Continental wins clearance to join United in alliance
WASHINGTON -- Continental Airlines Inc. won final U.S. approval to coordinate flights abroad with United Airlines and eight carriers, the Transportation Department said today.
Continental, the fourth-largest U.S. carrier, will be able to jointly plan pricing, schedules and marketing with the carriers, under a decision released today in Washington. The Transportation didn't provide antitrust immunity for U.S.- Beijing flights, four trans-Atlantic flights and four U.S.- Canada flights.
Houston-based Continental sought department approval in July 2008 to collaborate on international flights as part of the Star Alliance, the world's largest airline group. The U.S. agency granted preliminary approval in April.
Airlines use alliances in an effort to gain some benefits they'd get in a merger, including revenue boosts by attracting rival carriers' passengers. Immunity lets airlines operate as a single entity for international flights.
The Justice Department said in a June 26 filing that competition will be harmed on flights between the U.S. and markets such as China should Continental get broad immunity that includes Latin American and trans-Pacific flights. The Justice Department asked the agency to add limits to the pact.
"The department's decision will benefit consumers, enhance competition and preserve jobs in the airline industry," Transportation Secretary Ray LaHood said in a statement today.
Competing Alliance
Continental had announced in June 2008 it was pulling out of the SkyTeam partnership with Delta Air Lines Inc. and Northwest Airlines Corp. Continental said in its application the following month it needed antitrust immunity with Star to compete with SkyTeam, the second-largest alliance.
The other carriers besides UAL Corp.'s United that won immunity to work with Continental include: Deutsche Lufthansa AG; ACE Aviation Holdings Inc.'s Air Canada; U.K. carrier BMI; Austrian Airlines Group; Lufthansa's Swiss International Air Lines; SAS Group AB, owner of Scandinavia's largest airline; TAP SGPS SA, Portugal's state-owned airline; and Polskie Linie Lotnicze LOT SA, the Polish national carrier.