News Release
Continental Airlines and Northwest Airlines Unveil Benefits for Air Travelers Under New Alliance
Create Competition For "The Big Three"NEW YORK, November 20, 1998 -- Northwest Airlines (NASDAQ: NWAC) and Continental Airlines (NYSE: CAI.B and CAI.A) today announced their new alliance which will enhance competition by improving consumer travel options and delivering a wider range of benefits to millions of air travelers in the Americas, Asia and Europe.
Key consumer benefits of the alliance include code-sharing on substantially all of the airlines' domestic and international routes to improve worldwide flight connections, service and schedules; full reciprocity between the two carriers' newly enhanced frequent flyer programs; and reciprocity of airport lounge club membership privileges in the United States.
The Continental/Northwest alliance creates a fourth major U.S. airline network competitive with "The Big Three" U.S.-based airlines.
"This alliance demonstrates how consumers can win when two companies work together to provide our customers a dramatically larger range of services than either of us could offer on our own," said Gordon Bethune, Continental's chairman and chief executive officer. "We will deliver more choice, more frequencies and more destinations to the traveling public."
"Our customers are the beneficiaries because this alliance gives them choice - choice in destinations, in schedules, in service options and in rewards," said John Dasburg, Northwest president and chief executive officer. "This is an exciting development for our two airlines; this alliance better positions both companies to succeed in the tumultuous and competitive airline industry."
CODE-SHARING
The two airlines initially will implement code-sharing domestically and internationally on approximately 850 flights to 95 destinations. "Meshing the two route systems will create an unprecedented network that can carry air travelers seamlessly around the world," said Greg Brenneman, Continental's president and chief operating officer.
"Alliances built around end-to-end networks strengthen competition and provide customers with the quality of service they demand," said Michael E. Levine, Northwest's executive vice president-marketing and international . Code-share bookings will be accepted starting Dec. 12, 1998, with code-share flights to and from Japan beginning on Dec. 29, 1998 and on other routes effective Jan. 7, 1999.
Northwest initially will place its NW* code on approximately 450 Continental and Continental Express daily flights serving 56 destinations, such as San Jose, Costa Rica; Lima, Peru and Corpus Christi, Texas. The CO* code will appear on approximately 400 Northwest and Northwest Airlink flights to 43 destinations, including Bangkok, Thailand; Calgary, Alberta and Sioux Falls, S.D.
Continental and Northwest are putting special procedures and employee training in place for every code-share flight, which will allow seamless ticketing, check-in, airport connections and baggage transfer.
The Continental/Northwest networks are highly complementary in an end-to-end fashion, which brings immediate extension of their networks. In certain city-pair markets, the Continental/Northwest alliance provides the first single-network service available. In other instances, the alliance will create new on-line competition.
Northwest's customers will have access to Continental's extensive Latin America network. Continental's customers will be able to travel conveniently to points where Continental's route system has never before reached in the northern tier of the U.S., Canada and Asia.
Code-sharing on flights between any of the two carrier's hubs will be available only on itineraries that involve a connection at the hub. Continental and Northwest will seek necessary government approvals prior to implementing international code-sharing.
FREQUENT FLYER PROGRAMS
Continental OnePass and Northwest WorldPerks are improving their industry-leading programs to make them more attractive to consumers.
Members of either program will be able to earn miles on either airline and will be able to redeem miles for free travel on either airline. As a result, air travelers will nearly double their opportunities to accrue mileage. WorldPerks and OnePass members will have access to award travel to many additional domestic and international destinations when redeeming frequent flyer miles. Additionally, members will be able to reciprocally earn and enjoy elite status on both Continental and Northwest.
Reciprocity in mileage earnings takes effect Dec. 6, 1998, subject to regulatory review. Members of one frequent flyer program may request award travel from the other program beginning Feb. 1, 1999, for travel beginning March 1, 1999, pending regulatory review.
AIRPORT CLUB LOUNGES
Effective Nov. 21, 1998 membership in either Continental's Presidents Club or Northwest's WorldClubs gives travelers access to any of the airlines' total 37 lounges throughout the United States, dramatically expanding the number of locations where members can use their privileges.
Internationally, reciprocal privileges are offered to members who are traveling in BusinessFirst on Continental or World Business Class or First Class on Northwest flights.
Northwest Airlines and its regional and international partners fly to more than 400 cities in more than 80 countries on six continents. Continental Airlines and Continental Express offer 2,267 departures daily to 128 U.S. and 69 international destinations. The two airlines' networks are the fourth largest airline system in the world.