Continental Airlines Holds Steady in Turbulent Skies

The management at Continental Airlines (CAL) has long expressed its preference to remain
independent. Management has often reported that airline mergers are
difficult. Still, the announcement of a deal between Delta Airlines (DAL) and Northwest Airlines (NWACQ) seemed
to have pushed CAL into a corner, perhaps not.<!--more-->

Over the
weekend, the management reported to the board its findings in regard to
the "new airline landscape". Management recommended to remain
independent and the board voted to follow the recommendation. CAL will
ground 15 more of its older and less fuel efficient aircrafts. The
company is determined to fly only profitable routes. At the same time,
smaller carries are falling like dominoes. Another "business only"
carrier filed for bankruptcy this weekend. Each time a competitor
falls, the higher the future bounce for the remaining carriers.