Continental Airlines: The Company

1
Continental Airlines The Company

• Amy Minto
• Jocelyn Littleton
• Kurt Niemi
• Chris Chou

2
The Company

• Brief Company Background
• Strengths
• Areas of Opportunity
• Challenges
• Financials

3
Company Description

• Business Transporting Passengers, Cargo and Mail
  since 1934 (Source 1)
• Market Flies Domestic and International Routes
  (Source 1)
• 132 US destinations
• 126 International destinations on 6 continents
• History Filed for bankruptcy twice and emerged
  (Source 5)
• Employer Repeatedly voted one of Americas most
  Admired US Airlines by Fortune Magazine (Source
  1 and 2)

4
Strengths

• Multiple Alliances
• Sky Team Alliance
• Commuter Alliances
• Train to Plane Alliance
• International Alliances
• Capacity - Express Jet
• Marketing
• Young Aircraft Fleet (Source 6)
• The Go Forward Plan (Source 9)

5
Strengths (continued)

• Employees
• Employee Benefits (Source 1)
• Few Unionized Employees (Source 4)
• Efficiencies - Fly farther with fewer employees
  (Source 4)
• Customer Service
• 1 for on time of flights (Source 6)
• 1 in lowest cancellations (Source 6)
• Frequent Flyer Program
• Technology - Advanced IVR and Voice Recognition
  software
• Location - New York Houston Hubs (intl growth
  route expansion)

6
Areas of Opportunity

• Marketing Agreements lowered yields per ticket
• 92 Debit to Total Equity (Source 4)
• Assets used as Collateral (Source 4)
• Image (Source 4)
• Route Network (Source 4)

7
Challenges

• Federal Regulations
• Aviation and Transportation Security Act
• Environmental Regulations
• Record high fuel costs
• CCC credit rating
• Possibility of additional terrorist attacks
• Increased presence of low cost carriers and price
  competition

Source 1, 2
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13
Sources

1. SEC Filings From Continental.com dated 3/13/2006
   http//www.continental.com/vendors/default.asp?SID
   4824CDE9F6844EE692093CF5F605616Es/default.aspi
   irSEC
2. SEC Filings from Continental.com dated 3/8/2006
   http//www.continental.com/company/investor/docs/c
   ontinental_8k_2006_0308.pdf
3. Continental Alliances from Continental.com
   http//www.continental.com/company/alliance/skytea
   m.asp
4. SWOT Analysis on Continental http//www.3seasons.o
   rg/Airlines/airlines.htmAIRContinental20Airlines
   
5. Continental History from Continental.com
   http//www.continental.com/company/history/Default
   .asp
6. Investor Presentations from Continental.com
   http//www.continental.com/company/investor/docs/j
   pmorgan_2006_02_21.pdf
7. http//www.usatoday.com/money/biztravel/2004-09-13
   -usairways-cover_x.htm
8. The Go Forward Plan http//www.lctmag.com/books.cf
   m?actionbook_6
9. http//www.ou.edu/class/mis5003/Continental.pdf