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Strategies & Market Trends : Sharck Soup

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To: Jim Spitz who wrote (36733)10/23/2001 9:09:35 AM
From: Jim Spitz  Read Replies (1) of 37746
 
KLM, Continental agree to partner across the Atlantic


Published Oct 23 2001

In an agreement subject to regulatory approval, KLM Royal
Dutch Airlines intends to link its European network with
Continental Airlines' U.S. network.

Both carriers are business partners with Eagan-based
Northwest Airlines. Northwest already has a profitable
transatlantic joint venture with KLM that has antitrust
immunity. Domestically, Northwest and Continental are
code-sharing partners.

"Anything that enhances Continental and KLM across the
Atlantic is good for us," Northwest spokesman Bill Mellon said.
"There's a general benefit for the customers of all three
airlines."

Under the proposed code-sharing agreement, KLM and
Continental could sell seats on each others' flights. KLM said it
would connect its flights from Amsterdam, the Netherlands, to
Continental's hubs in Houston and Newark, N.J. From there,
KLM passengers could travel in the United States on
Continental flights.

In turn, Continental intends to connect its Newark hub to
Amsterdam. KLM flights throughout Europe would be
available in Amsterdam.

"Both airlines see code-sharing as helping to stimulate traffic
and consequently increase their revenues during the current
crisis in the airlines industry," KLM said in a news release.

Twin Cities customers of Northwest and KLM won't benefit
directly from the proposed partnership. But customers flying on
any KLM, Continental or Northwest flight may accrue or
redeem frequent flier miles in either Northwest's WorldPerks
program, KLM's Flying Dutchman program or Continental's
OnePass program.

-- Tony Kennedy

© Copyright 2001 Star Tribune. All rights reserved.
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