Air Canada, Continental plan partnership

Ross Marowits Toronto Star 07/25/2008 02:23

MONTREAL–Air Canada plans a partnership with Continental Airlines, the fourth-largest carrier in the United States, to provide enhanced service to the American market. Canada's largest airline said yesterday the agreement in principle, which is subject to regulatory approvals, will provide customers a broader network of destinations, frequent-flyer benefits and lounge access.

Air Canada, trimming U.S. service on lower demand and rising fuel costs, said the partnership may help fill more seats since it will help travellers book two-stage trips that involve a flight on each carrier, possibly steering more passengers on to Air Canada's U.S. routes.

Ben Smith, Air Canada's chief commercial officer, said the alliance is one way of responding to the high cost of fuel.

Montreal-based Air Canada already has an agreement with United Airlines, which is a Star Alliance partner.

Continental announced in June it also plans to join the Star group after exiting its current partnership with Sky Team.

The transfer could take months to complete because Continental can't terminate its contract with Sky Team until nine months after the closing of the proposed merger between Delta and Northwest, Continental said in June.

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