Brent Hannon/TAIPEI
Northwest Airlines has confirmed that it is talking to China Airlines (CAL) about a possible commercial agreement, a move that could secure an Asian partner for the fledgling "Wings" alliance. Some sources say Northwest could also take a stake in the Taiwanese flag carrier, although the US major denies this.
Northwest "has had talks on potential areas of commercial co-operation" with CAL, but will not disclose the status of discussions until an agreement is reached. It adds: "Northwest Airlines has no intention of making an equity investment in China Airlines."
The denial comes despite claims by sources close to CAL that the China Aviation Development Foundation (CADF), its majority owner, may sell up to 23% of its 71% holding to Northwest. The sources say that with CADF unwilling to sell a large stake to a single foreign carrier, some shares will then be transferred to its Wings ally, KLM.
Last year, CADF blocked Singapore Airlines' move for a 25% holding, but is under government pressure to sell half its shares, due in part to CAL's poor safety record. There is also a looming political deadline, with CADF's chairman likely to lose his job if the KMT party fails to win March's presidential election.
A second CAL source claims an unnamed US cargo carrier is also interested in taking a 5% stake in the airline, and that local interests might take 2.5%.
Source: Flight International
