The U.S. Department of Transportation tentatively approved Continental Airlines’ application to join the Star Alliance yesterday, as Continental will begin the transition from SkyTeam to Star Alliance. “Continental’s entrance into Star Alliance will provide substantial benefits for consumers worldwide while preserving domestic competition and jobs,” said Larry Kellner, chairman and CEO of Continental.” In addition, a timely final approval will allow Continental to provide a seamless transition for its customers from the SkyTeam alliance to Star Alliance this fall.”
Although the approval of antitrust immunity to Continental may slash fares and increase service on international routes, competitor alliances, like OneWorld and SkyTeam, have complained about Continental leaving SkyTeam for Star Alliance. Despite this, Continental has ensured that this brings better things to the industry:
Continental expresses its appreciation to the numerous community and civic parties whose enthusiastic support has been critical to the airline’s efforts to secure this tentative approval. Continental thanks its 42,000 employees, its millions of customers and the travel, congressional, state and local government and business partners who urged timely approval of the application.
I’m fairly pleased to see Continental a member of the Star Alliance. They join other U.S. airlines, like United and US Airways, that help make up the world’s largest airline alliance. Hopefully everything that Continental says is true. Now American and British Airways have to get their antitrust immunity.
