Originally Posted by
HeathrowGuy
Any objective analysis of the Kellner years is incomplete without due recognition of the fact that Kellner was forced to deal with the sizeable financial burdens placed on Continental by his predecessor's decisions. Regardless of whether Bethune's actions constituted the best or necessary restructuring course for the airline, the cold truth is that the Bethune years resulted in a Continental that was up to its eyeballs in debt, wanting for cash, and limited in many growth possibilities beyond those opportunities explored during the Kellner years.
When Gordon Bethune took over as CEO of CAL in 1994, the company had a 50-1 debt-equity and negative liquidity. By 2000 CAL had a 5-1 debt equity and cash reserves of $1 billion.
At the end of Bethune's tenure, CAL had approximately $5 billion in debt and $1 billion in cash.