How will this impact the $200,000,000 of annual revenue that was to be gained from the codeshare? Will this impact the restructuring?
Reuters
US Clears Air Codeshare with Conditions
Friday January 17, 12:35 pm ET
By John Crawley
WASHINGTON (Reuters) - The Bush administration said on Friday it would permit the largest ever U.S. airline marketing alliance to take effect, but imposed conditions.
After reviewing the proposal for nearly six months, the Transportation Department cleared the codeshare proposal by Northwest (NasdaqNM:NWAC - News), Delta (NYSE
AL - News) and Continental (NYSE:CAL - News) airlines, a government source said.
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But the source said the carriers must adhere to a series of conditions, which the official would not disclose.
We believe it is the decision that will most benefit consumers, the official said.
A formal announcement of the plan was expected later in the day.
Officials from Delta and Continental said the carriers were still waiting for word on the decision. Representatives from Northwest could not be reached for comment.
Regulators cleared a similar deal between bankrupt carriers United Airlines (NYSE:UAL - News) and US Airways (OTC BB:UAWGQ.OB - News) last year and imposed conditions on overlapping routes.
Codesharing agreements allow airlines to sell seats on each others'' flights, reducing costs. Rather than each running a flight half full, two could run a single flight near capacity, for example.
Under the plan, the three carriers would also expand their frequent flier and airport club programs.
Proponents said it will boost revenues at a time of unprecedented industry financial turmoil and give consumers more choices without diminishing competition.
Critics assert it will further concentrate the industry among the biggest domestic airlines and make it harder for new entrants and low-cost carriers to serve lucrative markets.
Reuters
US Clears Air Codeshare with Conditions
Friday January 17, 12:35 pm ET
By John Crawley
WASHINGTON (Reuters) - The Bush administration said on Friday it would permit the largest ever U.S. airline marketing alliance to take effect, but imposed conditions.
After reviewing the proposal for nearly six months, the Transportation Department cleared the codeshare proposal by Northwest (NasdaqNM:NWAC - News), Delta (NYSE
AL - News) and Continental (NYSE:CAL - News) airlines, a government source said.ADVERTISEMENT
But the source said the carriers must adhere to a series of conditions, which the official would not disclose.
We believe it is the decision that will most benefit consumers, the official said.
A formal announcement of the plan was expected later in the day.
Officials from Delta and Continental said the carriers were still waiting for word on the decision. Representatives from Northwest could not be reached for comment.
Regulators cleared a similar deal between bankrupt carriers United Airlines (NYSE:UAL - News) and US Airways (OTC BB:UAWGQ.OB - News) last year and imposed conditions on overlapping routes.
Codesharing agreements allow airlines to sell seats on each others'' flights, reducing costs. Rather than each running a flight half full, two could run a single flight near capacity, for example.
Under the plan, the three carriers would also expand their frequent flier and airport club programs.
Proponents said it will boost revenues at a time of unprecedented industry financial turmoil and give consumers more choices without diminishing competition.
Critics assert it will further concentrate the industry among the biggest domestic airlines and make it harder for new entrants and low-cost carriers to serve lucrative markets.
