From Worst to First: Behind the Scenes of Continental's Remarkable Comeback

Chapter 1. Is This Any way to Run an Airline?

Continental Airlines, in early 1994, was going nowhere, and it was going nowhere fast.

If you wanted to get anywhere else fast, like New York or Denver or Cleveland—or, in fact, if you wanted to get anywhere at all and get there on time—you were better off flying almost any other airline.

But nowhere? We were going nowhere like we had an appointment. And nowhere is where we could get you, though we probably would have lost your luggage on the way.

You think I'm exaggerating. I've got to tell you that I'm not.

In February of 1994, I left my comfortable job as a big shot in operations at the Boeing Company in Seattle. I moved to Houston and took over as president and chief operating officer of Continental. The job looked great—president of the fifth-largest airline in the country. I knew Continental had operating problems, but then, I'm an operations guy, and solving problems is the challenge any executive looks for.

Within a few months, however, when United Airlines tempted me to leave Continental and take a similar position there, I looked at that offer as a parachute and was prepared to take it. I would have given anything to get out of Continental, which was, I had no doubt, about to crash and burn. I felt as though I had been handed the controls of an airplane that people admitted was having a little trouble. But nobody had told me both engines had failed. I could pull the yoke, push the rudders, and goose the throttle all I wanted—but, ...