Continental Airlines

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Continental Airlines
IATA
ICAO
Callsign
CO COA CONTINENTAL
FoundedMay 1934 (1934-05)
(as
United Continental Holdings (2010–2012)
Traded asNYSE: CAL
Headquarters
Key people
Founders
  • Louis Mueller
  • Continental Airlines (simply known as Continental) was a major airline in the United States that operated from 1934 until its merger with United Airlines in 2012. It had ownership interests and brand partnerships with several carriers.

    Continental started out as one of the smaller carriers in the United States, known for its limited operations under the regulated era that provided very fine, almost fancy, service against the larger majors in important point-to-point markets, the largest of which was Chicago/Los Angeles. However, deregulation in 1978 changed the competitive landscape and realities, as noted by Smithsonian Airline Historian R. E. G. Davies, "Unfortunately, the policies that had been successful for more than forty years under (Robert) Six's cavalier style of management were suddenly laid bare as the cold winds of airline deregulation changed all the rules—specifically, the balance between revenues and expenditures."[4]

    In 1981, Texas International Airlines acquired a controlling interest in Continental. The companies were merged in 1982, moved to Houston, and grew into one of the country's largest carriers despite facing financial and labor issues, eventually becoming one of the more successful airlines in the United States.

    Continental and United Airlines merged in an $8.5 billion all-stock merger of equals on October 1, 2010. Continental's shareholders received 1.05 per share in United stock for each Continental share they owned. Upon completion of the acquisition, UAL Corporation changed their name to United Continental Holdings.[2] During the integration period, each airline ran a separate operation under the direction of a combined leadership team, based in Chicago.[5] The integration was completed on March 3, 2012. Although the merged airline retained the United name, it uses Continental's operating certificate and livery. On June 27, 2019, United changed its parent company name from United Continental Holdings to United Airlines Holdings.[6]

    History

    Early history

    Walter T. Varney, founder of predecessors of United Airlines and Continental Airlines, 1921

    Robert F. Six learned of an opportunity to buy into the Southwest Division of Varney Speed Lines which needed money to handle its newly won Pueblo-El Paso route. Six was introduced to Louis Mueller (who would serve as chairman of the board of Continental until February 28, 1966). Mueller had helped found the Southwest Division of Varney in 1934 with Walter T. Varney. As an upshot of all this, Six bought into the airline with US$90,000 and became general manager on July 5, 1936. The carrier was renamed Continental Air Lines (later changed to "Airlines") on July 8, 1937. Six relocated the airline's headquarters to Denver Union (later Stapleton) Airport in Denver in October 1937.[7][8][page needed] Six changed the name to "Continental" because he wanted the airline name to reflect his desire to have the airline fly all directions throughout the United States.[9]

    During World War II, Continental's Denver maintenance base converted

    El Paso
    to Albuquerque and Denver, with routes being added during the war from Denver, Albuquerque, and El Paso eastward across Kansas, Oklahoma, New Mexico, and Texas. In 1946 Continental flew Denver to Kansas City, Wichita, Tulsa, and to Oklahoma City, and from El Paso and Albuquerque to San Antonio. Each route included stops in several of 22 smaller cities.

    In the early 1950s, Continental began several interchange routes with American, Braniff, and United Airlines. Routes were operated on American from Los Angeles and San Francisco to El Paso continuing onto Continental's route to San Antonio and Houston. Continental's Denver to Kansas City route would interchange onto St. Louis with Braniff Airways and United's routes from Seattle and Portland to Denver would interchange with Continental's routes onto Wichita and Tulsa. These interchange routes continued for many years until Continental was able to secure routes of its own between each city.

    In 1955, Continental merged with

    Six petitioned the

    TWA, and American Airlines. He was discussing with Boeing for Continental to become one of the first to operate the soon-to-be-launched 707. The timing was crucial, since new routes would justify the 707s, and vice versa.[7][8]

    1960s

    Robert F. Six
    , chairman-CEO, Continental Airlines, 1936–1981

    Continental Airlines had seen a broad expansion of its routes, thanks to a responsive CAB and persistent efforts by Six and Executive Vice President Harding Lawrence (who came to Continental in the Pioneer merger), who both frequently referred to his company as "the Airline that needs to grow."[7][11][page needed] In 1958 Continental began turboprop flights with the Vickers Viscount on the new medium-haul routes. The British-manufactured Viscount four engine turboprop, which Continental referred to as the "Jet Power Viscount II", was the first turbine powered aircraft operated by the airline with Continental claiming it was "First in the west with jet-power flights".[12][13] The CAB permitted Continental to drop service at many smaller cities, enabling the carrier's new aircraft to operate more economically on longer flights. In 1960 Continental flew more than three times the passenger-miles it had in 1956. (Aviation Week June 22, 1959: "Continental's current re-equipment program—involving a total cost of $64 million for the Boeings, Viscounts and DC-7Bs—was launched in 1955 when the carrier's net worth amounted to $5.5 million.")

