Presto, now people were in control of their own destiny, and the finger-pointing stopped. With little time and even less money to save the airline in 1994, Continentals leaders devised the Go Forward Plan, a four-part strategy focused on the fundamentals. Dynasty Flyer is the airline's frequent flyer program. It is his or her responsibility to visit the city once per quarter to update employees, get their feedback, and fix their problems. 2. [55], The Parisian court also ruled that Continental would have to pay 70% of any compensation claims. Sure, you can skip this step, but youll miss out on the goodwill it fosters and the relationships it spawns. Every month, Gordon and I hold an open house where employees can ask us questions, and we publish a newspaper describing whats happening in the company. [33][50], At the same time, charges were laid against Henri Perrier, head of the Concorde program at Arospatiale, Jacques Hrubel, Concorde's chief engineer, and Claude Frantzen, head of DGAC, the French airline regulator. And then fun happens pretty naturally. In October 1994, Continentals CEO resigned. Continental Airlines, also known as CAL was formed in 1959 by some retired Chinese Air Force officers in Taiwan. Many customers, particularly business customers with a choice, selected other airlines, reducing revenues enough to create huge losses. When I look back now, I realize the biggest factor in our favor was momentum. They explained that the process was easy: as you pull the bags off the airplane, the ones marked priority go in the first baggage cart, which is the first to be unloaded. They told the pilots that they should feel lucky that Continental finally had a senior management team that treated them with enough respect to deliver the bad newsas well as a good relocation packagein person. RIP to all people that die in Air France Flight 4590=====song: meme: https://youtu. [42] Just before service resumed, the September 11 attacks took place, resulting in a marked drop in passenger numbers, and contributing to the eventual end of Concorde flights. Flights. Its important to point out that we didnt just clean house on the top floor of Continental. The plane did not gain enough airspeed with the three remaining engines as damage to the landing gear bay door prevented the retraction of the undercarriage. They fear they will be next. Chauve and Suaud gave detailed calculations, stating that without the retardation caused by the missing undercarriage spacer, the aircraft would have taken off 1684 metres from the start of the runway, before the point where the metal strip was located, although the BEA disputed this, saying the acceleration was normal. [3]:118[BEA 4] A 30-centimetre (12in) spacer normally keeps the left main landing gear in alignment, but it had not been replaced after recent maintenance; the BEA concluded that this did not contribute to the accident. Section 2.2 "Crew Actions" (page 166): "The exceptional environment described above quite naturally led the FE to ask to shut down the engine. [48] Continental denied the charges,[49] and claimed in court that it was being used as a scapegoat by the BEA. I knew the fastest way to make money was to stop doing things that lose it. First, we divided the angry letters from customers among our officersexecutives through the rank of vice presidentand started making phone calls. When in doubt, everyone knew it was advised just to let the customers fend for themselves. Instead, managers who have gotten a company into a mess are usually mired in a puddle of overbrained solutions. They care; they talk; they laugh. Make sure you know the difference. Flight 290 en route from Midland, Texas to Kansas City crashed on approach, near the south end of the runway and burst into flames. Since reaccommodation expenses showed up in a contra-revenue account rather than as a cost on the general ledger, they escaped the eyes of the cost reduction program. I have some bad news for you, I told him. The program did decrease fuel costs, but it motivated many pilots to skimp on air-conditioning. We also ordered new carpeting for all the airport terminals, and we launched a campaign to retire the meatballthat is, replace the old Continental logo, which was round, red, and ugly, with a blue globe with gold lettering. Always refer to the Continental Airlines website or hotline for the most up-to-date baggage fees. It would take too long, and its no way to act when strong leadership is imperative. In fact, if employees arent having fun at workthat is, if they arent engaged in the process and treated with respectyour turnaround will not succeed. Im not going to tell you that all the