"Continental serves 155 destinations from Newark, including 74 a= Typo?=0A=0A"Continental serves 155 destinations from Newark, including 74 a= broad. In 1977, it served 26 international destinations from Newark."=0A=0A= New York area is 'critical' to Continental=0ARevenue from Big Apple flights= about to eclipse that of Houston=0A=0ABy BILL HENSEL JR.=0ACopyright 2007 = Houston Chronicle =0ATOOLS=0AEmail Get section feed =0APrint Subscribe NOW = =0AComments (6) Recommend (3) =0A=0ARESOURCES=0ANEW YORK FLIGHTS =0A=0ANumb= er of daily flights out of the New York area*: =0A=95 Continental: 469 =0A= =95 Delta: 333 =0A=95 American: 249 =0A=95 US Airways: 226 =0A=95 JetBlue: = 200 =0A=95 United: 65 =0A=95 Northwest: 44 =0A*Includes JFK, LaGuardia and = Newark airports =0ASource: Continental Airlines =0ANEW YORK =97 Continental= Airlines may live in Houston, but its rich uncle is in New York City.=0ATh= e carrier's international revenue, mostly from flights to or from the New Y= ork area, has grown some 20 percent in the past year and now provides about= half its passenger revenue, which totaled $13.1 billion last year.=0AOther= airlines have taken notice, a big reason why a Big Apple battle has broken= out and promises to get more intense, even as federal regulators move towa= rd limiting flights in the region.=0AAfter a decade in which Continental an= d the Port Authority of New York/New Jersey spent some $2 billion to build = up a hub at Newark Liberty International Airport, Continental is the domina= nt carrier in the financial capital of the United States with 469 daily dep= artures.=0AThe next closest competitor is Delta Air Lines with 333 daily fl= ights, and the list drops off sharply after that.=0AAtlanta-based Delta in = particular has pushed for a larger market share, spending more than $50 mil= lion to upgrade facilities at John F. Kennedy Airport. Delta executives say= the airline will have spent more than $100 million by next summer.=0AJetBl= ue also has expanded of late in its hometown of New York City, where it too= flies out of JFK, and has said it wants to expand more.=0AJust how competi= tive is the New York market? Consider this sign seen on cabs around New Yor= k: "This taxi can't take you to Beijing. Neither can Delta."=0AThat's part = of Continental's new ad campaign, which began in September and was designed= to emphasize the carrier's international scope compared to other airlines,= spokeswoman Julie King said.=0AContinental isn't really threatened by the = growth of the other airlines in the New York area because it has the "very = enviable position" of having almost all the flights out of Newark, CreditSi= ghts analyst Roger King said.=0A"That allows them to have almost all domest= ic flights into Newark, and allows all their international flights to hook = up with the domestic feed, which JFK flights don't have," King said. "That = hub at Newark is the strongest Atlantic gateway of any airline."=0AScheduli= ng reduction=0AAll the recent growth at JFK =97 some 40 percent more flight= s over the past 18 months, according to government data =97 led to consider= ably more congestion. And that helped prompt the Federal Aviation Administr= ation to call a scheduling reduction meeting.=0AScheduling restrictions alr= eady were in place until last January, when Congress lifted them. One tool = being discussed now to help ease crowding is congestion pricing, which woul= d raise fare prices at the busiest travel times.=0AFederal officials seekin= g to avoid a repeat of massive congestion this summer have proposed cutting= back flights at JFK next summer, and a decision is expected to be announce= d within weeks. The agency also is looking at other New York-area airports,= meaning next up could be Continental-dominated Newark, which, like JFK, ha= s seen crowding and delays.=0ANew York's close-in airport, LaGuardia, handl= es primarily domestic flights.=0AU.S. Transportation Secretary Mary Peters = said the government's strong preference is to develop market-based solution= s.=0A"But we will consider scheduling reductions as a last resort in order = to prevent a repeat of this summer's nightmare delays," she said in prepare= d remarks recently.=0AHer department has suggested an hourly limit of 80 fl= ights at JFK, which amounts to a 30 percent reduction, said Calyon Securiti= es analyst Ray Neidl.=0A'In a strong position'=0AIt was a decade ago that H= ouston-based Continental began its push for a major international hub in th= e New York region and dubbed Newark, 16 miles from midtown Manhattan, its "= global gateway." The carrier runs 11 nonstops from Bush Intercontinental Ai= rport to Newark each weekday.