Continental Leaving Skyteam for Star Alliance!
Jun 19, 2008, 12:34 pm
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Continental Leaving Skyteam for Star Alliance!
Continental in Leaving Delta/Northwest for Star Alliance [EDIT moderator: please add FOR to the headline]
Huge bummer for SkyMiles useage when they exit SkyTeam in a few months.
Continental Airlines and United Airlines Announce Comprehensive Plan for Global Cooperation; Continental Plans to Join Star Alliance
CHICAGO, June 19 IL-Continental-United
CHICAGO, June 19 /PRNewswire-FirstCall/ -- Continental Airlines
(NYSE: CAL) and United Airlines (Nasdaq: UAUA) today announced a framework
agreement to cooperate extensively, linking their networks and services
worldwide to the benefit of customers, and creating revenue opportunities and
cost savings and other efficiencies. In addition, Continental plans to join
United in the Star Alliance, the most comprehensive airline alliance in the
world.
"Continental's plan to partner with United and join the Star Alliance will
provide substantial new opportunities for all of our customers," said Larry
Kellner, chairman and CEO of Continental. "In a network business, there is
significant value gained from linking with larger networks to provide truly
national coverage and expanded global reach, and exploring new ways to reduce
costs and improve efficiencies. As we experience some of the most challenging
conditions airlines have ever faced, we look forward to the benefits of a new
relationship with United and the other Star Alliance members."
Teams from the two organizations worked intensively over the last several
weeks exploring creative solutions for how the two companies could achieve
efficiencies and synergies that expand beyond the well-established benefits of
codesharing. Their work focused on plans for significant cooperation on
frequent flier programs, lounges, facility utilization, information technology
and procurement. This work was assisted by the efficiency opportunities
identified and relationships developed during the parties' earlier merger
discussions.
"The teams worked well together to identify opportunities to create a
unique and competitive partnership extending well beyond a traditional code
share agreement," said Glenn Tilton, chairman, president and CEO of United.
"On behalf of the Star Alliance, I am very pleased to invite Continental to
join as a member. Continental will bring significant new assets to our global
alliance, and our two companies will work together effectively with our
partners to provide the best overall network in America and the world."
Kellner and Tilton are meeting in Chicago this afternoon to sign a
framework agreement outlining the systemwide alliance and cooperation
principles between their carriers.
Antitrust Immunized Joint Ventures
Through this new partnership, Continental and United plan to establish
joint ventures allowing them to cooperate with each other and with other Star
Alliance airlines in international regions and compete more effectively in an
increasingly global air travel market.
Initially, Continental will request the U.S. Department of Transportation
(DOT) to allow it to join United -- along with Lufthansa, Air Canada and six
other carriers -- in their already established antitrust immunized alliance.
This will enable Continental, United, Lufthansa, Air Canada and other
immunized Star Alliance carriers to work closely together as other antitrust
immunized alliances do, and to establish trans-Atlantic and other
international joint ventures so they can deliver highly competitive flight
schedules, fares and service. The planned trans-Atlantic joint venture, in
which Continental, United, Lufthansa and Air Canada will pool revenue, will
permit the carriers to compete more effectively with the proposed joint
venture involving certain SkyTeam members that was recently granted antitrust
immunity. The trans-Atlantic joint venture will combine the strength of the
carriers to create a more efficient and comprehensive trans-Atlantic network
for the carriers' customers.
Joint ventures are also planned for the Latin America and Asia/Pacific
regions, involving Continental, United and other members of the Star Alliance.
Both antitrust immunity and code-sharing are subject to receipt of approvals
from applicable national authorities.
Domestic Codesharing and Frequent Flier/Lounge Reciprocity
Continental's and United's route networks are highly complementary, with
little overlap, so they add value to each other and to customers who are
planning domestic and international itineraries.
In the United States domestic market, where antitrust immunity for solely
domestic travel would not apply, the two airlines plan to begin broad
code-sharing, which facilitates the creation of itineraries using both
carriers, as well as frequent Flier program, elite customer recognition and
airport lounge reciprocity. These cooperative activities are subject to
regulatory notice to applicable authorities and Continental exiting certain of
its current alliance relationships. Under code-sharing, customers will benefit
from a coordinated process for reservations/ticketing, check-in, flight
connections and baggage transfer.