employees at Continental are empowered. We fly airplanes, after all. Will things suddenly look okay in the cockpit? I found this remarkable given that the flight time was only 36 minutes. There is a huge gap between what customers want and what they are willing to pay for. But there were others. Clean house. As Air France had paid out 100 million to the families of the victims, Continental could be made to pay its share of that compensation payout. Continental Airlines on Wednesday became the first U.S. commercial carrier to conduct a demonstration flight powered in part by alternative fuels, though large-scale use of such fuel is. 4. And we sold Continental as if it were already a winner. Thats the kind of thing that happens when you let the inmates run the asylum. There was nothing complex about the Go Forward Plan: it was just a matter of logic and common sense. As of March 2, 2012, prior to the airline's merger with United Airlines, Continental Airlines served 140 destinations, consisting of 62 domestic destinations and 78 international destinations. 1 and No. This communiqu was the result of the NTSB's investigations of four Air France Concorde incidents during a 20-month period from July 1979 to February 1981. [30][6], According to Rose, former French Concorde pilot Jean-Marie Chauve, and former Concorde flight engineer Michel Suaud, spent six months preparing a 60-page report which was submitted to the investigating judge. The analysis of impact energy considered a tyre piece of 4.5 kilograms (9.9lb) with a speed around 140 metres per second (310mph). But the company was still sinking fast. And the companys results showed it. The plan also included key performance measures to track internally as well as against competitors (for example, monthly on-time performance, mishandled bags, customer complaints). Flight #. Track Flight. It came pouring out above the center seat in the last row of coachdirectly onto my head. In front of a crowd of employees, we lit a match to it. We have taken more than 200 calls per week in the three years the hotline has been open. The mechanic's failure to maintain proper clearance with the engine intake during a jet engine run, and the failure of contract maintenance personnel to follow written procedures and directives contained in the airline's general maintenance manual. part from Continental Airlines DC-10-30 , registered N13067 which departed Paris as flight. Finally, and perhaps most important, to monitor our financial progress, we announced we were going to track cash. Get started today and Give your life Wings! They got us into this hole, the thinking goes, how are they going to have the sense to get us out of it? Why are we going from Greensboro to Greenville six times a day when both customers who want to fly that route are on the first flight?. It was powered by four Rolls-Royce Olympus 593/610 turbojet engines, each of which was equipped with afterburners. To monitor our product, we decided to track our monthly on-time performance, mishandled bags, customer complaints, and the rate of involuntary denied boardings. A couple of weeks after I arrived, I was walking the ramp in Houston saying hello to our mechanics and baggage handlers, and helping to throw a bag or two, when I noticed that almost all the employees had torn the Continental logos from their shirts. The aircraft's last scheduled repair had taken place on 21 July 2000, four days before the accident; no problems were reported during the repair. In-Service Fleets carrying 89 aircraft, including 71 Passenger Jets/ 18 Freighters. For every month we finished in the top five out of ten airlines in on-time performance as measured by the DOT, we would give each employee $65. When we took off at last50 minutes latethe accumulated condensation flowed like a waterfall along the top of the baggage bins to the back of the airplane. Flight 1713 bound for Boise, Idaho crashed on take-off during a snowstorm at Stapleton International Airport in Denver, Colorado. Some of these managers had spent their careers in the airline business and some hadnt worked a day at an airline. Now, strategic direction is always important, but I would make the case that it is particularly important during a turnaround. And when you are an airline in a do-or-die situation, you dont exactly let your employees sort out strategy. From. Forgot the flight number? The official investigation was conducted by France's accident investigation bureau, the Bureau of Enquiry and Analysis for Civil Aviation Safety (BEA). Drastic changes were made: within a year we had reduced the annual maintenance budget from $777 million to $495 million, and the airline