CAL not to merge
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CAL not to merge
Continental Airlines Chooses Not to Merge
Sunday April 27, 5:37 PM EDT
HOUSTON, April 27, 2008 /PRNewswire-FirstCall via COMTEX/ -- Continental Airlines (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
~
Sunday April 27, 5:37 PM EDT
HOUSTON, April 27, 2008 /PRNewswire-FirstCall via COMTEX/ -- Continental Airlines (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
~
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It has been an oxymoron in recent years.....profound and truthfull words from an airline CEO....
These guys could have set themselves up for a big bag of dough at the expense of the airline and their employees....and, and this point, they have chosen not to. There may be more to this story, but I give them credit. After resurrecting a truly disfunctional airline into one of the best, they are walking the walk, not just talking the talk.
Refreshing.......
No mention of "synergies" and "economies of scale".....buzzwords for bonus and buyout for the executives.
History has shown that mergers benefit only high level executives, bankers, and lawyers. An attaboy (assuming they stand by their words) to Mr. Kellner and his group.
These guys could have set themselves up for a big bag of dough at the expense of the airline and their employees....and, and this point, they have chosen not to. There may be more to this story, but I give them credit. After resurrecting a truly disfunctional airline into one of the best, they are walking the walk, not just talking the talk.
Refreshing.......
No mention of "synergies" and "economies of scale".....buzzwords for bonus and buyout for the executives.
History has shown that mergers benefit only high level executives, bankers, and lawyers. An attaboy (assuming they stand by their words) to Mr. Kellner and his group.
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Good sound decision made by the higher ups at CAL.
Come on
! A healthy CAL merging with an ailing UAL??? You might as well send a healthy man into a room with malaria infected mosquitoes.
Come on
! A healthy CAL merging with an ailing UAL??? You might as well send a healthy man into a room with malaria infected mosquitoes.
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Join Oneworld!
Come Continental join ONEWORLD! BA/QF/CX/JL/LA/AY are in need of a service minded partner in the US! Would mean CO customers could connect to the world at LHR,HKG,NRT,SCL,MAD,BUD,HEL have major access to the South Pacific. Continental would be a very good fit, and fill some of the gaps that exist in ONEWORLD.
Say good bye to SKYTEAM and the Virgin Code-share, your're very welcome to ONEWORLD!
Say good bye to SKYTEAM and the Virgin Code-share, your're very welcome to ONEWORLD!
From a stick to the knitting point of view this is really a good call.
CA does have a younger fleet and new iron in the pipeline. This will help a lot with the fuel issues.
Newark runs reasonably well, not as congested in the evening as JFK.
IF they can stick the their guns, let the weak die and cherry pick the routes they want they could come out on top.
A merger will just cause a lot of grief, expense and diversion of time away from running the shop. It will be a lot cheaper to grow into the markets that can make money as the chances come up.
Ticket prices will go up at some point. I really doubt that an extra $20-$50 on a ticket will stop anyone from traveling. Other costs associated with a trip might. Right now you can still get the cheap ticket and the internet lets you find them. When they are no longer there people will still travel.
20driver
CA does have a younger fleet and new iron in the pipeline. This will help a lot with the fuel issues.
Newark runs reasonably well, not as congested in the evening as JFK.
IF they can stick the their guns, let the weak die and cherry pick the routes they want they could come out on top.
A merger will just cause a lot of grief, expense and diversion of time away from running the shop. It will be a lot cheaper to grow into the markets that can make money as the chances come up.
Ticket prices will go up at some point. I really doubt that an extra $20-$50 on a ticket will stop anyone from traveling. Other costs associated with a trip might. Right now you can still get the cheap ticket and the internet lets you find them. When they are no longer there people will still travel.
20driver
