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Rising fuel costs, a slowing economy and a weak dollar is putting pressure on the US airline industry into embarking on shotgun weddings. In an industry too fragmented to yield a decent return for any carrier, Continental and United Airlines formed an alliance on 19 June 2008. Under this agreement, passengers could book tickets on either carrier, earn credit in each others frequent-flier programmes and redeem miles on each carrier. Though alliances allow airlines to work together without going through the regulatory hassles of a merger, not all are truly strategic. The case highlights the effects of both mergers and alliances in the airline industry and analyses the reasons why Continental chose an alliance instead of a merger.