Continental and United forge ‘comprehensive’ partnership
Contintal Airlines and United Airlines are to link their global networks in a “comprehensive co-operation plan”.
Although falling short of a merger, Continental plans to leave the Delta-led SkyTeam group and join the United-led Star Alliance, althoigh this process may take at least a year.
The two carriers are to work together on code-share flights, frequent flyier programmes, lounges, IT and procurement.
“This work was assisted by the efficieny opportunities identified during the parties’ earlier merger discussions,” a joint statement said.
A range of joint ventures are to be established to allow co-operation between the two airlines and other Star Alliance members, which include Lufthansa and Air Canada.
Continental, the fourth largest US carrier by traffic, will seek US Department of Transportation approval to join in an anti-trust immuzed alliance.
This will enable the Houston-based airline to work closely together with United – the second largest US carrier – Lufthansa, Air Canada and other alliance members to work closely together and establish a transatlantic joint venture.
The North Atlantic plan aims to allow Continental, United, Lufthansa and Air Canada to poll revenues to allow them to compete more effectively with rival SkyTeam carriers led by Delta and Air France.
“The transatlantic joint venture will combine the strength of the carriers to create a more efficient and comprehensive transatlantic network for the carriers’ customers,” the statement said.
Other joint ventures are planned for the Latin America and Asia-Pacific regions.
Within the US, the two airlines plan to begin broad code-sharing and frequent flyer reciprocity.
Continental chairman and CEO Larry Kellner said: “As we experience some of the most challenging conditions airlines have ever faced, we look forward to the benefits of a new relationship with United and the other Star Alliance members.”
He said “substantial new opprunities” for passengers would be created through the partnership, while admitting that cost cuts were part of the plan.
United’s chairman, president and CEO Glenn Tilton said: “Continental will bring significant new assets to our global alliance, and our two companies will work together effectively with our partners to provide the best overall network in America and the world.”
by Phil Davies
Phil Davies
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