CO issued the following news release today. As you may recall, on April 27,= CO announced that our Board of Directors had unanimously voted to support = management=92s recommendation that, in the current industry environment, th= e best course for CO is to not merge with another airline. That remains CO= =92s position today. With the Delta/Northwest merger announcement, we began= to evaluate which of the three major global alliances would be best for CO= and our co-workers, customers and shareholders over the long term. We have= completed that analysis and today announced plans to join United Airlines = and Lufthansa in the Star Alliance. We believe joining Star will provide su= bstantial new opportunities for all our co-workers, customers and the commu= nities we serve.=0A=A0=0ACONTINENTAL AIRLINES AND UNITED AIRLINES ANNOUNCE = COMPREHENSIVE PLAN FOR GLOBAL COOPERATION; =0ACONTINENTAL PLANS TO JOIN STA= R ALLIANCE=0A=A0=0ACHICAGO, June 19, 2008 - Continental Airlines (NYSE: CAL= ) and United Airlines (NASDAQ: UAUA) today announced a framework agreement = to cooperate extensively, linking their networks and services worldwide to = the benefit of customers, and creating revenue opportunities and cost savin= gs and other efficiencies. In addition, Continental plans to join United in= the Star Alliance, the most comprehensive airline alliance in the world. = =0A=93Continental's plan to partner with United and join the Star Alliance = will provide substantial new opportunities for all of our customers,=94 sai= d Larry Kellner, chairman and CEO of Continental. =93In a network business,= there is significant value gained from linking with larger networks to pro= vide truly national coverage and expanded global reach, and exploring new w= ays to reduce costs and improve efficiencies. As we experience some of the = most challenging conditions airlines have ever faced, we look forward to th= e benefits of a new relationship with United and the other Star Alliance me= mbers.=94=0ATeams from the two organizations worked intensively over the la= st several weeks exploring creative solutions for how the two companies cou= ld achieve efficiencies and synergies that expand beyond the well-establish= ed benefits of codesharing. Their work focused on plans for significant coo= peration on frequent flier programs, lounges, facility utilization, informa= tion technology and procurement. This work was assisted by the efficiency o= pportunities identified andrelationships developed during the parties' earl= ier merger discussions.=0A=A0=93The teams worked well together to identify = opportunities to create a unique and competitive partnership extending well= beyond a traditional code share agreement,=94 said Glenn Tilton, chairman,= president and CEO of United. =93On behalf of the Star Alliance, I am very = pleased to invite Continental to join as a member. =A0Continental will brin= g significant new assets to our global alliance, and our two companies will= work together effectively with our partners to provide the best overall ne= twork in America and the world.=94=0AKellner and Tilton are meeting in Chic= ago this afternoon to sign a framework agreement outlining the systemwide a= lliance and cooperation principles between their carriers.=0AAntitrust Immu= nized Joint Ventures=0AThrough this new partnership, Continental and United= plan to establish joint ventures allowing them to cooperate with each othe= r and with other Star Alliance airlines in international regions and compet= e more effectively in an increasingly global air travel market. =A0=0AIniti= ally, Continental will request the U.S. Department of Transportation (DOT) = to allow it to join United -- along with Lufthansa, Air Canada and six othe= r carriers -- in their already established antitrust immunized alliance.=A0= This will enable Continental, United, Lufthansa, Air Canada and other immu= nized Star Alliance carriers to work closely together as other antitrust im= munized alliances do, and to establish trans-Atlantic and other internation= al joint ventures so they can deliver highly competitive flight schedules, = fares and service. =A0The planned trans-Atlantic joint venture, in which Co= ntinental, United, Lufthansa and Air Canada will pool revenue, will permit = the carriers to compete more effectively with the proposed joint venture in= volving certain SkyTeam members that was recently granted antitrust immunit= y. The trans-Atlantic joint venture will combine the strength of the carrie= rs to create a more efficient and comprehensive trans-Atlantic network for the carriers' customers. =0AJoint ventures are also planned fo= r the Latin America and Asia/Pacific regions, involving Continental, United= and other members of the Star Alliance. Both antitrust immunity and code-s= haring are subject to receipt of approvals from applicable national authori= ties.=0ADomestic Codesharing and Frequent Flier/Lounge Reciprocity=0AContin= ental=92s and United=92s route networks are highly complementary, with litt= le overlap, so they add value to each other and to customers who are planni= ng domestic and international itineraries. =0AIn the United States domestic= market, where antitrust immunity for solely domestic travel would not appl= y, the two airlines plan to =A0begin broad code-sharing, which facilitates = the creation of itineraries using both carriers, as well as frequent flier = program, elite customer recognition and airport lounge reciprocity.