Alliance shuffle: Continental to exit SkyTeam, join Star Alliance

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Unable to find agreement to merge (thankfully), Continental and United have announced plans to partner, with Continental joining the Star Alliance in 2009, subject to regulatory approvals. With alliances being mutually exclusive, that means the SkyTeam alliance, with Delta and Northwest anchoring the North American members, will lose a major player.

In an e-mail to Mileage Plus members, United is pitching this as a benefit to frequent flyers, with an increase in mileage (and status) earning opportunities. Codesharing would commence upon approval, and Continental would align its schedule to coincide with United and Lufthansa, the two anchors of the alliance.

For frequent flyers in the two programs, there are questions that arise: United is pitching the reciprocity angle, where you receive and accrue benefits in either program, but Continental and United have very different programs, especially in terms of how status miles collect (where you buy the fare matters to CO, not to UA) and how upgrades are obtained (”unlimited” on CO, based on status, vs. certificate-based on UA).

And then there’s this: “Internationally, Continental and United will establish joint ventures that will allow us to cooperate with each other and with other Star Alliance airlines throughout the world.” Will these “joint ventures” be a new airline, like British Airways’ OpenSkies?

Stay tuned. Either way, changes afoot.

8 Responses to “Alliance shuffle: Continental to exit SkyTeam, join Star Alliance”

  1. beatofhawaii.com says:

    We reported this interesting press release earlier today, with a Hawaii perspective:

    We think this agreement could well lead to a major change at Hawaiian Airlines.

    Aloha, http://beatofhawaii.com

  2. matt says:

    Well, I guess I’m done flying on Continental. That’s too bad as I liked them better than some of the other SkyTeam members I’ve flown on. Oh well, I never really liked their coach seats. They are too much like a “director’s chair” and aren’t as comfy as other airlines (SkyTeam or not.)

  3. Anonymous Coward says:

    >Well, I guess I’m done flying on Continental.

    Huh, why? Service there is still better and the seats (if uncomfy) are clean..

    Who will you fly now, I am curious?

  4. Marie says:

    I just got my update email from Continental OnePass about this… I’m actually pleased, for once, about something happening with airlines. All the news is usually dreadful. But who knows… this arrangement may stink.

  5. Evivbulgroz says:

    Somehow I’m unhappy about this.

    I think it smells bad. I for one loved the Sky Team alliance.

    Lufthansa sucks, United is not much better… Let’s not talk about US Airways. + Who really wants to hub in Frankfurt instead of Paris (Air France).

    It also might mean that Continental flights to Paris will get kicked off Terminal 2 in CDG, because Terminal 2 is controlled by Air France.

    Maybe Vrigin America will join Sky Teams and there will be no need for flying Continental as much as I like them, and in spite of my status.

  6. Joe says:

    I am a million mile/1K flyer on United and Platinum on Continental… while I am very loyal to United, I see happier employees, better service and new planes on Continental. United - with NO new planes on order - had to do something dramatic. Let’s hope 1+1=3, not 1+1=0

  7. Joe Hass says:

    What I’ll find interesting is something like DTW, where Continental is currently in the McNamara Terminal with Northwest. I’m sure Continental will eventually be bounced to the new North Terminal. I just wonder when.

  8. PeterGreenberg.com » Travel News Roundup, June 20, 2008 says:

    […] Link: Upgrade Travel Better […]

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