http://www.thestreet.com/_yahoo/stoc.../10285217.html

What he has to say about the industry is interesting. If it has already been posted sorry

i fixed the link

 

Here is something else to chew on.Millionaire flight attendants may serve you your next drink on Southwest
The flight attendant serving you drinks on your next Southwest flight could be a millionaire. Eight flight attendants are among the 17 employees who have worked at Southwest since the discount carrier’s first days of service. All are millionaires, beneficiaries of Southwest's profit-sharing program. “Ask them why they stick around and they mention frugality and pride in earning their keep. And they say they simply like to work,” writes The New York Times (free registration), which ran a feature on the long-time Southwest employees. Joining the founding flight attendants are five operations workers and four executives. One of the airline’s “millionaire attendants” is Sandra Force, described by the Times as a former “elementary school teacher and one-time beauty pageant winner from Memphis.” She was hired “on the spot” after her summer 1971 interview. "My mother was devastated,” Force tells the Times.

She recalls her mother saying, “Sandra, if you were going to quit your teaching job, why didn't you go with a well-known airline like Braniff?" At the time, Southwest was considered to be the long-shot upstart while Braniff was the well-established heavyweight. The airlines competed head-to-head on many Texas routes -– though Braniff never made it out of the 80s while Southwest has gone on to become one of the airline industry's top success stories. As for Force, the single 61-year-old just completed chemotherapy for breast cancer and returned to work this month after a six-month absence. But, the Times writes, “she does not need the paycheck.” Force has more than 100,000 shares of Southwest stock, a stash valued at about $1.6 million. "I love to work," she says. "Southwest is kind of my family and my husband."
~~~

 

could you post a link to the first page of the article, me and my computer illiterate brain couldn't find anything other than a reference to CAL buying video on demand for the 787
bolt

 

http://www.thestreet.com/_mktw/stock.../10285217.html



Continental Riffs

By Ted Reed
TheStreet.com Staff Reporter
5/15/2006 7:09 AM EDT

Continental Airlines President Jeff Smisek was particularly candid in an address he gave at the Bear Stearns Global Transportation Conference last week in New York.

In addition to some colorful insights on the industry, Smisek offered his own frank observations about the airline's competitors. The criticisms, some of which were not-so-thinly disguised references of specific industry players, offer a window into the highly competitive business of flying the friendly skies.
Here are some excerpts from Smisek's speech Wednesday:
On competitors who have wrested concessions from employees through bankruptcy: "Our network competitors have frankly screwed their employees by defaulting on their pension plans and taking away wage and benefits in a very hostile manner."
By contrast, Smisek said, Continental sought $500 million in wage and benefit reduction only after going through its system and slashing $1.2 billion in non-employee costs. Continental also retained its pension plans, he said.
On widespread efforts to move planes from domestic to international service, where yields are higher: "Continental was international before international was cool."
Continental has built its international system gradually over the past decade, Smisek said. For instance, it spent $1 billion to upgrade facilities at Newark Liberty International Airport in New Jersey. From Newark, Continental now offers transatlantic service to 28 cities in 15 countries, up from five cities in four countries 11 years ago.
On competitors' aging fleets: "Our competitors have got a lot of gas-sucking pigs for aircraft."
Continental, Smisek said, has gradually upgraded its fleet. It now costs Continental 24% less to produce a seat mile than it did in 1998, thanks to a more efficient fleet, he said, noting: "That's a permanent fuel hedge." On reducing in-flight amenities to save money: "We did not follow our competitors in a race to the bottom to achieve a crappy product. ... We did not take off pillows, we did not take off blankets, we did not take off meals at mealtime and we will not charge fifteen bucks for an aisle seat."

On the 36 channels of free TV programming offered by JetBlue Airways "They are a low-cost carrier, they are also an extremely low-RASM carrier, and their customers don't pay them a penny to watch those I Love Lucy reruns. ... It is a wasted investment in my mind."

Smisek said Continental will offer advanced video-on-demand options in some flights, particularly when it starts taking delivery of new-model Boeing 787s in 2009. But the company believes that in the future, airlines will offer in-flight Internet services that will allow passengers to control their own entertainment options.
On efforts by Delta Air Lines to rapidly boost its transatlantic capacity: "Our successful international expansion is being copied by a lot of people, including at least one bankrupt airline in Atlanta. They've already gone through their stockholders money; now they are using their creditors' money. They are throwing a lot of capacity into the market. I predict they will lose their shirts on it." Smisek added that when Continental adds routes, it is subject to "adult supervision."

 

Good to see someone in this country tell it how it is(at least in his mind). To much political correctness.

 

Wow, nice exerpt.

 

This is a pretty interesting article. I am somewhat surprised. However, I do agree it is nice to see someone speaking their mind (not being all politically correct).

I do want to point out some discrepencies that I would question.
1. Competitors who got concessions through bankruptcy.