    During the late 1950s and early 1960s, Six was the airline industry's leading lower-fare advocate. He predicted that increased traffic, not higher fares, was the answer to the airline industry's problems. To amazement from the industry, he introduced the economy fare on the Chicago-Los Angeles route in 1962. He later pioneered a number of other low or discount fares which made air travel available to many who could not previously afford it. One of Continental's early innovations was a system-wide economy excursion fare which cut the standard coach fares by more than 25%.[7][page needed] Continental took delivery of the first of five 707-124s in spring 1959, and started Chicago-Los Angeles nonstop on June 8.[11] Having so few jets, Continental needed radical innovations to the 707 maintenance program. It developed the "progressive maintenance" program, which enabled Continental to fly its 707 fleet seven days a week, achieving greater aircraft utilization than any other jet operator in the industry.[7][page needed] Six, not being satisfied with 707 service, introduced innovations and luxe cuisine on Continental's 707 flights which were described as, "... nothing short of luxurious" by the Los Angeles Times, and, "... clearly, the finest in the airline industry" by the Chicago Tribune.[11]

    Boeing 707 at Los Angeles, 1967

    In the early 1960s, Continental added flights from Los Angeles to Houston, nonstop as well as via Phoenix, Tucson, El Paso, Midland-Odessa, Austin, and/or San Antonio. In 1963, the company headquarters moved from Denver to Los Angeles.

    727-200s. The DC-9 and 727 were to become the workhorses of the fleet from the late 1960s.[8] The DC-9s were phased out by the late 1970s (although the type reappeared after mergers in the 1980s with an example being Texas International Airlines DC-9s which were added to the CO fleet); the 727-200 was the mainstay of its narrow-body fleet until the late 1980s. In 1968 a new livery was launched: orange and gold cheatlines on a white fuselage; and a black "jetstream" logo (by Six's friend, the noted graphic designer Saul Bass) on the iconic "Golden Tails" of the airline's aircraft. The slogans adopted in 1968 and used for more than a decade were, "The Airline That Pride Built" and, "The Proud Bird with the Golden Tail".[7][11]
    1960s saw international routes awarded to Continental (to New Zealand and Australia) in the Transpacific Case, but they were cancelled by the Nixon Administration.

    Boeing 737-200 with 1968–1991 "meatball" logo and livery designed by Saul Bass

    During the

    island hopping routes between Yap/Saipan/Guam, Majuro, Rota, Truk, Ponape (Pohnpei) and Honolulu.[7] "Air Mike", as it was known, initially operated with Boeing 727-100 aircraft with open-ocean survival gear, doppler radar, and a large complement of spare parts (including tires).[7] A senior mechanic flew on every Air Mike flight until the late 1970s. Air Micronesia operated as subsidiary Continental Micronesia until 2010. In September 1969, Continental began flights from Los Angeles to Honolulu/Hilo and one month later from Albuquerque to Chicago, San Antonio, and San Francisco. In 1970, Continental was awarded routes from Seattle and Portland to San Jose, Hollywood-Burbank Airport, and Ontario, California—all of them growing markets.[7]

    Revenue passenger-miles (millions) (sched flights only)
    Continental Pioneer
    1951 106 42
    1955 221 11
    1960 885 (Merged April 1, 1955)
    1965 1,386
    1970 4,434
    1975 6,356

    In 1963, Continental denied employment to African-American pilot and Air Force veteran,

    United States Supreme Court decision allowed a Colorado anti-discrimination law to be applied to his case against Continental.[14] Green flew with Continental for 13 years from 1965 until his retirement in 1978.[9] His employment paved the way for the hiring of ethnic-minority pilots by all U.S. carriers, an industry milestone which was finally realized in 1977 after Southern Airways
    hired their first minority pilot.

