For decades, the soaring globe logo of Continental Airlines was a familiar sight in skies across the world. A trailblazer and survivor in the cutthroat airline industry, Continental carved out a significant legacy before its eventual merger with United Airlines in 2010. While the brand may no longer grace the tails of aircraft, its story is one of innovation, resilience, dramatic transformations, and an unwavering commitment to service that left an indelible mark on aviation history.
From Humble Beginnings: Varney Speed Lanes to Continental Air Lines
The roots of Continental Airlines stretch back to July 15, 1934, with the founding of Varney Speed Lines in El Paso, Texas. Established by Walter T. Varney, who had also played a role in the founding of United Airlines, the fledgling carrier initially focused on airmail and passenger services across the American Southwest. Its first route connected El Paso, Texas, to Pueblo, Colorado, with stops in Albuquerque, Santa Fe, and Las Vegas, New Mexico. Operations began with a small fleet, including the single-engine Lockheed Vega, capable of carrying just four passengers.
A pivotal moment arrived in 1937 when Robert F. Six purchased a controlling interest in the airline. Six, a visionary and tenacious leader, would go on to steer the company for over four decades, transforming it from a modest regional carrier into a major player. On July 8, 1937, the airline was officially renamed Continental Air Lines (later shortened to “Airlines”). Six relocated the headquarters to Denver, Colorado, in October 1937, signaling his ambition for the airline to expand “continent-wide.”
The Six Era: Growth, Innovation, and “The Airline That Needs to Grow”
Under Robert Six’s leadership, Continental embarked on a period of remarkable growth and innovation. During World War II, the airline’s Denver maintenance base played a crucial role in converting military aircraft, including Boeing B-17s and B-29s, for the United States Army Air Forces. The profits from these wartime contracts provided a solid foundation for post-war expansion.
In the late 1940s and early 1950s, Continental steadily expanded its route network, adding destinations like Kansas City, Wichita, Tulsa, and Oklahoma City. The acquisition of Pioneer Air Lines in 1955 was a significant step, granting Continental access to 16 more cities in Texas and New Mexico, including Dallas and Houston. This merger also brought Harding Luther Lawrence, a brilliant strategist, into Continental’s fold, who would be instrumental in the airline’s growth.
Six was a staunch advocate for lower fares, believing that increased traffic, not higher prices, was the key to airline profitability. In 1959, Continental became one of the earliest operators of the Boeing 707, ushering in the jet age for the airline. On June 8, 1959, Continental launched its groundbreaking Chicago-Los Angeles nonstop service with the 707. To maximize the utilization of its small jet fleet, Continental developed an innovative “progressive maintenance” program, allowing its 707s to fly an industry-leading 15 hours a day. In 1962, to the astonishment of the industry, Continental introduced the “economy fare” on its Chicago-Los Angeles route, pioneering discount pricing that would make air travel accessible to a broader demographic.
The 1960s saw Continental venturing into international markets. Though some initial awards for routes to New Zealand and Australia were later revoked, the airline’s experience in Pacific operations during the Vietnam War (where its Boeing 707-324Cs provided extensive troop and cargo transport) paved the way for the formation of Air Micronesia in 1968. This subsidiary inaugurated island-hopping routes across the Pacific, including to Guam, Yap, Saipan, and Honolulu, which would become a vital part of Continental’s network for decades. By 1963, the company’s headquarters had moved from Denver to Los Angeles, further cementing its growing stature.
Navigating Turbulence: Deregulation, Bankruptcies, and Resurgence
The 1970s brought significant challenges, particularly with the advent of the Airline Deregulation Act of 1978. This landmark legislation removed federal control over fares, routes, and market entry, unleashing fierce competition and leading to a wave of mergers, bankruptcies, and operational shifts across the industry. Continental, once known for its measured growth and consistent profits, faced unprecedented financial pressures.
In 1981, Frank Lorenzo and his Texas Air Corporation began a contentious takeover of Continental. Lorenzo, known as a shrewd and aggressive cost-cutter, merged Texas International Airlines with Continental in 1982. The ensuing labor disputes and heavy debt led to Continental filing for Chapter 11 bankruptcy in 1983. Lorenzo resumed operations with non-union employees, a controversial move that ultimately allowed the airline to emerge from bankruptcy in 1986. Texas Air continued its acquisitions, merging People Express and New York Air into Continental in 1987, significantly expanding its fleet and route network, but also piling on more debt. By 1987, Continental was the nation’s third-largest carrier, operating 1,500 daily flights to 141 cities.
