Continental Airlines

Continental aerial lines are one of the principal carriers to the United States. His history began in 1934 with Mr. Walter Varney establishing the aerial lines called after him the Lines of Speed of Varney to El Paso the International Airport. Some years later Mr. Robert Six resumed the business and transferred the principal seat to the Airport of Stapleton to Denver, Colorado. Six ran the business for forty years. In his sixty eight histories of year the business crossed two bankruptcies, in 1983 and 1991.

February 29, 1996, the Wall Street Journal retrieved that Continental gave its shareholders the better fifth return of any corporation anonymous by actions during 1995 and classified it the one numbers among eight other aerial lines with a return that was 213.9% above the average of peer. The continental stock exchanged close to his top not at all of 52 weeks. Continental grew, using what's more more cities everywhere in the world. July 17, 1996 the business split his stock 2 for 1. A number of Continental time was named one of the "100 better businesses to work for". All went just well until September 11, 2001. With the buildings of World Trade Center the matters of aerial line collapsed. When in 2000 Continental one produced $342 millions of net income then in 2001 it was $95 millions of losses and in 2002 businesses tested the net loss of $451. It seemed that the second quarter of the present year went well for the business; at last the one can see positive numbers on the financial reports of the business ($100 millions of dollars of net income for the second quarter). Nevertheless, a big other challenge for Continental, just as for no other aerial, arrived line to be the sufficient increase in the prices for the fuel. Outside of the high costs of fuel that affect sufficiently the profitability of the Continental business tests also the high costs of work for the flight attendants, the excessive taxation, increased the costs of security and the responsibilities of significant retirement. The continental views of direction the carrier of network domesticate, American and present financial environment as the poor ones and could damage itself more. Another threatens Continental aerial Lines are the fifth one bigger carrier in the United States and sixth in the world is the domestic good carrier growth walked s. Although, one the force and the Continental manners of this position have a big number of international roads. To true to say, Continental has destinations more of the international than other aerial American lines.

Since September 11, 2001 when the business began testing substantial losses one of the most of the crucial objectives and the objectives for Continental became the coupeur of possible cost. Of course, the manner more easy to cut the operation costs are to diminish the Labor costs. The continental changed salaries, the rules of work and takes advantage for all employees except the flight attendants and the certain employees of Continental Micronedsie, subsidiary and completely possessed, Inc. ("CMI") that are liable to collective to negotiate the agreements. The business began executing changes at first month of April 2005, that, when completely executed, are counted to have for result roughly that $418 millions of salaries and the annual advantages cost economies on the basis of chases rate.

Despite all the difficulties that the business continues to grow. The this is very important that the Continental direction understands that the substantial same cuts in the Labor costs will not bring the rear business to profitability in the long term. That is why the Continental aerial Lines increase even more. By 2007 they have the intention to open a first continuous one United States directs to Shanghai. The business foresees also the delivery of 34 airplanes of Boeing of here the end of 2006 and again 44 airplanes of 2008 until 2011. The numbers clearly show that the Continental aerial Lines foresee on to grow and improving apparently the financial faces. Most of the people probably think that the it is immoral to cut salaries of the workers and increases the business at the same time. Nevertheless, so Continental chose to reduce its matters would lose how many workers their jobs in this case?

The growing strategy is the good project to come back to profitability, only if the concept of "the ladder economies" the works in this position. While increasing Continental therefore will have the increase their manpower and with the cutting of the salaries and the advantages for the this of employees could be a task lasts.