Continental partnership also aims to benefit fliers
United Airlines and Continental Airlines will link their flights and mileage reward programs together as part of a broader partnership meant to combat steep fuel prices.
The airlines, which announced the deal Thursday, say the move will help them lower expenses, boost revenue and provide their customers with more flight options.
The agreement will "redefine the industry by going forward in a way that is beneficial for our airlines, employees, shareholders, customers and the communities we serve," Glenn Tilton, United's chief executive officer, said in a recorded message to employees.
By connecting passengers to each other's flights, United and Continental could help blunt the impact of those capacity cuts. But some observers question how much it will bolster the financial health of the two airlines.
"This could help (revenues), but it is not going to do much for their costs," said Harlan Platt, a turnaround specialist and finance professor at Northeastern University in Boston. "To achieve real cost savings will require more than an alliance. My opinion is that this is a logical first step on the way to an ultimate merger between the airlines."
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