Continental will soon be leaving the Sky Team alliance founded by Air France and Delta, and is in talks in joining Star Alliance founded by United and Lufthansa. Continental was previously in discussion with American Airlines and British Airways to join One World, since it has been granted slots at Heathrow's airport in London, but it is also in talks with United for a possible merger. I think that this plan on moving to an other alliance comes from the planned Delta/Northwest merger, the two carriers are in serious discussions for a merger since March 2008, Continental was then looking at United for an eventual merger.
Continental's move to Star would bring to the alliance a strong network in North and South America. The Newark hub would become the first Star Alliance hub in the New York City area, and also the Houston hub would bring to the alliance more connections to Latin America. Star Alliance has no major partner in Latin America after Brazilian carrier Varig left. Star's only presence in South America is TAP Air Portugal, the Portuguese carrier has quite a number of weekly flights to Brazil.
The other plan for the future is trimming the fleet. Continental is in the process of phasing out older 737's, 300 and 500 series, in the near term future as newer models, 800 and 900ER series are delivered. Continental's Next Generation's 737 fleet is growing, over 100 of the 800 series will be in the fleet once all aircraft are delivered, the above picture shows one of them. Continental's future fleet will consist of NG737's (700/800/900/900ER series), 757-200/300, 767-200ER/400ER, 777-200ER and 787. The last Classic 737 will be gone early next decade. Continental Express is parking its fleet of Embraer 135's but the 145's will continue to fly longer.
