The US Department of Transportation on Friday approved a bid by Continental Airlines to join United Airlines and other carriers in the global Star Alliance.

The final DOT order, which gave the carriers limited immunity from antitrust law, permits carriers to share pricing, scheduling and other information within the alliance.

Opponents of the immunity had argued that allowing Continental into the alliance would dampen competition and harm consumers with higher fares.

United and Continental, however, cheered the government decision, which enables carriers to build international networks without running afoul of US law that discourages mergers between domestic and overseas airlines.

"United, Continental and the Star Alliance carriers will be able to compete more effectively in an increasingly global air travel market," UAL chief executive Glenn Tilton said in a statement.

"It ensures global competition with other antitrust immunised alliances while encouraging the retention and growth of open skies between the US and other nations," said Continental chief executive Larry Kellner in a statement.

"From a network perspective, their network just got a lot bigger, and it will allow them to be more competitive with other airlines," said Stifel Nicolaus analyst Hunter Keay.

United and Continental initiated the partnership last year in lieu of a discarded plan to merge the two carriers. Some experts, including UAL's Tilton, say the airline industry desperately needs consolidation to remove excess capacity and cut costs.

Source : Reuters