Frequent flier reciprocity will allow members of Continental's OnePass
program and United's Mileage Plus program to earn miles in their accounts when
flying on either partner airline and redeem awards on both carriers. Travel on
either carrier will count toward elite customer recognition. Similarly, each
carrier's customers will have access to both Continental's Presidents Club
network and United's Red Carpet Club network of airport lounges.
Continental Joining Star Alliance
Continental's plans to join the Star Alliance and the other planned
cooperation are subject to receipt of certain regulatory and other approvals
and the termination of certain contractual relationships, including
Continental's existing agreements with SkyTeam members that restrict its
participation in another global alliance. Continental intends to terminate its
existing agreements with SkyTeam members and obtain the necessary approvals to
enter the Star Alliance, although Continental may not be successful, and the
time period for doing so may be out of Continental's control. For example, a
principal contractual restriction will not terminate until nine months after
the closing of the proposed Delta/Northwest merger. Continental intends to
transition out of SkyTeam and into the Star Alliance in a customer friendly
manner.
Joining the Star Alliance will connect Continental with United and 19
other airlines around the world. Within Star, frequent Fliers enjoy
reciprocity with respect to both mileage accrual and redemption among the
member airlines. The airlines also reciprocally recognize elite status, and
provide access to the worldwide network of lounges operated by the Star
Alliance airlines.
About the Star Alliance
The Star Alliance network was established in 1997 as the first truly
global airline alliance to offer customers worldwide reach and a smooth travel
experience. Star Alliance received the Air Transport World Market Leadership
Award in 2008 and was voted Best Airline Alliance by Business Traveller
Magazine in 2003, 2006 and 2007 and by Skytrax in 2003, 2005 and 2007. The
members are Air Canada, Air China, Air New Zealand, ANA, Asiana Airlines,
Austrian, bmi, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Shanghai
Airlines, Singapore Airlines, South African Airways, Spanair, SWISS, TAP
Portugal, Turkish Airlines, THAI, United and US Airways. Regional member
carriers Adria Airways (Slovenia), Blue1 (Finland) and Croatia Airlines
enhance the global network. Air India and EgyptAir have been accepted as
future members. Overall, the Star Alliance network offers nearly 18,000 daily
flights to 965 destinations in 162 countries.
About Continental
Continental Airlines provides more than 3,100 flights a day on Continental
and Continental Express to more than 280 U.S. and international destinations
from its hubs in New York/Newark, Houston, Cleveland and Guam. Continental is
the world's fifth largest airline, with routes throughout the Americas, Europe
and Asia. With more than 45,000 employees, Continental carries approximately
69 million passengers per year. For more company information, visit
http://continental.com.
About United
United Airlines provides more than 3,200 flights a day on United and
United Express to more than 200 U.S. domestic and international destinations
from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington,
D.C. With key global air rights in the Asia-Pacific region, Europe and Latin
America, United is one of the largest international carriers based in the
United States. United's 55,000 employees reside in every U.S. state and in
many countries around the world. News releases and other information about
United can be found at the company's Web site at http://united.com.
This press release contains forward-looking statements that are not
limited to historical facts, but reflect the company's current beliefs,
expectations or intentions regarding future events. All forward-looking
statements involve risks and uncertainties that could cause actual results to
differ materially from those in the forward-looking statements. Examples of
such risks and uncertainties include receipt of various regulatory approvals,
successful negotiation of documents implementing the planned alliances,
Continental exiting certain of its current alliance relationships, and other
approvals. Please read Continental's current report on Form 8-K filed on June
19, 2008 for additional information regarding these risks and uncertainties.
The company undertakes no obligation to publicly update or revise any
forward-looking statements to reflect events or circumstances that may arise
after the date of this press release, except as required by applicable law.
SOURCE Continental Airlines; United Airlines
Huge bummer for SkyMiles useage when they exit SkyTeam in a few months.