    1970s

    At Six's insistence, Continental (with

    Pan Am and Trans World Airlines) was one of the three launch airlines for the Boeing 747. On June 26, 1970, Continental became the second carrier (after TWA) to put the 747 into U.S. domestic service. Its upper-deck first class lounge and main deck "Polynesian Pub" won awards worldwide for the most refined cabin interior among all airlines, as did meal services developed by Continental's Cordon Bleu-trained executive chef, Lucien DeKeyser.[11] Continental's 747 services from Chicago and Denver to Los Angeles and Honolulu set the standard for service in the western U.S.[7][11] On June 1, 1972, Continental's widebody DC-10 service began. Six had insisted that Continental place a large order for DC-10s with manufacturer McDonnell Douglas. This decision again proved prescient, since the publicity associated with Continental's splashy 747 service Chicago-Denver-Los Angeles-Honolulu had stimulated increased market share and increased traffic for all carriers. Denver, Houston and Seattle were growing rapidly in the 1970s; the DC-10s took over most flights between Denver and Chicago, Los Angeles, Houston and Seattle, and between Houston and Los Angeles.[7][11]

    Chicago O'Hare Airport
    in 1978

    During the 1970s, Denver served as the airline's main hub. The 747s were focused on the Chicago-Los Angeles-Honolulu routes, with one daily round trip through Denver. The DC-10s served large markets (Los Angeles to Chicago, Denver, Houston and Honolulu; and from Denver to Chicago, Los Angeles, Seattle and Houston). DC-9s and 727s predominated elsewhere and added frequencies on DC-10 routes.

    Braniff, Continental operated fewer aircraft types (four: the 747, DC-10, 727-200, and DC-9-10) during this period than any U.S. trunkline, affording savings in parts, maintenance, and crew training.[11] The DC-10 enabled the airline to capitalize on traffic growth in the west. Continental saw market share grow annually in each DC-10 market through the 1970s, until relative market parity was achieved with United, the principal competitor on most of the DC-10 routes. The same innovations introduced on the 747s appeared on Continental's DC-10s, including the "Polynesian Pub", but after the 1973 oil crisis more seats were needed and the DC-10 pubs were removed.[11]
    Continental phased out its 747s in 1978 in favor of the DC-10s (747s would return to Continental during the Lorenzo era, flying Newark to London and Paris). From the mid-1970s until it merged with Texas International, Continental operated only DC-10s, 727-100s, and 727-200s.

    From 1961 to 1982, Continental was headquartered at the west end of the Los Angeles International Airport on World Way West. The facility included the general offices, system operations control, the central maintenance facility, flight kitchen, and Los Angeles crew bases.[7][11][page needed][15]

    Continental Boeing 747 at Los Angeles in 1987

    In 1974, after years of delays and legal proceedings, Continental started flights between Houston and Miami, and on May 21, 1976, Continental was authorized to operate long-sought routes between San Diego and Denver. President

    Air Micronesia destination Saipan and Japan, and approved a route for Continental from Los Angeles to Australia via Honolulu, American Samoa, Fiji, New Zealand and Australia. The South Pacific service began May 1, 1979.[8][11][page needed] After the 1978 passage of the Airline Deregulation Act Continental embarked on a route expansion. October 1978 saw Continental begin flights from the New York area airports to Houston and Denver, and from Denver to Phoenix.[11] That month Continental started DC-10 flights between Los Angeles and Taipei, via Honolulu and Guam. Service between Houston and Washington, D.C., began in January 1979. In June 1979 Continental linked Denver with Washington, D.C., Las Vegas, San Francisco and San Jose and also began Houston-Tampa service.[11] The airline suffered in 1979 when the DC-10 was grounded nationwide following the crash of American Airlines Flight 191. Continental Airlines only operated the DC-10 and the 727 at the time, so flights to Hawaii were cancelled during the grounding. By the time of the Texas Air Corp. acquisition in 1981, Continental's post-deregulation growth had allowed it to penetrate every major U.S. airline market (and all of the regional markets) from the hubs in Denver and Houston, with the corresponding expansion of facilities at both of these airports. But that growth came at the cost of continuing losses. In Denver, Continental's rapid growth provided the final impetus for the construction of the new Denver International Airport, which would be completed almost fifteen years later.[8][11][page needed
    ]

