squirrel83
Posts: 1219
Joined: Mon May 24, 2004 12:28 pm

NWA Seeks Approval For Wider KLM Partnership

Sun Jun 26, 2005 4:11 am

NWA seeks approval for wider KLM partnership

Northwest Airlines, which formed a joint venture with KLM more than a decade ago, is seeking antitrust immunity from the government for similar partnerships with Air France and other international carriers.

The immunity would allow Northwest to coordinate pricing, scheduling, seating inventory and other operations with its airline partners, helping the carrier to expand its international business.

If the application is approved, Rosia said, the connections of Northwest's hubs with its European partners could lead to more international flights out of the Twin Cities. She said destinations might include Paris, Rome or Milan.

http://www.startribune.com/stories/1405/5475412.html
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avek00
Posts: 3180
Joined: Mon Oct 25, 2004 5:56 am

RE: NWA Seeks Approval For Wider KLM Partnership

Sun Jun 26, 2005 4:15 am

Basically, NW is applying to enter the SkyTeam Transatlantic Immunity agreement, as is KLM. Interestingly enough, CO has not applied to enter the SkyTeam ATI, and apparently has no plans for doing so in the near term.
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BigGSFO
Posts: 2234
Joined: Sun Jun 12, 2005 5:27 am

RE: NWA Seeks Approval For Wider KLM Partnership

Sun Jun 26, 2005 6:09 am

Of course they are hoping for this to happen but watch the fur fly if AA/BA try to mount the same "transatlantic immunity" again.
 
N77014
Posts: 812
Joined: Sat Apr 17, 2004 7:16 pm

RE: NWA Seeks Approval For Wider KLM Partnership

Sun Jun 26, 2005 10:58 am

Quoting BigGSFO (Reply 2):
Of course they are hoping for this to happen but watch the fur fly if AA/BA try to mount the same "transatlantic immunity" again.

First off, the US and Netherlands joined up in a open skies treaty prior to the EU commanding all negotiations on the issue. Also, AMS was never a slot restricted airport or subject to the restrictions that LHR was under to US carriers. As, such, it was a simpler matter of getting approval.
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commavia
Posts: 10851
Joined: Mon Apr 25, 2005 2:30 am

RE: NWA Seeks Approval For Wider KLM Partnership

Sun Jun 26, 2005 11:06 am

Quoting BigGSFO (Reply 2):
Of course they are hoping for this to happen but watch the fur fly if AA/BA try to mount the same "transatlantic immunity" again.

I doubt it. AA and BA know they have no shot whatsoever of getting ATI anytime soon. Until the US-EU treaty gets resolved (which probably won't be for another 10 years seeing as the EU can't even work at it's own treaties at the moment!) then AA and BA will promply apply for and get ATI.

It's unfortunate, though, because AA and BA could be a very effective competitive force across the Atlantic but they are handicapped by the fact that LHR is so restricted and has so little prospect for growth. The result, however, has been that the other ATI alliances (DL-AF/AZ, NW-KL, UA-LH, etc.) are just getting stronger and stronger and monopolizing more and more their respective markets.

Pretty soon, AA and BA's dominance on US-UK will pale in comparison to other alliances' dominance between the US and their respective European countries. (Hyperbole, obviously -- I know this won't happen -- just exaggerating to make a point!)

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