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Continental and United Sign Global Co-Operation Agreement

Posted on: Friday, 20 June 2008, 09:00 CDT

Continental Airlines and United Airlines have signed a framework agreement to co-operate extensively, linking their networks and services worldwide to the benefit of customers, and create revenue opportunities and cost savings.

Continental plans to join United in the Star Alliance. Through this new partnership, Continental and United plan to establish joint ventures allowing them to co-operate with each other, and with other Star Alliance airlines in international regions and compete more effectively in an increasingly global air travel market.

Initially, Continental will request the US Department of Transportation to allow it to join United, along with Lufthansa, Air Canada and six other carriers in their already established antitrust immunized alliance.

This will enable Continental, United, Lufthansa, Air Canada and other immunized Star Alliance carriers to work closely together as other antitrust immunized alliances do, and establish trans-Atlantic and other international joint ventures to deliver competitive flight schedules, fares and service.

The two airlines also plan to begin broad codesharing, which facilitates the creation of itineraries using both carriers, as well as frequent flier program, elite customer recognition and airport lounge reciprocity. Frequent flier reciprocity will allow members of Continental's OnePass program and United's Mileage Plus program to earn miles in their accounts when flying on either partner airline and redeem awards on both carriers.

Larry Kellner, chairman and CEO of Continental, said: "Continental's plan to partner with United and join the Star Alliance will provide substantial new opportunities for all of our customers. In a network business, there is significant value gained from linking with larger networks to provide truly national coverage and expanded global reach, and exploring new ways to reduce costs and improve efficiencies."

Source: Datamonitor

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