=A0 Thes= e cooperative activities are subject to regulatory notice to applicable aut= horities and Continental exiting certain of its current alliance relationsh= ips. Under code-sharing, customers will benefit from a coordinated process = for reservations/ticketing, check-in, flight connections and baggage transf= er. =0AFrequent flier reciprocity will allow members of Continental=92s One= Pass program and United=92s Mileage Plus program to earn miles in their acc= ounts when flying on either partner airline and redeem awards on both carri= ers. =A0Travel on either carrier will count toward elite customer recogniti= on. Similarly, each carrier=92s customers will have access to both Continen= tal=92s Presidents Club network and United=92s Red Carpet Club network of a= irport lounges.=0AContinental Joining Star Alliance=0AContinental=92s plans= to join the Star Alliance and the other planned cooperation are subject to= receipt of certain regulatory and other approvals and the termination of c= ertain contractual relationships, including Continental's existing agreemen= ts with SkyTeam members that restrict its participation in another global a= lliance.=A0 Continental intends to terminate its existing agreements with S= kyTeam members and obtain the necessary approvals to enter the Star Allianc= e, although Continental may not be successful, and the time period for doin= g so may be out of Continental=92s control.=A0 For example, a principal con= tractual restriction will not terminate until nine months after the closing= of the proposed Delta/Northwest merger. Continental intends to transition = out of SkyTeam and into the Star Alliance in a customer friendly manner.=0A= Joining the Star Alliance will connect Continental with United and 19 other= airlines around the world. Within Star, frequent fliers enjoy reciprocity = with respect to both mileage accrual and redemption among the member airlin= es. The airlines also reciprocally recognize elite status, and provide acce= ss to the worldwide network of lounges operated by the Star Alliance airlin= es. =0AAbout the Star Alliance=0AThe Star Alliance network was established = in 1997 as the first truly global airline alliance to offer customers world= wide reach and a smooth travel experience. Star Alliance received the Air T= ransport World Market Leadership Award in 2008 and was voted Best Airline A= lliance by Business Traveller Magazine in 2003, 2006 and 2007 and by Skytra= x in 2003, 2005 and 2007. The members are Air Canada, Air China, Air New Ze= aland, ANA, Asiana Airlines, Austrian, bmi, LOT Polish Airlines, Lufthansa,= Scandinavian Airlines, Shanghai Airlines, Singapore Airlines, South Africa= n Airways, Spanair, SWISS, TAP Portugal, Turkish Airlines, THAI, United and= US Airways. Regional member carriers Adria Airways (Slovenia), Blue1 (Finl= and) and Croatia Airlines enhance the global network. Air India and EgyptAi= r have been accepted as future members. Overall, the Star Alliance network = offers nearly 18,000 daily flights to 965 destinations in 162 countries.=0A= About Continental=0AContinental Airlines provides more than 3,100 flights a= day on Continental and Continental Express to more than 280 U.S. and inter= national destinations from its hubs in New York/Newark, Houston, Cleveland = and Guam.=A0 Continental is the world's fifth largest airline, with routes = throughout the Americas, Europe and Asia. With more than 45,000 employees, = Continental carries approximately 69 million passengers per year. For more = company information, visit continental.com.=0AAbout United=0AUnited Airline= s provides more than 3,200 flights a day on United and United Express to mo= re than 200 U.S. domestic and international destinations from its hubs in L= os Angeles, San Francisco, Denver, Chicago and Washington, D.C. With key gl= obal air rights in the Asia-Pacific region, Europe and Latin America, Unite= d is one of the largest international carriers based in the United States. = United's 55,000 employees reside in every U.S. state and in many countries = around the world. News releases and other information about United can be f= ound at the company's Web site at united.com.=0A###=0A=A0=0AThis press rele= ase contains forward-looking statements that are not limited to historical = facts, but reflect the company=92s current beliefs, expectations or intenti= ons regarding future events. All forward-looking statements involve risks a= nd uncertainties that could cause actual results to differ materially from = those in the forward-looking statements.=A0Examples of such risks and uncer= tainties include receipt of various regulatory approvals, successful negoti= ation of documents implementing the planned alliances, Continental exiting = certain of its current alliance relationships, and other approvals. Please = read Continental=92s current report on Form 8-K filed on June 19, 2008 for = additional information regarding these risks and uncertainties.=A0 The comp= any undertakes no obligation to publicly update or revise any forward-looki= ng statements to reflect events or circumstances that may arise after the d= ate of this press release, except as required by applicable law. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> If you wish to unsubscribe from the AIRLINE List, please send an E-mail to: "listserv@xxxxxxxxxxxxxxxxx". 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