Preview

Can Continental Airlines Continue to Work Hard, Fly Right and Fund the Future

Powerful Essays
Open Document
Open Document
2299 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Can Continental Airlines Continue to Work Hard, Fly Right and Fund the Future
History of Continental Airlines
Continental Airlines began service in 1934 as Varney Speed Lines, named after one of its initial owners, Walter T. Varney operating out of El Paso, Texas and extending through Las Vegas, Albuquerque and Santa Fe, New Mexico to Pueblo, Colorado. The airline started with Lockheed Vegas, a single engine plane that carried four passengers. The airline later flew other Lockheed planes, including the Lodestar. It was renamed Continental on 1 July 1937 after a new owner Robert Six had taken a forty percent ownership with Varney 's co-founder Louis Mueller. Six relocated the airline 's headquarters to Stapleton Airport in Denver in October, 1937. Robert F. Six was one of the legendary patriarchs of U.S. aviation had a reputation as a scrappy, pugnacious and risk-taking executive who presided over the airline he largely forged in his image for more than 40 years. During World War II Continental 's Denver maintenance facilities became a conversion center where the airline converted B-29s and P-51s for the United States Army Air Force. Profits from military transportation and aircraft conversion enabled Continental to contemplate expansion and acquisition of new aircraft types which became available following the war.[3] Among those types were the DC-3, and Convair 240. Some of the DC-3 's were acquired as surplus planes after WW-II. The Convair was the first airplane operated by Continental that was pressurized. The airline 's early route network was limited to the southwestern United States for many years. In 1953, Continental merged with Pioneer Airlines, gaining access to 16 additional cities in Texas and New Mexico which integrated well with the carrier 's initial El Paso-Albuquerque-Denver route.
The environment
Many countries have national airlines that the government owns and operates. Fully private airlines are subject to a great deal of government regulation for economic, political, and safety concerns. For instance, the government

You May Also Find These Documents Helpful

  • Powerful Essays

    The domestic US airline industry has been intensely competitive since it was deregulated in 1978. In a regulated environment, most of the cost increases were passed along to consumers under a fixed rate-of-return based pricing scheme. This allowed labor unions to acquire a lot of power and workers at the major incumbent carriers were overpaid. After deregulation, the incumbent carriers felt the most pain, and the floodgates had opened for newer more nimble carriers with lower cost structures to compete head-on with the established airlines. There were several bankruptcies followed by a wave of consolidation with the fittest carriers surviving and the rest being acquired or going out of business.…

    • 2475 Words
    • 10 Pages
    Powerful Essays
  • Better Essays

    The government has regulations on national security, industry behavior, aircraft integrity, traffic control, etc. (Lutzenberger, 2013). While most of the regulations are regarding safety, some are also regarding protection of competition. National security is first and foremost. They have the right to enforce background checks of ticket buyers, search luggage, use X-ray and chemical detection on passengers and their belongings, and have air marshals on flights for law enforcement. The Federal Aviation Administration (FAA) is also involved with regulations. Planes are tracked with FAA logs. Maintenance service and rebuilds are required after so many hours of use. The FAA carries out regular inspections and reviews to ensure the airline is reliable with the safety and maintenance requirements. All airlines fall under regulation of U.S. Securities and Exchange Commission and the FBI. They are involved with matters on business violations and criminal business activity. Both agencies can start investigations if needed (Lutzenberger,…

    • 870 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Fryer Airlines Essay

    • 1030 Words
    • 5 Pages

    Airlines are known primarily for the service they provide – flying. Airlines must distinguish the qualities of their service from each other to succeed.…

    • 1030 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Being the fourth largest airline in the U.S. and eighth largest in the world, Continental was perceived as one of the most efficiently run companies in the airline industry. Nonetheless, 2008 brought unprecedented challenges for Continental and the entire industry as the United States and much of the world was heading into a severe economic recession. Companies cutting deeply into their budgets for business travel, the highest yielding component of Continental’s total revenue, together with a similar downward trend from the leisure and casual sector, combined to sharply reduce total revenue.…

