UPDATE 1-Continental to join Star Alliance in late October

* Continental to join alliance on Oct 27

* Loyalty members' mileage balances will not be affected

NEW YORK Aug 17 (Reuters) - Continental Airlines CAL.N said on Monday it expects to join the Star Alliance on Oct. 27, allowing it to cooperate on scheduling and prices with global carriers including UAL Corp UAUA.O United.

The Houston-based carrier will leave rival SkyTeam, the second-largest airline alliance, on Oct. 24. The SkyTeam network includes Delta Air Lines (DAL.N), the world's biggest airline after its merger with Northwest Airlines last year.

The Star Alliance was created in 1997 with more than 20 member airlines offering a combined 17,000 daily departures to 160 countries.

Continental said members of its frequent-flier program, OnePass, will not need to make changes to their accounts and their mileage balances will not be affected during the switch.

UAL and Continental initiated the partnership last year after a previous merger proposal failed. Continental won limited immunity from the U.S. Transportation Department in late July to join the global Star Alliance, which also includes U.S. Airways (LCC.N) . [ID:nN10519080] (Reporting by Deepa Seetharaman)