these as the integration progresses."
(CAL) has recalled all pilots (FC) from furlough. The company is accepting flight crew (FC) applications but is not reviewing them at this time.
March 2011: February traffic fell -1.1% (RPM) at the two brands operated by United Continental (UAL)/(CAL), the first such decline since the company began reporting consolidated numbers last October. February capacity rose +1.8% (ASM) as traffic fell, and load factor declined from 78.3% LF to 76% LF. Passenger revenue per available seat mile rose +10.5% to 11.5% for the month.
With fuel prices up +53% in the last year, (UAL)/(CAL) announced it will cut domestic capacity by up to -2.5%, while international capacity will rise less than previously planned. Overall, (UAL)/(CAL) said capacity in 2011 will remain roughly flat with last year's levels. (UAL)/(CAL) also said it is reviewing its fleet of more than >700 jets, with an eye toward grounding some inefficient planes.
United Continental Holdings (UCH) said that United Airlines (UAL)’s technicians (MT), represented by the International Brotherhood of Teamsters (IBT), have reached a tentative labor contract. "We are pleased that, following our merger, the new (UAL) is continuing to make progress in reaching agreements with our represented employees," said (UCH) Senior VP Technical Operations, Jim Keenan. "We now have a ratified agreement with our mechanics (MT) at Continental (CAL) and a tentative agreement with our (UAL) co-workers, providing a path to reaching a single, joint agreement with both groups represented by the (IBT)." (IBT) represents approximately 5,500 (UAL) technicians (MT) and related employees.
Continental Airlines (CAL) will launch daily, 757-200 Newark - Stuttgart service on June 9, subject to government approval. Route frequency will decrease to five-times-weekly during the winter months to account for decreased demand, (CAL) said. (CAL) will launch daily, 737-800 San Francisco - Guadalajara service on June 9.
United Continental Holdings (UCH) said that subsidiary Continental Airlines (CAL) has signed a letter of intent (LOI) with LiveTV to offer in-flight Wi-Fi via Ka-band beginning next year. It plans to offer the service on more than >200 737 and 757 airplanes operating domestically and equipped with DirecTV satellite-television. Passengers will have access to on board connectivity and more than >95 channels of live television, (UCH) said.
"Ka-band will be able to offer higher transmission speeds for more extensive on board connection capabilities, including browsing of content-rich websites, sending and receiving emails and downloading files."
United Airlines (UAL) currently offers in-flight Internet service on 14 airplanes, including on all flights between New York (JFK) and Los Angeles and San Francisco.
(UCH) said the (LOI) "provides the framework for a definitive agreement to be negotiated with LiveTV." It noted that Ka-band will utilize ViaSat's ViaSat-1, "which will be the world's highest-capacity satellite upon its launch later in 2011."
JetBlue Airways (JBL) subsidiary LiveTV signed a letter of intent (LOI) with Continental Airlines (CAL) to provide ViaSat Ka-band service for live television and in-flight Internet. LiveTV said it expects to install the new service on (CAL)’s fleet of 200 737 and 757 airplanes beginning in 2012. The first (CAL) airplane is expected to launch following JetBlue (JBL)’s introduction of the ViaSat-1 broadband network for the first time in commercial aviation, also in 2012. ViaSat and (JBL) signed an agreement in September 2010 for the provision of in-flight broadband access and other services on (JBL)’s fleet of 160 airplanes.
As planned, the (CAL) installation would provide passengers with 95 channels of live television programming and airborne Internet access provided by ViaSat.
Boeing (TBC) said United Airlines (UAL)'s 777 fleet will be modified with a Performance Improvement Package (PIP) that will result in greater fuel efficiency and reduced emissions. According to (TBC), The (PIP) involves a software change "to enable a drooped aileron, a ram air system improvement and the installation of improved wing vortex generators." The package, to be installed on 52 (UAL) 777s, is expected to "reduce fuel spending per airplane by about -$200,000 annually (assuming $100 per barrel crude oil prices)." Continental Airlines (CAL), which merged with (UAL) last year, was among the first airlines to sign up for the package, agreeing to outfit 20 777s in 2007.
(CAL) announced that it has equipped all 41 of its 757-200s with lie-flat beds in business (C) class. The 757s are primarily used for international flights heading to Europe from Newark, New Jersey. Lie-flat seats have become a hot item as airlines scramble for business (C) travelers.
April 2011: United Continental Holdings (UCH), parent of merger partners United Airlines (UAL) and Continental Airlines (CAL), incurred a first-quarter net loss of -$213 million, widened from a -$183 million pro forma net deficit reported by the two carriers in the March 2010 quarter. (UCH) was profitable on an operating basis in the first quarter as revenue increased +10.8% year-over-year to $8.2 billion and expenses heightened +11.2% to $8.17 billion. Operating income of $34 million was down -41.4% from a pro forma operating profit of +$58 million in the year-ago quarter. Rising fuel costs, Japan's disaster and unrest in North Africa made the first three months of 2011 "a challenging quarter and, with high fuel prices, we expect challenging quarters ahead," President & CEO, Jeff Smisek told analysts and reporters. "During the first quarter, [fuel prices] rose to levels not seen since 2008. These are very tough times." (UCH)'s first-quarter fuel costs jumped +28.4% to $2.67 billion compared to the year-ago period even including a $154 million offset from hedging.
But he pointed to the (UAL)/(CAL) merger, which closed last year, as strengthening (UCH) to "muscle through tough times." The combined (UAL)/(CAL) network is a "potent" draw for business (C) passengers, he asserted, adding that (UCH) will adjust flight schedules and offer ancillary services to entice business (C) flyers. "I think you're going to see us do considerably more targeting to customers," Smisek said, explaining that fares that have been broken down into "a la carte" offerings could be "re-aggregated" into tailored packages for different types of passengers. "There's a lot of technological sophistication that will help us do this," he noted. (UCH) generated $16 per passenger in ancillary revenue in the first quarter, up +15% year-over-year.
Smisek said passengers will start seeing more evidence of (UAL)/(CAL) integration at airports and online starting in mid-May. A merged, refashioned loyalty program will be announced in the third quarter. "It won't be your grandfather's frequent flyer program," he commented. (UCH) aims to have a single air operating certificate (AOC) and unified reservation system in 2012.
Regarding its fleet, CFO, Zane Rowe said (UCH) has "significant flexibility" given that "nearly half of the mainline fleet is either unencumbered or coming off lease by 2013." It expects to take delivery of its first 787 in the first half of 2012, with six 787 Dreamliners in total to be delivered next year.