    • 8993 Words
    • 36 Pages
    Powerful Essays
  • Better Essays

    Bowen, B. D., & Headly, D. E. (2013). Evaluation of the us airline industry: The airline quality rating 2012. Purdue University: Department of Aviation Technology. Retrieved from http://docs.lib.purdue.edu/cgi/viewcontent.cgi?article=1007&context=atpubs…

    • 1250 Words
    • 5 Pages
    Better Essays
  • Good Essays

    When Gordon Bethune left his job at Boeing in February 1994 to accept the position of chief operating officer (COO) of Continental Airlines, the company was struggling to survive. Even though it was the fifth largest commercial airline in the United States, with revenues of nearly 6 billion dollars, the company had reported a net loss every year since 1985, and was ranked the last among the top ten commercial airlines in the United States in terms of operational performance and customer satisfaction-Continental was the last among the ten largest airlines in the United States in punctuality of arrivals, had the highest number of reports of mishandled baggage per 1,000 passengers, and a much larger number of complaints per 100,000 passengers, passenger complaints about different aspects of their experience in Continental flights were 30 percent higher than those of the airline ranked in ninth place , and three times the industry average.…

    • 1590 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    scheduled domestic flights than any other airline. Southwest also had the enviable distinction of being the only major U.S. air carrier that…

    • 21090 Words
    • 85 Pages
    Satisfactory Essays
  • Powerful Essays

    1. Jet Blue´s Business- level strategy; value and cost drivers Jet Blue uses to create and maintain ist competitive position…

    • 2201 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Airline Industry BackgroundThe airline industry, prior to 1978 was regulated through the Civil Aeronautics Board (CAB). The CAB regulated airline fairs, routes, and company mergers. CAB approval was required before any changes in rates or route systems could be made. Then in 1978, the Airline Deregulation Act was passed and allowed airlines to set their own fares and enter or exit routes. The CAB was dissolved in 1985.…

    • 1099 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Continental also looked to keep costs low. In 1994, Continental was renowned as a cost cutting airline. "We were stuck in our mold of being a cost cutting airline, and if you weren 't talking about cutting costs, nobody at the top wanted to hear you" (Bethune, 1998, p10) The problem Continental experienced were that they cut costs to such an extent that it became the culture of the company. When Gordon Bethune became CEO in 1994, he looked at cost from a different perspective. "One of my key questions in any decision is not only what does it cost to do something,…

    • 3166 Words
    • 13 Pages
    Powerful Essays
  • Satisfactory Essays

    Legislation fior the airline consist of employment laws, company law, tax law and their regulation. Redundancy, landing right, health and safety, which are all the airlines, should be considered as a legal factor.…

    • 476 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Firstly one has to recognize the fact that airlines are essentially…

    • 1953 Words
    • 8 Pages
    Better Essays
  • Satisfactory Essays

    Mexico Notes

    • 552 Words
    • 3 Pages

    Airlines, telecommunications, etc. was owned by the government (govt. had hand in almost all aspects of society)…

    • 552 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Airline Industry Overview

    • 1521 Words
    • 7 Pages

    History – The airline business has been in existence for over 75 years. There have been many upward and downward swings in the overall airline business economy. History has recorded that while 140 airlines have declared Chapter 11; only two have emerged. Today, the U.S. airline industry is facing an unprecedented financial crisis and the outlook is bleak. Only one major carrier that has shown a profit over the past four years and, in the same timeframe, the other major carriers show a combined total loss in excess of 25 billion dollars. This downward spiral cannot be attributed solely to the 9/11 disaster, many other factors contributed to their downfall.…

    • 1521 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    Virgin Atlantic

    • 2789 Words
    • 12 Pages

    The civil aviation industry of world has expanded its wings by letting in private organisations. Privatisation in the domestic and the international circuit can help in foreseeing the future of the aviation industry at a mark up rise, and gaining international recognition. It started eight years back with Open Sky Policy allowing charter flights to operate in domestic market. Today in the year 2000 we saw the code sharing agreement between Air India and Virgin Atlantic Airlines for the DEL- LON sector.…

    • 2789 Words
    • 12 Pages
    Powerful Essays