NWA given preliminary OK for expanded joint venture

Northwest Airlines received preliminary approval Wednesday from the U.S. Department of Transportation to coordinate its transatlantic flying with Delta Air Lines and four overseas carriers.

KLM Royal Dutch Airlines and Northwest have had a joint venture for 10 years that allows them to function as one business in setting fares and flight schedules over the Atlantic.

After a brief comment period, federal regulators are expected to give final approval for six-way antitrust immunity. That would extend the Northwest relationship with KLM to Delta, Alitalia, Air France and CSA Czech Airlines.

"The expanded SkyTeam alliance activities will lead to more convenient service for our customers, with shorter travel times," Northwest CEO Doug Steenland said in a statement Wednesday.

Sen. Norm Coleman, R-Minn., said the federal approval was crucial for Northwest and should create jobs. "Had this not taken place, it would be another knife in the heart of an airline business that is largely being challenged by $100-a-barrel oil," he said in an interview.

Steenland was at Minneapolis-St. Paul International Airport Tuesday for a ceremony marking the inaugural nonstop flight between the Twin Cities and Paris. Northwest's ability to attract passengers to support that service would be greatly enhanced by antitrust immunity with the other carriers, Steenland said.

The DOT noted that Northwest and Delta still would be subject to laws promoting competition on domestic routes and other international service outside of the Atlantic market.

Sen. Amy Klobuchar, D-Minn., said that Minnesotans and Fortune 500 companies need access to international service, and the joint venture is expected to bring expanded air service and jobs to Minnesota.

Liz Fedor • 612-673-7709