(UCH) first-quarter mainline traffic decreased -1% year-over-year to 41.27 billion (RPM)s on a +1.5% lift in capacity to 52.38 billion (ASM)s, producing a load factor of 78.8% LF, down -1.9 points. Yield increased +13% to 13.97 cents, as (PRASM) rose +10.2% to 11 cents and (CASM) heightened +9.4% to 12.7 cents. (CASM) ex-fuel, rose +2.2% to 8.48 cents.
(UCH) said it lost around -$30 million in first-quarter passenger revenue, owing to disruptions/traffic drops caused by the March 11 Japanese earthquake and tsunami.
Citing a "measurable decline" in demand, United Continental (UCH) will trim -10% of its capacity on routes between the USA and Japan this month, followed by another -14% in May. (UCH) will make the cuts by removing some midweek flights from Newark, New Jersey, Washington DC, Los Angeles, and Seattle. Delta Air Lines (DAL) and American Airlines (AAL) earlier announced similar moves.
(LOT) Polish Airlines and Continental Airlines (CAL) launched a code share agreement April 2 under which (CAL) will place its code on (LOT) Warsaw (WAW) service to Newark (EWR), London Heathrow, Frankfurt, and Amsterdam. Subject to government approval, (CAL) will also place its code on (WAW) – Paris Charles de Gaulle. (LOT) will place its code on (CAL) flights between (EWR) and Boston, Los Angeles, Miami, Orlando, San Francisco, and Washington Dulles.
May 2011: The Houston Airport System (HAS) and United Continental Holdings (UCH) said that construction on the first phase of a $1 billion redevelopment project at Houston Intercontinental (IAH) will start by the end of 2011. Phase one, slated to cost $161 million, involves building a Terminal B south concourse for domestic regional jet operations. In addition, (UCH) said it extended its lease on (IAH)'s Terminal C to 2027.
"The $161 million south concourse project will replace the existing south side flight stations with a 225,000 sq ft facility to accommodate United (UAL)'s fleet of regional airplanes," according to a joint (HAS)/(UCH) statement.
(UCH) President & CEO, Jeff Smisek said, "This project, and the extension of our Terminal C lease to 2027, clearly demonstrate United (UAL)'s commitment to Houston and will help Houston maintain its status as an international city. Houston is United (UAL)'s largest hub, and our investment will open opportunities for additional growth."
Plans for future phases of the $1 billion project include the redevelopment of the Terminal B lobby and baggage claim areas and a new north concourse for mainline and regional flights. Construction of the entire project is planned to take 7 to 10 years, with phase one expected to be completed in late 2013. According to the "Houston Chronicle," the city will pay $350  million of the $1 billion, and (UCH) will cover the rest.
June 2011: United Continental Holdings (UCH) started unveiling changes at Chicago O'Hare (ORD) to "provide a more consistent travel experience for customers on United Airlines (UAL) and Continental Airlines (CAL)." The changes, which include more self-service capabilities, new "Premier Access" airport services, new Mileage Plus and OnePass features and benefits, a new onboard menu, aligned policies/procedures and new airport signage, will be introduced at airports across the (UCH)'s global network over the next several months.
"The alignment of airport procedures…and the rebranding of our operations at our hometown airport are the newest visible signs of the successful integration of United (UAL) and Continental (CAL)," President & CEO, Jeff Smisek said. "We are making significant progress as we create the world's leading airline, and customers are experiencing more of these benefits as they travel."
(UCH) said it is "on track" to achieve a single air operating certificate (AOC) for combined operations from the USA (FAA) in the fourth quarter and expects to transition to a single reservations system in the first quarter of 2012.
Canadian Commissioner of Competition, Melanie Airken filed an application with Canada's Competition Tribunal, an independent law enforcement agency, seeking to "prohibit" Air Canada (ACN) and United Continental Holdings (UAL)/(CAL) from launching a planned revenue-sharing joint venture (JV) on USA/Canada trans-border services.
In a statement, Airken said, "If the (JV) is allowed, it will monopolize 10 important Canada/United States routes, and substantially reduce competition on nine additional routes, leading to increased prices and reduced consumer choice on key trans-border routes. If allowed to proceed, consumers will face higher prices and even less choice on key, high demand air passenger routes. The proposed (JV) is effectively a merger between (ACN) and United Continental (UAL)/(CAL) on all of their Canadian and USA operations."
Airken did not stop at challenging the (JV), arguing that three existing "coordination agreements" between (ACN) and (UAL)/(CAL) give the companies "the power to charge passengers inflated fares. The current agreements between (ACN) and (UAL)/(CAL) already allow the companies to set prices above competitive levels on all key 19 trans-border routes, which alone violates [Canadian antitrust (ATI) law]. Making matters worse, they now want to fully merge their operations."
(ACN), (UAL) and (CAL) are all members of the Star Alliance (SAL). As co-members of the (SAL) Alliance, the carriers already have received antitrust immunity (ATI) from the USA Department of Transportation. (ACN) operates flights to 59 USA cities, while (UAL)/(CAL) operates to 16 Canadian destinations.
(ACN) said in a statement that it "strongly disagrees with the Commissioner's position. (ACN) and United Continental Holdings (UAL)/(CAL) believe in the merits and consumer benefits of the proposed trans-border (JV) and enhanced cooperation between the parties that builds on the existing relationship between (ACN) and (UAL). The airlines' position is consistent with the findings of regulatory agencies around the world, and supported by leading international economists, who have recognized and documented the benefits to consumers of such arrangements."
(ACN) added that it has agreed with (UAL)/(CAL) to "suspend the proposed trans-border (JV) pending further developments relating to the outcome of the Commissioner's application. (ACN)'s trans-border services remain unaffected."
United Airlines (UAL) launched daily, Los Angeles - Hilo service. (UAL) will launch weekly, San Francisco - Hilo service on June 11. Flights are operated by Continental Airlines (CAL). Continental Airlines (CAL) will increase thrice-weekly, Newark - Port-au-Prince service to daily, beginning July 1.
Continental Airlines (CAL) will resume regular service between Guam and Sendai, Japan, subject to government approval, with twice-weekly flights beginning October 2. The new flights mark the first resumption of regular service by a foreign airline at Sendai Airport since the facility reopened on April 13. The airport was temporarily closed after the Great East Japan Earthquake on March 11.
