Operating performance and cost structure have been better-than-average among peer U.S. "legacy airlines," due to lower labor costs (though this edge is narrowing) and a modern, fuel-efficient aircraft fleet. Participation in cyclical, capital-intensive, and price-competitive airline industry; Heavy debt and lease burden and weak balance sheet, following substantial capital expenditures and recent losses; and Limited financial flexibility, with no general committed bank revolving credit and few unencumbered assets for sale, secured borrowing, or sale-leasebacks Ratings on Continental Airlines Inc. reflect its participation in the high-risk airline industry, a heavy debt and lease burden, and limited financial flexibility, with no general bank lines and few unencumbered assets available for sale or borrowing. These factors outweigh better-than-average operating performance among its peer
