Good one, David.

LOL

NJDavid for president!! Beautifully said!

I'm waiting with baited breath for JeremyZ's reply(ies).

Is our name really that long??

I suppose we got your attention?

http://www.flyertalk.com/forum/smile.gif

I must agree with DTHernandez, the nickle and diming has to stop.

There was a time when CO was different from the other major carriers. The turnaround was remarkable, and reaped benefits for CO and it's employees. CO employees rose to the occassion, because they were led by example. The company truly valued its customers, and went out of their way to provide good service. Most CO employees still do.

But your management started believing their own spin. You enjoyed a revenue premium, and to be honest, used that revenue premium to "spoil" your best customers. Unlimited FC upgrades hooked me. As the numbers of business travellers began to decline in 2001 (followed by 9/11), your management decided to try and force the revenue higher. The secret "star" system of rating pax by revenue is a good example. At the same time, your management started cutting customer amenities and FF benefits, while at the same time promising not to cut FF benefits nor inflight amenities. Lets face it, we all know that the CO of today is not the same CO of 2000.

I've always been price-sensitive, being self-employed. But CO/NW got the lions share of the revenue I spent on air travel. But your management decided that my revenue wasn't important, because it wasn't the RIGHT revenue. IE it wasn't full Y.

Unlimited FC upgrades are a problem for CO. Everyone wants them, but your management still thinks the cabin is worth a revenue premium. Let me share a little fact with you: It's not.

I've been flying AirTran A LOT this year, and they treat their FC cabin differently. It's marketed as "Business Class" for starters. Also, on the day of travel, upgrades to BC are available, on a "first come, first served" basis. $35 per flight segment is all it costs to upgrade. Doesn't matter if you buy a cheap fare or a full Y. Is the product worth $35 per segment to upgrade? Based on the value I get from it, yes. Big seat, and a couple free drinks when I feel like it. And I almost never have trouble getting the upgrade AND a reasonable fare.

Those $35 per segement upgrades turn the person who spends $250 to fly R/T CAK-ATL-RSW into someone who spends $390. Wouldn't you like more customers like that? Then quit trying to tell us that your FC cabin is a "premium product", when it's not. It's simply a bigger seat, and a little more room. Maybe a meal, but only maybe nowadays. Remember when your management told us that wouldn't be changing, too?

I don't get that hassle free experience on CO anymore. CO used to make me feel like a valued customer. Your managment could have adjusted your business model to reflect the current needs of your customers. But your management expected me to change my spending habits to meet THEIR needs. Guess what? I had other options. It would seem to me that I'm probably not the only one who CO has chased away in the past 2-3 years. Where do you think CO would be had they not forced many of us to find another way from point A to B? After all, when it comes right down to it, that's all air travel is.

I recognize the business realities. I probably recognize them better than some other people here, because the money comes out of MY pocket, not charged to some corporate AMEX card. But since 9/11, the airline industry has needed to confront some very ugly realities. Yet in most cases (including CO), they've chosen to hope that business travel rebounds, rather than make some tough decisions. The industry needs to be restructured, top to bottom. There are viable business models in the "economy coach" (WN), "premium coach" (JetBlue), and "2 cabin" (AirTran) airline models. Confront the reality. If it means the end of unlimited upgrades, but means CO survives, so be it. Don't count on premium revenue to save you. It's not coming back. But your management needs to remember to value EVERY customer, as you once did. Until that day comes, my travel on CO will be very limited. This CO silver has yet to set foot on a CO Plane this year. Good luck.

I work for British Airways at LGW - an arch rival on the LGW-IAH route (we used to fly to New York too until Future Size and Shape got a hold!)

More route cuts have been announced...poor CO is now down to one LGW-IAH and one LGW-EWR per day with LGW-CLE five times a week.

I have always been on good terms with the CO staff and, whatever you think of Gordon Bethune, he is, without doubt, one of the best bosses in the world in the fair treatment of staff......in theory,at least, this should be reflected in the staff's fair treatment of customers!

