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Continental Airlines, United Airlines and Eight Star Alliance Members Ask U.S. DOT for Antitrust Immunity to Better Serve Customers

Written by thomas · Filed Under Commercial 

July 24, 2008

thomas

WASHINGTON, July 23 /PRNewswire-FirstCall/ — Continental Airlines
(NYSE: CAL), United Airlines (Nasdaq: UAUA) and eight other Star Alliance
member airlines today filed an application with the U.S. Department of
Transportation (DOT) for Continental to join the group of nine carriers
that already hold antitrust immunity. Approval by the DOT would enable
Continental, United and the other immunized Star Alliance carriers to work
closely together to deliver highly competitive flight schedules, fares and
service.

Additionally, Continental, United, Lufthansa and Air Canada have
requested DOT approval to establish a trans-Atlantic joint venture to
create a more efficient and comprehensive trans-Atlantic network for the
carriers’ customers, offering customers more service, scheduling and
pricing options and establishing a framework for similar joint ventures in
other regions of the world.

The DOT has approved more than 20 applications for antitrust immunity
in the past, including the recent approval of immunity for six-way alliance
activities in trans-Atlantic markets for the SkyTeam carriers Air France,
Alitalia, CSA Czech Airlines, Delta, KLM Royal Dutch Airlines and Northwest
Airlines. The DOT ruling allowed Delta/Air France and Northwest/KLM to
consolidate their alliance activities.

On June 19, Continental announced that it plans to join United in Star
Alliance. In the United States domestic market, where antitrust immunity
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 notice to the DOT,
which the two carriers will submit separately in due course, and
Continental exiting certain of its current alliance relationships. Subject
to these matters, Continental currently anticipates that it will join Star
Alliance, and begin broad code-sharing and other commercial cooperation
with United, in the fourth quarter of 2009. There is little overlap between
the Continental and United networks, so customers of either airline will
benefit from access to a broader network available through the partner
airline.

Once approvals have been received and the new agreements have been
implemented, 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 qualifying customers will have access to both
Continental’s Presidents Club network and United’s Red Carpet Club network
of airport lounges.

Continental intends to transition from SkyTeam to Star Alliance in a
customer friendly way, permitting its customers to redeem their OnePass
miles on SkyTeam member airlines, and SkyTeam customers to redeem their
frequent flyer miles on Continental, during a reasonable transition period.

About 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, Egyptair, 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
Continental have been announced as future members. Overall, the Star
Alliance network offers 18,100 daily flights to 975 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 continental.com

About United

United Airlines operates 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 also is a founding member of
Star Alliance, which provides connections for our customers to 965
destinations in 162 countries worldwide. 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 united.com.

*Based on United’s flight schedule between Jan. 1, 2008, and Dec. 31,
2008.

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