The U.S. Department of Transportation (DOT) has announced tentative approval for the granting of antitrust immunity to Continental Airlines and its proposed entry into the Star Alliance. If final approval is granted, then Continental would join other Star Alliance carriers: » Air Canada » Air China » Air New Zealand » ANA » Austrian » BMI » EGYPTAIR » LOT Polish Airlines » Lufthansa » Scandinavian Airlines System (SAS) » Shanghai Airlines » Singapore Airlines » South Africian Airways » Spanair » Swiss International Air Lines » TAP Portugal » Thai » Turkish Airlines » United » US Airways “Continental’s entrance into Star Alliance will provide substantial benefits for consumers worldwide while preserving domestic competition and jobs,” said Larry Kellner, Continental’s chairman and CEO in a written release. “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.”

© Houston Airport System Continental receives tentative DOT approval to join antitrust immunized alliance with Star carriers.

Continental representatives also say that the move to Star Alliance will not only benefit consumers, but also ensure global competition with other antitrust immunized alliances and encourage the retention and growth of open skies between the U.S. and other nations.

The announcement is significant in the Houston market for at least two reasons; Continental Airlines is based in Houston and it represents approximately eighty-five percent of the market share at George Bush Intercontinental Airport (IAH).

According to the D.O.T., antitrust immunity allows airlines to coordinate their services and act as a single carrier for international air travel.

As a result, Continental would be able to place a portion of their international air services within a new joint venture to be called Atlantic Plus-Plus and would be free to collectively arrange capacity, sales and marketing and share revenue.

In granting tentative approval, the D.O.T. issued a statement saying in part, “the immunity would be in the public interest because it would support increased levels of service in international markets served by the carriers, give consumers more travel options and shorter travel times and reduce fares.”

Continental Airlines is the world’s fifth largest airline and together with Continental Express and Continental Connection, has more than 2,800 daily departures through the Americas, Europe and Asia, serving 135 domestic and 132 international destinations.

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