Continental Airlines Inc., became this week the first major airline in the world to switch global alliances and the company is expecting the move will reap $100 million in new yearly revenues.

Continental’s switch to Star Alliance, which boasts 25 members, took effect October 27, after abandoning SkyTeam, where it had been relinquished to a “junior” status after Northwest Airlines was bought by Delta Air Lines Inc. in 2008 thus creating the largest carrier in the world.

Continental Airlines President Jeff Smisek told reporters in New York that the carrier had decided to improve their strategy by joining a first-class alliance. He added that Star Alliance is the oldest, biggest, most complete, and the most technologically savvy alliance in the world.

He said that the move to Star will create additional revenue and Continental’s position within the alliance will be one of a leader, along with Lufthansa and United Airlines. United is America’s third-largest carrier in terms of traffic, and Continental has fourth spot.

Continental provides the Alliance with a broader foothold in the New York City air travel market via its hub in Newark, New Jersey, plus a network of Latin American connection.

The move provides Continental with new partners that will permit the carrier to book travellers on more flights to Europe, Asia, and within California.

United Chief Executive Officer Glenn Tilton joined the Continental President to explain the two airlines each would benefit from an annual $100 million in extra sales from the switch. Continental had to pay a modest fee to terminate its SkyTeam partnership, Smisek said.

Smisek said the move was risky, but they are at ease with the jump.

He said that during the 16-month process of accessing Alliance, he is set to become CEO starting January 1st as Larry Kellner will leave Continental for other projects.

The carrier said it fostered marketing agreements with United, Air Canada, Lufthansa and the BMI in the UK, and will carry out similar accords with other Star members.

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