2012•Unpublished venueRequires access
Continental Airlines—1992
Stuart C. Gilson
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Abstract
This chapter discusses Continental Airlines since its inception in 1934, its emergence as a prominent carrier in the U.S., its bankruptcy filing in December 1990, and its auction to accumulate financings. The very fact that the company grew exceptionally in the latter half of 1980s, placed the company under increasing financial strain that led to its bankruptcy filing and eventual stake selling to the best bidder. Chief bidders in the auction were MAXAIR, led by Maxxam Inc., Houston Air, an investment group, and airline company Air Canada. Finally, the chapter looks at the factors that Continental Airlines had to consider, including its reorganization, to decide on who among the bidders would acquire the company.