Northwest, KLM to Unveil New Combined Business Class : Airlines: The plan is a bid to attract high-fare passengers. It will ensure that travelers on routes linked by both carriers will have standardized service.

Northwest Airlines and KLM Royal Dutch Airlines will launch a new, shared business class service next week in a bid to lure high-fare passengers amid an industry price war, industry sources said Friday.

Northwest, the nation’s fourth largest airline, declined comment but said the carriers plan to announce “a significant expansion of our global alliance” at a news conference Tuesday.

KLM could not be reached for comment.

The combined business class service will ensure that passengers traveling on routes linked by Northwest and KLM will receive the same level of service on both flights.

Both carriers currently have business class service, in addition to coach and first class, but the move would standardize the services.

Industry sources were not familiar with all details of the new service, but said it is likely to include substantial amenities to lure high fare business travelers.

The carriers first formed an alliance in 1989 after KLM made an equity investment in Northwest.

The Dutch flag carrier now owns a 49 percent equity stake in Northwest, including 20 percent of its common stock.

The partnership has since expanded into shared operations, revenues and costs on most trans-Atlantic flights.

The carriers also share frequent flier programs and flight codes, which automatically place passengers from one carrier on connecting flights with the other airline.

Last month, Northwest and KLM, in their first coordinated fare action, cut overseas ticket prices by 30 percent

Minneapolis-based Northwest is on the road to recovery following a major restructuring in 1993 that prevented it from filing for bankruptcy protection.

Northwest this week reported profits of $10.5 million in the fourth quarter.

Its poor results a year ago forced KLM to take a $157 million writedown for its stake in the airline.

Northwest plans to go public in the first quarter with an initial public offering that is expected to raise about $400 million.

It also intends to issue up to $400 million of senior notes to pay off debt and for general corporate purposes.

KLM last week reported a surprising third quarter profit of $7.7 million, after a $225 million loss a year ago.

It also unveiled plans to issue some $500 million worth of new shares to bolster its balance sheet.