United Airlines FWP Free writing prospectus

Issuer Free Writing Prospectus
Filed pursuant to Rule 433(d)
Registration No. 333-133187
March 27, 2007

Continental Airlines, Inc. (“Continental”)

(NYSE Symbol: CAL)

Continental is increasing the size of the 2007-1 EETC transaction in order to finance more aircraft. This free writing prospectus sets forth the corresponding material changes to Continental’s Preliminary Prospectus Supplement dated March 27, 2007 (the “Supplement”), relating to the Certificates referred to below, and should be read together with the Supplement and the accompanying Prospectus dated April 10, 2006. The information herein supersedes any inconsistent information set forth in the Supplement.

Aircraft to be Financed: 30 total Aircraft, consisting of 12 Boeing 737-824 and 18 Boeing 737-924ER aircraft, to be selected by Continental from the 39 aircraft described in the Supplement.

Aggregate Appraised Aircraft Value (1):		$1,568,874,300
Aggregate Face Amount:		$1,146,810,000
Initial Amount of Deposits:		$1,146,810,000
Securities:	Class A Pass Through Certificates, Series 2007-1 (“Class A Certificates”)	Class B Pass Through Certificates, Series 2007-1 (“Class B Certificates”)	Class C Pass Through Certificates, Series 2007-1 (“Class C Certificates” and, together with the Class A Certificates and the Class B Certificates, the “Certificates”)
Face Amount:	$756,762,000	$221,850,000	$168,198,000
Initial LTV (cumulative) (1):	48.2%	62.4%	73.1%
Highest LTV (cumulative) (2):	48.9%	63.3%	73.9%

(1)	Determined as of April 19, 2009, the first Regular Distribution Date after all aircraft expected to be financed pursuant to the offering are scheduled to have been delivered.
(2)	See “Loan to Value Ratios” below.

2

Equipment Notes and the Aircraft

     The 30 Boeing aircraft to be financed pursuant to this offering will consist of 12 Boeing 737-824 aircraft and 18 Boeing 737-924ER aircraft. Such Boeing 737-824 and 737-924ER aircraft will be selected by Continental from among 15 Boeing 737-824 aircraft and 24 Boeing 737-924ER aircraft, respectively, which are scheduled for delivery from January 2008 to March 2009. See “Description of the Aircraft and the Appraisals—The Appraisals” in the Supplement for a description of the 39 aircraft from which Continental may select the 30 aircraft that may be financed with the proceeds of this offering. Set forth below is certain information about the Equipment Notes expected to be held in the Trusts and the aircraft expected to secure such Equipment Notes (assuming for purposes of the chart below that the first 12 Boeing 737-824 aircraft of the 15 Boeing 737-824 aircraft and the first 18 Boeing 737-924ER aircraft of the 24 Boeing 737-924ER aircraft from which Continental may choose are financed hereunder):