The Association of Flight Attendants (AFA) won the right to represent United Continental Holdings (UCH)'s 25,000 flight attendants (CA). It said 55% of those casting ballots in a representation election favored the (AFA), which has represented United Airlines (UAL)'s cabin crew (CA), over the International Association of Machinists (IAM), which represented Continental Airlines (CAL)'s flight attendants (CA). The USA National Mediation Board (NMB) must certify the results.
(UCH) has said it is "on track" to achieve a single air operating certificate (AOC) from the USA (FAA) for the combined operations of (UAL) and (CAL) in the fourth quarter and expects to transition to a single reservations system in the first quarter of 2012. The (AFA) stated that "the merger brings new opportunities and the conclusion of this election sets the stage for flight attendants (CA) to unify and become full participants in the benefits of the merger."
July 2011: United Continental Holdings (UCH) was in the black for the second quarter, earning net income of +$538 million, down -11.9% from a +$611 million pro-forma profit for United Airlines/Continental Airlines (UCH) in the year-ago period.
United Continental Holdings (UCH) said it will offer approximately 100 to 200 positions to pilots (FC) currently on furlough from its United Airlines (UAL) subsidiary to fly airplanes for its Continental Airlines (CAL) subsidiary. "The positions will meet the needs currently anticipated for the combined company's operation in 2012," said (UCH).
"We are pleased that through cooperation with the Air Line Pilots Association (ALPA), we are able to offer the opportunity for these (UAL) pilots (FC) to come back to work," stated (UCH) Senior VP Flight Operations, Fred Abbott. "We will continue to focus on negotiating a single contract for all of our pilots (FC) as we work toward our single air operating certificate (AOC)."
September 2011: Continental Airlines (CAL) 787 Dreamliner interior configuration consists of 36BF (Business First), 63PE (Premium Economy), and 120Y (Economy). No details about the specific aisle configuration or the types of seats used were not released. However, the numbers suggest that both the Premium Economy (PE) and Economy (Y) classes will feature a 9 abreast (3-3-3) configuration with Premium Economy (PY) getting extra legroom.
October 2011: United Continental Holdings (UCH), parent of merger partners United Airlines (UAL) and Continental Airlines (CAL), posted a third-quarter net profit of +$653 million, down -23% from +$852 million in pro-forma net income in the year-ago period. It plans to keep capacity flat in 2012.
President & CEO, Jeff Smisek said (UCH) expects "sluggish economic growth in 2012" but a "stable" demand environment. It will take delivery of 19 737-900ERs and five 787s next year, but will retire airplanes to keep growth down, including 14 737-500s.
Though international capacity will grow slightly next year with the addition of the 787 Dreamliners, he noted that overall "we're effectively keeping (UAL) the same size it was [on a combined pro-forma basis] in 2010 and -8% lower on a pro-forma basis compared to 2008." Its fourth-quarter 2011 mainline capacity is expected to be down -3.8% year-over-year.
Smisek said (UAL) and (CAL) expect to receive a single air operating certificate (AOC) from the USA (FAA) by year end and to operate a "single passenger service system by the end of the first quarter next year." He pointed out that the two carriers have already co-located facilities at 53 airports and that there is now a single check-in point at more than >70% of the airports in the (UCH) combined global network.
Third-quarter operating revenue totaled $10.17 billion, up +8.7% on a pro-forma basis, while expenses heightened +11.6% to $9.24 billion, including a +32.7% jump in fuel costs to $3.37 billion. Operating income was $935 million, down -13.5%.
Mainline traffic in the quarter was 49.88 billion (RPM)s, down -1.6% on a pro-forma basis, on a -0.9% dip in capacity to 57.94 billion (ASM)s. Load factor was 86.1% LF, up +0.7 point. Yield rose +10.8% to 14.56 cents.
(UAL) announced that Boeing (TBC) has completed the final assembly of (UAL)'s first 787 Dreamliner, finishing the first major step in the 787's production. (UAL) will be the first North American carrier to take a 787 delivery, with plans to introduce the first of 50 787 Dreamliners into revenue service in 2012.
November 2011: United Continental Holdings (CAL)/(UAL) received (FAA) approval for a single air operating certificate (AOC), the final regulatory step integrating United Airlines (UAL) and Continental Airlines (CAL). It will take effect in the first quarter of 2012.
The two airlines announced their merger in May 2010 and closed the transaction October 1, 2010. Under the deal, (CAL) shareholders received 1.05 shares of (UAL) common stock for each (CAL) share they owned, with a transaction value of approximately $8 billion.
President & CEO, Jeff Smisek said, "While we have much work ahead of us as we integrate these two great carriers, this is a significant milestone."
Effective November 30, air traffic control (ATC) communications will refer to all (UAL) and (CAL) flights as "United."
Continental Airlines (CAL) will launch daily, Washington Dulles - Manchester service on May 2012 and daily Washington, Dulles - Dublin service on June 2012, subject to government approval. It will also add weekly, Los Angeles - Durango service March 2012, subject to government approval. (CAL) launched daily, Houston - Lagos 777 service.
United Continental Holdings (UCH) (CAL)/(UAL) selected Panasonic Avionics to provide Ku-band satellite Wi-Fi connectivity on more than >300 United Airlines (UAL) and Continental (CAL) airplanes, beginning in mid-2012, enabling onboard connectivity for both domestic and international flights.
The service, which will be installed on A319, A320 and 747, 757, 767, 777 and 787 airplanes, is slated to be implemented in the entire (UCH) mainline fleet by 2015. "As a global carrier, we selected satellite-based Ku-band technology to enable customers to stay connected on long-haul overseas flights, something no other USA-based international carrier currently offers,” United (UAL) Executive VP & CRO, Jim Compton said.
December 2011: United Airlines' (UAL) and Continental Airlines' (CAL) professional engineers and related employees rejected representation sought by the International Federation of Professional and Technical Engineers (IFPTE).
The (IFPTE) filed a representation application with the National Mediation Board on June 30. There were 346 engineers (MT) and related employees eligible to participate in the election.
"We are pleased that our co-workers recognized the value of our direct working relationship," said (UAL) VP Technical Services, Ken Burtt. "Working together, we have a promising future, and we will now take steps to implement pay adjustments stalled by the representation and election issues."
January 2012: United Continental Holdings (UCH), parent of merger partners United Airlines (UAL) and Continental Airlines (CAL, reported 2011 net income of +$840 million, with total employees 83, 820 ((UAL) 46,060 & (CAL) 37,760) - world's highest!
