New Changes in Continental Airline Company

In order to struggle among three large alliances of global airlines, Continental Airlines decided to change its teams. It means that Continental comes out of Delta Air Lines’ shadow. Such move will help Continental to become closer to United Airlines as they are planning to work together on marketing and pricing. For that reason customers of Continental will be able to have a wide choice of flights and at the same time the company will have an opportunity to get a new international airlines’ roster due to which it will be possible to earn and spend miles.

On Tuesday Continental officially shifted from SkyTeam to the Star Alliance that includes United, US Airways, Air Canada (TSX:AC.B) and Lufthansa.  When Continental joins the Star Alliance, Air Canada that is considered to be the largest carrier of Canada will get new revenue from Continental and at the same time its customers will get access to new destinations. Also customers of Air Canada and Continental may collect and buy back Aeroplan (TSX:AER) miles. continental-airlines

Connecting to Continental, Air Canada will be able to obtain revenue from customers as a number of flights from America to Canada will increase, also it stands to receive a separate joint venture that will start working on profitable Atlantic routes in 2010.

According to Jeff Smisek, president of Continental, the integration of Delta and Northwest referred the airline company to junior-partner status for that reason it was decided to come out from SkyTeam.

Officials of Continental said that the airline was going to add flights to Frankfurt and Rio de Janeiro in order to connect to Star Alliance partners and they also underlined that new flight would add new jobs.

In July, Continental received immunity from antitrust laws that enables the airline to work with its new Star partners on setting prices and schedules for many international routes. But at the same time it will not be permitted for Continental and United to work on pricing of flights within the U.S..

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