Within a few years time, he took the struggling carrier from worst to first. From worst to first is gordon bethunes story of continental airlines turnaround under his command. In 2008, the united and continental were close to a deal but continental pulled out at the last minute, wary of uniteds debt load. Each continental onepass member was given a mileageplus account with the same number as her onepass account. In his new book from worst to first, continental airlines ceo gordon. United and continental airlines announce merger youtube. United and continental announced their merger in may 2010 and closed the transaction on october 1, 2010. The new united has been established through a financial transaction, but the real merger takes place in the operation. The book is written more like a training manual rather than a story, some do not. Continental airlines became the first airline to launch a mobile boarding pass service to londons heathrow. Continental airlines had seen a broad expansion of its routes, thanks to a responsive cab and persistent efforts by six and executive vice president harding lawrence who came to continental in the pioneer merger, who both frequently referred to his company as the airline that needs to grow. History of continental airlines personal masterpiece.
Continental airlines and united airlines officially announced monday their plans to merge after both companies boards of directors approved the plan on sunday afternoon. I purchased this book because united and continental airlines merged into one company and i wanted. At the same time, he has set the standard for corporate turnarounds. Its been five years since united airlines and continental airlines combined to form what was at the time the worlds largest carrier, and the merger hasnt gone well. Passengers have become disillusioned and left united as their carrier. New united ceo apologizes for 5 years of mergerrelated. The united continental merger was announced may 3, 2010 and the merger transaction close date was october 1, 2010. Robert f six, chairmanceo, continental airlines, 19361981 continental airlines had seen a broad expansion of its routes, thanks to a responsive cab and persistent efforts by robert f six, who frequently referred to his company as the airline that needs to grow. Apr 26, 2008 united airlines and continental airlines are getting closer to a merger agreement and would like to wrap up a deal by the end of next week, people with direct knowledge of the discussions said friday. From worst to first outlines gordon bethunes triumphs. Reservations mysteriously disappeared from the system, including theirs. Good, bad and ugly the proposed marriage of american airlines and us airways is likely the last in a series of industry mega. Jan 18, 2017 classifications dewey decimal class 387.
In the early 1950s, continental airlines merged with southwest based pioneer airlines. The story of the turnaround at continental airlines is one of the great business stories of the last 20 years. Behind the scenes of continentals remarkable comeback. The merger with continental was the beginning of a decline. Ual, which has just been passed by delta air lines as the nations secondlargest carrier. May 03, 2010 how united continental merger impacts fliers is the union a good or a bad deal for travelers. The airline was in the pits after one of the worst airline managers, frank lorenzo had destroyed the airline and left it for dead.
Because airlines operate 7x24x365, their systems are notoriously complex and highly integrated. Mueller gained control over the carrier and in 1936, sold 40. Continental and united airlines to merge wikinews, the free. The airlines also started service to london from their cleveland hub but shut the route down shortly before the merger with united. I purchased this book because united and continental airlines merged into one. Similarly, deltas 2008 merger with northwest also once sounded promising, but it took 14 months, until january 2012, for the airlines to fly as a single carrier. But the media still has it wrong about united airlines nyse. Continental airlines onepass miles automatically transferred into new united airlines mileageplus accounts when the airline merger was completed dec.
The atlanta journalconstitution from worst to first is gordon bethunes story of continental airlines turnaround under his command. United airlines and continental airlines announced they will merge into one company. Apr 27, 2019 the merger with continental was the beginning of a decline. Fortune magazine named continental the company that has raised its overall marks more than any other in the 1990s. Continental airlines is the successor to speed lanes, which varney had founded by 1932 and whose name changed to varney speed lines in 1934. Carlos ibarra, and the rest of the data warehousing team at continental. The book is written more like a training manual rather than a story, some do not like this format which is understandable. After all, continental was the product of mergers among seven airlines. May 03, 2010 united and continental airlines announced a deal that would merge the two companies together. Apr 30, 2010 this is not the first time the two airlines have considered merging. Continental airlines left the skyteam alliance on october 24, 2009, and joined star alliance on october 27, 2009. Continental and united airlines to merge wikinews, the. The service allowed customers to receive boarding passes electronically on their mobile phones or pdas. The new united has lost a battle with its pilots over outsourcing 70 seat airplanes.
Jul 22, 2002 five years later, he has transformed continental from the worst of the large carriers to first in its class. Why the united and continental merger and other mergers. Unitedcontinental systems merger makes flight reservations. By focusing on its hubbased transportation system, continental has redrawn its method for doing business.
United traces its roots to varney air lines val, which walter varney founded in 1926 in boise, idaho. United continental is still shaky five years after merger wsj. Continental airlines history dates back to 1934, when the carrier was operated under the name of varney speed lines by its owners walter varney and louis mueller. It filed for bankruptcy for the first time in september 1983 and remained under chapter 11 from 1983 to 1986. The worlds biggest airline got clearance for takeoff today as shareholders of united airlines and continental airlines backed a multibillion dollar merger that will create a carrier dwarfing. Pros, cons and up in the air may 25, 2011 0 last october i wrote a post about what the united and continental merger means for consumers, and i think its fair to say that a lot has changed since then. The book is written more like a training manual rather than a story, some do not like.
