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    Continental Airline

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    Rabia Bilal
    Continental Airlines faced massive failures under previous management that nearly destroyed the company, but saw a remarkable turnaround under new CEO Gordon Bethune starting in 1994. Bethune focused on improving customer service, employee satisfaction, and operational performance. He instituted an open-door policy, improved employee pay and benefits, and prioritized on-time performance. This renewed focus transformed Continental's workforce morale and customer satisfaction ratings. By 1996, Continental was awarded best airline for customer satisfaction and was named Airline of the Year in 1997 after Bethune's transformation salvaged the company from near collapse.

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    Continental Airline

    Uploaded by

    Rabia Bilal
    148 views14 pages
    Continental Airlines faced massive failures under previous management that nearly destroyed the company, but saw a remarkable turnaround under new CEO Gordon Bethune starting in 1994. Bethune focused on improving customer service, employee satisfaction, and operational performance. He instituted an open-door policy, improved employee pay and benefits, and prioritized on-time performance. This renewed focus transformed Continental's workforce morale and customer satisfaction ratings. By 1996, Continental was awarded best airline for customer satisfaction and was named Airline of the Year in 1997 after Bethune's transformation salvaged the company from near collapse.

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    Continental Airline

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    Continental Airlines faced massive failures under previous management that nearly destroyed the company, but saw a remarkable turnaround under new CEO Gordon Bethune starting in 1994. Bethune focused on improving customer service, employee satisfaction, and operational performance. He instituted an open-door policy, improved employee pay and benefits, and prioritized on-time performance. This renewed focus transformed Continental's workforce morale and customer satisfaction ratings. By 1996, Continental was awarded best airline for customer satisfaction and was named Airline of the Year in 1997 after Bethune's transformation salvaged the company from near collapse.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    148 views14 pages

    Continental Airline

    Uploaded by

    Rabia Bilal
    Continental Airlines faced massive failures under previous management that nearly destroyed the company, but saw a remarkable turnaround under new CEO Gordon Bethune starting in 1994. Bethune focused on improving customer service, employee satisfaction, and operational performance. He instituted an open-door policy, improved employee pay and benefits, and prioritized on-time performance. This renewed focus transformed Continental's workforce morale and customer satisfaction ratings. By 1996, Continental was awarded best airline for customer satisfaction and was named Airline of the Year in 1997 after Bethune's transformation salvaged the company from near collapse.

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    of 14

    Continental Airline

    (Salvaging from the Ashes)

    Presented By:
    Muhammad Bilal Shaikh (1339112)
    Faheem Sajid (1339105)
    Reference:Chapter 10
    Marketing Success and Failures 11Ed

    Continental Airline
    Introduction
    Massive marketing and management blunders almost

    destroyed continental airline, burden only a few years,


    with a remarkable turnaround by new management
    continental become a star of the Airline industry.

    Continental Airline
    Introduction
    Massive marketing and management blunders almost

    destroyed continental airline, burden only a few years,


    with a remarkable turnaround by new management
    continental become a star of the Airline industry.
    In this case study we will look at the scenario leading to

    continental difficulties and then examine the ingredient of


    the great comeback.

    Continental Airline
    Lorenzo (CEO Continental
    Airline)
    In 1981Texas Air Corporation,

    an airline holding company


    controlled by U.S. aviation
    entrepreneurFrank Lorenzo,
    acquired Continental after a
    contentious battle with
    Continental's management
    who were determined to resist
    Lorenzo.

    LORENZOS TREATMENT OF
    CONTINENTAL
    Continental's labor resisted Lorenzos tactics.
    Labor believed that Lorenzo wanted to make a non-union

    airline.
    In 1983 Lorenzo took Continental into Bankruptcy court.
    In 1986 Continental Emerged out Bankruptcy due to deals
    with weak Eastern Airline.
    Now continental with its non union workforce making it a
    low cost operator.
    Inconsistent planning
    Poor execution characterize his lack of good operational
    strength.
    From 1983-1993 nine President left continental.

    He instituted of program of severe

    downsizing . In 1989 some 8500 machinists


    and 3800 pilots went on strike and then again
    Continental Airline fallen into bankruptcy and
    replace many of striking pilots and machinists
    within month.
    In 1993 the court approved a recognition plan
    for continental plan to emerge from
    bankruptcy.
    The first airline survive to bankruptcy.

    G reat com eback under Bethune


    In 1994 Bethune joined continental as a

    president .
    And he faced daunting challenges.
    On time percentage (land within 15 minutes)
    Number of mishandled baggage report field per
    1000 passengers.
    Number of complaints per 100000 passengers.
    In voluntarily denied boarding.

    In 1995 Bethune become CEO

    and he made dramatic changes


    through a renewed focus on
    flight schedule and incentive
    pay.
    He greatly improve on-time
    performance along with lost
    baggage claims and customer
    complaints.
    In 1996 continental was
    awarded the JD Power award as
    the best airline for customer
    satisfaction on flight 500 miles
    and more.
    In 1997 it was name Airline of
    the year.

    Bethune had transformed the workforce into a

    happy one has measured by three statistics.


    wages up an average of 25%.
    Sick leave down more than 29%
    Personal turnover down 45%
    Workers compensation claims down 51%
    On job injuries down 54%

    H ow did Bethune D O IT
    Open door policy
    Improvement in employee relationship
    Improve the morale of their employees.
    Bethune work hard instill a sprit of teamwork

    by giving on time bonus to all employees not


    just pilots.
    He reject the legacy of cost cutting .
    He even gave the plans a new paint jobs.
    Better communication was also a key elements
    in improve employee relation with the sprit of
    teamwork.

    Bethune sort to do a better job of designing

    routers with good demand to fly places people


    wanted to go.
    Company apologies to the travel agents,
    business partners and customers.
    Performance

    In 2006 awards continued to showered on the

    airline.
    Now continental running on the best business
    class of any US Airline on the foreign routes
    and best premium services on bet domestic
    groups.
    It catered to business travelers who paid the
    highest fairs and flew most frequently with
    more comfortable seats special waiting areas
    and bags tagged for first unloading.

    You can make an airline so cheap no

    body want s to fly it.

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