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June 2008
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Airline cooperation: A new trend?

3:14 PM Fri, Jun 20, 2008 | | Comments (0)
Posted by: Carolyn Burns Bass

Thumbnail image for RunwayView.jpgWith more and more airlines announcing cutbacks in destinations, flights and service, some airlines are trying to stay afloat with cooperation, rather than competition. United and Continental have announced a new partnership between the two airlines.

Here is what United announced in yesterday's email to its frequent flyer members:

"...we wanted you to be among the first to hear that Continental and United today [June 19, 2008] announced plans to cooperate globally, linking our networks and services worldwide to deliver new benefits to you. In addition, Continental plans to join United in the Star Alliance®, the most comprehensive airline alliance in the world....

"First and foremost, this partnership will include new frequent flier reciprocity that will enable you to earn miles when flying on either airline and redeem awards on both carriers. Travel on either carrier will count toward earning elite status. Similarly, members of either airline's airport lounge program will have access to both Continental's Presidents Club network and United's Red Carpet Club® lounges.

"Second, together with Continental, we will be able to offer you a more comprehensive domestic route network and together with our Star Alliance partners, greater choice of service throughout the entire world."

Pending regulatory approval, this new cooperative will be a win-win-win for all parties involved. Both of the airlines win with strengthened passenger loyalty and individual brand recognition, the passengers win with more options for flights and the ability to accrue frequent flyer points on both airlines. Incidentally, US Airways is also a member of the Star Alliance® network.

Airlines tend to flock together. When one airline makes a change in service or fees, other airlines fly in behind the lead bird and create a trend.

In today's tenuous air travel economy, would this be a good trend, or would it stir up more air turbulence?




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