    Continental DC-10 at Narita Airport, Japan

    While deregulation allowed Continental to expand into new areas, it hurt the company's existing business as consumers were for the first time able to choose lower fares over Continental's better service. In 1978 Continental and

    Rocky Mountain states, but along different routes from Los Angeles, Denver, San Francisco, Seattle and Phoenix. The merger attempt failed when Texas Air Corporation interceded with its acquisition of Continental.[8][11][16][17][18] With the Airline Deregulation Act the world changed for Continental as noted by Smithsonian historian R.E.G. Davies: "Unfortunately, the policies that had been successful for more than forty years under (Robert) Six's cavalier style of management were suddenly laid bare as the cold winds of airline deregulation changed all the rules -- specifically, the balance between revenues and expenditures."[4]

    1980s

    In 1981,

    Texas International, retaining the Continental identity and offering service to four continents (North and South America, Asia and Australia) with a fleet of 112 aircraft. Continental launched its frequent flyer program, initially called Travel Bank, in September 1982, following that of Texas International Airlines in 1979,[23] which was the industry's first frequent flyer program, and American Airlines AAdvantage program in 1981. In mid-1983, Continental relocated its headquarters to Texas International's base in Houston, Texas, which resulted in a large expansion of its hub at Houston Intercontinental Airport and extensive new routes to Mexico and the south central U.S.[11]

    Neartown Houston
    , Continental's headquarters from 1983 to 1998

    Even with the cost reductions from the pilots in 1982, Continental faced a major competitive threat in 1983 when American Airlines was able to implement two-tier wage structures with its unions.[24][25][26] American planned massive, rapid growth through new hires at starting pay 50 percent lower than existing contracts and equitable with low-cost, startup carriers and well below Continental's pay rates. American was already one of Continental's main competitors, operating a larger hub 250 miles north of Continental's southern hub in Houston and the growth that was funded by the lower pay rates was larger than all of Continental at the time.

    In 1983, Continental went to its unions to restructure labor costs to compete with the startup carriers and American's Plan B labor costs. After 19 months of negotiations, the International Association of Mechanics and Aerospace Workers went on strike in August 1983, even though the company was offering 20 percent pay raises in return for substantial productivity improvements.[27] Continental was able to operate through the strike because many mechanics crossed picket lines and Continental hired new mechanics.[28] The company continued to negotiate with the pilots and flight attendants and management gave a final proposal to its pilots in mid-September, which would have provided ownership by the pilots and other employees of 35 percent of the company's stock in return for meaningful wage and productivity changes.[29] With no agreement, Continental filed Chapter 11 bankruptcy on September 24, 1983, and shut down for three days.[30]

    Airline unions fought Continental at every step. On October 1, 1983, the pilots and flight attendants joined the IAM, which was still on strike. When Continental resumed service three days after filing Chapter 11, it initially served 25 cities versus the more than 70 cities previously. In the initial stages of bankruptcy, with no legal agreement that would allow travel agents to book flights, passengers could only book directly with the airline. And, with no credit card agreements, Continental could only accept cash for travel. Continental began offering flights for only $49 for each nonstop segment, raising it later to $75 on any segment. In the federal courts, the unions unsuccessfully sued to stop the company's reorganization. They were later successful in working to persuade Congress to pass a new bankruptcy law preventing bankrupt companies from terminating contracts as Continental had successfully done, but the law was too late to affect Continental.[31][32] Chapter 11 saved the company from liquidation, but required substantial reorganization, which began immediately. Following bankruptcy, Continental was freed of its contractual obligations and imposed a series of new labor agreements on its union workers, sharply reducing the airline's labor costs.[33] Continental's senior management also reduced their salaries to those of the pilots.[34] The pilot strike was ultimately unsuccessful due to Continental pilots and new hires who crossed the picket line, and customers who voted with their pocketbook.[35][36] Continental became vastly more competitive with the new airline startups then emerging and thriving in the southwestern U.S. By the end of 1984, Continental had grown back to be a larger airline than pre-bankruptcy and that year recorded a $50 million profit.[37][38]

    On April 28, 1985, Continental inaugurated its first scheduled service to Europe with flights from Houston to London/Gatwick. Additional service from Newark to London and Paris started after the airline's merger with PeopleExpress Airlines in 1987. With that merger came significant customer service issues, especially in the Northeast, for a period of time. In October 1985, Texas Air Corp. made an offer for a Denver-based regional carrier,