Despite this dramatic expansion, financial woes persisted. High fuel prices and declining passenger traffic led to further losses. In 1990, Continental again declared bankruptcy. Its fortunes began to turn in 1993 when it emerged from bankruptcy after being acquired by Air Canada and a group of private investors.
The true turnaround came with the appointment of Gordon Bethune as CEO in 1994. Bethune, a former Boeing executive, inherited an airline plagued by financial instability, low employee morale, and a poor reputation for customer service. He implemented a straightforward yet revolutionary strategy focused on “Fly to Win” – improving operational efficiency, on-time performance, and, crucially, customer service. Under Bethune’s leadership, Continental transformed its image, becoming recognized for its improved reliability and employee satisfaction. The airline once again became profitable, expanding its international routes, particularly to Europe and Latin America, solidifying its status as a global airline.
Main Hubs and a Diverse Fleet
Throughout its history, Continental Airlines operated a dynamic network of hubs, evolving with market demands and strategic shifts:
- El Paso (ELP): Its original base in the 1930s.
- Denver (Stapleton Airport – DEN): A significant hub from 1937 to the mid-1990s.
- Los Angeles (LAX): A hub from 1963 to the early 1980s, serving as a gateway to its growing Pacific routes.
- Houston (George Bush Intercontinental Airport – IAH): Became a major hub in 1982 and remained Continental’s primary fortress hub until the merger. IAH was the backbone of its domestic and international operations, particularly to Latin America.
- Newark (Newark Liberty International Airport – EWR): Developed into a crucial transatlantic gateway and East Coast hub from 1987 onwards.
- Cleveland (Cleveland Hopkins International Airport – CLE): Established as a hub in 1987, serving as a key point for Midwest and Eastern U.S. connections.
- Guam (Antonio B. Won Pat International Airport – GUM): A long-standing hub for Continental Micronesia, connecting numerous Pacific islands and Asian destinations.
Continental’s fleet mirrored its growth and technological advancements. Early aircraft included the Lockheed Vega, Douglas DC-3, and Convair 240/340. The jet age arrived with the Boeing 707 in 1959. As its network expanded, Continental operated a diverse range of aircraft, including:
- Boeing 727 and Douglas DC-9: Workhorses for its domestic and shorter-haul routes in the 1960s and beyond.
- Boeing 747: Introduced in the early 1970s for long-haul international flights, particularly to the Pacific.
- Douglas DC-10: A key wide-body for domestic and international routes.
- Boeing 737 (various generations), 757, 767, and 777: These aircraft formed the backbone of its modern fleet in the 1990s and 2000s, enabling extensive domestic, transatlantic, and transpacific services.
The Final Chapter: Merger with United Airlines
By the early 2000s, despite its strong recovery under Bethune, the airline industry faced new challenges, including the economic recession of 2008 and volatile fuel prices. The trend towards consolidation intensified. After initial discussions in 2008 that didn’t materialize, Continental and United Airlines announced a definitive merger agreement on May 2, 2010.
Described as a “merger of equals,” the deal aimed to create the world’s largest airline by revenue passenger miles. While the new holding company would be named United Continental Holdings, Inc., and the airline would operate under the United Airlines name, it was decided that Continental’s iconic globe logo and livery would be adopted. Continental’s CEO, Jeff Smisek, was appointed chief executive of the combined entity.
The financial merger transaction was completed on October 1, 2010. The operational integration, including the merging of reservation systems and frequent flyer programs (Continental’s OnePass into United’s MileagePlus), culminated on March 3, 2012. Continental Airlines’ last official flight, CO6, from Tokyo to Houston, and the final departure, CO Flight 1267 from Phoenix to Cleveland (which landed as United Flight 1267), marked the end of an independent era.
A Lasting Legacy
Continental Airlines’ journey was a microcosm of the dynamic and challenging U.S. airline industry. From its humble beginnings as a regional mail carrier to its transformation into a global airline, it consistently pushed boundaries, embraced innovation, and navigated economic turbulence. The legacy of Continental Airlines lives on in the expanded network and operational efficiencies it brought to the merged United Airlines, and in the memories of the countless passengers and dedicated employees who flew “Continental.” Its story is a testament to the vision of leaders like Robert F. Six and Gordon Bethune, who shaped an airline that, for generations, helped connect people and places across continents.
Keyword: DeadAirlines