Operating performance has been better than those of other peer U.S. "legacy airlines," reflecting productivity made possible by more flexible work rules 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 and a heavy debt and lease burden. These factors outweigh better-than-average operating performance among its peer large U.S. hub-and-spoke airlines. Continental, the fifth-largest U.S. airline, serves markets mainly in the southern and eastern
