Advertisement

KLM Wants to Operate Jointly With Northwest

Share
From Bloomberg Business News

Northwest Airlines and KLM Royal Dutch Airlines asked the U.S. government Wednesday for permission to operate as though they were a single global airline.

The two airlines asked the U.S. Department of Transportation to approve a marketing and commercial alliance that would integrate many of their operations. The airlines said they will also seek antitrust clearance for the agreement.

The request comes less than a week after the United States and the Netherlands signed an “open skies” agreement, which calls for both countries to open their international markets to each other’s airlines.

Advertisement

The two carriers say the proposed alliance would benefit consumers on both sides of the Atlantic. Competition wouldn’t be reduced because they now compete in only a few markets, the airlines said.

“It will not eliminate jobs and should add jobs,” Northwest President John Dasburg said at a news conference. “It is the classic case of the whole being greater than the sum of the parts.”

The marketing agreement would let the two cooperate in a number of areas, including coordinating pricing and inventory management, joining their advertising programs and eventually sharing revenue.

Advertisement