I think it is important to point out that Continental had gone through bankruptcy before. I also want to point out that Continental did infact get concessions from their employees this time around as well. At Continental, the company asked, and the unions gave. At American, the company asked, and the unions gave. At United, the company asked, but the unions did not give --> Bankruptcy! The unions gave.

2. Aging fleets
Continental has a young and fuel efficient fleet. But so do many of their competitors.
JetBlue
Frontier
United
AirTran
.........

I would say Northwest has the oldest and least fuel efficient fleet. Delta is somewhat old, and American is pushing old. But it is not like Continental has a super fuel efficient fleet.

3. In Flight Amenities
I really disagree with this statement. First off, I am pretty sure Northwest was the only legacy carrier to remove pillows and blankets from flights, and charge $15 for aisle seats. Second, I would question Continental's in flight amenities. I thought Continental did not serve food, even on long 13 hour international flights!! I know many airlines cut meal service, but an airline like United still serves food on long transcon flights, as well as all oversea's flights. Exactly what in flight amenities does Continental have?? Continental did not need to race to the bottom because they were already there (as far as in flight amenities) along with Northwest.

Those are my feelings. Anyone else care to comment.

 

Even if Smisek was not part of the Lorenzo regime, he must be aware that they repudiated their debts through bankruptcy (twice), busted their unions, slashed wages and benefits, bled cash from Eastern, etc. while their competitors were NOT doing these things. A lot of human and financial wreckage lies beneath CAL's current structure. More humility on his part would be appropriate.

 

Ryane946, you really should limit your posts to things you know about. Continental does serve food at mealtime. Continental also has blankets, pillows, and does not charge for extras. I bought full fare tickets for me and my family on United to Hawaii over the fourth of July weekend 2005. From San Francisco I was asked as a full fare passenger to pay $5 for a breakfast bar or I could pay $7 or $8 and get some fresh fruit. This is an overwater flight on a 777. There was not a pillow or blanket on the airplane. so your assertion that United serves food on transcon flights and overseas flights is again wrong. I was shocked at what lenghts some airlines are going to to save a buck or two. I am not defending Continental because they are my airline, but because you are spewing very uninformed information here. Get your facts straight before you share any more of your feelings! Do you just make this stuff up? If you don't like Continental, I have no problem with that - just say it instead of making sh$t up out of nowhere. Tomgoodman has some good points and as he noted CO has in fact been in BK twice before. Management did seek employee concessions at CO and the work groups recognized that some sacrifice was necessary to move the company forward and stepped up to the plate. Continental is now on a 5 to 8 percent growth track per year for the next 5 to 6 years and is one of the only legacy airlines hiring pilots. I think we were all a little surprised at Smisek's bold comments but hey, he at least had the balls to call some things in the industry as they are. Give him a little credit for calling other management groups on the carpet for screwing over their employees. I don't know Smisek personally but I did like some of his comments although as tomgoodman said, a little more humility might have been appropriate.

 

I am kinda upset because I wrote a really smart and convinving response but it got erased because I was not logged in when I typed it.

So here is the short (and not nearly as convinving) argument.
1. Apparently I am wrong about Continental serving food. My source was the CO Electronic Timetable. Under food for EVERY international flight, it listed none. I thought I could trust a source published by Continental, but apparently that was wrong. I apologize. Even so, my argument still stands. Continental is not on top of in flight amenities, in fact they are mediocre at best.
So let me re-ask my question.
Exactly what in flight amenities does Continental have??
DirecTV?
XM radio?
Personal video screens?
DVD's/video tapes on demand?
.....
None of the above.

2. United does serve free food on transcon flights and Hawaii flights. Trust me, I have taken numerous United flights in the past few months (including SFO-BOS and SFO-HNL) and they served food. Purchasing food is for domestic flights over 3 hours, but not including transcon and hawaii (where food is free). I am not sure why you were not served food on a hawaii flight. Maybe they were testing the idea. I don't know. What I know is I have been to hawaii probably 30 times in my life (all on United), and numerous times in the past few years, and everytime they serve free food.
I believe you are wrong about this. Furthermore, United did not take pillows and blankets off their flights. They are on every flight I have ever taken.
You are wrong about this subject!

So I was wrong and you were wrong. We both used sources we thought we could trust (a published electronic timetable and an actual flight on the airline), and yet we were wrong.

Even so, I am still downright confused as to why you are attacking me. I CHALLENGE you to re-read my post, carefully. If you ignore the sentence about continental not serving food, and then ignore your thought that United does not serve food or have blankets, I am completely right!

The purpouse of my post was to simply state that Continental is not a magical airline that outshines its peers. It is simply middle of the road. It has a medium aged fleet, mediocre in flight amenities. That's what I want to convey.
So I think you should carefully re-read my post with this in mind.