That was down -12% from a pro forma net profit of +$955 million in 2010, but the impressive result is another sign that USA airlines have been able to mostly offset steep rises in fuel costs with robust revenue performances and capacity discipline. (UCH)'s full-year 2011 revenue grew +8.8% year-over-year on a pro forma basis to $37.11 billion, while expenses lifted +9.6% to $35.29 billion, producing an operating profit of +$1.82 billion, down -5.1%. The company's full-year 2011 airplane fuel costs increased by +29.5% to $12.38 billion.
(UCH) did incur a fourth-quarter net loss of -$138 million owing mostly to special charges related to the integration of (UAL) and (CAL). The loss was narrowed from a pro forma net deficit of -$325 million in the 2010 December quarter.
(UCH)'s full-year 2011 mainline traffic decreased by -1.5% year-over-year on a pro forma basis to 181.76 billion (RPM)s. Capacity was down -0.3% to 219.44 billion (ASM)s and load factor was 82.8% LF, down -1.1 points. Passenger yield rose +10.4% to 14.29 cents.
US Airways (AMW)/(USA) and American Airlines (AAL) have confirmed they have added a $3 surcharge each way ($6 for a round-trip) onto tickets purchased in the USA for flights to and from Europe, in the wake of the European Union’s Emissions Trading Scheme (EU ETS), which took effect January 1.
These surcharges follow the announcement by Delta Air Lines (DAL) of its $3 surcharge. According to "Reuters," United Continental (UAL)/(CAL) has also matched the charge as USA airlines seek to offset the cost of the controversial (ETS).
Expedia has signed a multi-year agreement with United Airlines (UAL); travelers booking on Expedia.com and Hotwire.com will have access to all (UAL) and Continental Airlines (CAL) fares, schedule and inventory.
Unions representing employees at United Airlines (UAL) and Continental Airlines (CAL), subsidiaries of the merged United Continental Holdings (UCH), will move ahead this month with efforts aimed at creating single labor representative groups for mechanics (MT) and passenger service and reservation employees of the combined airlines.
Some 5,500 (UAL) mechanics (MT), represented by the International Brotherhood of Teamsters (IBT), ratified a new labor agreement with the company in late December. (CAL) mechanics (MT), also represented by the (IBT), ratified their collective bargaining agreement in November 2010. (UCH) and the (IBT) will soon begin negotiations for a joint collective bargaining agreement for mechanics (MT) at both subsidiaries.
"This is another important step which benefits our co-workers and contributes to the future success of United (UAL)," (UAL) Senior VP Technical Operations, Jim Keenan said. "We now turn our attention to a joint agreement for all United (UAL) and Continental (CAL) mechanics (MT), and are committed to reaching an agreement that is fair to the company and fair to our employees."
The National Mediation Board has set January 17 as the starting date for a five-week election to establish the International Association of Machinists and Aerospace Workers (IAM) as the collective bargaining representative for 17,930 passenger service and reservation employees at the merged airline.
Election results will be announced following a tally on February 21.
The (IAM) represents approximately 9,900 (UAL) passenger service and reservation employees. (CAL)'s 7,800 passenger service and reservation employees are unrepresented, and Continental Micronesia (MCR)’s 230 employees are represented by another union.
United Continental Holdings (UCH) has reached a tentative agreement with the Association of Flight Attendants (AFA) for “numerous improvements,” including increased wages and a signing bonus for United Airlines (UAL) flight attendants (CA).
The agreement is the result of an expedited mediation process that began last September and covers more than >15,000 flight attendants (CA) at the company's (UAL) subsidiary. It is subject to ratification by (UAL) flight attendants (CA).
Continental (CAL) flight attendants (CA) ratified their collective bargaining agreement in February 2011.
"I am pleased that we were able to reach this agreement following an intense mediation process. We look forward to the ratification of this agreement, which will be promptly followed by negotiations for a joint agreement that will fully integrate all of our flight attendants under a single contract," said (UAL) Senior VP In-flight Services, Sam Risoli.
The (AFA) represents more than >24,000 flight attendants at the company's (UAL) and (CAL) subsidiaries.
The airlines were merged in the fall of 2010.
Hartsfield-Jackson Atlanta International (ATL) is America’s busiest airport, having welcomed 89 million passengers in 2010 (final 2011 figures aren’t yet in). But New York is America’s busiest airline market, with 47 million passengers at New York Kennedy International Airport (JFK), 33 million at Newark Liberty International Airport (EWR) and 24 million at LaGuardia Airport (LGA), for an annual 2010 total of 104 million. Well Delta (DAL), already dominant in (ATL), wants a bigger bite of the Big Apple, where the competitive landscape is far more fragmented. In a bid to consolidate loyalty among New York’s many corporate travelers, (DAL) unveiled its beefed-up schedule from LaGuardia Airport (LGA), where it acquired a large number of US Airways (AMW)/(USA) slots in exchange for slots at Washington’s Reagan Airport. The expansion involves almost 30 new routes, many to rival hubs, including Dallas (DFW), Charlotte, Denver, Cleveland, Washington (IAD), Houston (IAH), Miami, and Montreal. A large number of medium-sized cities like Kansas City, Albany, and Norfolk are included in the expansion as well. (DAL) will soon operate nearly half of all flights at LaGuardia, pushing American (AAL) to a distant second in terms of market share. More generally and even more significantly, when it comes to securing valuable corporate contracts, (AAL) will now be a distant third in the overall New York market, while (DAL) will vie with United (UAL) for the top spot. (DAL) is also upgrading its LaGuardia terminals and hopes to make the airport a domestic transfer hub for the first time (currently, 96% of its LaGuardia passengers are local). (DAL) says the New York airline market is worth approximately $14 billion ($8 billion domestic and $6 billion international).
New York City met its goal of attracting 50 million tourists in 2011, 10 million of them international. Domestic arrivals were up +3%, while international arrivals rose +4%.
Continental Airlines (CAL) is currently hiring United Airlines (UAL) furloughed Flight Crew (FC) pilots. The company has been bringing back an average of 12 every other week until January, when it changed to 16, until they get 179 through. See (UAL) for more information.
February 2012: United Airlines (UAL)/(CAL) will launch daily, Newark - Istanbul 767-300 service July 1, subject to government approval. (UAL) will launch daily Washington Dulles - Honolulu 767-400 service on June 7. It will also launch daily, Denver - Fairbanks service June 7 - August 27; daily Houston - Rapid City service June 7 - August 27, operated by ExpressJet; and Jackson Hole service from Houston (2X-weekly, June 8 - August 27) and San Francisco (daily, July 1 - August 27).
