United Airlines looking to cut costs with Continental partnership

According to United Airlines chairman and chief executive, Glenn Tilton, the carrier is considering forming a partnership with Continental Airlines in areas such as the purchasing of fuel and consolidation of ticketing counters.

A team has been formed comprising three representatives from both airlines, including their chief executive officers. The group has met on three occasions already to discuss some of the potential cost-savings measures a partnership might allow.

“Whether ground handling, fuel servicing, de-icing, catering, all of that affords an opportunity,” said Tilton after a meeting of the CEOs of the 21 member airlines of Star Alliance. “Not all of it’s going to be realized. But all of that forms the basis of a conversation,” he added.

Many of the measures under discussion could save both airlines a large percentage of the money that would have been saved had they merged. No merger resulted from the serious discussions United and Continental held this past spring.

Airline partnerships such as Star Alliance allow member airlines to sell seats on the flights of other members and allow their customers to accumulate and redeem frequent flier miles on member airlines. In addition to this type of partnership, United and Continental are seeking approval from antitrust regulators for a transatlantic joint venture permitting revenue sharing in an arrangement that would also include Air Canada and Lufthansa.

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