Northwest Airlines, Continental Airlines, Alaska Airlines and America West Airlines have formed a strategic alliance with Air China, representing the first deal of its kind entered into by a Chinese carrier.
The move ends speculation, for now, of a potential agreement between Northwest and Cathay Pacific and establishes further concrete links between Northwest and Continental, respectively, the fifth and fourth largest US carriers. Cathay is in talks with several possible partners.
The agreement signed by the Chinese flag carrier in New York extends to Northwest partners Alaska Airlines and America West, as well as its planned new alliance partner Continental. Northwest's other international partner, KLM, is not a party to the deal.
According to Northwest marketing director Douglas Killian, the agreement provides for code-sharing on the airline's five non-stop services between Beijing and its Detroit hub and certain domestic points in the USA. Aside from computer linkage and through check-in, the partners will offer reciprocal frequent flyer programmes and conduct joint marketing and sales.
In return, Air China will provide Northwest with code-share services from Los Angeles and New York to Beijing and eventually to beyond destinations in China. This is all subject to US Government final approval, which Northwest hopes to have in place by September.
Under the Sino-US bilateral air services agreement, the two carriers are allowed to code-share services on up to five destinations. Air China plans to launch a new service to Los Angeles from mid-year. The two airlines are hoping to further extend the scope of their co-operation once Washington and Beijing conclude negotiations on a new bilateral air services deal.
The agreement effectively marks the entry of the first Chinese airline into an international alliance and is likely to be followed by similar agreements between other carriers.
American Airlines and China Eastern Airlines already have a limited code-share deal in place, while Delta Air Lines has signed a memorandum of co-operation with China Southern Airlines.
Source: Flight International
