Continental started out as one of the smaller carriers in the United States, known for its limited operations under the regulated era that provided very fine, almost fancy, service against the larger majors in important point-to-point markets, the largest of which was Chicago/Los Angeles.

The companies were merged in 1982, moved to Houston, and grew into one of the country's largest carriers despite facing financial and labor issues, eventually becoming one of the more successful airlines in the United States.

Following cancellation of all domestic airmail contracts by the Roosevelt administration in 1934, Robert F. Six learned of an opportunity to buy into the Southwest Division of Varney Speed Lines which needed money to handle its newly won Pueblo-El Paso route.

It developed the "progressive maintenance" program, which enabled Continental to fly its 707 fleet seven days a week, achieving greater aircraft utilization than any other jet operator in the industry.

[7][page needed] Six, not being satisfied with 707 service, introduced innovations and luxe cuisine on Continental's 707 flights which were described as, "... nothing short of luxurious" by the Los Angeles Times, and, "... clearly, the finest in the airline industry" by the Chicago Tribune.

[11] In the early 1960s, Continental added flights from Los Angeles to Houston, nonstop as well as via Phoenix, Tucson, El Paso, Midland-Odessa, Austin, and/or San Antonio.

[7][8][page needed] By late 1963, Continental had discontinued service to most of its smaller cities in Kansas, Oklahoma, New Mexico, and Texas with the exception of Lawton, OK and Wichita Falls, TX which continued operating with DC-9 and 727 jets until 1977.

In 1968 a new livery was launched: orange and gold cheatlines on a white fuselage; and a black "jetstream" logo (by Six's friend, the noted graphic designer Saul Bass) on the iconic "Golden Tails" of the airline's aircraft.

During the Vietnam War, Continental provided extensive cargo and troop transportation for United States Army and Marine Corps forces to Asian and the Pacific bases.

Continental's long range Boeing 707-324Cs were the most common non-military aircraft transiting Saigon Tan Son Nhat airport;[11] in 1967, 39% of CO's passenger-miles were on scheduled flights.

With Continental's experience in Pacific operations, the carrier formed subsidiary Air Micronesia in May 1968, inaugurating island hopping routes between Yap/Saipan/Guam, Majuro, Rota, Truk, Ponape (Pohnpei) and Honolulu.

[7] "Air Mike", as it was known, initially operated with Boeing 727-100 aircraft with open-ocean survival gear, doppler radar, and a large complement of spare parts (including tires).

Its upper-deck first class lounge and main deck "Polynesian Pub" won awards worldwide for the most refined cabin interior among all airlines, as did meal services developed by Continental's Cordon Bleu-trained executive chef, Lucien DeKeyser.

Both airlines served the Pacific Northwest and Rocky Mountain states, but along different routes from Los Angeles, Denver, San Francisco, Seattle and Phoenix.

Davies: "Unfortunately, the policies that had been successful for more than forty years under (Robert) Six's cavalier style of management were suddenly laid bare as the cold winds of airline deregulation changed all the rules -- specifically, the balance between revenues and expenditures.

After 19 months of negotiations, the International Association of Mechanics and Aerospace Workers went on strike in August 1983, even though the company was offering 20 percent pay raises in return for substantial productivity improvements.

The PeopleExpress acquisition also provided the option to acquire Terminal C at Newark Liberty International Airport and allow Continental to build a formidable hub in the New York market.

On December 3, 1990, due to the 1990 Iraqi invasion of Kuwait and the resultant Gulf War, which had prompted a dramatic increase in the price of jet fuel, Continental filed for bankruptcy.

While at Continental, Bethune created the Go-Forward plan, to fix problems with the airline, which included employee morale, the quality of the product, and the route structure, among others.

[63] In June 2008, due to national and international economic conditions, Continental cut 3,000 jobs and the CEO and president had reduced salaries for the remainder of the year.

The biofuel blend included components derived from algae and jatropha plants, both sustainable, second-generation sources that do not impact food crops or water resources or contribute to deforestation.

The alliance took effect about a year after Delta Air Lines and Northwest Airlines completed their merger, as that released Continental from the SkyTeam contract and allowed for the required nine-month notice.

Continental's CEO, Larry Kellner, commented "This is a good step forward, an opportunity to really make a difference to the environment" citing jatropha's 50–60% lower CO2 emissions as opposed to Jet-A1 in its lifecycle.

In March 2008, an Open Skies Agreement between the U.S. and the European Union became effective, invalidating Bermuda II restrictions that had limited the number of carriers and cities in the U.S. that could serve London-Heathrow.

[140] Continental offered the most destinations of any of the U.S. carriers to Germany, India, Ireland, Japan, Mexico and the United Kingdom, and was the only U.S. airline that flew to the Federated States of Micronesia, Marshall Islands, and Norway.

Previously, customers originating at these and similar cities needed to connect at European gateways like London Heathrow, Paris Charles de Gaulle, or Frankfurt, in order to travel to New York.

Continental had begun deploying BusinessFirst seats that allowed customers to lie completely flat, reclining 180-degrees and providing 6+1⁄2 feet (2.0 m) of sleeping space in the fully extended position on its 777-200ER and 757-200 aircraft.

[163] On March 1, 2011, Continental stopped serving free snacks on domestic flights to coach passengers in order to align itself with the policy of United Airlines.

[170] On December 16, 2009, Continental Airlines, announced that, beginning in the second quarter 2010(see note) it will offer Gogo Inflight Internet service on its fleet of 21 Boeing 757-300 aircraft that primarily serve domestic routes.

OnePass offered regular travelers the privilege to obtain free tickets, First Class upgrades on flights, discounted membership for its airport lounge (President's Club), and other types of rewards.