U-Con, Air Canada to set up N America joint venture

AIR CANADA and United Continental Holdings have concluded a memorandum of understanding that paves the way for the establishment of a revenue-sharing joint venture that would operate US-Canada flights.

This comes after United Continental Holdings on October 1 announced that the merger between United Air Lines and Continental Airlines, combining the carriers' global networks, had been wrapped up. The world's largest airline will operate under the name United Airlines.

"This joint venture will provide many benefits and revenue synergies on this important market allowing us to compete more effectively," said Calin Rovinescu, Air Canada's president and chief executive officer. "As founding members of Star Alliance, Air Canada and United have benefited from a close relationship."

Air Canada's cross border network to 59 US cities is expected to be strengthened by United's presence in 210 US airports. Similarly, United's cross border network to 16 Canadian cities will be boosted by Air Canada's network serving 59 communities across Canada, said a joint company statement posted on Business Wire.

The joint venture is expected to come into effect in early 2011, subject to Air Canada and U-Con's making the necessary filings, obtaining regulatory approvals and finalising documentation.
(Source:www.schednet.com)