Continental Partners With United

Continental Airlines and United Airlines have announced plans to link networks and services in an effort cut costs and offset rising fuel prices.

Continental will drop its current affiliation with the airline alliance "Sky Team" and join with United as part of the larger "Star Alliance." In a written statement Larry Kellner, chairman and CEO of Continental, says the airlines decided to link together in what he calls "the most challenging conditions airlines have ever faced."

Last April Continental decided against a MERGER with United, but elements of this new partnership stemmed from those merger talks. They include cooperation on frequent flier programs, lounges, use of facilities, and information technology.

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