Continental says it will not pursue a merger

[777-200]

Hello

Continental will not merge with any airline. Also reviewing skyteam membership.

GOOD FOR CO stay away of this mess and let DL-NW and UA-US kill them self.

HOUSTON (AP) -- Continental Airlines is telling its employees that now is not the time for the airline to combine with another carrier.

Continental (CAL, Fortune 500) Chairman and CEO Larry Kellner said in a message to employees that the airline's board met Sunday and agreed unanimously that it is not in the best interest of the airline to pursue a merger.

There has been recent speculation that United Airlines (UAL) and Continental might merge.

Continental executives told employees that the risks of such a deal outweigh the potential rewards.

The company says it will continue to review potential alliances and membership in SkyTeam.

Airlines have been considering consolidation as a way to cut costs as they face the strain of record fuel prices. Delta Air Lines (DAL, Fortune 500) announced earlier this month it is acquiring Northwest Airlines in a stock-swap deal.

[drtampa]

What do you do with a company that has lost 2/3 of its value in 15 months?

[peep2]

There is a lot of talk within both AA and Continental about an alliance (just short of a merger). I wonder if that bodes well for service to my favorite island or not.

[Kyle]

except for their on-time and mechanical woes, i always liked AA....