    PeopleExpress, which was headed by Lorenzo's former Texas International associate Don Burr. PeopleExpress paid a substantial premium for Frontier's high-cost operation. The acquisition, funded by debt, did not seem rational to industry observers from either the route integration or the operating philosophy points of view.[11][32]
    On August 24, 1986, Frontier filed for bankruptcy and ceased operations. With PeopleExpress losing money, Texas Air announced the acquisition of PeopleExpress on September 15, 1986, at the same time gaining Frontier, whose strong network in the Great Plains and intermountain West reinforced Continental's already formidable Denver hub. The PeopleExpress acquisition also provided the option to acquire Terminal C at Newark Liberty International Airport and allow Continental to build a formidable hub in the New York market.

    With a reorganization plan that repaid creditors 100 percent, Continental emerged from bankruptcy on June 30, 1986,

    Eastern Airlines); and, in 1988, Continental formed its first strategic partnership (and the first international airline alliance of its kind) with Scandinavian Airlines System (SAS).[11] Continental also made a major image change with a blue and gray livery and the "globe" logo that was adopted by the post-merger United Airlines.[42][43]
    The airline also eliminated first class service—and only the second global carrier to take that action—giving business class passengers the same first class seats, a service change later to be marketed as Business First.

    1990s

    Continental's reemergence from its second bankruptcy was signaled by its taking on the naming rights to the arena in the Meadowlands Sports Complex, which is located near its New Jersey hub, in 1996. It held these rights until 2007.
    Douglas DC-10
    . The type was retired in 2001.

    On August 3, 1990,

    Scandinavian Airlines System (SAS) and Texas Air announced that Jet Capital Corporation, which owned controlling interest in Texas Air, was selling its interest to SAS. Under the agreements, Lorenzo would be leaving the active management of the airline as CEO for the first time in 18 years and would remain on the board of directors for two further years. At the same time, Hollis Harris
    , formerly President of Delta Air Lines, was named chairman and chief executive officer.

    On December 3, 1990, due to the 1990 Iraqi invasion of Kuwait and the resultant Gulf War, which had prompted a dramatic increase in the price of jet fuel, Continental filed for bankruptcy. In mid-1991 Harris was replaced as CEO by Robert Ferguson, who had been a Texas Air executive.[44] In November 1992, Continental accepted a $450 million buyout offer from an investor group composed of Air Partners, an investor from Texas led by Texas Pacific Group, and Air Canada. Under the arrangements, Air Canada would have 24 percent of the voting stock, while Air Partners would hold 41 percent of voting interest in the reorganized Continental.[45] Continental emerged from bankruptcy in April 1993.[46]

    Boeing 757-200 in 1991–2010 livery

    In March 1993, the airline cancelled its services to nine U.S. destinations and six non-U.S. destinations, including all 24 weekly services between the United States and Australia and New Zealand in addition to its flights between Guam and Australia, effective October 31 of that year.[47] In 1994, Continental substantially reduced its jet services in Denver and terminated all turboprop operations, which had been unprofitable, reducing Denver from being a hub to a spoke city.[48]

    Boeing 777-200ER

    Between 1993 and 1995, Continental experimented with an "airline within an airline" by launching CALite, later renamed

    McDonnell Douglas DC-9-30, Boeing 737-300, and Boeing 737-500 aircraft, each repainted with the 'Lite' livery and stripped of its first class cabin. The service was based primarily at Continental's existing hub in Cleveland as well as a new hub established in Greensboro, North Carolina. The experiment proved unsuccessful and was dissolved in 1995. Continental's short-lived Greensboro hub was dismantled in the process.[50] During this time period Continental was the subject of hostile takeover bids submitted by Delta Air Lines and Northwest Airlines
    .

    Former Boeing executive Gordon Bethune became president and CEO in October 1994 and was elected chairman of the board of directors in 1996.[51] Continental went from being ranked last in most performance categories to winning more J.D. Power and Associates awards for Customer Satisfaction than any other airline. BusinessWeek magazine named Bethune one of the top 25 Global Managers in 1996 and 1997. Under his leadership Continental's stock price rose from $2 to over $50 per share. Fortune named Continental among the 100 Best Companies to Work for in America for six consecutive years. In his final year piloting the airline Fortune magazine ranked Continental 2004's No. 1 Most Admired Global Airline, a title it earned again in 2005, 2006, 2007 and 2008. While at Continental, Bethune created the Go-Forward plan, to fix problems with the airline, which included employee morale, the quality of the product, and the route structure, among others. Bethune began by ordering new aircraft in an effort to convert to an all-Boeing fleet.

