United Airlines and Continental Airlines form alliance
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Continental Airlines and United Airlines, which decided in April not to merge, said on Thursday that they had reached an agreement to link their networks and operations worldwide, the New York Times reported.
As part of the arrangement, Continental said it planned to join the Star Alliance, the world’s largest group of airline partners, in which United, operated by the UAL Corporation, is a member. Continental said it would disengage from its membership in the SkyTeam partnership, another airline group.
The agreement means the end of Continental’s association with Delta Air Lines and Northwest Airlines, with which it shares flight codes and routes across the United States and the world.
Delta and Northwest agreed to merge in mid-April, leaving the future of their arrangement with Continental in doubt.
The Continental-United alliance, as well as Continental’s shift to the Star Alliance, would require approval from federal regulators.
Glenn F. Tilton, the chief executive of United, and Lawrence W. Kellner, who runs Continental, met in Chicago Thursday to sign their alliance agreement.
The agreement between the two airlines means passengers could book tickets on either carrier, earn credit in each others’ frequent-flier programs and redeem miles on each carrier.
The Star Alliance includes United, Air Canada, Lufthansa of Germany, Singapore Airlines, ANA of Japan and Air China, among other members. Over all, the Star Alliance network offers nearly 18,000 daily flights to 965 destinations in 162 countries.
United and Continental held merger talks after the Delta-Northwest deal was announced, but Continental’s board decided not to proceed with a deal.
On Thursday, Mr. Kellner said the new arrangements would “provide substantial new opportunities for all of our customers.”
Photo: Reuters