AIRLINES
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U.S. Report Says Global Links Benefit Airlines: According to a Congressional study, U.S. and foreign airlines have benefited financially by forming alliances, but the impact on ticket prices remains uncertain. Such partnerships link services of two airlines so a passenger can buy a ticket on one and transfer to the other without a second ticket, with luggage sent straight through and frequent flyer miles credited for the entire trip. The General Accounting Office estimated that Northwest Airlines’ link with KLM Royal Dutch Airlines produced between $125 and $175 million in revenue last year for Northwest, which amounted to about a third of its transatlantic revenues. These revenues come at the expense of both U.S. and foreign carriers, the report said. The GAO said the wider the alliance--global or regional--the larger the benefits are for the paired carriers.
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