Continental Airlines' CEO Gordon Bethune on teams and new product development

Abstract

Executive Overview Continental Airlines is the fifth largest airline in the U.S., operating more than 2,200 flights daily to over 200 destinations worldwide. The company began in Texas in 1934 as Varney Speed Lines. With $7.2 billion in revenues in 1997, and record-breaking pretax profits for the last three years, the company has made a dramatic turnaround from bankruptcy in 1994 to become one of America's most admired corporations. Continental has received many prestigious awards, including Airline of the Year in 1997 by Air Transport World and Best Managed U.S. Carrier in 1997 by Aviation Week & Space Technology. The company ranked first in customer service for three of the last four years in the J. D. Power Airline Customer Satisfaction study. Headquartered in Houston, the company operates hubs in Newark, Houston, and Cleveland, and has alliances with many carriers around the world. In 1999, Continental was named one of the 100 Best Companies to Work for in America by Fortune, and one of the 100 U.S. companies providing the most opportunities for Hispanics by Hispanic magazine. Among the benefits enjoyed by Continental's 48,000 employees are profit sharing, on-time flight bonuses, and drawings to win sport utility vehicles for perfect attendance. Gordon Bethune joined Continental in 1994 as president and COO, and became CEO later that year and chairman of the board in 1996. He was named one of the top 25 global managers by Business Week in 1996, and was ranked sixth among the 50 best CEOs in 1999 by Worth magazine. He has held senior management positions in several aircraft and airline companies, and has worked as a U.S. navy officer and an airframe and power plant mechanic. Mr. Bethune earned a bachelor of science degree from Abilene Christian University after completing his high school degree in his thirties. He is a licensed commercial pilot and flies Boeing 757 and 767 aircraft. He is the author of From Worst to First: Behind the Scenes of Continental's Remarkable Comeback, which was published in 1998.