March 2012: United Airlines (UAL)'s weekend migration to the Hewlett Packard (SHARES) system used by Continental (CAL), its merger partner, got mixed reviews: As Henry Harteveldt, an analyst at Atmosphere Research Group, said, it was “a success on the technology level but less of a success on the customer-experience front.”
In the final major step in the integration of the two carriers, (UAL) successfully moved its reservations, inventory control and departure control systems off the Apollo platform, where they had resided for more than >40 years, and onto (SHARES).
As might be expected in such a massive undertaking, the transition was peppered with glitches, particularly on the first day. But although there were some delays, cancellations and missed connections, there was no systemic failure.
Meanwhile, Continental Airlines (CAL) has flown into history. United (UAL) employees worked to remove the last Continental (CAL) signs from airports over the weekend. The last flight, CO 1267, departed Phoenix the evening of March 2. It landed in Cleveland early Saturday morning as UA 1267.
But as someone noted, “It’s the Continental (CAL) website, the Continental (CAL) systems, the Continental (CAL) policies, the Continental (CAL) pricing, the Continental (CAL) "elite" program, the Continental (CAL) inventory management, the Continental (CAL) logo, the Continental (CAL) (CEO), and the Continental (CAL) board of directors. The only thing that is United (UAL) anymore is the name. This is Continental (CAL), people. United (UAL) is gone.”
May 2012: Leaders of the 12,000 (ALPA)-represented pilots (FC) at United Continental Holdings (UCH) (UAL)/(CAL) have called for a strike vote after failing to reach a contract agreement through two years of post-merger negotiations.
The parties began talks in May 2010 when United Airlines (UAL) and Continental Airlines (CAL) announced their merger plans. They jointly requested mediation by the National Mediation Board (NMB) in December 2010, which began February 28, 2011. "There has been more than ample time to reach agreement on a new contract,” (ALPA) Chairman Continental (CAL) pilots (FC), Jay Pierce said. “While a strike is never the pilots (FC)'s preference for the path to reaching agreement, we are more than willing to use every tool at our disposal with the agonizingly slow pace of negotiations, management has left us with little option.” A date for the vote has not been set.
(ALPA) said the call for a vote follows a May 11, 2012 letter to the (NMB) requesting that it “further assist the parties to bring about an agreement by proffering arbitration, and if not accepted by both parties, issuing a release under Section 5, First of the Act.”
If the (NMB) grants the parties “self help,” the pilots (FC) will be able to strike following a 30-day period. The two carriers merged in October 2010.
July 2012: United Continental Holdings (UCH) (CAL)/(UAL) posted second-quarter net income of +$339 million, down -37% from a +$538 million net profit in the prior-year period, as revenue grew just +1.3% year-over-year to $9.94 billion.
(UCH) said a primary reason for the profit decline was more than >$200 million in one-time charges associated with the ongoing integration of United Airlines (UAL) and Continental Airlines (CAL) into the new (UCH). President & (CEO), Jeff Smisek acknowledged there is still “work to do” regarding the merger, but added that (UCH) is “making the right investments in our future,” a likely reference to its recent order for 100 Boeing (TBC) 737 MAX airplanes and 50 737-900ERs.
(UCH)’s second-quarter operating expenses heightened +4% year-over-year to $9.36 billion and operating profit was +$575 million, down -28.8%. Mainline traffic rose +0.5% to 47.72 billion (RPM)s on a -0.2% decline in capacity to 56.35 million (ASM)s, producing a load factor of 84.7% LF, up +0.6 point. Average passenger yield grew +1% to 14.55 cents. Average fare per passenger was up +2.7% to $279.72.
United Airlines (UAL) launched daily, Newark - Istanbul Ataturk 767-300 service on July 1.
August 2012: United Airlines (UA), the North American launch customer for the Boeing (TBC) 787, said it will take delivery of the first of 50 787 Dreamliners it has on order in September.
The 787 rolled out of Boeing (TBC)’s paint hangar in Everett, Washington, this week. “The 787 will open up new non-stop destinations that customers would not be able to otherwise reach on United (UAL), such as the recently announced Denver-to-Tokyo service that starts next spring,” (UAL) said.
(UAL)’s 787 cabin will be configured with 219 seats, comprised of 36C in business class, 72PY in premium economy and 111Y in economy.
Separately, (UAL) parent, United Continental Holdings (UCH) announced it has reached an “agreement in principle” on a new collective bargaining agreement with the Air Line Pilots Association (ALPA) that would cover both (UAL) and Continental Airlines (CAL) pilots (FC). “The agreement is subject to definitive documentation, approvals by the (ALPA) master executive councils of each subsidiary and ratification by the company’s pilots (FC),” (UCH) stated.
United Airlines (UAL) subsidiary, Continental Micronesia (MCR) flight attendants (CA) ratified a new labor agreement, extending the previous collective bargaining agreement through December 2014.
The flight attendants (CA) are represented by the Association of Flight Attendants (AFA). (UAL) reached a tentative agreement with the (AFA) last month.
In-flight Senior VP, Sam Risoli said, "We will now turn our attention on working with the (AFA) on a single contract that is competitive for United (UAL) and provides additional benefits for our flight attendants (CA)."
(UAL) flight attendants (CA) ratified a new four-year contract in February; flight attendants (CA) from Continental Airlines (CAL) ratified an extension of their collective bargaining agreement last month. (AFA) and United Continental (UAL)/(CAL) Holdings will launch negotiations for a joint collective bargaining agreement covering all (AFA)-represented flight attendants (CA) on August 27.
October 2012: Air Canada (ACN) and United Continental Holdings (UCH) have reached an agreement with Canada’s Competition Bureau that should enable the (ACN)/United Airlines (UAL) Canada - USA transborder joint venture (JV) to go forward with some carve outs. “This agreement provides the flexibility to implement a Canada - USA transborder (JV), an increasingly common practice in the global aviation industry, and one that is an important competitive consideration as the industry continues to evolve,” (ACN) said.
The Competition Bureau said that the agreement will “protect consumers and preserve competition on 14 key, high-demand air passenger routes between Canada and the United States.” Under the accord, “(ACN) and (UCH) (UAL)/(CAL) have agreed not to implement their (JV) or to coordinate on 14 air passenger routes between Canada and the USA."