    Beginning in 1998, Continental again embarked on a program to expand its international operations. It inaugurated services to Ireland and Scotland, and in October 1998 the airline received its first

    Tel Aviv, Israel. Continental in the same year launched partnerships with Northwest Airlines, Copa Airlines, Avant Airlines, Transbrasil, and Cape Air, and Continental and America West Airlines became the first two US airlines to launch interline electronic ticketing.[52] In 1999, Continental Airlines started service between Newark and Zurich, Switzerland, and from Cleveland to London.[53]

    2000s

    Boeing 777-200ER "Peter Max" (the colorful aircraft) at George Bush Intercontinental Airport in Houston, Texas (December 2006). Downtown Houston is visible in the background. The livery was removed in the winter of 2007–2008

    On March 1, 2001, Continental launched a nonstop service from Newark to Hong Kong, operating over the North circumpolar route. It was the first nonstop long-haul route for any airline with flying duration exceeding 16 hours. The service initiated a brief dispute between Continental, United Airlines and Cathay Pacific over rights to nonstop flights between Hong Kong and New York.[54] On September 13, 2004, Continental entered the SkyTeam alliance along with Northwest/KLM and CSA.[55] In 2005, Continental expanded service from Newark to Beijing after being awarded the China route. Among U.S. airlines, only Delta (with its extensive network of legacy routes dating from Delta's acquisition of Pan American's European network) served more European destinations than Continental.

    In 2005, service to Asia was expanded as Continental introduced daily nonstop service between Newark and New Delhi, India. The success of this Newark-New Delhi route presaged establishment of a second gateway in India with the announcement of daily nonstop service to Mumbai. With the establishment of Mumbai service, Continental offers the most nonstop flights by any carrier from the United States to India.[56] By May 2006, the carrier's passenger traffic surpassed that of Northwest Airlines, and Continental became the fourth-largest U.S. carrier.[57] The Wall Street Journal reported on December 12, 2007, that Continental was in merger discussions with United Airlines. Of issue would be Continental's golden share held by Northwest Airlines and the divestiture of Continental's Guamanian hub. A deal was not "certain or imminent", with the talks being of a preliminary nature.[58][59] In April 2008, at the height of oil prices, Northwest announced a merger with Delta Air Lines. This allowed Continental to buy back the golden share from Northwest Airlines, which it did.[60] Continental then renewed merger talks with United Airlines, but broke them off again that same month.[61]

    Continental operated from Terminal C at Newark Liberty International Airport[62]

    In May 2008, Continental Airlines sold its remaining 4.38 million share investment in Panamanian flag carrier Copa for $35.75 a share, netting proceeds of $149.8 million. Continental had been a principal shareholder in Copa.[63] In June 2008, due to national and international economic conditions, Continental cut 3,000 jobs and the CEO and president had reduced salaries for the remainder of the year. The airline also reduced capacity and eliminated 67 mainline aircraft from its fleet by the end of 2009, retiring all of Continental's 737-300s and all but 35 of its 737-500s.[64] Continental also announced that it planned to withdraw from SkyTeam and would join Star Alliance in order to cooperate more extensively with United Airlines and other Star Alliance airlines. The new Continental-United relationship was characterized as a "virtual merger" in some circles.[65]

    In September 2008, Continental announced that it would commence providing seasonal non-stop service between Houston and

    Continental Center I.[67] Continental announced that its fourth quarter 2008 net loss widened to $266 million on costs for pilot retirement and reducing the value of its fuel hedges.[68] In January 2009, Continental became the first commercial carrier to successfully demonstrate the use of sustainable biofuel to power an aircraft in North America. During the demonstration flight, Continental's test pilots successfully conducted a number of flight maneuvers, and the biofuel met all performance requirements as compared with traditional jet fuel. The biofuel blend included components derived from algae and jatropha plants, both sustainable, second-generation sources that do not impact food crops or water resources or contribute to deforestation.[69] In March 2009, Continental became the first U.S. carrier to inaugurate scheduled service between New York and Shanghai, China, with daily nonstop flights from Newark.[70]

