sccutler
Posts: 5555
Joined: Thu Jan 27, 2000 12:16 pm

Continental- IN Control!

Tue Nov 07, 2000 8:39 am

Big news-

Continental and Northwest have agreed upon terms for NW to relinquish its control over CO's destiny!

One story- view at:

http://www.chron.com/cs/CDA/story.hts/topstory2/738444

Great news for competition.
...three miles from BRONS, clear for the ILS one five approach...
 
777gk
Posts: 1488
Joined: Mon Jun 19, 2000 3:04 am

RE: Continental- IN Control!

Tue Nov 07, 2000 8:45 am

YESSSSSSSSSS!

I never wanted to fly a red plane!
 
Republic
Posts: 541
Joined: Thu Dec 27, 2012 12:39 am

RE: Continental- IN Control!

Tue Nov 07, 2000 9:13 am

Outstanding! At one time, KLM had close to 20% ownership of NW. NW reacquired this from KLM. KLM's and NW's alliance seems as strong just the same. With CO and NW locking in an alliance for the next 25 years, wouldn't make sense for CO and KLM to arrange a similar type alliance, sort of a NW-KLM-CO triangle? Just a little food for thought.

Joe
 
eireman
Posts: 39
Joined: Wed Oct 04, 2000 2:54 am

RE: Continental- IN Control!

Tue Nov 07, 2000 10:37 am

As I read it NW will still have a say over Co's destiny since they can still block a merger with " a major airline".

The markets didn;t like it too much- CO down $3.00 today.

The deal thru 2025 seems like too long a commitment in this day and age
 
Skyteam
Posts: 703
Joined: Thu Nov 12, 2009 1:50 pm

RE: Continental- IN Control!

Tue Nov 07, 2000 10:48 am

YES!!!!!!!!!!!! ITS FINALLY OVER!!!!!

GO CONTINENTAL

SKYCONTINENTAL
 
Guest

RE: Continental- IN Control!

Tue Nov 07, 2000 11:09 am

NO!!!!!!!!!!! ITS FAR FROM OVER!!!!!

CO will spend $450 million, and receive 6.69 million shares, however, NW will still retain 2.6 million shares of Class B and hold a 7% voting interest in the Houston airline. Additionally, in a programme extended for 25 years, CO will issue NW a new class of prefered stock and the current Class A and Class B shares will be combined. In other words, untill the agreement expires, NW has veto power over ANY kind of deal CO makes with any other airline.

 
cba
Posts: 4228
Joined: Sat Jul 15, 2000 2:02 pm

RE: Continental- IN Control!

Tue Nov 07, 2000 12:30 pm

Actually, CO already has a partnership with KLM through NWA. An example of this is the NW/KLM World Perks program. I have mileage from a KLM flight on my World Perks account that I can use to get rewards with CO, and vice-versa. So if I were to fly IAH-AMS operated by KLM, I could give the people at KLM check-in my One Pass card, and I'd get Continental mileage.
 
cdfmxtech
Posts: 1319
Joined: Wed Jul 05, 2000 11:37 am

RE: Continental- IN Control!

Tue Nov 07, 2000 3:45 pm

OK...I think everyone is missing the point here. The whole point of the deal with Continental - Northwest was for CO to insure that it would be in control of its future. With the proposed repurchase of the NWA stake, this would happen. CO is not exactly in a rush to go out and merge with another airline (i.e. AA, DL). I think it's great.
 
Guest

RE: Continental- IN Control!

Tue Nov 07, 2000 5:24 pm

Cdfmxtech has a good point, and one that I was
going to mention. CO is not looking for a merger.
To quote Gordon at the last HQS open house
"We are married, they (Delta) know that" Yea
for Continental and way to go Gordo, you've
saved us again!

peace,
COexERJ
 
nwa747-400
Posts: 1325
Joined: Fri Sep 08, 2000 2:54 am

RE: Continental- IN Control!

Tue Nov 07, 2000 10:01 pm

It is good to see CO back in control of their stock as I think this was always an issue that kept CO and NW at odds.

Now the alliance will only grow stronger!!
 
A330_DTW
Posts: 357
Joined: Thu Sep 28, 2000 9:29 am

RE: Continental- IN Control!

Wed Nov 08, 2000 1:25 am

Apparently, both NW and CO seem pleased with the decision.

And since CO intends to "go it alone" there is no reason for anyone at CO to worry about NW veto-ing any type of acquisition.

If you remember correctly, NW saved CO's a** in 1998 by entering into this agreement. If not for NW, then DL would have taken over CO, slashed over 5,000 jobs and cut routes.

Are you happy working for CO today? If you are, you have NW to thank.

So don't go around bashing NW and saying "yesssss! it's finally over!" when the only reason your logo isn't that little "widget" (that is even if you would still HAVE a job) is because of NW.
 
