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Continental Airlines and Avant Airlines of Chile Announce Marketing Alliances

HOUSTON, December 16, 1998 -- Continental Airlines (NYSE: CAI.B and CAE.A) today announced it has formed a cooperative marketing alliance with Avant Airlines Which is based in Santiago, Chile. Early next year, the carriers will begin jointly marketing flights between the United States and Chile.

The alliance provides for enhanced connections between the carriers and, subject to government approval, codesharing on Continental's flights between the U.S. and Chile and on Avant's flights to domestic Chilean destinations beyond Santiago. Travelers will be able to check-in at their point of origin through to their final destination, and earn and redeem One Pass frequent flyer miles on either carrier anywhere they fly.

"Continental's success in Chile is further enhanced with the beginning of our new partnership with Avant Airlines," said David Grizzle, senior vice president-Corporate Development, for Continental Airlines. "As a complement to Continental's daily non-stop service between Newark and Santiago, our cooperation with Avant will soon enable Continental to offer convenient connections to numerous business and tourist destinations throughout Chile."

"Our alliance with Continental reflects Avant's continued commitment to provide the premier air transportation service in Chile" said Fernando Fernandez, executive vice-president for Avant. "Continental Airlines' award-winning service and tremendous network throughout the United States and Latin America make it the right partner for Avant."

Avant Airlines offers more than 120 weekly departures from Santiago including Arica, Iquique, Antofagasta, Calama, Copiapo, La Serena, Concepcion, Temuco, Valdiva, Puerto Montt, Balmaceda and Punta Arenas. The carrier also provides non-stop service between Santiago and Mendoza, Argentina. Following its recent acquisition of National Airlines of Chile, Avant is now the second largest airline in Chile with approximately 30 percent share of the domestic market. Avant operates a fleet of eight Boeing 737-200 aircraft.

Continental is the fifth largest airline in the U.S., offering more than 2,000 departures daily to 125 domestic and 67 international destinations. Operating major hubs in Newark, Houston and Cleveland, Continental (http://www.flycontinental.com/) is strategically positioned for transcontinental travel, and offers extensive service to Latin America and Europe via its Houston and Newark gateways. Continental is the No. 2 U.S. carrier to Latin America in number of destinations and passengers served. Continental serves 20 countries and 36 cities in Latin America and the Caribbean operating daily non-stop flights for nearly 500 weekly departures to the region.