Continental orders 7E7

Continental Airlines to Become First Major U.S. Airline to Order the
Boeing 7E7
Also Announces Plans to Lease Additional Boeing 757-300s Starting in
2005 and
Accelerates Deliveries of 737-800s Into 2006
HOUSTON, Dec. 29 /PRNewswire-FirstCall/ -- Continental Airlines (NYSE:
CAL) today announced that it has reached agreement with Boeing to
become the first major U.S. airline to order the Boeing 7E7 aircraft,
with the first 7E7 to be delivered in 2009. The company's initial 7E7
order is for 10 aircraft.

(Photo: http://www.newscom.com/cgi-bin/prnh/20041229/DAW018 )

In addition, Continental has agreed to lease eight 757-300 aircraft
from Boeing. The 757-300 aircraft will be delivered to Continental
beginning in July 2005. Continental has also agreed to accelerate into
2006 the delivery of six Boeing 737-800 aircraft that were previously
scheduled to be delivered in 2008. Boeing has agreed to provide
backstop lease financing for the 737 aircraft.

"The 7E7 will be an important part of our international growth
strategy," said Gordon Bethune, Continental's chairman and CEO. "With
it we can continue to differentiate our award winning service and our
consistently growing international network."

"The 7E7 is the widebody of the future for Continental and will provide
the platform for our long-term international growth," said Larry
Kellner, Continental's president and COO. "Leasing these additional 757
and 737 aircraft will be another step in outdistancing our competitors
in this rapidly changing environment."

The agreement with Boeing for the 10 7E7 aircraft, the eight 757-300
aircraft, and the acceleration of the six 737-800 aircraft are subject
to several conditions, including the approval of Continental's board of
directors on or before Feb. 28, 2005, and in the case of the 7E7
agreement, the negotiation of an engine supply arrangement for the 7E7
aircraft acceptable to Continental. The company expects to finalize its
$500 million in annual wage and benefit cost reductions by Feb. 28,
2005, and believes it will receive approval from its board for the
additional aircraft, provided that the company's business case for the
aircraft includes a cost structure that will allow the aircraft to
generate a positive return to Continental.

http://www.continental.com/vendors/d...&s =&i=PRNews