Canadian Airlines leaves Oneworld alliance

Canadian Airlines is dropping out of the Oneworld airline alliance as of June 1. The move was expected. Canadian said it would leave Oneworld as soon as Air Canada completed its takeover.

Oneworld's other members include American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, and Qantas. The remaining Oneworld partners will continue to provide 64 daily flights to seven Canadian cities.

Air Canada belongs to the rival Star alliance. Its other members include United Airlines, Lufthansa, SAS Airlines, Varig, Thai Airlines, Ansett Australia, and Air New Zealand.

Two Star alliance members, United and Lufthansa, were instrumental in helping Air Canada fend off the hostile takeover attempt from Onex Corporation last year.

Airline alliances allow passengers to accumulate and redeem frequent flier points on all of the affiliated member airlines.