Republic
Posts: 541
Joined: Thu Dec 27, 2012 12:39 am

A330_DTW

Wed Nov 08, 2000 2:16 am

I'm not trying to be confrontational, but if NW is the knight in red and gray armour that you suggest, then why could NW and CO not reach an agreement before the antitrust hearings? Why did NW refuse to sell their holdings in CO back to CO? Why was CO afraid that NW would take full control by 2007? Why was CO afraid that NW was after its fleet?
Don't get me wrong. I like the alliance between NW and CO. But NW is acting entirely in its own interest, not as the altruistic big brother you seem to suggest with your post. Go CO-NW alliance.

Joe
 
nwa747-400
Posts: 1325
Joined: Fri Sep 08, 2000 2:54 am

RE: Continental- IN Control!

Wed Nov 08, 2000 4:14 am

I am notsure that the move to buy stock in Co was altruistic.

NW saw a great airline to be partners with in that their route structures did very little overlaping. In addition, pairing with CO makes the two carriers about the same (if not larger than DL).

NW saw that if DL bought CO it would have been left wide open to a takeover by AA or UA and NW didnt want that.

Passengers are much happier to have two smaller carriers in a great alliance such as CO/NW than a huge monolopy such as UA/US might be.

Passengers want choice, and NW/CO gives them that
 
Guest

RE: Continental- IN Control!

Wed Nov 08, 2000 7:10 am

A330_DTW,

That's an ugly, misinformed, and downright
absurd comment. I am proud to be a
Continental employee, but I owe nothing
to NW! NW didn't offer to buy CO's stock
because it wanted to save CO, they did it
to pad their pockets. David Bonderman and
Air Partners didn't have to sell the stock
to NW, but they wanted an ouside investor
to finance the fleet renewal program among
other things. And since NW was a better
alternative than DL, it made sense. SO I
really should be thanking NW for the nice,
new, shiny planes that we are flying
throughout the system whle NW chuggs
along with the elderly DC-9's and 737-200's.
CO employees worked hard to get the
company back on track, and that is a fact.
CO used NW to finance a new fleet, and NW
will get a handsome reward now that the
stock has increased in value. And no, I was
not "bashing" NW by saying I'm glad this is
over, I was breathing a sigh of releif
because it's good to be in complete control
again. LONG LIVE THE PROUD BIRD!

peace,
COexERJ
 
Ian
Posts: 44
Joined: Tue May 25, 1999 2:22 pm

RE: Continental- IN Control!

Wed Nov 08, 2000 7:35 am

too bad without the GOLDEN TAIL
 
A330_DTW
Posts: 357
Joined: Thu Sep 28, 2000 9:29 am

COexERJ And Republic

Wed Nov 08, 2000 12:39 pm

Before going around trumpeting your new found freedom, I think you should look a little more closely at the details of the agreement.

And I think the CO/NW alliance is a much better alternative to CO being taken over by DL.

As we go chugging along in our DC9's, we're at least making a LOT of money. Enough to accelerate orders for widebody and narrow body aircraft.

Remember, NW hasn't been in and out of bankruptcy and saved by the banks like CO has.
 
Iflewrepublic
Posts: 511
Joined: Wed Jun 14, 2000 11:31 pm

RE: COexERJ

Wed Nov 08, 2000 1:44 pm

I just have one thing to say...we do not, nor have we ever, operated or had anything to do with the 737.

Iflewrepublic.
Aviation is proof that, given the will, we have the capacity to achieve the impossible.
 
A330_DTW
Posts: 357
Joined: Thu Sep 28, 2000 9:29 am

RE: A330_DTW

Thu Nov 09, 2000 12:38 am

DEAL BUOYS US AIRWAYS, UNITED HOPES
BUT LABOR WOES LOOMING AGAIN


By John Schmeltzer
Tribune Staff Writer
November 7, 2000
The proposed $11.6 billion merger of UAL Corp. with US Airways Group Inc. may fly after all.

...the U.S. Justice Department on Monday agreed to permit Eagan, Minn.-based Northwest Airlines to preserve a modified form of control over Houston-based Continental Airlines in exchange for Northwest agreeing to sell its controlling interest...

 
Iflewrepublic
Posts: 511
Joined: Wed Jun 14, 2000 11:31 pm

RE: Continental- IN Control!

Thu Nov 09, 2000 3:43 am

A330_DTW,
If this merger between United and USAirways were allowed to go through, Lord help us all if it does, where does that leave American Airlines and Delta Airlines?

Iflewrepublic.
Aviation is proof that, given the will, we have the capacity to achieve the impossible.
 
Guest

RE: Continental- IN Control!

