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Continental Teams With eBay

Houston-based Continental Airlines has launched a site co-branded with auction giant eBay that will let its customers bid on vacations and other events using their frequent flier miles.

The deal with Continental allows Continental OnePass members to visit the new site and bid on sporting events, VIP performing arts experiences and Continental Airlines Vacations using their frequent flier miles.

Members will be required to register and create a OnePass Online Auction profile using their OnePass number and personal identification number (PIN). Members must have miles in the account at the time of transaction and eBay will send redemption information to the winning bidder.

Continental is also listing vacation packages and other items on eBay Travel that are open to all eBay bidders.

Financial arrangements between the companies were not disclosed.

Norwalk, Conn.-based travel operation Priceline.com signed a deal< /a> with San Jose, Calif.-based eBay last February, and said it would become the cornerstone of eBay's travel business, which will include airline, hotel, car, cruises, timeshares and vacation packages.

But clearly eBay is moving to leverage its auction engine. eBay is interested in the travel sector because it has been perhaps the biggest winner in e-commerce. In fact, eBay has said that its " research shows that 42 percent of eBay users purchased online travel in the last year."

"eBay's online marketplace experience, name recognition and credible reputation make them an ideal partner for Continental Airlines," said Mark Bergsrud, Continental Airlines' vice president for marketing.