Alitalia7e7
Topic Author
Posts: 184
Joined: Thu Mar 04, 2004 11:10 am

How Did Continental Get Out Of Bankruptcy

Mon May 10, 2004 5:35 pm

As you know Continental was in Chapter 11 Bankruptcy about a decade ago. How did the new CEO get this huge airline out of this difficult situation and return it into profitability. Your knowledge will assist me!
 
fraT
Posts: 1007
Joined: Wed Oct 01, 2003 4:32 am

RE: How Did Continental Get Out Of Bankruptcy

Mon May 10, 2004 6:49 pm

Three words: GO FORWARD PLAN.
They brought in the right person (Gordon) at the right time. People felt that he was honest compared to some of his predecessors.
He developed a great plan and threw out everything which was unprofitable. But I think the most important thing was that he changed the employee morale. The staff was proud again to work for CO. He gave out on time bonuses to the whole staff and profit sharing. He furthermore made some nice deals with Boeing, his former employer.
If you read his book "From worst to first" you will find a lot more points.
 
Goldentail
Posts: 73
Joined: Wed Mar 10, 2004 2:55 pm

RE: How Did Continental Get Out Of Bankruptcy

Mon May 10, 2004 7:00 pm

May I recommend an excellent source of information to your question.....
Go to Amazon.com.....

http://www.amazon.com

Then search for the following Book....

"From Worst To First".

You'll get the entertaining answer to your question from the CEO himself.

Cheers;

M  Smile/happy/getting dizzy
"The Proud Bird -w- The Golden Tail"
 
thomasphoto60
Posts: 3731
Joined: Thu Jan 27, 2000 1:04 pm

RE: How Did Continental Get Out Of Bankruptcy

Mon May 10, 2004 7:50 pm

First rate book for those even with only a passing interest in the airline industry or business management overall.

Thomas
"Show me the Braniffs"
 
Cory6188
Posts: 2632
Joined: Mon Feb 02, 2004 12:29 am

RE: How Did Continental Get Out Of Bankruptcy

Mon May 10, 2004 8:10 pm

When Gordon came to CO, the environment was much different than today, so it was much easier in order to return to profitability. Back in 1993/1994, it was possible to be profitable if you had the right operation set up.

Today, it seems as if it's impossible for any of the legacy carriers to get their feet on the ground, so doing the same with a bankruptcy today would be extremely difficult.
 
isitsafenow
Posts: 3413
Joined: Sun Feb 01, 2004 9:22 am

RE: How Did Continental Get Out Of Bankruptcy

Tue May 11, 2004 2:10 am

You get out of bankruptcy by taking your business plan to the bank or creditors, getting a loan to get you started anew and then cut waste, large salaries, people who are not needed, renegotiate ALL contracts and if you are lucky(and good) the court over a period of time, lets you come out of bankruptcy. This is how its done, airline or any business.
safe
If two people agree on EVERYTHING, then one isn't necessary.

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