Continental and United Airlines link network and services worldwide

Continental Airlines Inc and United Airlines Inc have announced an extensive cooperative agreement that will link their worldwide networks and services. The two carriers said they will cooperate on frequent-flyer programmes, lounges, facility utilisation and information technology.

Houston-based Continental and Chicago-based United also said much of the cooperative agreement was a consequence of their earlier merger discussions.

Continental will team up with United in the Star Alliance, a customer association that coordinates flight schedules to allow inter-airline itineraries, integrates customer service processes and integrates frequent-flyer programs.

"In a network business, there is significant value gained from linking with larger networks," said Larry Kellner, chairman and chief executive officer of Continental. "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 other Star Alliance members."