Continental Riffs

On the 36 channels of free TV programming offered by JetBlue Airways (JBLU): "They are a low-cost carrier, they are also an extremely low-RASM carrier, and their customers don't pay them a penny to watch those I Love Lucy reruns. ... It is a wasted investment in my mind."

Smisek said Continental will offer advanced video-on-demand options in some flights, particularly when it starts taking delivery of new-model Boeing 787s in 2009. But the company believes that in the future, airlines will offer in-flight Internet services that will allow passengers to control their own entertainment options.

On efforts by Delta Air Lines (DALRQ) to rapidly boost its transatlantic capacity: "Our successful international expansion is being copied by a lot of people, including at least one bankrupt airline in Atlanta. They've already gone through their stockholders money; now they are using their creditors' money. They are throwing a lot of capacity into the market. I predict they will lose their shirts on it."

Smisek added that when Continental adds routes, it is subject to "adult supervision."