Gordon Bethune’s Revival of Continental Airlines

Anthony J. Mayo, Nitin Nohria and Mark Rennella

Chapter Chapter 8 in Entrepreneurs, Managers, and Leaders, 2009, pp 173-190 from Palgrave Macmillan

Abstract: Abstract When Gordon Bethune took over Continental Airlines in October 1994, he and his close associate Greg Brenneman had little time to overhaul the airline.1 Net income had plummeted from a loss of $113 million in 1993 to a staggering $613 million deficit in 1994.2 Bankruptcy and liquidation were not just on Continental’s horizon; they were pounding on the front door. For a week, Bethune and Brenneman spent the evenings together debating how exactly they would save their moribund airline. These “last suppers,” as they ironically called them, turned out to provide the insight and energy that served to resurrect the airline. Brenneman describes the essentials of their approach: “Most companies that are in trouble … tend to develop a myopic focus on cost. They forget to ask simple questions like, Do we have a product people want to buy? … [T]hey forget to think about money in, or good old revenues.”3

Keywords: Airline Industry; Business Traveler; Cash Reserve; Forward Plan; Senior Vice President (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-10095-4_9

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DOI: 10.1057/9780230100954_9

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