Continental Air Aims To Join Star Alliance On Oct 27
August 13 2009 - 12:59AM
Dow Jones News
Continental Airlines Inc. (CAL) said Wednesday that it expected
to join the Star Alliance of carriers on Oct. 27, three days after
leaving the rival SkyTeam grouping.
The Houston-based carrier has managed to maintain its schedule
for the transfer - the first defection between the three alliances
that dominate the global airline sector - despite a
longer-than-expected approval process from U.S. regulators.
"We expect to begin participating in Star" on Oct. 27, the
airline said in a message to members of its frequent-flyer
program.
Continental opted to exit SkyTeam, which is led by Delta Air
Lines Inc. (DAL), after the world's largest carrier by revenue
successfully merged with Northwest Airlines, creating a fiercer
competitor on domestic and international routes despite a loose
marketing alliance between the trio.
The quick move into Star will allow Continental to leverage its
new partners' route networks and frequent flyers at a time when
airlines face a slump in demand, notably among high-margin business
passengers.
The carrier was invited to join Star by UAL Corp. (UAUA), after
it rejected a merger in favor of a commercial pact with the parent
of United Airlines, a founder member of the alliance alongside
Deutsche Lufthansa AG (LHA.XE).
It was also wooed by the third airline group, Oneworld, led by
American Airlines' parent AMR Corp. (AMR) and British Airways PLC
(BAY.LN), which is seeking to match the antitrust approval for
cooperation secured by Star and SkyTeam.
-By Doug Cameron, Dow Jones Newswires; 312-750-4135;
doug.cameron@dowjones.com