Sources: Continental may increase presence at DIA

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Sources: Continental may increase presence at DIA

DENVER (AP) =97 Continental Airlines Inc. may create a hub at Denver=20
International Airport if United Airlines slashes operations there, sources=
=20
told a Denver newspaper. In the past three months, schedule planners for=20
Houston-based Continental have been studying the profitability of routes=20
from DIA and possible capacity changes by United, DIA's largest carrier,=20
The Rocky Mountain News reported Friday. A Continental spokesman, David=20
Messing, said "as things stand now, we don't expect to expand in Denver."=20
However, he said, "The industry is in a great state of flux. If industry=20
conditions change dramatically, we'd have to take a close look at new=20
options that present themselves." DIA spokesman Dan Melfi said Continental=
=20
told him it was doing studies. He said other airlines, including American=20
Airlines, also are doing analyses and might look at some type of expansion.
Continental's studies add weight to comments made by the carrier's chief=20
executive, Gordon Bethune, before United's Dec. 9 bankruptcy filing.=20
Bethune told The New York Times that Continental, which once had a Denver=20
hub, might want to expand in Denver to increase its foothold in the West.

A source told the Rocky that Continental has plans that account for the=20
different actions Chicago-based United might take. Continental also is=20
analyzing what other airlines at DIA might do if United reduces operations.=
=20
Analysts said Continental would be the most likely of the major U.S.=20
airlines to start a DIA hub in place of United. Officials with UAL Corp.,=20
United's parent company, said they want to keep DIA as a hub as part of=20
their restructuring strategy. However, the company said recently that its=20
board asked executives to explore closing up to three of the carrier's U.S.=
=20
hubs, including Denver, as a possible alternative.
UAL officials would not comment on Continental. Continental, the world's=20
seventh-largest airline, has U.S. hubs in Houston, Newark, N.J., and=20
Cleveland. It has 13 daily flights from DIA; each goes to one of the hubs.=
=20
Continental was Denver's dominant carrier in the 1980s at Stapleton=20
Airport. After the airline's own bankruptcy and fierce competition with=20
United, it drastically reduced its presence in Denver when DIA opened in=20
1995. Continental shares closed up 14 cents at $5.21 Friday on the New York=
=20
Stock Exchange and United shares closed up .06 cents at $1.03.


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