jumped from worst to first in the industry in dispatch reliability. For most of our employees, one incentive is profit sharing. Read more about this topic: Continental Airlines, An element of exaggeration clings to the popular judgment: great vices are made greater, great virtues greater also; interesting incidents are made more interesting, softer legends more soft.Walter Bagehot (18261877), We are the men of intrinsic value, who can strike our fortunes out of ourselves, whose worth is independent of accidents in life, or revolutions in government: we have heads to get money, and hearts to spend it.George Farquhar (16781707), 113 fatalities, No passengers killed on DC-10. Thats why when we took over, we started talking with employees at every opportunity. You may feel as if youve lost a bit of your authority and control over every last detailbecause you havebut thats okay. About Press Copyright Contact us Creators Advertise Developers Terms Privacy Policy & Safety How YouTube works Test new features NFL Sunday Ticket Press Copyright . When we made the offer, we were paying about $6 million per month to reaccommodate our customers on our competitors flights. Aborting the takeoff would have led to a high-speed runway excursion and collapse of the landing gear, which also would have caused the aircraft to crash. The product, in a word, was terrible. Over a period lasting mere seconds, this seemingly. Any effect on takeoff performance from this excess weight was negligible. Although I was a frequent flier with literally millions of miles racked up on other airlines, I had always avoided Continental because of its reputation for lousy service. But honesty and the rest dont just sprout up like weeds in a cornfield, especially when there has been a long drought. Employees couldnt possibly know the entire contents of the book. Maybe things were a bit dicey while it was happening, but it sure doesnt sound like brain surgery.. [10][17] They included German football manager Rudi Fanacht and German trade union board member Christian Gtz. Truth is, the on-time incentive program is self-funding. The Go Forward Plan wasnt complex. It was pure common sense. But Continental had been cutting costs in ways that sabotaged its product. They are required to research each suggestion and get back to the employee within 48 hours with one of three responses: we fixed it; we are not going to fix it, and here is why; or, we need to study it a little more, and we will get back to you by such and such date. [44], In June 2010, two groups attempted, unsuccessfully, to revive Concorde for "Heritage" flights in time for the 2012 Olympics. Over several bottles of wine, we wrote down everything that was wrong with Continental. People are happy when they feel they are making a difference. The buzzer will go off before you attempt the last shot, and you will lose. The hard news about a turnaround is that you have no choice but to sweep out the old to make way for the new. He moved into the CEOs office, and I moved into his old office. We needed to create a culture at Continental where people liked coming to work. Make Reliability a Reality was the product plan: we were going to transform the customers experience with us. Ceased operations. Sorry, we cant find any flight deals with Continental Airlines right now. What a ride it has been. In fact, sometimes when I talk to people about the lessons the turnaround taught us, they say, Well, Greg, those seem simple enough. They knew how to treat customers right, and we moved quickly to let them do just that. In me, Gordon found a frustrated consultant who bristled at the slow pace of change in most companies. [58] Another monument, a 6,000-square-metre (65,000sqft) memorial surrounded with topiary planted in the shape of a Concorde, was established in 2006 at Mitry-Mory, just south of Charles de Gaulle Airport. They represented approximately $3.5 billion of our $5 billion in debt and capitalized aircraft leases. I kept telling them it was the worlds worst $6 billion company. We organized our solutions to those problems into a strategy that we called the Go Forward Plan. When AF4590 subsequently departed, Concorde's left main landing gear tires struck the strip of metal and were punctured. Continental ranked tenth out of the ten largest U.S. airlines in all key customer-service areas as measured by the Department of Transportation: on-time arrivals, baggage handling, customer . The first is to beg forgiveness from all the customers you have wronged. I know most of them thought we were on drugs. It also forced the airline to pay more to accommodate customers who had to take other airlines because of