Continental, United map global co-operation – not merger

Continental Airlines and United Airlines have unveiled a plan to link their networks and services worldwide. The move comes days after merger talks between United and US Airways foundered, and mere months after word that Continental Airlines and American Airlines might join forces in a marketing pact.

If the CO/UA deal eventuates as envisioned, here’s what it means to consumers:

- Continental would leave the SkyTeam alliance, and join Star Alliance. The former is currently populated by the likes of Delta Air Lines, Northwest Airlines, and Air France. Star Alliance encompasses, among others, United, Lufthansa, and Air Canada. Continental’s membership in Star Alliance would facilitate connections by Continental flyers throughout the globe-girdling Star network;

- The anti-trust immunized ability to establish transatlantic and other joint international ventures. Continental and United will ask the Department of Transportation to grant the immunity. If DOT does, Continental, United, Lufthansa, and Air Canada could pool revenue on the transatlantic. CO contends such an association would, “combine the strength of the carriers to create a more efficient and comprehensive [transatlantic] network for the carriers’ customers”.

- CO and UA’s domestic U.S. route networks don’t overlap very much. That’s a perfect scenario for domestic code-sharing. The two carriers plan to do precisely that, with UA putting its two-teller code on CO flights, and vise-versa. Code-sharing allows flyers, says Continental, to “benefit from a co-ordinated process for reservations/ticketing, check-in, flight connections, and baggage transfer”.

- Reciprocal airport lounge and frequent-flyer membership benefits, that is, members of Continental’s OnePass program and United’s Mileage Plus program would be able to “earn and burn” (receive and redeem) miles on each carrier.

In these days of rising fuel prices, and diminishing route structures, a deal like this makes sense – at least for the airlines. From a consumer point of view, it certainly would beget more connectivity, and better flow. What it will not do is put more airline seats in the air. Both Continental and United have announced significant capacity cuts of late, and plan to ground older Boeing 737s.

© Cheapflights Ltd Jerry Chandler