Continental Airlines and United Airlines Announce Comprehensive Plan for Global Cooperation; Continental Plans to Join Star Alliance
CHICAGO, June 19 IL-Continental-United
CHICAGO, June 19 /PRNewswire-FirstCall/ -- Continental Airlines
(NYSE: CAL) and United Airlines (Nasdaq: UAUA) today announced a framework
agreement to cooperate extensively, linking their networks and services
worldwide to the benefit of customers, and creating revenue opportunities and
cost savings and other efficiencies. In addition, Continental plans to join
United in the Star Alliance, the most comprehensive airline alliance in the
world.
"Continental's plan to partner with United and join the Star Alliance will
provide substantial new opportunities for all of our customers," said Larry
Kellner, chairman and CEO of Continental. "In a network business, there is
significant value gained from linking with larger networks to provide truly
national coverage and expanded global reach, and exploring new ways to reduce
costs and improve efficiencies. As we experience some of the most challenging
conditions airlines have ever faced, we look forward to the benefits of a new
relationship with United and the other Star Alliance members."
Teams from the two organizations worked intensively over the last several
weeks exploring creative solutions for how the two companies could achieve
efficiencies and synergies that expand beyond the well-established benefits of
codesharing. Their work focused on plans for significant cooperation on
frequent flier programs, lounges, facility utilization, information technology
and procurement. This work was assisted by the efficiency opportunities
identified and relationships developed during the parties' earlier merger
discussions.
"The teams worked well together to identify opportunities to create a
unique and competitive partnership extending well beyond a traditional code
share agreement," said Glenn Tilton, chairman, president and CEO of United.
"On behalf of the Star Alliance, I am very pleased to invite Continental to
join as a member. Continental will bring significant new assets to our global
alliance, and our two companies will work together effectively with our
partners to provide the best overall network in America and the world."
Kellner and Tilton are meeting in Chicago this afternoon to sign a
framework agreement outlining the systemwide alliance and cooperation
principles between their carriers.
Antitrust Immunized Joint Ventures
Through this new partnership, Continental and United plan to establish
joint ventures allowing them to cooperate with each other and with other Star
Alliance airlines in international regions and compete more effectively in an
increasingly global air travel market.
Initially, Continental will request the U.S. Department of Transportation
(DOT) to allow it to join United -- along with Lufthansa, Air Canada and six
other carriers -- in their already established antitrust immunized alliance.
This will enable Continental, United, Lufthansa, Air Canada and other
immunized Star Alliance carriers to work closely together as other antitrust
immunized alliances do, and to establish trans-Atlantic and other
international joint ventures so they can deliver highly competitive flight
schedules, fares and service. The planned trans-Atlantic joint venture, in
which Continental, United, Lufthansa and Air Canada will pool revenue, will
permit the carriers to compete more effectively with the proposed joint
venture involving certain SkyTeam members that was recently granted antitrust
immunity. The trans-Atlantic joint venture will combine the strength of the
carriers to create a more efficient and comprehensive trans-Atlantic network
for the carriers' customers.
Joint ventures are also planned for the Latin America and Asia/Pacific
regions, involving Continental, United and other members of the Star Alliance.
Both antitrust immunity and code-sharing are subject to receipt of approvals
from applicable national authorities.
Domestic Codesharing and Frequent Flier/Lounge Reciprocity
Continental's and United's route networks are highly complementary, with
little overlap, so they add value to each other and to customers who are
planning domestic and international itineraries.
In the United States domestic market, where antitrust immunity for solely
domestic travel would not apply, the two airlines plan to begin broad
code-sharing, which facilitates the creation of itineraries using both
carriers, as well as frequent Flier program, elite customer recognition and
airport lounge reciprocity. These cooperative activities are subject to
regulatory notice to applicable authorities and Continental exiting certain of
its current alliance relationships. Under code-sharing, customers will benefit
from a coordinated process for reservations/ticketing, check-in, flight
connections and baggage transfer.