But, according The Canadian Press, the carriers will be able to implement the (JV) on flights between New York and Montreal, Toronto and Vancouver, as well on Toronto - Chicago, and Vancouver - Los Angeles services.
A USA Federal Judge in New York has reserved judgment on whether United Continental Holdings (UCH) (UAL)/(CAL) bears responsibility for damages caused by the hijacked American Airlines (AAL) 767 that crashed into the World Trade Center’s north tower on "9/11."
According to a "Reuters" report, (UCH) urged the court to deny World Trade Center Properties’ (WTCP) claim for damages relating to (AAL) Flight 11. The hearing in New York was connected to the pending trial in which (WTCP) will seek $2.8 billion in damages from (UCH) and (AAL).
In the hearing, (UCH) argued it cannot be held liable for damages attributed to the (AAL) airplane. According to "Reuters," (WTCP) argued that the hijackers who commandeered (AAL) Flight 11 initially entered the air transport system on "9/11" via a flight from the Portland (Maine) Jetport (PWM), where United Airlines (UAL) had primary responsibility for security in 2001. (UAL) was “asleep at the switch” at (PWM), a (WTCP) attorney charged.
A (UAL) 767 crashed into the World Trade Center’s south tower on "9/11," but damage caused by that airplane was not a focus of the hearing. It is unclear when the judge will rule in the matter.
November 2012: Continental Airlines (CAL) has been cleared of criminal blame for the July 2000 crash of an AirFrance (AFA) Concorde SST airplane at Paris Charles de Gaulle airport.
United Continental Holdings (UCH) confirmed the decision of a French appeals court and said, “This was a tragic accident and we support the court’s decision that Continental (CAL) did not bear fault. We have long maintained that neither (CAL) nor its employees were responsible for this tragic event and are satisfied that this verdict was overturned.”
United Airlines (UAL) and Continental (CAL) merged in 2010 and received its single air operating certificate (AOC) late last year.
The appeals court decision comes almost two years to the day after another French court found (CAL) to be criminally responsible for the crash, in which 113 people died. That court concluded that there was a link between safety failures by Continental (CAL) and the fire that brought down the Concorde. It held (CAL) and its mechanic (MT) responsible for having manufactured and installed a piece of titanium that fell from a Continental (CAL) DC-10 that took off from the same runway shortly before the Concorde’s departure.
(CAL) was fined €200,000/$265,000 and ordered to pay €1 million in damages to AirFrance (AFA).
According to a BBC report, the appeals court has upheld the damages order, saying Continental (CAL) still bore civil responsibility.
SEE ATTACHED FROM "AIRWAYS" MAGAZINE - - "CAL-2013-01 - UPDATE-A/B."
NOTE: For all future references regarding the merged (UAL)/(CAL) Holding (UCH), please see (UAL):
Click below for photos:
CAL-747-400 - 2011-10
CAL-787-9 - 2010-05
0 727-200 (JT8D-17A) (20638 PARTED OUT), ALL OUT OF SVC, (727-224: 22252; 22253; 22448; & 727-232: 20636; 20644; RF (MCR).
0 737-224 (JT8D), 2 RETIRED. 14F, 135Y.
0 737-3TO (CFM56-3B1) (1119-23352, /85 N16301; 1558-23943, /88 N14358), 23569; 23578; 26321; STORED 2004-10. 23357; 23359, N14308; 23365; 23367; 23368; RTND 2004-02. 23359 RTS 2004-11. 23366 RTND 2005-11. 23670; 23588; 23589; 23590; RTND 2008-12. 23943; WFU AT GOODYEAR 2009-01. 23355; 23579; WFU 2009-03. 23352, N59302; WFU AT OPA LOCKA 2009-04. 23575; 23580; 23943; SCRAPPED 2009-06. 23593; SOLD 2009-06. 23352; 23583; SCRAPPED 2009-07. 23554; 23573; SCRAPPED 2009-08; 23359; 23362; 23364; 23370; 23371; 23458; WFU 2009-08; 23571; 23573; 23586; 23942; SCRAPPED 2009-09; 23370; 23371; WFU 2009-09. 23374; WFU AT GOODYEAR 2009-11. 23576; SCRAPPED 2009-11. 23356; SCRAPPED 2009-12. 23375; 23593; WFU AT GOODYEAR 2009-12. ONLY 2 737-3TOs IN SERVICE IN 2010-01. 23359; 23370; 23373; SCRAPPED & 23362; RTND 2010-01. 10F, 120Y.
43 737-524 (CFM56-3C1) (2566-27314, /94 N14601; 3077-28928, /98 N14668), 5 ST (TRX) 2007-07, INCL 3052-28921, N14660, 2007-12; 3060-28923, N14662, 2007-11; 3069-28926, N13665, 2007-12, & WET-LST (TYU) 2007-12). 28918; ST CONTINENTAL PURCHASING FOR (TRX) 2008-01. 27540; & 28925; ST CONTINENTAL PURCHASING FOR (TRX). 28927; 28928; SOLD 2008-12. 27315 WFU 2009-05 & LST (TYU) 2009-08. 27314; 27322; WFU 2009-06, LST (TYU) 2009-07. 27316 RTND 2009-07, LST (TYU) 2009-08. 27329 WFU AT LAKE CITY 2009-08. 27328; ST (TYU) 2009-10. 28919; ST (TRX) 2009-12. 27325; 27326; 27327; WFU AT GOODYEAR 2010-01. 28922; ST (TRX) 2010-02. 27323; RTS 2010-04. 10F, 94Y.
19 ORDERS 737-700/-800 (CFM56-7B):
36 +15 ORDERS 737-724 (CFM56-7B24) (29-28762, /98 N16701; 46-28766, /98 N25705; 47-28767, /98 N24706; 48-28768, /98 N23707), 12F, 112Y.