		Expected
	Expected	Manufacturer’s
	Registration	Serial	Scheduled Delivery	Principal Amount of		Appraised Base
Aircraft Type	Number	Number	Month	Equipment Notes		Value (1)
Boeing 737-824	N87507	31637	January 2008	$	35,296,000	$	48,900,000
Boeing 737-824	N76508	31638	February 2008		35,296,000		49,000,000
Boeing 737-824	N78509	31639	February 2008		35,296,000		49,000,000
Boeing 737-824	N77510	32828	April 2008		35,296,000		49,200,000
Boeing 737-824	N78511	33458	May 2008		35,296,000		49,300,000
Boeing 737-824	N87512	33459	May 2008		35,296,000		49,300,000
Boeing 737-824	N87513	31621	June 2008		35,296,000		49,400,000
Boeing 737-824	N76514	31626	July 2008		35,296,000		49,500,000
Boeing 737-824	N76515	37096	August 2008		35,296,000		49,600,000
Boeing 737-824	N76516	31623	August 2008		35,296,000		49,600,000
Boeing 737-824	N76517	31628	September 2008		35,296,000		49,700,000
Boeing 737-824	N77518	31605	November 2008		35,296,000		49,900,000
Boeing 737-924ER	N37413	31664	January 2008		40,181,000		55,810,000
Boeing 737-924ER	N47414	32827	January 2008		40,181,000		55,810,000
Boeing 737-924ER	N39415	32826	February 2008		40,181,000		55,909,000
Boeing 737-924ER	N39416	37093	February 2008		40,181,000		55,909,000
Boeing 737-924ER	N38417	31665	March 2008		40,181,000		56,000,000
Boeing 737-924ER	N39418	31666	March 2008		40,181,000		56,000,000
Boeing 737-924ER	N37419	33456	March 2008		40,181,000		56,000,000
Boeing 737-924ER	N37420	33457	April 2008		40,181,000		56,092,000
Boeing 737-924ER	N27421	37094	April 2008		40,181,000		56,092,000
Boeing 737-924ER	N37422	31620	May 2008		40,181,000		56,184,000
Boeing 737-924ER	N39423	32829	June 2008		40,181,000		56,273,000
Boeing 737-924ER	N38424	33460	June 2008		40,181,000		56,273,000
Boeing 737-924ER	N75425	37095	June 2008		40,181,000		56,273,000
Boeing 737-924ER	N75426	31622	July 2008		40,181,000		56,365,000
Boeing 737-924ER	N37427	37097	September 2008		40,181,000		56,550,000
Boeing 737-924ER	N75428	30130	October 2008		40,181,000		56,642,000
Boeing 737-924ER	N75429	31633	December 2008		40,181,000		56,825,000
Boeing 737-924ER	N77430	37098	December 2008		40,181,000		56,825,000

(1) The appraised base value of each Aircraft set forth above is the lesser of the average and median values of such Aircraft as appraised by three independent appraisal and consulting firms, projected as of the scheduled delivery month of each Aircraft. These appraisals are based upon varying assumptions and methodologies. An appraisal is only an estimate of value and should not be relied upon as a measure of realizable value. See “Risk Factors—Risk Factors Relating to the Certificates and the Offering—The Appraisals Are Only Estimates of Aircraft Value” in the Supplement. The appraised value of each of the other Boeing 737-824 and 737-924ER aircraft that Continental may choose to finance pursuant to this offering is equal to or higher than the appraised value of each of the Aircraft of the same model listed above. See “Description of the Aircraft and the Appraisals—The Appraisals” in the Supplement.

 3

Loan to Aircraft Value Ratios

     The following table sets forth loan to Aircraft value ratios (“LTVs”) for each Class of Certificates as of April 19, 2009 (the first Regular Distribution Date that occurs after all Aircraft assumed to be financed in this Offering are scheduled to have been delivered) and each Regular Distribution Date thereafter. The LTVs for any Class of Certificates for the period prior to April 19, 2009 are not meaningful, since during such period all of the Equipment Notes expected to be acquired by the Trusts and the related Aircraft will not be included in the calculation. The table should not be considered a forecast or prediction of expected or likely LTVs but simply a mathematical calculation based on one set of assumptions. See “Risk Factors—Risk Factors Relating to the Certificates and the Offering—Appraisals and Realizable Value of Aircraft” in the Supplement.