Frequent flier reciprocity will allow members of Continental's OnePass
program and United's Mileage Plus program to earn miles in their accounts when
flying on either partner airline and redeem awards on both carriers. Travel on
either carrier will count toward elite customer recognition. Similarly, each
carrier's customers will have access to both Continental's Presidents Club
network and United's Red Carpet Club network of airport lounges.
Continental Joining Star Alliance
Continental's plans to join the Star Alliance and the other planned
cooperation are subject to receipt of certain regulatory and other approvals
and the termination of certain contractual relationships, including
Continental's existing agreements with SkyTeam members that restrict its
participation in another global alliance. Continental intends to terminate its
existing agreements with SkyTeam members and obtain the necessary approvals to
enter the Star Alliance, although Continental may not be successful, and the
time period for doing so may be out of Continental's control. For example, a
principal contractual restriction will not terminate until nine months after
the closing of the proposed Delta/Northwest merger. Continental intends to
transition out of SkyTeam and into the Star Alliance in a customer friendly
manner.
Joining the Star Alliance will connect Continental with United and 19
other airlines around the world. Within Star, frequent Fliers enjoy
reciprocity with respect to both mileage accrual and redemption among the
member airlines. The airlines also reciprocally recognize elite status, and
provide access to the worldwide network of lounges operated by the Star
Alliance airlines.
About the Star Alliance
The Star Alliance network was established in 1997 as the first truly
global airline alliance to offer customers worldwide reach and a smooth travel
experience. Star Alliance received the Air Transport World Market Leadership
Award in 2008 and was voted Best Airline Alliance by Business Traveller
Magazine in 2003, 2006 and 2007 and by Skytrax in 2003, 2005 and 2007. The
members are Air Canada, Air China, Air New Zealand, ANA, Asiana Airlines,
Austrian, bmi, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Shanghai
Airlines, Singapore Airlines, South African Airways, Spanair, SWISS, TAP
Portugal, Turkish Airlines, THAI, United and US Airways. Regional member
carriers Adria Airways (Slovenia), Blue1 (Finland) and Croatia Airlines
enhance the global network. Air India and EgyptAir have been accepted as
future members. Overall, the Star Alliance network offers nearly 18,000 daily
flights to 965 destinations in 162 countries.
About Continental
Continental Airlines provides more than 3,100 flights a day on Continental
and Continental Express to more than 280 U.S. and international destinations
from its hubs in New York/Newark, Houston, Cleveland and Guam. Continental is
the world's fifth largest airline, with routes throughout the Americas, Europe
and Asia. With more than 45,000 employees, Continental carries approximately
69 million passengers per year. For more company information, visit
http://continental.com.
About United
United Airlines provides more than 3,200 flights a day on United and
United Express to more than 200 U.S. domestic and international destinations
from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington,
D.C. With key global air rights in the Asia-Pacific region, Europe and Latin
America, United is one of the largest international carriers based in the
United States. United's 55,000 employees reside in every U.S. state and in
many countries around the world. News releases and other information about
United can be found at the company's Web site at http://united.com.
This press release contains forward-looking statements that are not
limited to historical facts, but reflect the company's current beliefs,
expectations or intentions regarding future events. All forward-looking
statements involve risks and uncertainties that could cause actual results to
differ materially from those in the forward-looking statements. Examples of
such risks and uncertainties include receipt of various regulatory approvals,
successful negotiation of documents implementing the planned alliances,
Continental exiting certain of its current alliance relationships, and other
approvals. Please read Continental's current report on Form 8-K filed on June
19, 2008 for additional information regarding these risks and uncertainties.
The company undertakes no obligation to publicly update or revise any
forward-looking statements to reflect events or circumstances that may arise
after the date of this press release, except as required by applicable law.
SOURCE Continental Airlines; United Airlines
Jun 19, 2008, 12:50 pm
#4
Join Date: Oct 2007
Location: ATL
Programs: DL GM
Posts: 998
hmm....maybe this is why I cannot complete my award ticket today (a leg is on CO metal)....
This is bad news for CRC members....I love the President's Clubs and especially the big Houston one.
