WHY CONTINENTAL:
A $385 million loss for the final months of fiscal year 1994 signalled Continental might go bankrupt. Continental was in dire straits because the deregulation of the commercial airline industry in 1978 ushered in a new era focused on mergers and acquisitions and bitter employee-management relations. Venerable airline brands with a commitment to quality, like Continental, were prime takeover targets. After Texas Air Chairman Frank Lorenzo (HBS 1963) secured Continental in his hostile takeover bid, tensions escalated between Lorenzo and the old guard--especially when Lorenzo declared Continental bankrupt in the fall of 1983.
In October 1994, five months after Continental exited its second bankruptcy, Bethune was elevated to CEO and created a Go Forward Plan to return Continental to profitability. Two years after unveiling the Go Forward Plan, Continental was at the top of the industry in a number of important performance metrics.

KEY ISSUES:
Continental ranked tenth out of the ten largest U.S. airlines in all key customer service areas as measured by the Department of Transportation: on-time arrivals, baggage handling, customer complaints, and involuntary denied boardings. The airline had already been in bankruptcy twice, and was headed for a third round as its cash dried up.

STRATEGIES FOLLOWED FOR TURN AROUND:
The turn-around plan — the Go Forward Plan 'A' — had four different elements each of which were given an inspirational title :
• Fly to win — product improvement and network redesign;
• Fund the Future — cost control and cash flow management;
• Make Reliability a Reality — punctuality and reliability; and
• Working together — incentivising the staff.

In order to achieve success with the above given four elements the following steps were taken:
A) Focus on a Few Early Wins
At Continental, Bethune and Brenneman