missed connections. A passenger intent on claiming money from life insurance planted a bomb on the aircraft which departed Chicago-OHare, destined for Kansas City Municipal Airport. Within months, we were regularly finishing first. The economy could have been in a downswing. "Control tower: "Fire service leader, correction, the Concorde is returning to runway zero nine in the opposite direction. get people to their destinations on time and with their bags . The bomb exploded, breaking off the aircraft's tail, and the plane crashed on a farm near Unionville, Missouri. When Greg Brenneman joined Continental Airlines, the company was plunging toward its third bankruptcy in a decade. More info is in our Cookie Policy. Compare Continental Airlines flight deals from all across the web, Keep an eye on your favourite fare and book when its cheapest, Book the best Continental Airlines fare in seconds with no fees. The piece could reach this speed by combination of rotation of the tyre on takeoff and the tyre burst. At takeoff, the DC-10 overran the runway at Los Angeles (LAX) when the takeoff was aborted as a result of a tire explosion; the resulting overrun resulted in a fire that engulfed the aircraft. Please select OK to allow all cookies. That meeting was hostile, to put it mildly. And for me, it was a defining moment. They pay full fare, and they travel a lot. Our Go Forward Plan had four cornerstones. In the past, the scheduling department had simply written a flight schedule and given it to operations, often only days before they were to fly it, because it was confidential. As a result, the operating departments were frequently stuck with a schedule they had no hope of following: they had mechanics, parts, and crews in the wrong locations. As an on-time airline, we pay out only $750,000 in reaccommodation expenses while taking in $4 million. The cause of the incident is unknown, however the right side of aircraft caught fire once coming to a stop. The pilots werent bad folks; in fact, many of them are good friends of mine now. It is the flag carrier of Republic of China with its headquarters in Dayuan Township, Taoyuan County. You may check the current baggage fees at both the Continental Airlines official website, or by. They created a model that works when you have little time and less moneyas well as when you have more of both. 13 June 1979: The number 5 and 6 tyres blew out during a takeoff from, 21 July 1979: Another blown tyre incident during takeoff from Dulles Airport. Now our service reflects time of day, length of haul, and class of service. [6], At the start of the takeoff, the aircraft had 1.2 tonnes of extra fuel which should have been burnt during the aircraft's taxi. Maybe I was just fed up with the fact that everyone seemed to have a problem but no one had any solutions. The airline was part of Skyteam and Star Alliance with frequent flyer program name Onepass. We needed to get people to their destinations on time with their bags. Only after that has begun can you move on to making moneythe subject of the next principle. When AF4590 subsequently departed, Concorde's left main landing gear tires struck the strip of metal and were punctured. and subsequent crash. The thrust reverser of the aircraft was deployed in flight shortly after takeoff. Above all else, Brenneman explains in this HBR interview, it was common sense and simple logic. But real trust is a 365-days-a-year commitment. They picture productivity plummeting, and profits along with it. File your flight plan and track your progress. We changed our meal service with an eye toward what our competitors were doing. Dynasty Flyer is the airline's frequent flyer program. Leaders must find the most leveraged plan of action, stick with it, and continually monitor the companys performance against it. 2 engines which led to loss of control of the aircraft. "it was that found the best bargain". I left to a standing ovation. You know this this plane was the same plane that caused the Concorde To this day, I cant understand why anyone would try to hide an impending cash shortage. But my favorite measure is the sale of Continental logo merchandise at our company stores. The aircraft lifted off, but the loss of thrust, high drag from the extended landing gear, and fire damage to the flight controls made it impossible to maintain control. We got out there in the airports and on the planes. If not, we'll show you the next-best options, by price or journey length. Page 155: "In conclusion, nothing in the research undertaken indicates that the absence of the spacer contributed in any way to the accident on 25 July 2000", Bureau of Enquiry and Analysis for