We're 'Big Threat' To Delta - Continental CEO

Titlu: We're 'Big Threat' To Delta - Continental CEO
Sursa: http://news.airwise.com/story/view/1268178897.html
Autor: Reuters
Data: 09/03/2010

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Continental Airlines said its strength in Latin America, Asia and New York poses a "big threat" to its larger rival and former alliance partner Delta Air Lines.

Continental, the world's fifth-largest airline, was part of the SkyTeam alliance until last October, when it quit the airline network following Delta's merger with Northwest.

"In our prior alliance, we were partners with somebody who wanted to kill us," chief executive Jeff Smisek said on Tuesday. "And it was a lot like being married to a woman who wants to poison your food -- it's just generally not a good idea."

Alliances allow airlines to share pricing and flight information, as well as save on costs. Smisek said Continental's switch to Star Alliance was helping to drive passenger traffic.

He added that Continental's operations in New York, Asia and Latin America were a looming threat to Delta's network.

"We're a growing threat to them in the Pacific," Smisek said. "You watch the fight over JAL and they were taking out their cheque book and spinning like drunken sailors."

Delta ultimately lost its bid to fold JAL into SkyTeam.

Continental's switch also brought it closer to United Airlines, which is a founding member of the Star Alliance. The two talked extensively about merging until talks broke off two years ago.

Continental has said it would prefer to stay independent, rather than merge with another airline.

Smisek said the airline would continue to watch "the competitive dynamics" of the industry in the wake of Delta's merger with Northwest Airlines. He added that the merger so far has gone smoothly, although it is "premature" to gauge its success.

"When we chose not to merge with United, it was a point in time decision," Smisek said, adding that he voted against the merger at the time.

"If we think it's in our best interest to bulk up defensively, we'll do so," Smisek said. "But I think it's premature to make that decision at this time."