News Release
Continental Airlines to Acquire Stake in Colombian Airline Aces
HOUSTON, May 21, 1998 -- Continental Airlines (NYSE: CAI.B and CAI.A) and Aerolineas Centrales de Colombia S.A. (ACES), a South American carrier based in Medellin, Colombia, today announced that Continental has agreed to acquire a minority ownership stake in ACES of approximately 19 percent. The transaction is expected to close by mid-summer. Continental and ACES established a cooperative marketing alliance in 1997.
"Continental's investment in ACES reinforces our established marketing alliance with this valued partner," said Gordon Bethune, chairman and chief executive officer of Continental Airlines. "ACES' ability to consistently deliver superior customer service and its prospects for continued growth within and beyond Colombia make it an ideal alliance partner and a promising investment."
With the existing marketing alliance, Continental and ACES frequent flyer members are now able to earn and redeem frequent flyer miles on either carrier. Travelers will soon enjoy streamlined connections between both carriers, including the ability to check-in at their point of origin through to their final destination.
"Continental's outstanding achievements in service and customer satisfaction made it a preferred marketing alliance partner," stated Juan Emilio Posada, president of ACES. "We are pleased that the synergies will be further exploited in all fields of the business for our mutual benefit, in light of Continental's anticipated investment in ACES."
"Continental, ACES and our other global partners are committed to building an alliance network that provides our customers with expanded access, optimal convenience and unsurpassed customer service throughout the world," said David Grizzle, senior vice president for corporate development. "With its strategic and growing network within Colombia and Latin America, ACES represents a key component of our global partnership. This relationship does not alter Continental's strong opposition to the market-dominating arrangement currently proposed by American Airlines and Avianca."
ACES began service as a regional airline in 1972 and now offers 190 daily departures to 30 Colombian cities, including Bogota, Medellin, Cali, Barranquilla, Cartagena, Bucaramanga, Manizales, Armenia and Pereira. ACES also serves Miami from both Bogota and Medellin, and offers further international service to Santo Domingo, Punta Cana, and Puerto Plata in the Dominican Republic, San Juan, Puerto Rico and Panama City, Panama. For six consecutive years, ACES has been awarded the best domestic airline for excellence in service by Anato (Travel Agents Association of Colombia). In 1996, the carrier earned an excellence award in service among all international carriers serving Colombia. Earlier this year, ACES earned the "Civil Aviation Merit Gold Cross," the highest award given by the Colombian government to an airline operating in the country.
Continental is the fifth largest airline in the U.S., offering more than 2,000 departures daily to 122 domestic and 70 international destinations. Operating major hubs in Newark, Houston, Cleveland and Guam, Continental is strategically positioned for transcontinental travel, and offers extensive service to Latin America and Europe via its Houston and Newark gateways. Continental is the second largest U.S. carrier to Latin America serving 36 destinations in 18 countries in Mexico, Central and South America and the Caribbean. Latin America is the fastest growing region in Continental's system with nearly a 40 percent increase in capacity from the U.S in 1997.