When does this go into effect?
This is bad news for CRC members....I love the President's Clubs and especially the big Houston one.
When does this go into effect?
Jun 19, 2008, 12:56 pm
#5
Join Date: Jul 2006
Location: BDL/PVD/BOS
Posts: 565
Looks like this is going to take a while before the dust settles.
Originally Posted by http://www.continental.com/web/en-US/content/news/alliance.aspx
For the time being, the Continental/SkyTeam relationships are business-as-usual. Continental is committed to making this transition in a very customer-friendly manner. There will be a significant transition period, including regulatory approvals, for Continental to move from one alliance to another. Until further notice, OnePass members can continue to earn and redeem miles on SkyTeam airlines and SkyTeam lounge reciprocity continues as usual for SkyTeam Elite Plus members traveling on international SkyTeam itineraries.
Jun 19, 2008, 1:12 pm
#6
FlyerTalk Evangelist
Join Date: Oct 2005
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Jun 19, 2008, 1:19 pm
#7
Join Date: Mar 2008
Location: Marietta, Georgia, United States
Programs: DL HH
Posts: 501
Jun 19, 2008, 1:21 pm
#8
Join Date: Jun 2005
Location: Huntsville, AL
Programs: DL DM 1.929MM, Hilton Lifetime Diamond, IHG Platinum, Avis CHM, Marriott Titanium (lifetime gold)
Posts: 7,858
Continental intends to terminate its
existing agreements with SkyTeam members and obtain the necessary approvals to enter the Star Alliance, although Continental may not be successful, and the time period for doing so may be out of Continental's control. For example, a principal contractual restriction will not terminate until nine months after the closing of the proposed Delta/Northwest merger.
existing agreements with SkyTeam members and obtain the necessary approvals to enter the Star Alliance, although Continental may not be successful, and the time period for doing so may be out of Continental's control. For example, a principal contractual restriction will not terminate until nine months after the closing of the proposed Delta/Northwest merger.
Sad news, but thanks for posting.
David
Jun 19, 2008, 1:23 pm
#9
Formerly known as fsa_ea
Join Date: Dec 2004
Location: Up in the Air
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Posts: 2,229
Jun 19, 2008, 1:50 pm
#11
Suspended
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Posts: 102,095
Not a surprise.
Star Alliance had quite the hole for intercontinental non-stop flights between LHR and the New York area and this will close that hole for me.
Star Alliance had quite the hole for intercontinental non-stop flights between LHR and the New York area and this will close that hole for me.
Jun 19, 2008, 1:50 pm
#12
FlyerTalk Evangelist
Join Date: Aug 2004
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Posts: 14,497
I found one on CO the other day for BOS-(CLE)-LAS for travel 3 weeks for today when I was looking a couple of days ago. There seemed to be decent availability going through CLE (rather than EWR/IAH, but I've seen decent availability on some EWR routes). Thing that hurt was the Saturday-night stay requirement when on CO.
Sadly, this will mean no President's Club access at LAS soon. Would love to see the post-merger DL/NW open up a lounge at LAS - they'll be the fourth largest airline (behind Southwest, US Airways and pretty even with United) so I'd really love to see a DL-operated lounge there.
Sadly, this will mean no President's Club access at LAS soon. Would love to see the post-merger DL/NW open up a lounge at LAS - they'll be the fourth largest airline (behind Southwest, US Airways and pretty even with United) so I'd really love to see a DL-operated lounge there.
Jun 19, 2008, 1:52 pm
#13
Suspended
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Jun 19, 2008, 2:08 pm
#15
Join Date: Aug 2007
Location: Kea'au, Hawaii
Programs: Recovering Delta SkyMiles Addict--Now Gold with AAdvantage
Posts: 586
This really bums me out. Saver level award tix to and from Hawaii are frequently not only easier to find on CO metal, but they offer a better product than DL offers on its own metal. (Much nicer seats than DL's domestic first in F and free meals and individual TV in Y.) I hope this "transition" takes a very long time, or at least as long as it takes me to burn through my SkyMiles.