	Assumed
	Aggregate		Outstanding Balance (2)						LTV(3)
Regular	Aircraft		Class A			Class B	Class C		Class A	Class B	Class C
Distribution Date	Value(1)		Certificates		Certificates		Certificates		Certificates	Certificates	Certificates
April 19, 2009	$	1,568,874,300	$	756,762,000	$	221,850,000	$	168,198,000	48.2%	62.4%	73.1%
October 19, 2009		1,551,289,440		756,762,000		221,850,000		168,198,000	48.8	63.1	73.9
April 19, 2010		1,520,747,340		743,360,009		219,920,115		148,867,500	48.9	63.3	73.1
October 19, 2010		1,503,162,480		729,988,736		217,919,896		129,737,849	48.6	63.1	71.7
April 19, 2011		1,472,620,380		716,666,409		215,870,732		110,793,416	48.7	63.3	70.8
October 19, 2011		1,455,035,520		703,393,027		213,772,623		92,010,996	48.3	63.0	69.4
April 19, 2012		1,424,493,420		690,168,590		211,625,569		73,372,415	48.5	63.3	68.5
October 19, 2012		1,406,908,560		676,993,099		209,429,569		54,863,067	48.1	63.0	66.9
April 19, 2013		1,376,366,460		663,866,552		207,184,625		36,470,967	48.2	63.3	65.9
October 19, 2013		1,358,781,600		650,788,951		204,890,735		18,186,105	47.9	63.0	64.3
April 19, 2014		1,328,239,500		637,760,295		202,547,899		0	48.0	63.3	N/A
October 19, 2014		1,310,654,640		624,780,585		200,156,119		0	47.7	62.9	N/A
April 19, 2015		1,280,112,540		611,849,820		197,715,393		0	47.8	63.2	N/A
October 19, 2015		1,262,527,680		598,131,283		162,055,583		0	47.4	60.2	N/A
April 19, 2016		1,231,985,580		584,494,081		133,176,207		0	47.4	58.3	N/A
October 19, 2016		1,214,400,720		570,938,213		109,511,844		0	47.0	56.0	N/A
April 19, 2017		1,183,858,620		557,463,679		89,915,632		0	47.1	54.7	N/A
October 19, 2017		1,166,273,760		544,070,480		73,533,539		0	46.7	53.0	N/A
April 19, 2018		1,135,731,660		530,758,614		59,720,179		0	46.7	52.0	N/A
October 19, 2018		1,118,146,800		517,528,083		47,981,302		0	46.3	50.6	N/A
April 19, 2019		1,087,604,700		504,378,887		37,933,787		0	46.4	49.9	N/A
October 19, 2019		1,070,019,840		489,783,518		29,277,349		0	45.8	48.5	N/A
April 19, 2020		1,039,477,740		459,459,463		21,774,225		0	44.2	46.3	N/A
October 19, 2020		1,021,892,880		392,590,109		15,234,387		0	38.4	39.9	N/A
April 19, 2021		991,350,780		271,590,366		9,504,638		0	27.4	28.4	N/A
October 19, 2021		973,765,920		113,669,889		4,460,485		0	11.7	12.1	N/A
April 19, 2022		943,223,820		0		0		0	N/A	N/A	N/A

(1)	We have assumed that the initial appraised value of each Aircraft, determined as described under “—Equipment Notes and the Aircraft” above, declines by approximately 3% per year after the delivery of such Aircraft. Other rates or methods of depreciation may result in materially different LTVs. We cannot assure you that the depreciation rate and method used for purposes of the table will occur or predict the actual future value of any Aircraft. See “Risk Factors—Risk Factors Relating to the Certificates and the Offering—The Appraisals Are Only Estimates of Aircraft Value” in the Supplement.
(2)	In calculating the outstanding balances of each Class of Certificates, we have assumed that the Trusts will acquire the Equipment Notes for all Aircraft. Outstanding balances as of each Distribution Date are shown after giving effect to distributions expected to be made on such distribution date.
(3)	The LTVs for each Class of Certificates were obtained for each Regular Distribution Date by dividing (i) the expected outstanding balance of such Class together with the expected outstanding balance of each other Class senior in right of payment to such Class after giving effect to the distributions expected to be made on such date, by (ii) the assumed value of all of the Aircraft on such date based on the assumptions described above. For the purposes of these calculations it has been assumed that the first 12 Boeing 737-824 aircraft of the 15 Boeing 737-824 aircraft and the first 18 Boeing 737-924ER aircraft of the 24 Boeing 737-924ER aircraft from which Continental may choose are financed hereunder. The outstanding balances and LTVs of each Class of Certificates will change if the Trusts do not acquire Equipment Notes with respect to all the Aircraft. The LTVs will change if the Trusts acquire Equipment Notes with respect to the other aircraft from which Continental may choose.

 4

Assumed Amortization Schedule and resulting Pool Factors:

     The following table sets forth the expected aggregate principal amortization schedule for the Equipment Notes held in each Trust (the “Assumed Amortization Schedule”) and resulting Pool Factors with respect to such Trust. The scheduled distribution of principal payments for any Trust would be affected if Equipment Notes with respect to any Aircraft are not acquired by such Trust, if any Equipment Notes held in such Trust are redeemed or purchased or if a default in payment on such Equipment Notes occurs. Accordingly, the aggregate principal amortization schedule applicable to a Trust and the resulting Pool Factors may differ from those set forth in the following table.

