Continental: No mergers for now

By now, you've probably heard the news that Houston-based Continental Airlines has decided not to merge with another carrier right away — but, of course, that doesn't mean Continental won't look into a deal down the road. "We have significant cultural, operational and financial strengths compared to the rest of the industry, and we want to protect and enhance those strengths — which we believe would be placed at risk in a merger with another carrier in today's environment," Continental CEO and Chairman Larry Kellner said in a message to employees Sunday.

Talk of a merger between Continental and United Airlines has been bouncing around for more than a year, first reportedly because the two airlines didn't want to be put at a disadvantage by a possible US Airways-Delta merger (which didn't end up happening) and more recently because of record fuel prices. And, even though Continental has decided to go it alone, United said it's still looking for possible consolidation deals: "Consolidation is under way — ensuring you have the right partner is everything," United chief Glenn Tilton said. "We will pursue all options to ensure a strong, sustainable future for our airline and will not shy away from the tough choices necessary to create value for our shareholders and benefit our employees and customers." (United is now reportedly thinking about reviving a possible merger with US Airways, a deal that regulators rejected in 2001.)

As for Houstonians, they seem relieved that Continental won't become part of a mega-airline — yet. "Oh, thank God," Houstonian and frequent traveler Tim Connolly told the Chronicle yesterday. "I fly both [Continental and United]. Continental usually has a better flying experience, and Continental's equipment is maintained better."