Continental Airlines to consider merger

The airline has revealed that it would consider a merger if it was necessary to maintain its competitiveness.
Chief Executive Larry Kellner stated in a recorded message to employees: “If the landscape of the US airline does not indeed change, we’ll do what we need to do to act in the best interests of you (employees), our customers, our shareholders and the communities we serve.”

It was reported that US Airways last week made an USD$8 billion bid for the larger and now bankrupt rival Delta Airlines. This has led to suggestions that it could lead to counter-bids or other combinations.
This latest statement means that Continental, currently the number 4 US carrier, could be another potential player in industry deal making, alongside United Airlines parent UAL.Southwest Airline has also indicated interest in taking assets that might have to be unloaded following a deal.

Continental has stated that it is reluctant to participate and is concerned about showing the implications of staying on the sidelines.
Mr Kellner stated: “The creation of a competitor even larger than American Airlines would not be good for us in the long run. Our preference is to remain independent and continue our growth plan.”