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Continental Express EMBRAER ERJ-145

Continental Airlines was founded as Varney Speed Lines by Walter Varney in 1934; Varney had been awarded a government contract to haul airmail and passengers in the American Southwest. (He would also be one of the founders of United Airlines, which would acquire Continental 80 years later.) Varney Speed Lines used a single Lockheed 5 Vega. After government airmail contracts were cancelled only a few months later, Varney needed financial help or his new startup would go under. Robert Six stepped in with the required amount, on the condition he could become general manager. Varney agreed, and Six took over in 1936. The next year, he renamed the airline Continental Airlines, reflecting his desire to turn his new company into a coast-to-coast major carrier.

 

Six ran Continental carefully, using the profits made in aircraft conversion during World War II to build a fleet of aircraft postwar, and acquired Pioneer Airlines in 1951, making Continental the largest airline in the US West. Six also strongly petitioned the government for longer routes, positioning Continental to compete with the three leading domestic carriers at the time—American, Trans-World Airlines, and United. Believing—correctly--that more flights rather than higher costs was a smart business plan, Six introduced Boeing 707 jet service in 1959, only the second domestic carrier to do so. Despite only having a handful of 707s, Continental utilized them so well that it seemed like the airline had more. Continental also introduced its iconic “Golden Tail” livery, with a black or red stylized globe on a gold tail to symbolize the airline’s desire to expand yet further.

 

Six was still disappointed in Continental, since over half of its revenue actually came from military contracts. Continental was one of three launch customers for the 747 in 1970; two years later, it added McDonnell Douglas DC-10s. Both proved very popular with customers for plenty of seating, low fares, and lounges in first-class. Continental acquired a reputation for superb service and kept expanding, finally attaining Six’s 40-year old dream of transcontinental service in 1978, the same year Continental also added routes to Asia and began a subsidiary, Air Micronesia (later Continental Micronesia) that flew interisland operations in the South Pacific and Japan.

 

This did not come without a price. Continental, an airline that prided itself on low-cost operations, was now being undercut by even lower-cost regional airlines such as Frontier and Western, and the airline began to lose money. Six retired in 1981 to be replaced by Frank Lorenzo, who also was the head of Texas International Airlines. The latter was promptly folded into Continental. Lorenzo, who felt that Continental would never be competitive with unionized employees. This labor war, added to other problems, sent Continental into bankruptcy in 1983.

 

This was a blessing in disguise for Lorenzo, as it allowed him to cut labor costs and employees he deemed nonessential; if it increased employee hatred for their CEO, it also allowed Continental to once more turn a profit and emerge from bankruptcy in 1986. Once that was complete, Lorenzo began expanding his airline once more: he had lost a bidding war with People Express for Frontier Airlines in 1985, but People Express was crippled by the bidding war, allowing Continental to acquire both it and Frontier in 1986. New York Air followed in 1987, by which time Continental became the third-largest US airline and sixth-largest in the world.

 

Lorenzo left in 1991, by which time Continental was in trouble again: it had expanded too quickly and absorbed too much debt, and high fuel prices in the wake of the First Gulf War in 1991 were causing losses. Once more, it declared bankruptcy, in 1993. Gordon Bethune took over the company and completely revitalized it, adopting a new livery and making several changes designed to improve service and employee morale. It worked, and Continental returned to prominence in the 1990s. In 2001, it introduced at the time the longest airline route in the world (Newark-Hong Kong, over the North Pole) and in 2003 became the fourth-largest US carrier.

 

Rising fuel prices and the Delta-Northwest merger put Continental at a disadvantage by 2008. Despite having 262 destinations, it was operating at a loss and was risking a third bankruptcy. In 2010, Continental announced it was merging with United Airlines effective 2011, with both airlines adopting a hybrid livery—United’s titles were retained, but Continental’s globe stayed on the tail as well. The new airline was the second largest in the world. The Continental brand ceased to exist, however, in 2012, ending over 75 years of service.

 

This ERJ-145 regional jet was one of the last types acquired by Continental before the United merger; it flew with ExpressJet, Continental's regional airline. As ExpressJet remains in operation, now serving as United Express, this aircraft likely remains in service.

 

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Uploaded on July 13, 2015
Taken on July 21, 2024