Airline Finance News - North America

AirGuide Business, June 23, 2008

Continental Airlines, SkyTeam, Star Alliance

Continental Airlines has announced it wishes to leave SkyTeam and join the Star Alliance as it rejigs its global partnerships. In addition to the alliance news a procedure that Continental concedes "might not be successful" the US carrier says it will co-operate extensively with United Airlines to link networks and services. The move appears to have been driven by the need to secure efficiency savings as the oil price continues to bite into carriers[sup.1] profits. "As we experience some of the most challenging conditions airlines have ever faced, we look forward to the benefits of a new relationship with United and the other Star Alliance members," said Continental chairman and CEO Larry Kellner. However, there may be considerable complexity for Continental in extricating itself from existing SkyTeam agreements as a statement from the airline outlines. Continental intends to terminate its existing contracts with SkyTeam members and obtain the necessary approvals to enter the Star Alliance, although Continental may not be successful, the airline said. Jun 20, 2008

Continental Airlines, SkyTeam, Star Alliance

Continental Airlines plans to join United in the Star Alliance to compete more effectively with the proposed joint venture involving certain SkyTeam members that was recently granted antitrust immunity. Continental must first gain permission from the U.S. Department of Transportation to join United (along with eight other carriers) in the already-established antitrust immunized alliance. This will enable Continental, United, Lufthansa, Air Canada and other immunized Star Alliance carriers to work closely together to establish trans-Atlantic and other international joint ventures so they can deliver highly competitive flight schedules, fares and service. Joint ventures are also planned for the Latin America and Asia/Pacific regions, involving Continental, United and other members of the Star Alliance. Both antitrust immunity and code-sharing are subject to receipt of approvals from applicable national authorities. Jun 19, 2008

Continental Airlines, United Airlines

United Airlines and Continental Airlines said they have formed an agreement that will allow them to boost revenue and lower costs. The agreement will allow seamless ticketing between the two airlines and calls for Continental to switch from the SkyTeam alliance to United's Star Alliance. It could take the carriers a year to secure regulatory approval, observers say. Jun 20, 2008

Continental Airlines, United Airlines

Continental Airlines and United Airlines are cooperating to connect their networks and services worldwide for the benefit of customers. Glenn Tilton, chairman, president and CEO of United, and Larry Kellner, chairman and CEO of Continental, are meeting in Chicago this afternoon to sign a framework agreement outlining the system-wide alliance and cooperation principles between their carriers. Jun 19, 2008

Delta Air Lines

Delta Air Lines said Wednesday that it expects to reduce domestic capacity 13% in the second half of 2008, compared with the 10% reduction it announced in March, in response to rising fuel costs. The Atlanta-based carrier said that it expects the second-quarter to be profitable, excluding special items, and international capacity for the year is expected to be up 15% to 17% for the year, in line with previous guidance. Jun 18, 2008