Air Canada, Canada's largest airline, announced Thursday that it agreed in principle to partner with Continental Airlines in order to provide enhanced service to the American market. The move
will provide customers a larger network of destinations, frequent flyer benefits and lounge access, as well as help Air Canada to realize greater efficiencies as it struggles to respond to higher fuel costs.
Air Canada already has an agreement with United Airlines, which is a Star Alliance partner. Continental announced in June that it also plans to join the alliance.