United, Mexicana to end shared-code agreement

United Airlines, the U.S. second largest air carrier, announced it intends to put an end to the shared-code agreement and regulatory cooperation accord it signed with Mexicana de Aviacion seven years ago.

For its part, Star Alliance –the world’s number-one airline as far as passenger benefits are concerned- informed it could leave Mexicana out of its programs following the latter’s rejection to renew its share-code agreement with UA.

Mexicana de Aviacion, the country’s second-largest air carrier, refused to make good on the agreement, citing “developing business trends within Mexico’s aviation industry,” UA spokesman Jean Medina explained.

No Mexicana official could be reached for comments in Mexico City and their office didn’t return calls.

Mexicana’s decision has no bearing whatsoever with Chapter 11 proceedings that UAL Corporation, the company that owns UA, is currently involved in, the spokesperson said.

United Airlines, a carrier based in Elk Grove Village, Illinois, said its remains its full commitment with the Mexican market.

UA will continue operating their regular daily flights to Mexico City from Chicago, Los Angeles, San Francisco and Washington.

Star Alliance members are supposed to tackle the new situation on Nov. 13 during a meeting in Germany’s Frankfurt.

Star Alliance’s membership is made up of United, Mexicana, Air Canada, Air New Zealand Ltd., All Nippon Airways Co., Asiana Airlines, Austrian Airlines Group, British Midland Airways, Lufthansa, SAS AB, Singapore Airlines Ltd., Spanair, Thai Airways International Ltd. and Varig.