Continental Airlines’ Brenneman Quits as President

Continental Airlines Inc. on Wednesday announced the resignation of President Greg Brenneman, who with Chief Executive Gordon Bethune oversaw a turnaround at the No. 5 U.S. carrier.

Separately Wednesday, Delta Air Lines Inc., freeing up Chairman Leo Mullin to focus less on day-to-day matters and more on broader airline industry issues, named Frederick Reid president and chief operating officer.

Reid, formerly Delta’s chief marketing officer, earlier had been president and operating chief at German carrier Lufthansa. He will focus on internal management at Delta, heading a team responsible for day-to-day operations, strategic alliances and customer service.

At Continental, Bethune said he expects Chief Financial Officer Larry Kellner, 42, to be named president at the company’s next board meeting May 15.

Brenneman, 39, was a consultant to the Houston-based airline in 1994 when he and Bethune hatched a plan to improve service and operating performance. The two have been partners for six years, during which time the airline has posted 24 consecutive profitable quarters.

In addition to the role of president, Brenneman was chief operating officer. Bethune said he expected Continental to promote two executives to fill those slots.

In 1994 the airline--which filed for bankruptcy in both 1983 and 1990--was losing money, while in the recent first quarter, Continental was one of only two major carriers to post a profit as the U.S. economy cooled.

However, last year Bethune and Brenneman disagreed at a board meeting over Texas financier and Continental board member David Bonderman’s right to buy a large stake in Continental held by Northwest Airlines Corp., industry sources said.

The disagreement led to rumors of a management shake-up. In its announcement Wednesday, Continental did not say why Brenneman was resigning.

In New York Stock Exchange trading, Continental shares rose 83 cents to close at $51.25. Delta rose $2.26 to close at $46.