	Class A			Class B			Class C
	Scheduled Principal		Expected	Scheduled Principal		Expected	Scheduled Principal		Expected
Date	Payments		Pool Factor	Payments		Pool Factor	Payments		Pool Factor
Issuance Date	$	0.00	1.0000000	$	0.00	1.0000000	$	0.00	1.0000000
October 19, 2007		0.00	1.0000000		0.00	1.0000000		0.00	1.0000000
April 19, 2008		0.00	1.0000000		0.00	1.0000000		0.00	1.0000000
October 19, 2008		0.00	1.0000000		0.00	1.0000000		0.00	1.0000000
April 19, 2009		0.00	1.0000000		0.00	1.0000000		0.00	1.0000000
October 19, 2009		0.00	1.0000000		0.00	1.0000000		0.00	1.0000000
April 19, 2010		13,401,991.20	0.9822903		1,929,885.06	0.9913009		19,330,499.86	0.8850730
October 19, 2010		13,371,272.52	0.9646213		2,000,218.62	0.9822849		19,129,651.62	0.7713400
April 19, 2011		13,322,327.28	0.9470169		2,049,163.86	0.9730482		18,944,432.59	0.6587083
October 19, 2011		13,273,382.04	0.9294772		2,098,109.10	0.9635908		18,782,420.28	0.5470398
April 19, 2012		13,224,436.68	0.9120022		2,147,054.34	0.9539129		18,638,581.14	0.4362264
October 19, 2012		13,175,491.56	0.8945918		2,195,999.58	0.9440143		18,509,347.26	0.3261814
April 19, 2013		13,126,546.32	0.8772462		2,244,944.82	0.9338951		18,392,100.35	0.2168335
October 19, 2013		13,077,601.08	0.8599652		2,293,890.06	0.9235553		18,284,862.24	0.1081232
April 19, 2014		13,028,655.84	0.8427488		2,342,835.30	0.9129948		18,186,104.66	0.0000000
October 19, 2014		12,979,710.60	0.8255972		2,391,780.54	0.9022137		0.00	0.0000000
April 19, 2015		12,930,765.36	0.8085102		2,440,725.78	0.8912120		0.00	0.0000000
October 19, 2015		13,718,536.50	0.7903823		35,659,809.66	0.7304737		0.00	0.0000000
April 19, 2016		13,637,202.24	0.7723618		28,879,376.22	0.6002984		0.00	0.0000000
October 19, 2016		13,555,867.98	0.7544488		23,664,362.88	0.4936301		0.00	0.0000000
April 19, 2017		13,474,533.72	0.7366433		19,596,212.16	0.4052992		0.00	0.0000000
October 19, 2017		13,393,199.46	0.7189453		16,382,093.22	0.3314561		0.00	0.0000000
April 19, 2018		13,311,865.20	0.7013547		13,813,360.26	0.2691917		0.00	0.0000000
October 19, 2018		13,230,530.94	0.6838717		11,738,876.94	0.2162781		0.00	0.0000000
April 19, 2019		13,149,196.68	0.6664961		10,047,514.62	0.1709884		0.00	0.0000000
October 19, 2019		14,595,369.06	0.6472094		8,656,437.54	0.1319691		0.00	0.0000000
April 19, 2020		30,324,055.14	0.6071387		7,503,123.96	0.0981484		0.00	0.0000000
October 19, 2020		66,869,353.62	0.5187762		6,539,838.78	0.0686698		0.00	0.0000000
April 19, 2021		120,999,742.86	0.3588848		5,729,748.84	0.0428426		0.00	0.0000000
October 19, 2021		157,920,477.48	0.1502056		5,044,153.02	0.0201059		0.00	0.0000000
April 19, 2022		113,669,888.64	0.0000000		4,460,484.84	0.0000000		0.00	0.0000000

Additional Information

     The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Morgan Stanley toll-free 1-866-718-1649 (institutional investors)