NICHOLAS IONIDES / SINGAPORE
Relationship deteriorates following closure of non-stop Beijing-Detroit services
Northwest Airlines' four-year alliance with Air China is in danger of collapse as the Chinese flag carrier moves away from Northwest and closer to the Star Alliance.
Airline sources in China say the partnership, unveiled in 1998, expired late last year and an extension has not been agreed. The two codeshare on transpacific and domestic flights, but prospects of expanding the agreement are slim. Northwest fears Air China could serve a notice of cancellation.
The sources say ties have deteriorated since Northwest dropped non-stop Beijing-Detroit services earlier this year.
Although Northwest had planned to expand China services, traffic has declined over the last year, sources say. It now only serves Beijing and Shanghai via Tokyo. Air China codeshares on its flights, as well as on many of its domestic services in the USA.
Northwest in turn codeshares on Air China domestic flights, as well as on its transpacific flights linking Beijing and Shanghai with Los Angeles and San Francisco.
One source says Northwest has been attempting to negotiate an extended deal with Air China "in earnest" recently, but the Chinese carrier has not been receptive.
"It is basically in limbo," the source says. "It is not looking good. Air China has been moving closer to the Star Alliance and it is busy with its own restructuring."
Air China has been working to merge with China Southwest Airlines and China National Aviation as part of a sweeping consolidation of the Chinese aviation sector ordered by the government in mid-2000. It has at the same time been building its links with members of the Star Alliance, which it is widely expected to join.
Northwest says its agreement with Air China will run until June 2003, and adds that it is negotiating a modified deal to "better reflect how our two airlines will co-operate in the future".
Source: Flight International
