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Continental Airlines 2004 Annual Report
Continental Airlines was founded over 60 years ago by Walter T. Varney and his partner
Louis Mueller as Varney Speed Lines. On July 15, 1934, the carrier first flight was flown
on a 530-mile route between Pueblo, Colorado to El Paso, Texas with stops in Las Vegas,
Santa Fe and Albuquerque, New Mexico. Mueller gained control over the carrier on the
same year and in 1936, he sold 40 percent of the company shares to Robert F. Six. In July
1, 1937, Mr. Robert F. Six changed the name of Varney Speed Lines to Continental
Airlines and moved the Continental headquarters from El Paso, Texas to Denver,
Colorado.
During the 1940 and 1950, Continental Airlines was able to expand its fleet of aircraft and
profits through its participation in World War II by providing the modified B-17 Flying
Fortresses and B-29 Super Fortresses as the air transportation to the military. In 1953,
Continental Airlines merged with southwest based Pioneer Airlines. This merger allowed
Continental Airlines to operate 16 new air routes between Texas and New Mexico. By the
end of the 1950, Continental Airlines had expanded its routes to include Chicago and Los
Angeles and was operating their first true jet (a Boeing 707-120) seven days a week, 16
hours a day.
By the early 1960, Continental Airlines moved its headquarters to Los Angeles, California
and was providing air transportation for US Military troops to the Orient during the
Vietnam War. As the result of Continental Pacific experience, Continental formed Air
Micronesia, picking up air routes between Spain and Honolulu. With the passing of Airline
Deregulation Act of 1978 airline carriers were provided with new freedoms to expand their
route systems and the flexibility to develop innovative pricing structures. This flexibility
allowed the carrier to further grow into new markets. In 1982, Continental merges with
Texas International Airlines under the management of Frank Lorenzo. Continental retained
its name and expanded its route structure, offering service to North and South America,
Asia, and Australia with a fleet of 112 aircraft.
In 1983, Continental filed Chapter 11 with losses of $218,000,000. Rebuilding the
company began immediately and by the end of 1984, Continental recorded a $50 million
profit. In 1986 Continental emerged from Chapter 11. On the same year Continental took
over the Frontier Airlines and began flying its routes. This was a boost for the carrier.
However, with the rise in the cost of fuel due to the invasion of Kuwait, Continental again
