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Chicago Tribune
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United Airlines and Air Canada have reached a working alliance that will make it easier for passengers of the two carriers to connect from one airline to the other.

The agreement, announced jointly by the airlines Tuesday and scheduled to go into effect Oct. 25, also will let frequent-flier club members of one carrier participate in the other airline`s frequent-flier program.

The agreement, which is subject to the approval of U.S. and Canadian government officials, does not involve either carrier taking a financial stake in the other.

Nevertheless, it is expected to help Air Canada`s anemic financial status by providing it with access to many of Elk Grove Township-based United`s hubs in the U.S. and abroad.

Air Canada, Canada`s flag carrier, and its rival, Canadian Airlines, have been losing money for more than a year and have been looking for alliances with U.S. carriers since merger talks between the two soured earlier this year.

Montreal-based Air Canada had been exploring a linkup with Arlington, Va.-based USAir until the U.S. carrier entered into a proposed financial alliance recently with British Airways. Canadian Airlines has been attempting to reach an alliance with Ft. Worth-based American Airlines.

Air Canada provides service to Chicago`s O`Hare International Airport, United`s chief hub, from Toronto, Calgary and Winnipeg.

”This agreement will considerably improve our customers` access to key U.S. and global markets by connecting to United`s vast international network, with improved value and convenience, said Hollis L. Harris, Air Canada`s vice chairman, president and chief executive.

Under the allience, the carriers will begin one-stop check-in service between Toronto and selected cities in the U.S. Oct. 25. Eventually, the two carriers hope to provide similar service from other Canadian cities and in cities served by the carriers in Europe, Asia and Latin America.

Other elements of the agreement include joint consumer promotion and advertising programs, joint cargo programs and joint tour-program offerings.