Continental Airlines Chooses Not to Merge

HOUSTON, April 27 /PRNewswire-FirstCall/ — Continental Airlines 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                                      ~                             Corporate Background  

Continental Airlines is the world’s fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 3,100 daily departures throughout the Americas, Europe and Asia, serving 145 domestic and 138 international destinations. More than 550 additional points are served via SkyTeam alliance airlines. With more than 45,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with Continental Express, carries approximately 69 million passengers per year. Continental consistently earns awards and critical acclaim for both its operation and its corporate culture.

For the fifth consecutive year, FORTUNE magazine named Continental the No. 1 World’s Most Admired Airline on its 2008 list of World’s Most Admired Companies. Additionally, Continental again won major awards at the OAG Airline of the Year Awards including “Best Airline Based in North America” for the fourth year in a row, and “Best Executive/Business Class” for the fifth consecutive year. For more company information, visit continental.com.

Continental Airlines

CONTACT: Corporate Communications of Continental Airlines,+1-713-324-5080, corpcomm@coair.com

Web site: http://www.continental.com/