=0AContinental's 10-year buildup in the New Yo= rk area has been key to its international expansion and overall growth, sai= d Larry Kellner, the carrier's chairman and chief executive.=0A"Continental= is well-positioned for the next several years," Kellner said. "We continue= to be in a strong position financially."=0AOne reason for that is the cash= engine Continental has built in the New York area, which explains why airl= ines continue to spend money to gain an edge here, despite the threat of go= vernment-imposed flight limits.=0AContinental President Jeff Smisek said th= e carrier currently has a quarter of the New York-area market share and off= ers 43 percent more seats than its nearest competitor.=0A"We are proud to b= e the largest carrier in New York/New Jersey," he said.=0AThe carrier's chi= ef financial officer, Jeff Misner, said 138 of its 282 destinations =97 nea= rly half =97 are outside the United States.=0ABut Delta's Glen Hauenstein, = executive vice president, argues there's plenty of room for others because = JFK =97 about 12 miles from Manhattan in Queens =97 is by far the largest i= nternational airport in the country.=0AHauenstein, a former Continental exe= cutive who actually worked on its expansion in Newark, said all the airline= s will have to give up something.=0A"At the end of the day, the government = has the authority to do whatever it wants," he said. "The airlines have bee= n very responsive. I was very disappointed the government started out by po= inting fingers at the airlines because we could point the finger back at th= em even more."=0AThe Air Transport Authority and the Port Authority of New = York and New Jersey have done just that. The ATA represents most airlines, = while the Port Authority runs the airports and depends on their revenue.=0A= "Cutting the number of flights at one airport to levels not seen in almost = 40 years and declaring victory isn't a solution," said Anthony Shorris, exe= cutive director of the Port Authority, referring to possible changes at JFK= .=0AContinental agrees. Smisek also is sharply critical of the federal gove= rnment, which he says has failed to keep up with the growth of air travel.= =0AThe airlines all have strongly urged the government to fix and modernize= the nation's air traffic control system.=0AThat system could come under mo= re pressure. An agreement liberalizing routes between the United States and= the European Union promises to increase trans-Atlantic traffic.=0AA weaker= dollar also makes this country cheaper for visitors from across the pond, = and New York City's mayor, Michael Bloomberg, has launched a campaign to dr= aw more international tourists.=0AContinental has modernized its fleet in r= ecent years and continues to do so. It will take delivery of 25 Boeing 787 = Dreamliner aircraft in 2009, and many of them will fly out of the New York = area.=0AFleet issues=0A"Over the next three years, we will spend more than = a couple of billion dollars on fleet issues," Kellner said.=0AJust how big = a deal is the New York-area hub for Continental?=0AThe amount of revenue Co= ntinental gets from New York-area flights is about to surpass revenue from = its Houston flights, executives say. That's despite the fact that Continent= al has more than 700 daily flights out of Houston, far more than New York.= =0ANew York "is critical, absolutely critical," to Continental, said aviati= on consultant Mike Boyd.=0AContinental serves 155 destinations from Newark,= including 74 abroad. In 1977, it served 26 international destinations from= Newark.=0ASuch expansion around New York has come at the expense of effici= ency, with the three New York-area airports rating consistently among the w= orst in on-time performance.=0AThe airlines need to work harder to reduce c= ongestion, said the Transportation Department's general counsel, D.J. Gribb= in.=0A"The operational improvements that have been proposed (by the airline= s) don't appear to be dramatic enough to meet demand," Gribbin said. "So we= have to come up with something as how to best meet demand."=0ABut Kevin Mi= tchell, chairman of the Business Travel Coalition and a member of the commi= ttee meeting with the government on congestion matters, suggested regulator= s are falling short.=0A"The FAA has not made a compelling case whatsoever a= bout caps or congestion pricing," Mitchell said. "They have brought in a lo= t of people designed to bolster the FAA's case for congestion pricing, but = it is just not compelling."=0Abill.hensel@xxxxxxxxx <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> If you wish to unsubscribe from the AIRLINE List, please send an E-mail to: "listserv@xxxxxxxxxxxxxxxxx". Within the body of the text, only write the following:"SIGNOFF AIRLINE".