Profile: Gordon Bethune-
'We only win when everybody wins'
Gordon Bethune, who turned Continental Airlines into one of the most surprising success stories of the 1990s, believes you get the best out of people by making them realise they're all in the same boat. An airline pilot himself, and formerly an aircraft mechanic, Continental's chairman has a well-earned reputation for his no-nonsense approach to problems. But that doesn't mean he's a fan of aggressive, macho-style management. On the contrary, he prefers to have everyone on board, and that does much to explain his success since he arrived at the airline in 1994. "We've got investors, customers and employees all in the same canoe. We only win when everybody wins, and nobody wins when anyone loses. That is the difference between losing money and being the best airline in the world," he says.
Time was when Continental was a byword in the business for big losses and bad labour relations. Today, the airline wins one performance prize after another. The latest plaudit came when Fortune magazine listed it among the 20 best employers in the US. Commenting on the listing, Mr Bethune says: "It is a huge change for a company that had the most acrimonious labour relations of any airline in the middle of the 1980s." While his company's staff and their bosses may still have their differences, the days when a group of Continental pilots were convicted in 1986 for making bombs, which they planned to use against their employers, are long gone. "That is how far we've come," he says. "If we could bring ourselves away from that, anyone with a problem can do the same. Don't say we can't fix this airline - if you've got a problem, you've got to know something about how to fix it, where to start." This is where the staff are the key issue. "You've got to find people to help you, so I found 50,000 men and women who wanted to do that."
Mr Bethune's approach to kick-starting a whole new era at Continental was a system of regular, monthly, bonus incentives and praise where it was due. During the last six years, the company has handed over a total of $465 million, or 15 per cent of its pre-tax income, in profit-sharing payments to staff. "We are successful because we share the rewards. Good management is about how you treat people, how you appreciate them and how you measure success. You tell them how much you appreciate what they're doing and then they will want to do it. What does it cost you to tell someone, 'Hey, I think what you're doing is great'?" His attitude appears to have been reciprocated - grateful Continental staff clubbed together to buy their boss a 1996 Harley Low Rider motorbike.
Continental has steadily turned in a profit since its 10-year run of losses ended abruptly in 1995, a year after Mr Bethune took over the airline. Passengers will be pleased to hear that he doesn't believe the secret of success lies in playing the numbers game by filling every seat. "It isn't about getting more butts on the airplane - it's about being reliable and dependable," he says. Unlike its main rival, American Airlines, Continental operates out of Newark airport in neighbouring New Jersey State. The decision to fly from Newark appears to be working to his advantage. Mr Bethune says Newark is more convenient for passengers. It is a comparable distance from central Manhattan.
In both cases, travelling to the city takes about 45 minutes, and Mr Bethune says customs and other airport procedures take less time at Newark. He adds that flying aircraft out of Gatwick and landing them at Newark can take an hour off the journey time from London to New York
Gordy
Question Jan 05: On balance, are you bullish or bearish about the industry's long-term prospects?
Gordon
It's depressing to see this needless slaughter. When you look at every other product in the world, you [peg the] price to the price of oil. It hasn't happened in our business; [there are] not enough smart people [or] discipline. I'd probably go into journalism if I had a choice. [Laughs] [But] this will pass just like everything else. The dot-com bubble didn't last forever, and the bad times don't last forever. There's always going to be a place for good carriers to make a hell of a lot of money.