Continental Airlines Chooses Not To Merge
Apr 27, 2008, 3:50 pm
#1
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NYTimes: merger talks with United abandoned
From the New York Times moments ago...
"Continental Airlines said Sunday that it had abandoned mergertalks with United Airlines and was planning to remain an independent carrier, a blow to lengthy efforts by United tofind a merger partner."
http://www.nytimes.com/2008/04/28/business/28air.html
"Continental Airlines said Sunday that it had abandoned mergertalks with United Airlines and was planning to remain an independent carrier, a blow to lengthy efforts by United tofind a merger partner."
http://www.nytimes.com/2008/04/28/business/28air.html
Last edited by cjw2001; Apr 27, 2008 at 3:52 pm Reason: added link
Apr 27, 2008, 3:51 pm
#2
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This has been posted in the master thread regarding mergers.
Apr 27, 2008, 3:52 pm
#3
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Praise Jebus! 
Apr 27, 2008, 3:53 pm
#4
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Continental Airlines Chooses Not To Merge
Continental Airlines Chooses Not To Merge
http://www.co-industryconsolidation....s/pr042708.php
HOUSTON, April 27, 2008 – Continental Airlines (NYSE: CAL) released the following message to its more than 45,000 employees from Larry Kellner, Chairman and Chief Executive Officer, and Jeff Smisek, President.
Dear Co-worker,
We want you to know that our Board of Directors met today and has unanimously supported management’s recommendation that, in the current industry environment, the best course for Continental is to not merge with another airline at this time.
Our recommendation, and the Board’s careful and considered decision, followed a comprehensive review of our strategic alternatives, assisted by our senior officers and advised by Continental’s outside financial and legal advisors. 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, as compared to Continental’s prospects on a standalone basis.
We have significant cultural, operational and financial strengths compared to the rest of the industry, and we want to protect and enhance those strengths -- which we believe would be placed at risk in a merger with another carrier in today’s environment. We will, however, continue to review potential alliances and our membership in SkyTeam. We are considering alternatives to SkyTeam as we carefully evaluate which major global alliance will be best for Continental over the long term.
While some would prefer to see Continental pursue a merger, we strongly believe we have made the right decision – one that is in the best interests of our stockholders, co-workers, customers and the communities we serve.
Every U.S. carrier, including Continental, is under enormous pressure from record high fuel prices, a slowing U.S. economy and a weak dollar. In today’s harsh environment, we must continue to adjust our business model to ensure we successfully navigate through these difficult times, so that in the future we can once again grow and prosper. As we take actions, we will communicate them to you as soon as possible. In the meantime, we must all continue to concentrate on what we do so well: delivering clean, safe and reliable air transportation every day.
Even in these tough times, we have great strengths. We have an enviable position in the New York market, a powerful hub in Houston, and hubs in Cleveland and Guam. We have a solid trans-Atlantic route network, which has recently been enhanced by our access to London Heathrow. We also have a great Latin American network and a growing portfolio of routes to India and Asia. We fly the youngest, most fuel-efficient fleet and have the best new aircraft order book among the major network carriers.
Most importantly, we have our Working Together culture, and we will ensure it remains intact. We’ve achieved our industry-leading customer service reputation because of you – our co-workers. We will all work together to get through these tough times.
We are both proud to be on your team.
Larry Jeff
http://www.co-industryconsolidation....s/pr042708.php
HOUSTON, April 27, 2008 – Continental Airlines (NYSE: CAL) released the following message to its more than 45,000 employees from Larry Kellner, Chairman and Chief Executive Officer, and Jeff Smisek, President.
Dear Co-worker,
We want you to know that our Board of Directors met today and has unanimously supported management’s recommendation that, in the current industry environment, the best course for Continental is to not merge with another airline at this time.
Our recommendation, and the Board’s careful and considered decision, followed a comprehensive review of our strategic alternatives, assisted by our senior officers and advised by Continental’s outside financial and legal advisors. 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, as compared to Continental’s prospects on a standalone basis.
We have significant cultural, operational and financial strengths compared to the rest of the industry, and we want to protect and enhance those strengths -- which we believe would be placed at risk in a merger with another carrier in today’s environment. We will, however, continue to review potential alliances and our membership in SkyTeam. We are considering alternatives to SkyTeam as we carefully evaluate which major global alliance will be best for Continental over the long term.
