News Release
Continental Responds to Justice Department Suit; Schedules Telephonic News Briefing
HOUSTON, October 23, 1998 -- Continental Airlines (NYSE: CAI.B and CAI.A) said that the U.S. Department of Justice has filed a lawsuit today against Northwest Airlines and Continental challenging Northwest's acquisition of an interest in Continental. The Justice Department is not seeking to enjoin the transaction, nor is it challenging the Northwest/Continental alliance at this time. Continental expects to implement its alliance with Northwest promptly after the closing of Northwest's acquisition of an equity interest in Continental.
The Department has informed Continental that it is continuing to investigate certain specific aspects of the alliance, and Continental does not intend to comment on the investigation of those aspects of the alliance pending completion of that investigation.
"We are creating a fourth global competitor to compete with the big three airlines and to bring more destinations, more frequencies and better service to consumers. Best of all, we have structured the transaction to ensure Continental's independence and preserve competition between Continental and Northwest," said Jeff Smisek, Continental's executive vice president and general counsel. "While disappointed that the Justice Department has filed this lawsuit, we will vigorously defend ourselves against these claims that we believe lack legal, economic or factual foundation. We are confident that we will prevail."
The suit was filed in federal court in Michigan.