Gordon Bethune and the Complete Transformation of Continental Airlines
Case 02
Gordon Bethune and the complete transformation of Continental Airlines
Overview
When Gordon Bethune left his job at Boeing in February 1994 to accept the position of chief operating officer (COO) of Continental Airlines, the company was struggling to survive. Even though it was the fifth largest commercial airline in the United States, with revenues of nearly 6 billion dollars, the company had reported a net loss every year since 1985, and was ranked the last among the top ten commercial airlines in the United States in terms of operational performance and customer satisfaction-Continental was the last among the ten largest airlines in the United States in punctuality of arrivals, had the highest number of reports of mishandled baggage per 1,000 passengers, and a much larger number of complaints per 100,000 passengers, passenger complaints about different aspects of their experience in Continental flights were 30 percent higher than those of the airline ranked in ninth place , and three times the industry average.
Bethune was well informed that Continental Airlines had serious operational problems and, like most operating executives, seeking the challenge of solving problems and making the company to resume its path. However, Bethune was disappointed after four months on the job, because the President (CEO) most frustrated his efforts to improve the operations of the company. To ensure that you do not leave Bethune, Continental 's board agreed to give greater authority and promotion to CEO a few months later.
When Bethune took over as CEO, knew that the road ahead was going to be difficult. In the previous decade, Continental had experienced ten different CEO. Employees were gone over numerous internal reorganizations, revitalization efforts and changes, and changes in strategy, despite the encouraging words of the overcharges and promises of change. Many employees were disillusioned and morale was low, most trying to do his job the best way
Gordon Bethune and the complete transformation of Continental Airlines
Overview
When Gordon Bethune left his job at Boeing in February 1994 to accept the position of chief operating officer (COO) of Continental Airlines, the company was struggling to survive. Even though it was the fifth largest commercial airline in the United States, with revenues of nearly 6 billion dollars, the company had reported a net loss every year since 1985, and was ranked the last among the top ten commercial airlines in the United States in terms of operational performance and customer satisfaction-Continental was the last among the ten largest airlines in the United States in punctuality of arrivals, had the highest number of reports of mishandled baggage per 1,000 passengers, and a much larger number of complaints per 100,000 passengers, passenger complaints about different aspects of their experience in Continental flights were 30 percent higher than those of the airline ranked in ninth place , and three times the industry average.
Bethune was well informed that Continental Airlines had serious operational problems and, like most operating executives, seeking the challenge of solving problems and making the company to resume its path. However, Bethune was disappointed after four months on the job, because the President (CEO) most frustrated his efforts to improve the operations of the company. To ensure that you do not leave Bethune, Continental 's board agreed to give greater authority and promotion to CEO a few months later.
When Bethune took over as CEO, knew that the road ahead was going to be difficult. In the previous decade, Continental had experienced ten different CEO. Employees were gone over numerous internal reorganizations, revitalization efforts and changes, and changes in strategy, despite the encouraging words of the overcharges and promises of change. Many employees were disillusioned and morale was low, most trying to do his job the best way