Monday, 28 April 2008: Continental Airlines’ Board of Directors has unanimously decided that they will not consolidate with another airline.
The Board of Directors carefully considered all the risks of a merger with another airline, and determined the risks far outweighed the potential rewards, as compared to Continental’s prospects on a standalone basis.
A joint statement was released by Continental Airlines, CEO Larry Kellner and President Jeff Smisek to the airlines 45,000 employees, “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.”
The entire U.S aviation industry has been under enormous pressure from record high fuel prices, a slowing U.S. economy and a weak dollar.
Mr Kellner and Mr Smisek said that Continental Airlines would continue to adjust their business model to ensure they successful navigate through these difficult times faced by the industry.
Continental Airlines has ensured that they will continue to deliver clean, safe and reliable air transportation to their customers.