Here’s something that should make you think twice about your company or organization’s business travel budget and strategy. According to a press release issued just this morning, Continental Airlines says it is eliminating about 3,000 jobs, or 6.7% of its staff, and grounding 67 aircraft in an attempt to cut costs amid rocketing oil and fuel prices. As a result, Continental says it will need fewer employees worldwide to support the reduced flight schedule.

Specifically, Continental says it will reduce the size of its fleet by removing the least efficient aircraft from its network. To accomplish this, Continental is accelerating the retirement of its Boeing 737-300 and 737-500 fleets. In the first six months of 2008, the airline removed six older aircraft from service. It says it will retire an additional 67 Boeing 737-300 and 737-500 aircraft, with 37 of these additional retirements occurring in 2008 and 30 in 2009.

From Continental Airlines:

Dear Co-worker:

We’ve always said that you deserve open, honest and direct communication. This letter and the attached employee bulletin and Q&A are part of that commitment.

The airline industry is in a crisis. Its business model doesn’t work with the current price of fuel and the existing level of capacity in the marketplace. We need to make changes in response.

While there have been several successful fare increases, those increases haven’t been sufficient to cover the rising cost of fuel. As fares increase, fewer customers will fly. As fewer customers fly, we will need to reduce our capacity to match the reduced demand. As we reduce our capacity, we will need fewer employees to operate the airline. Although these changes will be painful, we must adapt to the reality of today’s market to successfully navigate these difficult times.

The attached employee bulletin and Q&A outline some of the steps we are taking to address this industry crisis. The situation for all airlines is serious, and the actions we are announcing today are necessary to secure our future. We regret the loss of jobs caused by this crisis, and we will do our best to minimize furloughs and involuntary terminations.

These actions will help Continental survive this crisis. You have our ongoing commitment to keep you informed as the industry evolves and adapts to these unprecedented challenges. It is important that we all keep our focus on working together during these difficult times.

Larry Kellner
Chairman & CEO, Continental Airlines, Inc.

Jeffery Smisek
President, Continental Airlines, Inc.

When you’re in business or running an organization, you know that expenditures are necessary to achieve your goals. You probably have purchased computer equipment, a phone system, Web hosting services, and perhaps even vehicles for your business or organization. All of these expenses are the cost of doing business. They allow you to generate revenue or run your organization.

With today’s announcement from Continental Airlines, the same is true about videoconferencing. Some people look at the price tag and all they see is the expense. However, when evaluating the cost of a videoconferencing system, you also need to consider the potential benefits to your bottom line, including the following:

• Savings in travel costs: If personnel often have to travel long distances to meet with colleagues, clients, and associates, the savings on travel alone is usually sufficient to more than cover the cost of a high-quality videoconferencing system.

• Savings in travel time: With videoconferencing, the most travel you’ll ever be required to do is to walk to the videoconferencing room. And if the system is installed in your office, you don’t even have to travel that far. No more driving to and from airports, dealing with flight delays and long flights, and spending nights in hotel rooms.

• Improved efficiency and productivity: By being able to consult with key personnel and outside experts at a moment’s notice, you can perform your daily tasks much more productively and even collaborate remotely with colleagues.

The bottom line is this: Today’s announcement from Continental Airlines should give all of us reason to pause and think twice about business travel budgets and strategy. Other airlines are sure to follow in Continental’s footsteps, and when they do, rest assured that those of here at Face to Face Live, Inc. will be here to make sure you arrive at your videoconferencing destination on time, anytime!

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• Average cost of domestic airfare, car rental, meals, and one night’s hotel stay for the business traveler: $1,194.00

• Amount of CO2 emissions per trip: 3.75 metric tons

• High Definition Videoconferencing that really works: Priceless… and in the case of the videoconferencing products and services we offer here at Face to Face Live, around $700.00 per month!

Unless you’ve been living under a rock these last two weeks, you know that thousands of airline flights have been canceled due to safety and maintenance concerns. On April 9, American Airlines canceled more than 1,000 flights after grounding its MD-80 aircraft to conduct extra safety inspections on wiring. The following day it canceled 900 more, causing chaos at airports throughout the United States. The cancellations–almost half of the airline’s total schedule–came after about 450 flights had been scrapped on April 8.

Meanwhile, other airlines have canceled large number of flights for the very same reasons, including United, Southwest, Delta, Alaska Airlines and Midwest Airlines. For its part, Southwest was fined over $10 million by the Federal Aviation Administration for violations regarding aircraft inspections and maintenance (a whistle blower testified before Congress that Southwest aircraft had been allowed to fly with fuselage cracks).

What’s the business traveler to do when airline after airline can’t even guarantee its own flight plans? How about taking another look at videoconferencing? Sure, you’d expect us to say that but in all honesty, what else can you do to keep your business running and employees productive when the airlines pull the runway right out from underneath you… take the train or use smaller airports? Please… that’s not a solution; that’s a hassle just waiting to happen!

Do the math—a cost/benefits analysis—to determine how much a videoconferencing system will actually cost or earn back. Total your monthly or annual travel costs and then figure in how much of that travel could be eliminated through videoconferencing. Also calculate the loss of productivity while traveling and the additional time you need to take off work because of exactly what the airlines are doing to you now.

The business benefits are clear, as are the costs. For around $700 per month, you can equip any of your business locations with an HD quality videoconferencing solution that’s a heck of lot more dependable than any airline we know of!

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