United, Continental team up
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Two major US carriers – Continental and United - have announced plans to link their networks through a new alliance.
ABC news said while it was not quite a merger, some saw this as the first step toward the two airlines joining forces.
The airlines said the collaboration would include Continental entering the 20-member Star Alliance, of which United is a member, and abandoning its current code-share agreements.
The two airlines called their deal a framework collaboration, Forbes said.
“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 efficienciesm” said Larry Kellner, chairman of Continental Airlines.
“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.”
A UA statement said Continental intends to terminate its existing agreements with SkyTeam members and obtain the necessary approvals to enter the Star Alliance.
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