Civil Aviation Safety, "ASN Aircraft accident Arospatiale / BAC Concorde 101 F-BTSC Gonesse", "How Concorde Pushed the Limits Then Pushed Them Too Far Disaster and Aftermath", "Accident on 25July2000 at La Patte d'Oie in Gonesse (95) to the Concorde registered F-BTSC operated by Air France (REPORT translation f-sc000725a)", "F-BTSC Air France Arospatiale/BAC Concorde", "Metal Part Maybe Came From Continental Jet", "Accident on 25 July 2000 at "La Patte d'Oie" in Gonesse (95), to the Concorde, registered F-BTSC, operated by Air France (Preliminary report translation f-sc000725pa)", "The damaged hotel and the scorched field show the impact of the crash, CBS News", "French police and rescue service workers inspect the debris of the hotel and the crashed jet", "ANNEXE 2 Transcription de l'enregistreur phonique", Mori to send messages to Chirac, Schroeder over Concorde, "N13067 Continental Air Lines McDonnell Douglas DC-10-30 cn 47866 / 149", "Air France grounds Concorde until cause of crash is known", "The Concorde belies those who foresaw its extinction", "Could Concorde ever fly again? view 40 history. 1934. Want to make sure you have the best experience with Continental Airlines? Continental Connection. But then the pilots walked inin full uniformwith their families. Continental was a case in point. Of the 115 people on board, 38 sustained injuries, with 2 seriously injured, including the pilot. We quickly set up a cleaning schedule that tripled the number of times the airplanes are cleaned, cockpits included. 5. The aircraft was a total loss. . The reason tells you a lot about how people act when their companies are in a self-destructive mode. I believed the pilots were getting a fair deal, and I said so. Even though the turnaround is over, we wont forget the lessons we learned from it. The airplanes interior had seven different color schemes, which I later found out was not uncommon. Yes. But within the parameters set for safety and those we set with the Go Forward Plan, we decided that at the new Continental, the employees were going to be liberatedto be able to do the right thing by the customer and to have fun at work. 1. From the Magazine (SeptemberOctober 1998). But he didnt stop there; he cleaned house from the top floor to the baggage handlers, keeping or recruiting only individuals who were smart, driven to get things done, and team players. Airline Founded. It helps us remember your details, show relevant ads and improve our services. I dont know about you, but to me, a two-hour flight that leaves at 7:00 a.m. (after I have gotten up at 5:00 a.m. to get to the airport and havent eaten breakfast) is a lot different from a two-hour flight at 2:00 p.m., which falls after lunch but before dinner. Finally, they had to be team players, willing to treat everyone with dignity and respect in an extremely collaborative environment. To offer you a more personalised experience, we (and the third parties we work with) collect info on how and when you use Skyscanner. That ticked them off (to put it in language this publication will permit), which caused further reductions in service. Please support this channel by following me on Patreon July 1, 1965 Continental Airlines Flight 12 overran the runway whil. November 1985: Tyre burst on a BA plane leaving Heathrow, causing damage to the landing gear door and fuel tank. Why dont we just charter you a Lear jet? All 45 on board died. October 1993: Tyre burst on a BA plane during taxi at Heathrow, puncturing wing, damaging fuel tanks, and causing a major fuel leak. (For more on Continentals performance, see the exhibit Climbing Again.) How did the reversal of fortunes happen? It remains the backbone of the companys strategy today. Based in: Ghana. Fare Calendars show the best prices over the next 180 days on 2000+ routes. "Pilot: "Too late (unclear). July 25, 2000. But if we could get every employee headed in the same direction, we had a chance. It was a hot, humid day in May 1993. On the 25th of May 1979, America's deadliest plane crash unfolded in 31 harrowing seconds at Chicago O'Hare International Airport, as an American Airlines DC-10 packed with holiday travelers. But it would have been dishonest to back down or to fudge a reaction of sympathy I did not feel. [3]:17,170, At 16:38 CEST (14:38 UTC), five minutes before the Concorde departed, Continental Airlines Flight 55, a McDonnell Douglas DC-10-30, took off from the same runway for Newark International Airport and lost a titanium alloy strip that was part of the engine cowl, identified as a wear strip about 435 millimetres (17.1in) long, 29 to 34 millimetres (1.1 to 1.3in) wide, and 1.4 millimetres (0.055in) thick.