    To commemorate Continental's 75th Anniversary, a Boeing 737-900ER aircraft registered N75436 was painted with Continental's 1947 "Blue Skyways" livery when it was delivered in June 2009. United Airlines continues to fly this retro livery on a different Boeing 737-900ER, registered N75435.
    Boeing 737
    Continental Boeing 737-900 (N71411) after takeoff at Los Angeles International Airport in January 2007

    In June 2009, Continental Airlines took delivery of another new Boeing 737-900ER, which was painted with a retro livery to commemorate the airline's 75th anniversary. The livery, which was originally used on aircraft beginning in 1947 and is called The Blue Skyway, was selected by Continental employees. Continental flew the aircraft to its three hubs for anniversary celebration events for employees and retirees. Post-merger, United maintained the livery, but on a different 737-900ER than the aircraft originally carrying it.[71] In July 2009 Continental began to offer DirecTV, giving customers the choice of 95 channels of live television programming, more channels than any other carrier.[72] Continental also launched Virtual Expert technology on their website at continental.com, offering customers 24-hour support on the Web for all their travel needs. Continental was the first airline to use this technology.[73]

    2010s

    On January 1, 2010, Jeff Smisek, former president and COO, became the CEO of Continental Airlines.[74] Continental also planned to start seasonal nonstop service between Portland International Airport (PDX) and Ted Stevens International Airport (ANC), putting Continental in direct competition with former partner Alaska Airlines. The route was scheduled to start on June 10, 2010.[75] On February 16, Continental, along with its wholly owned subsidiary Continental Micronesia, announced that it applied for nonstop flights to Tokyo-Haneda as part of an open-skies agreement between the US and Japan. Continental planned to begin services to Tokyo-Haneda from its New York/Newark hub in late October 2010, and Continental Micronesia planned to start service to Haneda Airport from its Guam hub.[citation needed] However, Haneda slots were awarded to American, Delta, and Hawaiian Airlines instead. Continental Airlines became the first airline to launch a mobile boarding pass service to London's Heathrow. The service allowed customers to receive boarding passes electronically on their mobile phones or PDAs.[76] Continental Airlines left the SkyTeam alliance on October 24, 2009, and joined Star Alliance on October 27, 2009.[77]

    Merger with United Airlines

    McCarran International Airport in March 2011. The new livery
    after the merger between United and Continental in 2010 retains the Continental theme, but with the Continental replaced by United. 2011 was the first full year (second year altogether) with the post-merger combination of the two carriers.

    In February 2008, UAL Corporation and Continental Airlines began the advanced stages of merger talks and were expected to announce their decision in the immediate aftermath of a definitive merger agreement between rival Delta Air Lines and Northwest Airlines.[78] The timing of the events was notable because Northwest's golden shares in Continental (that gave Northwest veto authority against any merger involving Continental) could be redeemed, freeing Continental to pursue a marriage with United. On April 27, 2008, Continental broke off merger negotiations with United and stated it was going to stand alone.[79] Despite ending merger talks, Continental announced that it would join United in the Star Alliance.[80]

    United and US Airways were in advanced merger talks in late April 2008, following the announcement that Continental had broken off talks with United.[81] In June 2008, the CEOs of both United and Continental signed an alliance pact that led to their eventual merger. The alliance was an agreement to link international networks and share technology and passenger perks. This agreement was termed a "virtual merger" as it included many of the benefits of a merger without the actual costs and restructuring involved. The alliance took effect about a year after Delta Air Lines and Northwest Airlines completed their merger, as that released Continental from the SkyTeam contract and allowed for the required nine-month notice. Additionally, Continental joined the Star Alliance, as Delta and Northwest merged.[82]

    United was reported to be in serious merger discussion with US Airways in early April 2010. A New York Times report indicated that a deal was close. Union consent was cited as a major hurdle for negotiators to clear.[83] On April 22, 2010, United announced that it would not pursue a merger with US Airways.[84]

    On May 2, 2010, the boards of directors at Continental and United approved a stock-swap deal that would combine them into the world's largest airline in

    revenue passenger miles. The new airline would take on United's name, Continental's logo and be based in United's hometown of Chicago. The new United would be run by Continental's CEO, Jeff Smisek, along with United's CEO, Glenn Tilton, serving as non-executive chairman of the board. The deal received approval from US and European regulators in the summer of 2010. The shareholders of both airlines approved the deal on September 17, 2010.[85] Both airlines had been reporting losses in the recession and expected the merger to generate savings of more than $1 billion a year.[86]

    In August 2010, Continental and United revealed a new logo that was used after the merger was complete.[87] Both carriers planned to begin merging operations in 2011 and was expected to receive a single operating certificate by 2012.[88] Continental's air operator's certificate (AOC) was retained, while those of United and Continental Micronesia were surrendered.[89] On the other hand, United's maintenance certificate remained while Continental's did not.

