Northwest Airlines Inc. wants the U.S. Department of Transportation to approve an alliance among the Eagan, Minn.-based carrier, Air France and three other European airlines for international flights.
If approved, Northwest could coordinate schedules and fares with Alitalia, Czech Airlines and Air France, owner of KLM Royal Dutch Airlines. Using those airlines' hubs, Northwest says it would be easier for travelers to reach European destinations from its three domestic hubs, of which Detroit is the largest.
"Instead of having one pathway and one option you've got three or four or however many it produces," said Megan Rosia, Northwest's managing director of government affairs and associate general counsel.
Detroit, Rosia said, would see more direct flights to Paris, adding to its once-daily flight there. Northwest could also start nonstop flights to Milan and Rome. It currently serves Rome with seasonal service. Additionally, the alliance would lower fares to Europe because it would add flights to European destinations, Northwest said.
"Leisure passengers who are looking for the low fares are going to have a greater flexibility ... because of so many different options," she said.
Northwest filed an application for its plan in September. Approving the plan would exempt Northwest from federal regulations that outlaw monopolies.
Rosia said Northwest hopes for an answer by fall.
That application is under review, said Bill Mosley, public affairs specialist with the Department of Transportation. It'll examine if such an alliance hinders competition.
That's exactly what the plan does, said Kathryn Sudeikis, president of the American Society of Travel Agents.
"Allowing them to talk about airfares together can only mean one thing," Sudeikis said. "Less competition always means higher prices."
American Airlines has asked the Transportation Department to reject Northwest's proposal, saying it is "nothing more than an anti-competitive power grab and should be denied."
American has similar agreements with Swiss International Air Lines and Finnair, but they're both smaller than Air France.
Northwest's plan should also boost revenue for its European flights, said Terry Trippler, airline expert with Cheapseats.com.
Northwest's Atlantic flights accounted for about 11 percent of its passenger revenue last year.
The airline said it is essential to compete with American and United Airlines.
"For Northwest's ability to really be competitive over the north Atlantic, we have to be in an alliance, otherwise we're basically not in that market, which is a huge market," Rosia said.
