SFGate: Northwest joins alliance with other airlines

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This article was sent to you by someone who found it on SFGate.
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inancial0818EDT0028.DTL
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Tuesday, September 14, 2004 (AP)
Northwest joins alliance with other airlines



   (09-14) 05:18 PDT EAGAN, Minn. (AP) --
   Northwest Airlines Corp. has joined a nine-airline alliance in hopes of
easing competition from low-fare domestic rivals and expanding its route
network in more than 130 countries.
   The SkyTeam alliance allow airlines to sell seats on flights operated by
their partners, thus attracting more passengers without having to invest
in new planes or develop new routes.
   Northwest's SkyTeam membership builds on its existing alliance
relationships with KLM, Continental Airlines Inc. and Delta Air Lines Inc.
Now, in addition to those carriers, Northwest passengers can book trips on
Air France, Alitalia, Aeromexico, Czech Airlines and Korean Airlines.
   With the expansion of the SkyTeam alliance, about 341 million passengers
are expected to fly on SkyTeam airlines to 658 global destinations. The
nine carriers have 14,320 daily departures.
   Alliance relationships can pay off.
   Last year, Northwest's operating revenue reached close to $10 billion, a=
nd
Northwest's partnership with KLM, which has an antitrust exemption on
flights between the United States and Europe, contributes about $1 billion
a year.
   Previously, Northwest estimated that its marketing partnership with
Continental, which began in 1998, adds $125 million to $150 million a year
to the airline's bottom line. The Delta alliance, launched last year, is
expected to contribute about $100 million a year.
   Company officials declined Monday to estimate what financial impact the
SkyTeam alliance will have on Northwest's revenue.

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Copyright 2004 AP

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