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Wed, Sep 17, 2003

Continental Gets Clever

'No Middle Seat' Guarantee for Full-Fare PAX

Why not give the people what they want? Or, at least give the lowest-paying passengers the least. Hey, nobody wants a 'middle' seat. "Too bad," so many airlines say, "If you don't want a middle seat, fly in a DC-3, where all the seats are aisle or window."

Continental, though, has done something clever. Without raising fares, Continental is providing better, market-driven service. From now on, full-fare customers won't get stuck in the middle seat. They'll also get priority boarding, baggage handling and even souped-up security checks, wehre possible.

Continental CEO Gordon Bethune said the new "EliteClass" service is aimed at rewarding customers who want more for their money. "There are still people who want creature comforts," said Bethune, chairman and chief executive officer of Continental. "This program is about the airport experience."

Bethune said the service targets customers who desire more service than they can get from low-cost carriers, while also allowing them to receive more perqs than nearby passengers traveling on discount fares.

Here's what you'll get:

The new program will feature separate entrances at Continental boarding gates for EliteAccess passengers. Through specially marked boarding passes, they can also get "head of the line" treatment. (That means those passengers get preferential boarding even if they arrive late.)

EliteAccess customers also will have their luggage identified with a special tag so it will be first loaded onto the luggage carousel. Additionally, they get a guarantee they won't be assigned a middle seat.

The new program will be available to first-class and business-class ticketholders and economy-class travelers who pay full fares to travel. About 20 percent of Continental's customers fall into that category. "Customers who pay higher fares account for an important part of our revenues, and we want to show appreciation for their business by giving them more for their money," Bethune said. "I think it is the right thing to do," he said. "The market might be down, but it is certainly not out."

Watch for every premium carrier to soon copy this idea. It's too bad for Bethune, that Continental can't patent it.

FMI: www.continental.com

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