While some would prefer to see Continental pursue a merger, we strongly believe we have made the right decision – one that is in the best interests of our stockholders, co-workers, customers and the communities we serve.
Every U.S. carrier, including Continental, is under enormous pressure from record high fuel prices, a slowing U.S. economy and a weak dollar. In today’s harsh environment, we must continue to adjust our business model to ensure we successfully navigate through these difficult times, so that in the future we can once again grow and prosper. As we take actions, we will communicate them to you as soon as possible. In the meantime, we must all continue to concentrate on what we do so well: delivering clean, safe and reliable air transportation every day.
Even in these tough times, we have great strengths. We have an enviable position in the New York market, a powerful hub in Houston, and hubs in Cleveland and Guam. We have a solid trans-Atlantic route network, which has recently been enhanced by our access to London Heathrow. We also have a great Latin American network and a growing portfolio of routes to India and Asia. We fly the youngest, most fuel-efficient fleet and have the best new aircraft order book among the major network carriers.
Most importantly, we have our Working Together culture, and we will ensure it remains intact. We’ve achieved our industry-leading customer service reputation because of you – our co-workers. We will all work together to get through these tough times.
We are both proud to be on your team.
Larry Jeff
Apr 27, 2008, 3:57 pm
#5
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Apr 27, 2008, 3:58 pm
#6
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good news!
perhaps when US/UA merge ... CO can pick up LAX as a hub again.
perhaps when US/UA merge ... CO can pick up LAX as a hub again.
Apr 27, 2008, 3:58 pm
#7
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April 27, 2008
EMPLOYEE BULLETIN NO. 6
Dear Co-worker,
We want you to know that our Board of Directors met today and has unanimously supported management’s recommendation that, in the current industry environment, the best course for Continental is to not merge with another airline at this time.
Our recommendation, and the Board’s careful and considered decision, followed a comprehensive review of our strategic alternatives, assisted by our senior officers and advised by Continental’s outside financial and legal advisors. 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, as compared to Continental’s prospects on a standalone basis.
We have significant cultural, operational and financial strengths compared to the rest of the industry, and we want to protect and enhance those strengths -- which we believe would be placed at risk in a merger with another carrier in today’s environment. We will, however, continue to review potential alliances and our membership in SkyTeam. We are considering alternatives to SkyTeam as we carefully evaluate which major global alliance will be best for Continental over the long term.
While some would prefer to see Continental pursue a merger, we strongly believe we have made the right decision – one that is in the best interests of our stockholders, co-workers, customers and the communities we serve.
Every U.S. carrier, including Continental, is under enormous pressure from record high fuel prices, a slowing U.S. economy and a weak dollar. In today’s harsh environment, we must continue to adjust our business model to ensure we successfully navigate through these difficult times, so that in the future we can once again grow and prosper. As we take actions, we will communicate them to you as soon as possible. In the meantime, we must all continue to concentrate on what we do so well: delivering clean, safe and reliable air transportation every day.
Even in these tough times, we have great strengths. We have an enviable position in the New York market, a powerful hub in Houston, and hubs in Cleveland and Guam. We have a solid trans-Atlantic route network, which has recently been enhanced by our access to London Heathrow. We also have a great Latin American network and a growing portfolio of routes to India and Asia. We fly the youngest, most fuel-efficient fleet and have the best new aircraft order book among the major network carriers.
Most importantly, we have our Working Together culture, and we will ensure it remains intact. We’ve achieved our industry-leading customer service reputation because of you – our co-workers. We will all work together to get through these tough times.
We are both proud to be on your team.
LARRY JEFF
EMPLOYEE BULLETIN NO. 6
Dear Co-worker,
We want you to know that our Board of Directors met today and has unanimously supported management’s recommendation that, in the current industry environment, the best course for Continental is to not merge with another airline at this time.
Our recommendation, and the Board’s careful and considered decision, followed a comprehensive review of our strategic alternatives, assisted by our senior officers and advised by Continental’s outside financial and legal advisors. 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, as compared to Continental’s prospects on a standalone basis.