121 737-824 (CFM56-7B26) (56-28770, /98 N26210; 328-28943, /99 N17233; 30132, N76519, 2010-08; 1099-31595, /02 N37277; 31642, N78524, 2010-08; 31652, N76529, 2010-12; 31658, N77520, 2010-08; 31659, N77525, 2010-08; 31660, N76522, 2010-08; 31662, N79521, 2010-08; 1743-33453, N37293, 2005-07; 1762-34000, N33294, 2005-08; 1779-34001, N77295, 2005-08; 1787-34002, N77296, 2005-09; 1791-34003, N39297, 2005-10; 1813-34004, N37298, 2005-11; 1821-34005, N37299, 2005-11; 1994-31602, N78501, 2006-07; 2017-31603, N76502, 2006-08; 2023-33461, N76503; 2035-31604, N76504, 2006-08; 2048-32834, N76505, 2006-09; 2065-32832, N78506, 2006-10; 2487-31637, N87507, 2008-01; 2514-31639, N76508, 2008-02; 2523-31638, N78509, 2008-02; 2579-32828, N77510, 2008-04; 2598-33459, N78511, 2008-05; 2602-33458, N87512, 2008-05; 2655-31621, N87513, 2008-06; 37101, N76523, 2010-08; 37096, N76516, 2008-10; 38700, N76526, 2010-08; 38701, N87257, 2010-08), (GEH) LSD, 10 OPS FOR (MCR). 14F, 141Y.
5 ORDERS 737-800 (CFM56-7B26), (PSS) LSD.
13 +25/1 ORDERS 737-924 (CFM56-7B26) (820-30118, /01 N30401; 857-30119,/01 N79402; 884-30120, /01 N38403, 7/01; 893-30121, /01 N32404; 911-30122, /01 N72405; 943-30123, /01 N73406; 951-30124, /01 N35407; 962-30125, /01 N37408; 1004-30126, /01 N37409; 1021-30127, /01 N75410; 1052-30128, /02 N71411;; 1112-30129, /02 N31412), 18F, 149Y.
25 737-924ER (CFM56-7B27) (31643, N36444, 2010-12; 31655, N38443, 2010-12; 2474-31664, N37413, 2008-01; 2475-32825, N37414, 2008-01; 2490-37827, /08 N47414; 2516-32826, /08 N39415; 2528-37093, N39416, 2008-02; 2541-31665, N38417, 2008-03; 2547-33456, N39418, 2008-03; 2553-31666, N37419, 2008-03; 2565-33457, N37420, 2008-04; 2577-37094, N27421, 2008-04; 2614-31620, N37422, 2008-05; 2645-32829, N39423, 2008-06; 2651-37095, N38424, 2008-06; 2657-33460, N75425, 2008-07; 2774-37098, N77430, 2009-01; 2787-32833, N77431, 2009-01; 2817-32835, N75432, 2009-01; 2842-33527, N75433, 2009-03; 2891-33528, N37434, 2009-10; 2916-33529, N75435, 2009-05; 2947-33531, N75436, 2009-06 - - SEE PHOTO - - "CAL-737-924ER-2009-06;" 2959-33532, N37437, 2009-07; 2971-33533, N78438, 2009-07; 2990-33534, N57439, 2009-08; 2996-33535, N45440, 2009-08; 3014-30131, N53441, 2009-09; 3027-33536, N53442, 2009-09). 18F, 149Y.
0 747-238B (JT9D-7) (217-20535, /73 N17025), EX-(QAN)/(ILF), (IAL)/(PSS) LSD. 20534 SCRAPPED 2003-10.
0 747-243B (190-20520) ST SILVERSAIL 2001-06. SCRAPPED 2004-02.
41 +/14 OPTIONS 757-224 (RB211-535E4-B) (614-27291, /94 N58101; 911-30352, /00 N17139; 913-30353, /00 N41140), (ETOPS). 24F, 159Y.
9 757-324 (RB211-535E4-C) (990-32810, /01 N75851; 995-32811, /01 N75852; 12/01). (32815, /04 N74856), (1043-32818, N56859 - LAST BOEING MODEL). 32810; LST AVIATION PARTNERS 2009-01 - 2009-07. 24F, 186Y.
17 757-33N (RB211-535E4C) (972-32584, /01 N550TZ; 976-32585, N75861, 2005-08; 980-32587, N57863, 2005-10; 985-32588, N57864, 2005-11; 1003-32589, /02 N555TZ; 1007-32591, /02 N557TZ, 2005-12; 1008-32592, /02 N558TZ, 2006-01; 1017-32590, /02 N57868; 1018-32593, /02 N559TZ; 1031-33525, /03 N57870, BF (TBC) 2009-11; 1032-33526, /03 N57871), EX-(AAT), (TBC), LSD. 32584; (TBC) LSD 2009-12. 32586; (TBC) LSD 2010-01. 244Y.
10 +/28 OPTIONS 767-224ER (CF6-80C2B4F) (811-30430, /00 N76151; 815-30431, /00 N33152; 851-30349, /01 N68160), 25C, 149Y.
12/18 ORDERS 767-324ER (CF6-80C2):
16 +10 ORDERS 767-424ER (CF6-80C2B7F) (799-29446, /00 N66051; 805-29447, /00 N66052), 35C, 200Y.
22 +6 ORDERS 777-224ER (GE90-92B) (161-27577, /98 N78001; 167-27579, /98 N78003; 169-27580, /98 N78004; 227-29859, /99 N79011; 617-35547, N77019, 2007-03; 625-31687, N69020, 2007-04; 39776, N76021* 2010-07; 39777, N77022* 2010-07), * IN "STAR ALLIANCE" (SAL) COLORS. 48C, 235Y.
25 ORDERS (2012-?) 787-8 DREAMLINER, 36BF, 63PE, 120Y:
0 DC-9-32 (47593; 47094; 45792; PARTED OUT). ALL GROUNDED 2001-09 AND RETIRED (5).
0 MD-81 (JT8D-217) (1018-48073, /81 N16883) (48074 W/O 2000-06). 48045 WFU 2001-09. 48073 WFU GOODYEAR 2004-09. 14F, 130Y.
0 MD-82 (JT8D-217A) (49291; 49292) (49391 RTND 2000-09; 49222 RTND 2000-11). 35 GROUNDED & RETIRED 2001-09. 49114; 49116; RTND. 49127 WFU AT MOJAVE 2002-12. 49444 RTND (PSS) 2003-03. 49371 RTND 2003-06. 49370 RTND 2003-09. 49483 2003-12. 49127; 49481; 49482; 48056; WFU GOODYEAR 2004-01; 49491 2004-03. 49265; 49388 WFU GOODYEAR 2004-04; 49450 PARTED OUT. 49478 RTND 2004-04. 49485 WFU (BFG) 2004-06. 49487; 49493; 2004-05. 49486; 49490; RTND 2004-05. 49581 2004-08; 49580 2004-09. 14F, 130Y.
0 MD-83 (JT8D-219) (1275-49363, /86 N936AS; 1277-49365, /86 N938AS), 49526 STORED. 49525 RTND (AWW) 2004-03. ALL RETIRED 2005-01. 14F, 130Y.
