Continental Airlines Will Not Seek Merger

Continental Airlines Inc. said Sunday it would not pursue a combination of another carrier right away. This was a surprising move after weeks of growing speculation that it would join with United Airlines to create the world's biggest airline. In a message to employees, Continental Chairman and Chief Executive Lawrence Kellner said that the Houston based airline was better off alone than merging. He feels they have significant cultural, operational and financial strengths compared to the rest of the industry. They want to protect and enhance those strengths, which they believe would be placed at risk in a merger with another carrier in today's environment. Even though it reported an $80 million loss in the first quarter, Continental is widely viewed as the second strongest U.S. carrier in financial terms, behind only Southwest Airlines Co., which indicated it isn't interest in a merger.