I think a lot of that is speculation, sort of an "insert-airline-here" blanket document applicable to all carriers. Larry has made clear that First Class service in all mainline markets is an important part of the Continental business model, and I wouldn't give too much consideration to that report.

CO already toyed with the product with Continental Lite in the early 1990s, and we all know what happened with that. Continental is committed to providing a consistent product, and two separate "full service" and "all coach" configurations would create a dichotomy which does not exactly jibe with the teachings of the Gordon School of Airline Management, a way of thinking still very much alive in downtown Houston.

The only thing I could see would be, as xyzzy mentioned, increased XJT flying in low-yield markets.