ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, May 3, 1994                   TAG: 9405030128
SECTION: BUSINESS                    PAGE: C-7   EDITION: METRO 
SOURCE: Associated Press
DATELINE: NEW YORK                                LENGTH: Short


CONTINENTAL AND ALITALIA FORM AIR CARRIER ALLIANCE

Continental Airlines and Italy's state-owned airline are teaming up to give fliers another way to get to Rome: in a plane with a split personality.

Continental and Alitalia announced Monday they will link their routes at Continental's hub in Newark, N.J.

The deal, subject to U.S. government approval, is designed to provide passengers with easier bookings and smoother transfers between airlines. The two carriers also promised to honor each other's frequent flier programs.

Because the partners haven't had time to develop a new color scheme, passengers will fly between Newark and Rome in a Continental DC-10 that has Alitalia's colors painted on one side and Continental's on the other.

Passengers will board on the Continental side.

Continental chief executive Robert Ferguson said the dual paint job is only temporary. In addition to a new color scheme, the two airlines also plan to add nonstop Newark-Milan and Houston-Rome flights.

Central to the link-up is an arrangement that lets the connecting flight to Rome use the Continental reservation code. That gives the flights a higher priority on travel agents' computer systems and improves the airlines' chances of getting a booking. Such code-sharing is becoming increasingly common as U.S. airlines pair up with overseas carriers, such as USAir and British Airways and Northwest Airlines and KLM.

Continental had planned an alliance with Air France, but the deal was at least temporarily scuttled.



 by CNB