Thu Nov 09, 2000 3:54 am

A330_DTW,

You didn't go bankrupt because
KLM came in and bought your stock.
It's funny how NW was in this very
same position not too long ago. My
how the tables have turned. NW
doesn't have voting control over
CO and that's what matters. They
will have some common or CAL.B
stock, and the possiblility of
blocking any deal CO enters with
another airline. And since CO doesn't
want to merge with anyone, it works
out just fine. This is actually great
news, as it will keep NW and CO
separate, and reliant on each other
to stay independent. THIS IS EXACTLY
WHAT CO AND NW WANTS TO HAPPEN!
Well, hope you enjoy your decrepit
DTW facilities and those 30 year old
DC-9's (okay now I'm bashing, but
you asked for it) while NW is making
all that money (snicker)  

LONG LIVE THE PROUD AND FREE BIRD!

COexERJ
 
nwa man
Posts: 1752
Joined: Mon Jun 07, 1999 3:24 am

RE: Continental- IN Control!

Thu Nov 09, 2000 7:28 am

The last thing I want to see is a NW vs. CO flame war on Airliners.net, which is why this statement was totally uncalled for (and at least partly false).


Well, hope you enjoy your decrepit
DTW facilities and those 30 year old
DC-9's (okay now I'm bashing, but
you asked for it) while NW is making
all that money (snicker)


Decrepit DTW facilities? Maybe now, but in only one year, Northwest will have arguably the best terminal facility in America with the new Detroit Midfield Terminal. It looks just like PVG, if you want to picture it in your mind, or you can go to nwa.com to view a virtual model of it made by the University of Michigan.

And NW has a lot to be proud of regarding their fleet, flying brand new 747-400s, 757s, CRJs and A319/A320s. The DC-9s aren't bad either, 90% ontime performance and interiors identical to Northwest's newer aircraft (if not nicer).

Now that the stock problems between the two airlines are over, it seems like NW and CO can be in harmony. Their alliance has been working to the advantage of passengers so far, so let's hope it can continue so that we all can benefit from their agreement.

NWA Man

P.S.... I'll be flying CO Thanksgiving weekend, flying MSP-CLE-BOS and BOS-EWR-MSP (all legs on CO aircraft). Hopefully CO can grow on me and become like NW now is to me.


Create your own luck.
 
ContinentalEWR
Posts: 3619
Joined: Wed May 24, 2000 2:50 am

RE: Continental- IN Control!

Thu Nov 09, 2000 11:12 am

I think a CO/NW alliance is good for both airlines. NW has a very well developed Asian route network and its
alliance with KLM is highly developed. It benefits CO
to be able to code share with NW in the sense that it
opens up even more destinations to Continental Air's
customers.

Similarly, I think CO is good for NW. Continental is a
well run airline offering above average service when
compared to other US airlines and has strong and
very compatible US route network and is #2 in the
Latin America market, where NW has zero presence.
Continental is also strong across the Atlantic and
this too benefits NW customers who don't want to
go through AMS to get to say....Milan or Rome or
Madrid.

Had Delta got its hands on Continental, that would
have been the end of the Houston-based airline.
Delta would have simply carved it up and beefed
up its existing hubs and routes at the expense of
Continental.

I hope that CO, NW, KL, will forge closer ties as
Continental needs strong international partners.
It will probably soon loose AF and possibly VS as
well because Virgin is now 49% owned by SIA,
which is a Star Alliance member.

ContinentalEWR
 
MD-90
Posts: 7835
Joined: Mon Jan 17, 2000 12:45 pm

RE: Continental- IN Control!

Thu Nov 09, 2000 12:39 pm

I suppose, had Delta taken over Continental, would they have been considered the largest airline in the world (and without a single Airbus in the fleet, I believe.... interesting)?
 
Guest

RE: Continental- IN Control!

Thu Nov 09, 2000 4:56 pm

I didn't mean to start a war,
sorry. I actually like NW, I
just don't trust them with
any matter of control in CO.
I know that many of my
co-workers have worked
very hard to get the company
where it is today, and I think
it's very arrogant to give NW
credit for that. Again, I
credit the wonderful work
of Gordon, Greg, and Larry
among others, for the
unreal turnaround. Sorry
if I offended you, it just
peeves me when someone
makes such an irresponsible
comment.

peace,
COexERJ
 
ewr757
Posts: 354
Joined: Mon Apr 03, 2000 8:47 am

RE: A330-DTW

Thu Nov 09, 2000 9:00 pm



NWA avoided bankruptcy because of the 800 milliion dollar loan a few years back by the state of MN.

Or did this detail slip your mind?
 
A330_DTW
Posts: 357
Joined: Thu Sep 28, 2000 9:29 am

RE: A330-DTW

Thu Nov 09, 2000 9:46 pm

NWA avoided bankruptcy (a one-time-only close-call in the company's 70 year history) because of a number of reasons:
a) KLM's commitment to the alliance
b) a loan from the state of Minnesota and
c) because all the employees of Northwest took paycuts over the course of three years.

Remember--NWA did NOT go bankrupt. NWA's debt and loans, etc. were not refinanced to save the airline. NW came through on its own and is one of the ONLY airlines to still be around after having gone through a leveraged buy-out.

I don't recall any of my comments being offensive and I think ContinentalEWR summed up my thoughts and concerns rather nicely.

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