AirVB
Topic Author
Posts: 266
Joined: Mon Aug 04, 2003 4:21 am

Why Did CO Pull Out Of LAX?

Sun Sep 07, 2003 3:41 pm

I know that Continental used to be based at LAX in the mid-1980's and moved headquarters east to IAH. My question is: what was the purpose of this move, and even if it made more sense to be headquarted at IAH, why did CO strip down its LAX operations to just HNL and the three main hubs?

Thanks,
AirVB
 
Guest

RE: Why Did CO Pull Out Of LAX?

Sun Sep 07, 2003 3:44 pm

Why? Because Continental was purchased by Texas Air International. Over the past 15 years, CO has chosen to focus on the hub-and-spoke model … LAX, which was never a large hub to begin with, was not part of the strategy (AA, UA and DL had/were building large operations at LAX and CO did not have the resources to compete).

[Edited 2003-09-07 08:48:33]
 
artsyman
Posts: 4516
Joined: Wed Feb 28, 2001 12:35 pm

RE: Why Did CO Pull Out Of LAX?

Sun Sep 07, 2003 3:52 pm

When Continental shut down the LAX bases post 9.11, it was really just a cost cutting measure. As far as the LAX>HNL market, Continental kept it because it makes money and is easy to implement. That said, up until about three weeks ago, the IAH>HNL trip for Flight attendants was a 6 day trip for HTA in which you did IAH>HNL>LAX>HNL>IAH, But this has now been changed to a 4 day trip, and now avoids the overnight in LAX stay

Jeremy
 
dutchjet
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RE: Why Did CO Pull Out Of LAX?

Mon Sep 08, 2003 3:41 am

In the post deregulation era, and with the creation of hubs and mega-hubs, airlines rethought their route networks and eliminated many point to point routes. CO, after the TexasAir merger, decided to focus on its Houston and Denver hubs and LAX was no longer a priority....CO also faced lots of competition on its LAX-ORD route, going against UA, AA and WA Transworld Airlines (USA)">TW so it made sense. Around the same time, United and American greatly increased service into LAX (UA can be considered a UA hub I guess) and with deregulation, many airlines, such as US, Republic, Alaska and other larger regionals quickly added service to LAX.....so LAX was very crowded.

In a similiar move, Western, which had much service out of LAX and DEN restructured its route system and created the SLC hub, eliminated most service at DEN (leaving CO, UA and Frontier-1 to fight it out there) and LAX became nothing more than a WA "focus city" and gateway for its Mexican and some Hawaiian services.
 
Aeri28
Posts: 668
Joined: Fri Dec 08, 2000 1:08 pm

RE: Why Did CO Pull Out Of LAX?

Mon Sep 08, 2003 11:17 am

There was a time in the late 70's when Western and Continental (both based in LA at the time) were considering merger and being based in Denver.
 
ContinentalEWR
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RE: Why Did CO Pull Out Of LAX?

Mon Sep 08, 2003 11:20 am

Continental was headquartered in Los Angeles (at LAX) but in the 1970's, when it merged with Texas International (TI), it moved its corporate HQ to Houston, where hub opportunities were much greater. Continental had a large presence at LAX, but it was no where near the levels achieved at IAH.

Continental did not close down the LAX station post-9/11. The airline has a decent presence there, with daily flights to EWR, IAH, CLE, and HNL.

ContinentalEWR
 
CALMSP
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RE: Why Did CO Pull Out Of LAX?

Wed Sep 10, 2003 2:44 pm

we also used to fly to SAT, SAL
 
Guest

RE: Why Did CO Pull Out Of LAX?

Wed Sep 10, 2003 2:56 pm

Let's try this again  Smile.

Texas Air International, which was based in Houston, hostilly took over Continental but kept the Continental brand name ... Continental really never moved its Los Angeles HQ to Houston -- the vast majority of then-CO senior management either lost their jobs or were reassigned...
 
SunValley
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Joined: Mon Sep 08, 2003 6:51 am

RE: Why Did CO Pull Out Of LAX?

Wed Sep 10, 2003 3:00 pm

CO, also tried "Continental West" running intra California, and into
Washington & Oregon to compete with PS & OC, but it hit the boneyard like a lot of intra-california operations did
 
TWFirst
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RE: ContinentalEWR

Wed Sep 10, 2003 8:52 pm

>Continental did not close down the LAX station post-9/11. The airline has a decent presence there, with daily flights to EWR, IAH, CLE, and HNL.<

I think the previous reference was to CO's crew base closing at LAX, not it's entire station. CO eliminated its FA base at LAX post 9/11.

Also, in addition to the routes listed above, don't forget the CO-coded flights on AE out of LAX  Smile.
An unexamined life isn't worth living.
 
ssides
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RE: Why Did CO Pull Out Of LAX?

Wed Sep 10, 2003 11:03 pm

Also, coastal cities aren't as good for operating major hubs. ORD, DFW, IAH are better due to their central location.
"Lose" is not spelled with two o's!!!!