Continental and United have agreed to link their networks and services in a move that includes Continental joining the Star Alliance.
Through a new partnership, Continental and United plan to establish joint ventures allowing them to cooperate with each other and with other Star Alliance airlines on international routes. Initially, Continental will ask the U.S. Department of Transportation to allow it to join United, Lufthansa, Air Canada and six other carriers in an antitrust-immunized alliance that is already established.
Antitrust immunization will enable Continental to collaborate on schedules, fares and services with partners; share revenue and costs; and "compete more effectively with the proposed joint venture involving certain SkyTeam members that was recently granted antitrust immunity," said United and Continental.
Last month, the DOT approved an antitrust-immunized, transatlantic alliance between Delta, Northwest, Air France, KLM, CSA Czech Airlines and Alitalia.
Continental said it wants to establish joint ventures with Star Alliance carriers in transatlantic, Asia Pacific and Latin America markets.
However, Continental is currently a member of the SkyTeam alliance and must receive approval to terminate its membership in SkyTeam. Existing agreements with SkyTeam members restrict its participation in another global alliance.
Continental said it intends to terminate its existing agreements with SkyTeam members and obtain the necessary approvals to enter the Star Alliance, but warned it could take a considerable amount of time to join Star. For example, Continental noted that a principal contractual restriction will not terminate until nine months after the closing of the proposed Delta-Northwest merger.
In the U.S., Continental and United plan to launch a code-share agreement and enable customers to accrue frequent-flyer miles and redeem awards with both airlines. Continental currently has a joint code-share deal and frequent-flyer reciprocity with Northwest and Delta in the U.S.