    On October 1, 2010, UAL Corporation and Continental Airlines completed the planned merger and changed the name to United Continental Holdings. Although the two airlines remained separate until the operational integration was completed by mid-2012, as of that day both airlines were corporately controlled by the same leadership. On June 27, 2019, United changed its parent company name from United Continental Holdings to United Airlines Holdings.[6] On December 22, 2010, Continental Airlines merged operating certificates with Continental Micronesia. All Continental Micronesia flights were then branded and operated by Continental Airlines.[90] Both carriers began merging their operations in 2011.[91] On March 22, UCH announced that they had plans to offer Wi-Fi Service on more than 200 domestic Boeing 737 and 757 aircraft.[92] The airlines attained a single operating certificate from the FAA on November 30, 2011. That day, all Continental flights began to use the "United" callsign in air traffic control communications which marked the end of Continental Airlines.[93]

    Boeing 767-300ER repainted into Continental's "globe" livery at O'Hare International Airport
    in October 2011.

    The new United is the

    third largest airline in terms of fleet size, behind American Airlines and Delta. The combined airline houses a fleet of over 1,280 aircraft that features a mixture of Airbus and Boeing aircraft: Airbus A319s, Airbus A320s, Boeing 737s, Boeing 757s, Boeing 767s, Boeing 777s, and Boeing 787 Dreamliners with orders of Airbus A350s
    .

    At the time of the merger with United, Continental was the fourth-largest airline in the US based on passenger-miles flown and the fifth largest in total passengers carried. Continental operated flights to destinations throughout the U.S., Canada, Latin America, Europe, and the Asia-Pacific regions. Principal operations were from its four hubs at Newark Liberty International Airport, George Bush Intercontinental Airport (Houston), Cleveland Hopkins International Airport and Antonio B. Won Pat International Airport in Guam. The only Continental hubs to be rebranded are Cleveland Hopkins International Airport and Houston's George Bush Intercontinental Airport.[94] The Newark hub began the rebranding process on October 19, 2011, with all United-operated ticket counters and gates to be rebranded in Phase One; Phase Two of rebranding at Newark began in 2012 with Continental ticket counters and gates to be rebranded.[95] On November 30, 2011, Continental officially merged with United and no longer operates as a separate airline.[95]

    On March 3, 2012, Continental's passenger reservation system and frequent flyer program was merged into United. The last Continental Airlines flight taking off was "Continental Flight 1267", flying from Phoenix to Cleveland, and arriving into the latter as "United Flight 1267".[96]

    United Airlines, Inc. merged into Continental Airlines, Inc., with Continental Airlines, Inc. being the surviving corporate entity and a wholly owned subsidiary of the UAL Corporation, on March 31, 2013. The name of Continental Airlines, Inc., was changed to United Airlines, Inc.[97]

    Corporate identity

    Branding

    in February 2011 in the new (2010-2019) livery

    The designer Saul Bass designed the Continental "Jet Stream" logo in the late 1960s. In the 1990s, the design agency Lippincott introduced the globe logo. Before it merged, Continental's livery consisted of a white fuselage, with the globe in blue and gold, and a gray underside. The combined United Airlines adopted the pre-merger Continental Airlines livery and logo following the merger.[98]

    Slogans

    • Work Hard. Fly Right. (1998–2012)[99]
    • More Airline for Your Money (mid-1990s)[100]
    • One Airline Can Make a Difference (early 1990s – introduced with the "Globe" livery)
    • Working to Be Your Choice (1989)[101]
    • Up Where You Belong (1987) [102]
    • The Only Airline Worth Flying (1985)
    • We Really Move Our Tail for You (1975–1979)
    • If You Can't Fly Continental, Try to Have a Nice Trip Anyway (1970s)
    • The Airline That Pride Built (1968)
    • The Proud Bird with the Golden Tail (1967–1981)

    Company affairs

    Headquarters

    77 West Wacker Drive, the airline's final headquarters