CONTINENTAL AIRLINES SAYS COMPANY CULTURE, NOT NEW LAWS, IS THE KEY TO AVIATION SERVICE EXCELLENCE

Continental Airlines (NYSE: CAL) today said it agrees with the Inspector General of the U.S. Department of Transportation, who said that Customer Service Commitments have "been a plus for air travelers on a number of important fronts." In his report, the DOT Inspector General found that airlines take customer service more seriously, and stated, "Over the past year, we also have seen air carriers competing on the basis of customer service...."

Quality service is borne out of competition and the desire of one airline to excel over another to win business. Continental, with its new, bigger overhead bins and award-winning BusinessFirst product, has been in the forefront of that intense customer service competition. The traveling public has been the real winner, because of significant improvements made by all ATA carriers based on the Customer Service Commitments.

Continental also agreed with the Inspector General's call for "comprehensive action to increase system capacity to meet demand." As the DOT pointed out, one of the most frustrating aspects of air travel today is delays.

Continental looks forward to working with President Bush, the Department of Transportation, the Federal Aviation Administration, Congress, the nation's airports and its colleagues in the industry to make system enhancements and infrastructure investments that are essential if the industry is to meet increased demand by the traveling public. This work must begin today if our customers are to avoid the travel headaches of the past two summers.

Continental was pleased that, generally, the Inspector General's report put Continental in the top level of the industry in critical customer service areas, including baggage delivery and timely announcements to passengers about delays. Over the past several years, Continental has spent much time and effort focused on improving its award-winning, quality customer service.

But Continental's success at customer service depends on its employees. A spokesperson for the airline said, "We're proud of the way Continental's employees deliver an industry-leading product. There is no law in the country that can legislate whether an employee will come to work happy. Continental is proud to be in the top quarter of Fortune magazine's '100 Best Companies to Work For in America.'"

Continental's commitment to customer service will not end with the issuance of this report. The Inspector General has pointed out there is always room for improvement, and the airline recognizes that fact. Continental said it is pleased that the DOT has recognized, even since the Interim Report, that "evidence shows significant investment and progress by the Airlines" in meeting voluntary commitments.

Continental will continue to urge lawmakers to work with the industry, the aviation labor unions and the aviation community to implement policies to address the underlying issue that frustrates air travelers - delays.

In the meantime, Continental will carefully review the Inspector General's report and use its findings to fine-tune its award-winning customer service product.

Continental Airlines is the fifth largest airline in the U.S., offering more than 2,200 departures daily to 136 domestic and 92 international destinations. Operating hubs in Newark, Houston, Cleveland and Guam, Continental serves more international cities than any other U.S. carrier, including extensive service throughout the Americas, Europe and Asia.