Northwest buys stake - Northwest Airlines has completed its purchase of a 14% stake in Continental Airlines. The two airlines have begun codesharing and have started a reciprocal frequent flier programme. Ultimately, they plan to codeshare on 850 US and international flights, although each international codeshare requires government approval. In what is being viewed as a sweetener to the Justice Department, which has filed a lawsuit against the stock purchase, Northwest has extended the independent status of Continental's board from six to 10 years. American buys Reno - American Airlines has agreed to buy US regional carrier Reno Air for $124 million. American has had a codeshare agreement with Reno since 1993 and wants to use the airline's West Coast network to enhance its reach into that part of the USA. American Eagle, meanwhile, is to purchase East Coast-based Business Express Airlines with a view to combining it into its own operation. Airport policy attack - IATA director general Pierre Jeanniot has described the Canadian National Airports Policy as a "poor example of airport commercialisation", saying there is a lack of accountability to the airlines and the travelling public. On the eve of the start of construction of a new terminal project at Toronto Airport, Jeanniot says proposed fee increases will "greatly exceed" those at other major hubs in North America and he calls for independent regulation to oversee the setting of rates and charges.
Source: Airline Business