We have significant cultural, operational and financial strengths compared to the rest of the industry, and we want to protect and enhance those strengths -- which we believe would be placed at risk in a merger with another carrier in today’s environment. We will, however, continue to review potential alliances and our membership in SkyTeam. We are considering alternatives to SkyTeam as we carefully evaluate which major global alliance will be best for Continental over the long term.
While some would prefer to see Continental pursue a merger, we strongly believe we have made the right decision – one that is in the best interests of our stockholders, co-workers, customers and the communities we serve.
Every U.S. carrier, including Continental, is under enormous pressure from record high fuel prices, a slowing U.S. economy and a weak dollar. In today’s harsh environment, we must continue to adjust our business model to ensure we successfully navigate through these difficult times, so that in the future we can once again grow and prosper. As we take actions, we will communicate them to you as soon as possible. In the meantime, we must all continue to concentrate on what we do so well: delivering clean, safe and reliable air transportation every day.
Even in these tough times, we have great strengths. We have an enviable position in the New York market, a powerful hub in Houston, and hubs in Cleveland and Guam. We have a solid trans-Atlantic route network, which has recently been enhanced by our access to London Heathrow. We also have a great Latin American network and a growing portfolio of routes to India and Asia. We fly the youngest, most fuel-efficient fleet and have the best new aircraft order book among the major network carriers.
Most importantly, we have our Working Together culture, and we will ensure it remains intact. We’ve achieved our industry-leading customer service reputation because of you – our co-workers. We will all work together to get through these tough times.
We are both proud to be on your team.
LARRY JEFF
Apr 27, 2008, 4:11 pm
#8
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Best news I've heard all day. I guess only time will tell what happens to our NW upgrades, but CO staying independant is great.
Apr 27, 2008, 4:12 pm
#9
Join Date: Jan 2005
Location: Ann Arbor, MI
Posts: 1,380
Sounds to me like the UA-US merger that has been gaining momentum is now all-but-certain, and also that the rumored AA/CO 'alliance' may be in our future, too.
Apr 27, 2008, 4:15 pm
#10
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Location: NYC: UA 1K, DL Platinum, AAirpass, Avis PC
Posts: 4,599
Great news. Think they may see how weak UA/US/AA have become ... and may end up picking up pieces later if things get bad. If they don't get bad ... reasonably well positioned.
Apr 27, 2008, 4:16 pm
#11
Join Date: Sep 2004
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Posts: 592
^ indeed, good news here.
indeed, good news here.
Apr 27, 2008, 4:17 pm
#12
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I'm happy this is the result as long as CO's able to withstand the financial hardships that are coming over the next 12-24 months better or as well as its competitors. I, for one, like the current management team, my ontime arrival percentage, my upgrade percentage (anyone else on CLE-IAH tomorrow at 12:35pm? If so, see you up front), I like my PC and I like most of the employees I come in contact with. Can I think of stuff I'd change? Sure. But CO does most things right and I don't want that to be screwed with.
Just my opinion.
), I like my PC and I like most of the employees I come in contact with. Can I think of stuff I'd change? Sure. But CO does most things right and I don't want that to be screwed with. Just my opinion.
Apr 27, 2008, 4:18 pm
#13
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I also think this is a smart move. Things are going well for CO but no so well for other airlines. Best to let those airlines die and then cherry pick the profitable assets and routes.
Apr 27, 2008, 4:21 pm
#14
Join Date: Jan 2005
Location: Ann Arbor, MI
Posts: 1,380
AA/BA/CO 'Very Advanced Talks'
From the Washington Post:
http://www.washingtonpost.com/wp-dyn...042701493.html
...Continental Airlines is in "very advanced talks" with British Airways PLC (BAY.L) and American Airlines (AMR.N) about a potential alliance with plans to seek antitrust immunity.
http://www.washingtonpost.com/wp-dyn...042701493.html
Apr 27, 2008, 4:22 pm
#15
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I hope that AA allaince thing also turns out to be not the case. AA wouldn't bring much to us, and we would bring alot to the AA customer. For example they only fly to 5-7 cities in Europe and less than 4 in Asia. We would find their flyers clogging our planes. All we would gain, are a few islands and a bit of odds and ends.