From that fast start, Bethune never looked back. He made a habit of silencing doubters, posting 25 consecutive quarters of profitability before Sept. 11. Continental earned US$42 million in the second quarter this year.
"Gordon's done fine, but he started with a huge advantage," said Crandall, the former American Airlines chief. "He had lower costs than anyone else, because Continental had been through bankruptcy twice."
Bankruptcy, however, created its own problems, including a resentment among employees whose union contracts were broken when the company reorganized its finances in the 1980s and early 1990s. But Bethune has managed to turn the airline into an enjoyable place to work by capitalizing on his outgoing, salty manner.
"He is a rare mixture of intelligence and profanity," said Darryl Jenkins, director of the Aviation Institute at George Washington University in Washington.
At the beginning of his tenure, Bethune began to offer employees cash bonuses when on-time arrivals ranked near the top of the industry. Other incentives would include new sport utility vehicles for some employees with perfect attendance, and family-friendly policies like discounted day care. Continental has been named one of Fortune magazine's "100 best companies to work for in America" the last three years.
A happy employee base led to satisfied passengers. In an industry rife with horrendous service, Continental has stood apart, winning first or second place in the J.D. Power & Associates customer service awards the last five years. The airline was first in on-time arrivals in 2000.
"He is a wonderful motivator of people," said Richard W. Pogue, a Continental director and a senior adviser with Dix & Eaton, a public relations firm in Cleveland. "Employees just really respect him and look up to him. I have dealt with many CEOs over my lifetime and he is one of the best I've ever seen."
Now, however, the scale of the proposed layoffs is threatening that tight-knit culture.
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