Continental's Cost-Cutting Could Include The Free Meals In Coach

January 6, 2010 at 9:29 AM | by kjb | Comments (2)

While many of us were waiting in line for coffee and pancakes on New Year�s Day, there was another slightly more important person with a problem a little bigger than a hangover. As of January 1, Jeff Smisek took over as CEO of Continental Airlines, and he�s got a lot of work ahead of him. He replaces Larry Kellner, whose appearance on the in-flight monitors we'll miss�he loved to welcome us aboard his airline each time we took Continental somewhere.

Like most airlines, Continental has a difficult time balancing the whole making money thing while providing quality customer service. The airline has tried to stay ahead of the game, and they are the only ones that are still providing free meals on most of their flights (even domestic) to all passengers. However, 2010 could be the year things begin to get cut, especially with a new captain at the wheel.

The Houston Chronicle sheds some light into the cost issues that Continental deals with that others have escaped through bankruptcy:

Continental's costs, once among the lowest in the industry, are now among the highest. Delta, United and US Airways have all been through bankruptcy in recent years, making them more efficient.

Having failed, they now dictate the rules for success. Continental, having avoided bankruptcy, gets punished.

Continental may not have the style or cool factor of some of the younger airlines, but for a legacy carrier, they�ve always done us well. If you�re a big fan of that cold bowl of cereal you get for breakfast in the back of the plane�just don�t get too used to it in 2010�we could see that changing. Especially if they finally decide to shack up with the competition.

Related Stories:
· Headaches for Continental's New Leader [Houston Chronicle]
· Continental Hops On The In-Flight WiFi Bandwagon With Gogo [Jaunted]
· Airline News coverage [Jaunted]

[Photo: BriYYZ]

Comments (2)

Return to » Continental's Cost-Cutting Could Include The Free Meals In Coach

... and when/if cost cuts from customer services do come, few will blame them because of CO's superior committment to customers (and employees!) until that point. Good will gets you far... CO continues to be a shining, rare example of exactly how to run a business well... even with change in ranks along the way.

There is so much I could write on this, and certainly it will prompt a longer blogpost on my blog http://www.amandavegablog.com. Anyone who follows me on Twitter knows that I am serious Continental brand zealot. I'm a frequent traveler with unlimited options. I fly first class. I am fortunate enough to have choices when many do not. And through the years dealing with multiple airlines domestically and internationally, I can tell you for so many reasons how much better Continental is than the competition domestically. While lack of food won't affect me since I'm in first, it does affect all of the people that I have influenced over the years that now consistently fly Continental - and the biggest reason: they still serve food in the back of the plane. Continental needs to realize a few things. One - following the path of the other airlines out there isn't they way to go. Why become another crappy airline just like the rest? Additionally, they are missing a huge opportunity to shine and build a stronger, more sophisticated brand that resonates with key travelers - who would gladly pay more per ticket to keep food, etc. So instead of cutting costs there where it affects not only your passengers, but removes any chance to shine and perhaps become the BEST airline, or the most luxurious of all domestic carriers (which goes along with why it IS important to have the youngest fleet of jets, etc.) they will just become another bad choice making travel unbearable. They really need some help and a reality check. Focus group all you want, if they simply paid attention to the chatter out there, good and bad, they would find people's real thresholds in cost, amenities and the like, and they would be able to make smart changes to win the airline battle. We'll say it again - we'd love to help with your social media and also business analytics to find REAL solutions so you protect your customer loyalty base and standing out there. Don't be dumb like the rest, Continental. THINK for a minute. Amanda Vega http://www.amandavega.com

Jaunted

Select a Destination:

Continental Airlines / Continental / Airlines / Airline News / In-flight Comfort / In-flight Meals / Star Alliance / → All Tags