Star Alliance welcomes Continental Airlines.

24th June 2008

Continental Airlines has announced it wishes to leave SkyTeam and join the Star Alliance as it rejigs its global partnerships. This may not be successful, but Continental says that it will also co-operate extensively with United Airlines to link flights and services.

The move appears to have been driven by the need to secure efficiency savings as the oil price continues to bite into airlines profits. However, there may be considerable problems for Continental to extricat itself from existing SkyTeam agreements. Indeed, the airline admits it may not be successful.

The cooperation with United will examine potential synergies on issues such as frequent flyer programmes, lounges, IT and procurement. Continental is also seeking approval from the US Department of Transportation to join United - along with Lufthansa, Air Canada and six other carriers in their 'already-established anti-trust immunised alliance.'