Continental-Delta-Northwest Soon To Start Joint Sales Activity

New partners Continental, Delta and Northwest have begun discussing trilateral sales programs for corporate clients and travel agencies, according to carrier executives speaking today during a joint press conference. "We regard joint activities as being a very important part of the alliance and expect to begin that promptly," said David Grizzle, Continental senior vice president of corporate development.

The three airlines, meanwhile, said an initial wave of codeshare flights will be announced "in weeks, not months" and phased in over time. More immediate frequent flyer benefits begin June 18, including global reciprocal mileage accrual, airport lounge programs and elite status recognition. Additional benefits, notably reciprocal frequent flyer award redemption, will be announced "shortly."

Frequent flyers will accrue miles on the combined worldwide network of the three carriers. All codeshare services are included with the exception of Delta's Song subsidiary and Delta Connection flights operated by American Eagle.

The carriers also indicated codeshare services likely will include Japan, Latin American destinations and eventually European destinations, in addition to domestic routes. "We envision a global codeshare structure," said Paul Matsen, Delta senior vice president of alliances and international. He added that the SkyTeam alliance, led by Delta and Air France, "is prepared to welcome Continental and Northwest as members," but global alliance decisions hinge on KLM Royal Dutch Airlines.

KLM, Northwest's antitrust-immunized transatlantic partner, yesterday expanded a codeshare arrangement with Continental, but currently does not cooperate with Delta. That would change if the Dutch carrier joins with Air France and SkyTeam. KLM also is considering a partnership with British Airways. Matsen called KLM's decision "critical," considering the weakness of the European airline sector.

Once fully implemented, the Continental-Delta-Northwest alliance is expected to generate $100 million or more for each of the three partners. "It provides greater strength of our network and the ability to capitalize on those strengths faster than we could by ourselves," Grizzle said, noting full implementation "could take longer than 2004."