Tentative go ahead for anti-trust immunity
Continental Airlines has had its application to join the Star Alliance approved by the US Department of Transportation (DoT).
The Department also granted tentative anti-trust immunity (ATI) for the carrier and three other members of Star to co-operate closely on transatlantic routes.
The approval will allow Continental, Lufthansa, United Airlines and Air Canada to act as a single airline and pool sales, revenues and marketing operations on transatlantic routes.
Star and the four carriers applied for ATI after Continental decided to switch from rival alliance SkyTeam.
Continental is also in talks with United about a possible merger.
The new so-operation Star and the four airlines are planning, to be called Atlantic Plus-Plus, must be in operation within 18 months, the DoT said.
It added that the co-operation would increase service in international markets, give consumers more options and shorter trip times and cut fares.
Larry Kellner, Continental's chairman and ceo, said: "Continental's entrance into Star Alliance will provide substantial benefits for consumers worldwide while preserving domestic competition and jobs.
"In addition, a timely final approval will allow Continental to provide a seamless transition for its customers from the SkyTeam alliance to Star Alliance this fall."
Six other Star Alliance members also won tentative DOT approval for antitrust immunity: LOT Polish Airlines, Scandinavian Airlines (SAS), SWISS, bmi, Austrian Airlines and TAP Air Portugal.
BA, American Airlines and Iberia, members of another rival alliance, oneworld, are expecting a DOT decision on their application for ATI later this year.
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