Please support CO during these dark days (and please use BA on Inter-European sectors!) and keep the candle sputtering!

Your help, guys, is really appreciated from all of us in the aviation industry!

Competition Keeps Us Healthy!

I have to agree with Duxfan.

I'm a big fan of jetBlue's product, and I've been doing a lot of AA recently, too - some nice promotions and reasonable pricing, unlike some of the outrageous pricing and service cuts I've seen from CO.

If this were just a 9/11 or war-related issue, I would be supportive. But the industry was suffering before 9/11 (CO was barely profitable, and the other majors weren't even), due in part to recession and corporate cutbacks, but also due to the flawed business model and pricing schemes. HP is actually looking up (admittedly from a weak position) because they have realized that the old pricing model does not work when there are alternatives available. CO and others haven't seen that yet.

Therefore, I will do the most supportive thing I can do, which is tell CO that I cannot justify the premium I would have to pay to fly them. The sooner they realize that the pricing and business model need to change, the sooner they will save themselves. I hope unlike US and UA (and maybe AA) it happens before backruptcy. But if not, then so be it.

Well, the CO proxy came out today, and here's Bethune's 2002 compensation. Frankly, it's astonishing:

*Annual Compensation*
Salary: $1,063,350
Bonus: $651,563
Other: $35,425

*Long Term Compensation*
(Awards)
Restricted Stock: $2,318,250
Securities Underlying Options: 800,000
(Payouts)
LTIP Payouts: $3,518,438

*Other Compensation*
Insurance Premiums: 41,835

Y'all who are interested should read the proxy. In 2002, the HR committee of the board rejiggered the LTIP formula to award execs full payments if CO achieved "the highest cumulative EBITDAR margin in the industry group" and other goals. Prior to this, it looks like CO would have had to show a profit for these payments to be made. Lucky fools.

BTW, Gordon's son, Xavier Bethune was compensated to the tune of $226,045 for his job as a Senior Director - Purchasing of CO.

We'll have to see what the other airlines are doing, but CO's generosity to Bethune for 2002 looks to be pretty incredible.


Also, I found this in the proxy, and it sounded new to me:

Finally, and it's probably also something to watch, CO's pension plan is underfunded by about $1.2 billion. NW is underfunded by more than $3 billion. As airlines either force or "encourage" employees to leave the company, these deficits could become more of an issue.

[This message has been edited by JeremyZ (edited 03-27-2003).]

$12 million in compensation in a year with a $451 million net loss - an 82% raise - just unbelievable!

http://www.flyertalk.com/forum/Forum20/HTML/007695.html

[This message has been edited by NJDavid (edited 03-27-2003).]

I LUV it!!!! Gordo reinvents Cal-Lite http://www.flyertalk.com/forum/rolleyes.gif

Is it my imagination, or did this come across to anyone else as refering to CO coach (in addition to CO F/J) as somehow being a "premium product"? If Gordo the Liar thinks his coach product deserves to have the word "premium" placed anywhere near it, he's been huffing jet fuel again.

"We have announced and are implementing plans to modify our product for the large segment of our customers who are not willing to pay for a premium product, to reduce costs and to generate additional revenue. Other carriers have announced similar plans to create lower-cost products, or to offer separate low cost products (such as a low-cost "airline within an airline")."

C'mon Spiff -

CO management thinks ANYTHING with a CO code on it is a premium product. Problem is, it's not anymore!

"Continental Airlines... We're the Saturn of the airline industry, because we beleive our own "quality" spin..."

It is tough to support CO when CO makes you feel like they are doing you a favor by letting you travel on them. Despite some recent problems, by and large NW makes me feel welcome. CO has some great employees but still has a pervasive "we are great, we are CO" attitude at many levels. Until they fix the TERRIBLE international/HNL upgrade program, I will avoid flying them whenever possible.

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