The pilots are emboldened, and now united is going to have to try to play nice to get what it wants. Merger between continental airlines and united airlines. Ual corporation agreed to change its name to united continental holdings in may 2010, when an agreement was reached. From this point onwards, technically continental airlines is no longer an airline. Business week from worst to first outlines gordon bethunes triumphs. The route was later suspended in 2003 due to the sars outbreak. United continental is still shaky five years after merger no. Was continental headed for bankruptcy before merging with. As with most mergers, when it was announced that united airlines would join forces with continental airlines to become the worlds largest airline, both. Specifically, its about the need for the airlines to raise fares and increase revenues after years of irrational discounting that led to billions in. The story is about how bethune revolutionized the company from being the worse airline to fly with in the usa and abroad to being one of the first. In 1994, continental was the most hated airline in the industry. From the worst airline in america as judged by on time statistics, customer complaints and much else, and making losses for 12 years, to the highest performing airline, making substantial profits, within 2 years of gordon bethune taking over was a fantastic success and bethune. What do you do if youre running the worst airline in.
From first to worst continental in a post united world, lessons in next gen customer experience r ray wang contributor opinions expressed by. United and continental airlines announced a deal that would merge the two companies together. Rumors flying of us air, american airlines merger cbs news. Established practices that passengers had come to expect were discarded. Five years later, he has transformed continental from the worst of the large carriers to first in its class. United continental was formed in october 2010 by the merger of united airlines parent ual corp. What ails the current united airlines is what ailed the premerger united and the premerger continental. Continental and united said to be closer to a merger the. United and continental announce merger the new york times. How unitedcontinental merger impacts fliers travel. He is not bragging, but rather sharing the secrets of leadership that can transform other companies.
Continental and united airlines merge cruise radio. This is not the first time the two airlines have considered merging. Continental ceo jeff smisek and united ceo glen tilton. Apr 02, 2016 chris langdon logged 728,608 miles with continental and, after its 2010 merger, united airlines before growing so disenchanted a year ago that he began flying southwest. In 2001, continental became the first airline to operate a nonstop route with duration of more than 16 hours, between newark and hong kong.
One reason the airlines merged was to reduce costs and one way to do that is by consolidating information technology it systems. How unitedcontinental merger impacts fliers travel news. In late 2006, continental airlines and united had preliminary merger discussions. Gordon bethune, the ceo of continental airlines, has written from worst to first, an account of how he turned that airline from lackluster to leader, in just ayearand ahalf. United airlines and continental airlines are getting closer to a merger agreement and would like to wrap up a deal by the end of next week, people with direct knowledge of. Val flew the first privately contracted air mail flight in the u. Us airways merger war delta, continental or american. The earlier talks allowed for swift negotiations this time. While todays shareholder vote on the merger between united airlines parent ual corp. Bethune, hired away from boeing to lead the turnaround, in 1995 rolled out a fourpoint go forward plan in an attempt to return the airline to respectability. Due to the merger between continental airlines and united airlines. Although the two airlines remained separated until the operational integration was completed, as of this day both airlines are corporately controlled by the same. Lcc is the last great airline merger candidate, with delta, united continental and american all vying for the airlines stock. When gordon bethune took over continental airlines in october 1994.
Sep 17, 2010 the worlds biggest airline got clearance for takeoff today as shareholders of united airlines and continental airlines backed a multibillion dollar merger that will create a carrier dwarfing. The fiveyearold marriage between united and continental airlines appears to be hitting the sevenyear itch a few years early, as new united ceo oscar munoz began his tenure acknowledging the mega. I purchased this book because united and continental airlines merged into. How unitedcontinental merger impacts fliers is the union a good or a bad deal for travelers. The merger of united airlines and continental airlines on 1 october 2010 created the worlds largest airline. Bankrupt american airlines and its dogged suitor, us airways, announced a merger thursday that would create the worlds largest air carrier and put 86 percent of domestic air travel in the hands. Pdf gordon bethune from worst to first semantic scholar. On october 1, 2010, ual corporation the parent company of united airlines completed its acquisition of continental airlines and changed its name to united continental holdings, inc. Continental airlines had been through chapter 11 twice. Good, bad and ugly the proposed marriage of american airlines and us airways is likely the last in a series of industry megamergers. From first to worst continental in a post united world, lessons in next gen customer experience r ray wang contributor opinions expressed by forbes contributors are their own. May 03, 2010 united and continental were close to a merger two years ago, but continental walked away because of uniteds poor financial health. Apr 26, 2012 united continental was formed in october 2010 by the merger of united airlines parent ual corp.
This paper discusses how the it systems were merged, the. United continental is still shaky five years after merger. But between february and april, continental and united combined their computer systems as part of their air voltron merger. May 03, 2010 the official press release united and continental announce merger of equals to create worldclass global airline customers and communities to benefit from greater, easier access to worlds. United and continental merge to create worlds biggest.
Chris langdon logged 728,608 miles with continental and, after its 2010 merger, united airlines before growing so disenchanted a year ago that he. When bethune, a former boeing executive, took the reigns of continental back in the early 90s, the airline was at rock bottom in almost every category. Amidst the ashes, former boeing executive, gordon bethume took over the reigns and created a new culture. This merger allowed continental airlines to operate air routes between texas and new mexico. I will never forget my first flight from dallas to houston on continental airlines.
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