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Continental Airlines: The Company. Amy Minto Jocelyn Littleton Kurt Niemi Chris Chou. The Company . Brief Company Background Strengths Areas of Opportunity Challenges Financials. Company Description. Business: Transporting Passengers, Cargo and Mail since 1934 (Source #1)
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Continental Airlines: The Company Amy Minto Jocelyn Littleton Kurt Niemi Chris Chou
The Company • Brief Company Background • Strengths • Areas of Opportunity • Challenges • Financials
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 America’s most Admired US Airlines by Fortune Magazine (Source # 1 and #2)
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)
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 (int’l growth & route expansion)
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)
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
Sources • SEC Filings From Continental.com dated 3/13/2006 http://www.continental.com/vendors/default.asp?SID=4824CDE9F6844EE692093CF5F605616E&s=/default.asp&i=irSEC • SEC Filings from Continental.com dated 3/8/2006 http://www.continental.com/company/investor/docs/continental_8k_2006_0308.pdf • Continental Alliances from Continental.com http://www.continental.com/company/alliance/skyteam.asp • SWOT Analysis on Continental http://www.3seasons.org/Airlines/airlines.htm#AIRContinental%20Airlines • Continental History from Continental.com http://www.continental.com/company/history/Default.asp • Investor Presentations from Continental.com http://www.continental.com/company/investor/docs/jpmorgan_2006_02_21.pdf • http://www.usatoday.com/money/biztravel/2004-09-13-usairways-cover_x.htm • The Go Forward Plan http://www.lctmag.com/books.cfm?action=book_6 • http://www.ou.edu/class/mis5003/Continental.pdf