0 DC-10-10F (43-46903) (47800 ST (CDP) 1999-03, ON TO (TPB) 2007-08), GROUNDED 2001-09. 2 RETIRED. FREIGHTER.
0 DC-10-30 (CF6-50C2), GROUNDED 2001-09. 18 RETIRED. 3 LST (HWI). 47862 PARTED OUT. 46850 SCRAPPED 2004-07. 46926 BROKEN UP AT MOJAVE 2004-11. 38C, 204Y.
Click below for photos:
CAL-CEO NOV06 A
CAL-CEO NOV06 B
CAL-CEO NOV06 C
CAL-CEO NOV06 D
CAL-CEO NOV06 E
CAL-JEFFREY SMISEK - 2004
GLENN TILTON, EXECUTIVE CHAIRMAN (TILL 2012) UNITED CONTINENTAL AIRLINES HOLDINGS (UCH), EX-CHAIRMAN, PRESIDENT & CHIEF EXECUTIVE OFFICER (CEO), EX-CHEVRONTEXACO.
JEFF SMISEK, CHIEF EXECUTIVE OFFICER (CEO) (UCH), EX-CHAIRMAN, (CEO) & PRESIDENT CONTINENTAL AIRLINES (CAL).
ZANE ROWE, CHIEF FINANCIAL OFFICER (CFO) & EXECUTIVE VP FINANCE (PROMOTED FROM SENIOR VP NETWORK STRATEGY) (2008-08) RESIGNED TO JOIN APPLE INC, (2012-04).
MARK MORAN, EXECUTIVE VP OPERATIONS, EX-(USA) (2004-08) (email@example.com).
JAMES COMPTON, EXECUTIVE VP, CHIEF MARKETING OFFICER (CMO) & CHIEF REVENUE OFFICER (2004-08).
NENE FOXHALL, HEAD CORPORATE COMMUNICATIONS (2008-10).
BRIAN INGRAHAM, MANAGING DIRECTOR SAFETY & REGULATORY COMPLIANCE,
JANET WEJMAN, SENIOR VP & CHIEF INFORMATION OFFICER (CIO).
GLEN HAUERSTEIN, SENIOR VP NETWORK (2003-03).
REBECCA COX, SENIOR VP GOVERNMENT AFFAIRS (2003-09).
GARY LADERMAN, SENIOR VP FINANCE/TREASURER.
JENNIFER VOGEL, SENIOR VP GENERAL COUNSEL & CORPORATE COMPLIANCE OFFICER.
BRETT HART, GENERAL COUNSEL (UCH) (2010-12).
BILL BRUNGER, SENIOR VP NETWORK (2004-08).
DAVE HILFMAN, SENIOR VP SALES & RESERVATIONS (2004-08).
BILL MEEHAN, SENIOR VP AIRPORT SERVICES (2004-08).
HOLDEN SHANNON, SENIOR VP GLOBAL REAL ESTATE & SECURITY (2004-08).
DANTE MARZETTA, SENIOR VP TECHNICAL OPERATIONS & PURCHASING (2004-08).
MARK ERWIN, SENIOR VP ASIA/PACIFIC & CORPORATE DEVELOPMENT & PRESIDENT/CEO (MCR).
MICHAEL BONDS, SENIOR VP HUMAN RESOURCES (HR) & LABOR RELATIONS (2004-12).
SCOTT DOLAN, SENIOR VP AIRPORT OPERATIONS (UCH).
TRACY LEE, VP OPERATIONS PLANNING (UCH).
FRED ABBOTT, VP FLIGHT OPERATIONS (firstname.lastname@example.org).
JIM SUMMERFOR, VP INTERNATIONAL.
RON ANDERSON-LEHMAN, VP & CHIEF INFORMATION OFFICER (CIO) (2004-08).
JACK BOISEN, VP CARGO.
JOHN SLATER, VP LATIN AMERICA & CARIBBEAN (2010-08).
MIKE NATALIE, STAFF VP & CHIEF INFORMATION TECHNOLOGY (IT) OFFICER (2004-08).
KEN BURTT, STAFF VP TECHNICAL SERVICES, EX-(USA) (1998-07), (email@example.com).
KATRINA MANNING, STAFF VP PURCHASING & MATERIAL SERVICES.
PETE GARCIA, STAFF VP LATIN AMERICA.
CHRIS AMENECHI, SENIOR DIRECTOR INTERNATIONAL E-COMMERCE & DISTRIBUTION.
TOM CHAPPELL, SENIOR DIRECTOR SPECIAL PROJECTS/CONTRACTS (1999-03).
LINDA RYAN, SENIOR DIRECTOR PLANNING & PROCUREMENT.
MUNUM MAEEM, SENIOR DIRECTOR TECHNICAL PLANNING & SUPPLIER BASE MAINTENANCE (firstname.lastname@example.org).
NICK MATEO, SENIOR DIRECTOR RELIABILITY, EX-TRAMCO (BFG) 1994-06).
DAVID SHOTSBERGER, SENIOR DIRECTOR TECHNICAL OPERATIONS.
JOHN STELLY, MANAGING DIRECTOR OF TECHNOLOGY (2001-03).
JOHN SLATER, MANAGING DIRECTOR LATIN AMERICA (2008-01).
DON RHODES, DIRECTOR AIRCRAFT RECORDS.
DAN MIXON, DIRECTOR MAINTENANCE CONTROL (1999-08).
STEVE CUNNINGHAM, DIRECTOR TECHNICAL POLICIES & PROCEDURES (2001-03).
MANNY NAEEM, DIRECTOR AIRCRAFT PLANNING.
BOB BONAVENTURA, DIRECTOR QUALITY CONTROL (QC).
JOHN WIITALA, DIRECTOR ENGINEERING (SYSTEMS) (2000-04).
FRANK GILBRIDE, DIRECTOR AIRFRAME/CONTRACTS.
JUN TSURUTA JR, DIRECTOR MATERIAL MANAGEMENT.
JERRY JOHANSON, DIRECTOR REGULATORY AFFAIRS.
DIEDRA FONTAINE, DIRECTOR DIVERSITY & SALES DEVELOPMENT (2008-04).
ROBERT SLOAN, SENIOR MANAGER TECHNOLOGY.
VERN ALG, MANAGER INTERIORS ENGINEERING.
DAVID HEGGLAND, MANAGER TECHNICAL PUBLICATIONS.