You have probably heard that Delta and Northwest Airlines last
night announced plans to merge. This merger will change the
competitive landscape for Continental and the entire airline
industry.
As we've said repeatedly for more than a year and a half, our
preference has been to remain independent as long as the
competitive landscape remained the same. However, the
landscape is changing. We will review our strategic
alternatives and make sure we remain a strong long-term
competitor. As always, our goal is to do what is best for
you, our co-workers, and our shareholders, customers and the
communities we serve.
One important result of last night's announcement is that it
enables us to redeem the "Golden Share" that Northwest owns in
Continental. We will also review our continued participation
in the alliance with Northwest, Delta and SkyTeam, as we evaluate
what course of action would be in Continental's best
interest. We will communicate any changes that result from
that review.
As we consider our alternatives, we want to emphasize that we
have great strengths. As you know, Continental is an
industry-leading airline noted for our Working Together
culture. We have an enviable position in the New York market,
along with established hubs in Houston, Cleveland and Guam. Our
newly acquired access to Heathrow improves our standing in the
trans-Atlantic sector, and we have a comprehensive Latin America
network and a growing portfolio of routes to India and Asia,
including the major Japan and China markets. Continental has
the youngest, most fuel-efficient fleet and best new aircraft order
book among the major network carriers. And most importantly,
we deliver award-winning service to our customers, thanks to your
hard work every day.
The proposed Delta/Northwest transaction is complex, and will be
subject to shareholder approvals and a lengthy and rigorous
regulatory review process before the transaction can close.
During this period -- which will likely take at least six months --
the two airlines must continue to operate at arm's length as
independent companies. Despite last night's news, and the
speculation about our future that it will provoke, we all need to
remain focused on what we do best every day: running a clean,
safe and reliable airline with the best customer service provided
by the best co-workers in the business. As we've always done
in the past, we'll keep up our open, honest and direct
communication with you as the future unfolds.
As Continental considers its strategic alternatives, we will do
what we need to do to continue our success and to protect the
future of Continental Airlines in a rapidly changing airline
industry.
Thanks for all you do for Continental every day.
Continental Airlines is the world's fifth largest airline.
Together with Continental Express and Continental Connection, the
airline more than 3,100 daily departures throughout the Americas,
Europe and Asia, serving 145 domestic and 138 international
destinations.