In four pages this paper considers how Continental Airlines endeavors to reassure investors that investment in their airline is secure. Three sources are cited in the bibliography with 1 table and 1 chart also included.
Name of Research Paper File: CC6_KSContAir.doc
Unformatted Sample Text from the Research Paper:
fuel prices in 1999. Across the industry, operating profits fell 22 percent in the fourth quarter from $1.23 billion to $970 million (Anonymous, 2000a).
This has caused investors to be uneasy about the industry, and most airlines have lost money. PaineWebbers Samuel Buttrick noted in a recent industry report that fuel
prices alone had cost the industry $400 million. The analyst also notes that Continental Airlines weathered the price increases better than most others (Anonymous, 2000a). We believe our
stockholders can use this news as an indication that Continental continues to be a good investment now and in the future. The
Industry There is no question that this year has been difficult, but long term investment in Continental is still a good choice.
Deutsche Banc Alex. Brown analyst Susan Donofrio agrees. She says investors will be excited about the airlines again after crude oil goes below $25 a barrel again, as it
always does (Anonymous, 2000a). As if uncertainty caused by fuel prices were not enough, the changes occurring in the industry have caused investors
to hold back as well. Mergers, alliances and route changes have been necessary to control costs and allow airlines to operate more effectively, but the changes have been hard
on travelers. The General Accounting Office believes that "two-thirds of American travelers will soon fly to markets dominated by a single airline" (Anonymous, 2000b; p. PG).
This is good for Continental in those markets where we are dominant, but it is better for Continental than for our customers. With less incentive