Northwest Airlines And Malaysia Airlines Receive Antitrust Immunity

Approval Represents First Immunized Alliance Between a U.S. and Asian Carrier

Northwest Airlines and Malaysia Airlines today announced that they have been granted antitrust immunity by the U.S. Department of Transportation. The approval represents the first immunized alliance between a U.S. and Asian carrier and will provide new benefits for travel between North America and Malaysia.

“Today’s announcement continues Northwest’s leadership in serving the Asia/Pacific market and in developing global alliances,” said Douglas Birdsall, Northwest’s senior vice president-alliances. “Northwest has the most experience of any U.S. airline in Asia and we were the first airline to develop a global immunized alliance with KLM Royal Dutch Airlines in 1993. We are pleased to form the first Asian immunized alliance with Malaysia Airlines which has among the best service reputations in the industry.”

Northwest and Malaysia Airlines signed a commercial cooperation agreement in September 1999 which includes code-share service, frequent flyer plan reciprocity and “seamless” flight connections. Under the agreement, a Northwest flight code will appear on Malaysia Airlines’ service effective January 1, 2001 in the Kuala Lumpur-Los Angeles market. In addition, Northwest’s flight code will appear on Malaysia Airlines’ flights in the Tokyo-Kuala Lumpur and Nagoya, Japan-Kuala Lumpur markets so that passengers traveling between the United States and Malaysia can make convenient connections to Northwest flights at Tokyo and Nagoya. Similarly, a Malaysia Airlines’ code will appear on Northwest’s service beginning January 1 in the Detroit- Kuala Lumpur and Seattle-Kuala Lumpur markets. Malaysia’s flight code will also appear on Northwest’s service in the Detroit-Nagoya market so that passengers can make convenient connections to Malaysia’s Nagoya-Kuala Lumpur service. The two carriers plan to expand code-share service in the future to include domestic U.S. and domestic Malaysia routes. The partnership may also include code-share service on select Malaysia-U.S. service operated via the Middle East and Europe.

The alliance features all the benefits of seamless service, including issuance of all boarding passes at initial check-in and “through” luggage check to final destination. In addition, members of Northwest’s WorldPerks frequent flyer program can earn and redeem free travel awards on all Malaysia Airlines flights. Similarly, members of Malaysia Airlines’ Enrich frequent flyer program can earn and redeem travel awards on all Northwest flights.

Northwest and Malaysia Airlines antitrust immunity is made possible by the U.S.-Malaysia “open skies” agreement.

Northwest is the fourth-largest airline in the world and has served Asia since 1947. It serves 15 points in the Asia/Pacific region with its fleet of 35 Boeing 747 aircraft. Northwest and KLM’s immunized alliance has allowed them to form the most extensive partnership in the airline industry.

Malaysia Airlines is the largest carrier in southeast Asia with one of the youngest fleets in the world. Malaysia Airlines flies to more than 110 destinations across six continents with more than 100 jet aircraft including Boeing 747-400s and 777s. It is the first airline to offer business centers onboard its long-range aircraft serving the United States.

Malaysia Airlines is also the largest Boeing 737-400 operator outside of the United States, serving 36 cities in Malaysia’s island archipelago, including such popular destinations at Kota Kinabalu.