Effects on Moncton of agreement between Continental, Air Canada unclear so far

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Air Canada and Continental Airlines hope to join forces to offer seamless service to passengers of each others' airlines by complementing each others' services.

The plan must pass regulatory hurdles in both the U.S. and Canada before it can proceed. If it does, though, Air Canada passengers heading to the U.S. would have easier access to American destinations, as well as access to more destinations, access to Continental lounges and more opportunities to amass frequent-flyer benefits.

Continental passengers would enjoy the same benefits through a closer relationship with Air Canada.

"This is an exciting opportunity for Air Canada and Continental Airlines to develop a deeper relationship that will be of great benefit to our customers," said Ben Smith, executive vice-president and chief commercial officer of Canada's largest airline.

"At the same time, we will be able to realize greater efficiencies so we can compete more effectively."

Since both airlines serve Moncton, with Continental providing the only Moncton-U.S. air link to their hub in Newark, New York, it is not known what effect the proposed relationship might have on those flights. Officials at the Greater Moncton International Airport were not available yesterday.

Smith said it's one way Air Canada can combat high fuel prices while offering customers better and wider service.

The proposal is not unlike agreements passengers enjoy between Air Canada and several other airlines right now. For example, for many European destinations, Air Canada passengers can book straight through to their destinations, even though at some point they will be using Lufthansa airlines.

Should the agreement be finalized with Continental, it would mean more air service not only to Newark but also to Continental's hubs in Cleveland and Houston. Those ports are gateways to direct service to the northeastern and southern U.S., and to Mexico and Central America, respectively.

Meanwhile, Air Canada has also signed a framework agreement with Continental, United Airlines (with whom it already partners) and Lufthansa to create a trans-Atlantic joint venture through which the carriers intend to provide more choice and streamlined service to Africa, India, Europe and the Middle East.