Northwest Extends Alliance With Alaska Air

Northwest Airlines Corp., the fourth-largest U.S. carrier, extended an alliance with No. 10 carrier Alaska Air Group Inc. in its latest attempt to boost business by working with other airlines. Northwest and Alaska Air will keep selling seats on each other’s flights, a practice known as code sharing. The two airlines will also continue to link frequent-flier programs. Last month, Alaska Air also formed an alliance with AMR Corp.’s American Airlines, the No. 2 carrier, a move that jeopardized Alaska Air’s ties with AMR rival Northwest. At the time, Alaska Air President Bill Ayer said he hoped to maintain ties with Northwest. Alaska Air’s partnership with American will focus on routes in California, while its alliance with Northwest is concentrated in the Pacific Northwest, said Ragen MacKenzie Group Inc. analyst Peter Jacobs. “Northwest and American won’t be butting heads for the same passengers,” he said. St. Paul, Minn.-based Northwest and Seattle-based Alaska Air didn’t immediately comment beyond their announcement. The two airlines didn’t specify how long the partnership was extended. Northwest shares fell $1.50 close at $21.75 on Nasdaq, and Alaska Air shares fell 75 cents to close at $41.38 on the NYSE.