Northwest Airlines Matches ATA Price Increase

  Northwest Airlines today announced that it has matched a $5 one-way, $10
round- trip domestic price increase imposed by American Trans Air (ATA).
ATA applied the increase to most fares that are not on sale or part of a
sale. Northwest matched the increase on competitive fare types in markets
where it competes with ATA. The higher fares take effect immediately.

Last Friday, Northwest selectively matched a $5 one-way, $10 round-trip
price increase imposed by Continental Airlines. Northwest matched the
increase on the fare types it offers to compete with prices offered by
low- cost carriers, in all of the markets where it competes with low-cost
carriers. Approximately 70% of Northwest customers have a low-cost carrier
option available to them.

That increase was rescinded on Monday when Northwest’s fares were not
competitive with those offered by low-cost carriers.

Northwest Airlines is the world’s fourth largest airline with hubs at
Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and
approximately 1,500 daily departures. With its travel partners, Northwest
serves nearly 750 cities in almost 120 countries on six continents. In
2002, consumers from throughout the world recognized Northwest’s efforts
to make travel easier. A 2002 J.D. Power and Associates study ranked
airports at Detroit and Minneapolis/St. Paul, home to Northwest’s two
largest hubs, tied for second place among large domestic airports in
overall customer satisfaction. Readers of TTG Asia and TTG China named
Northwest “Best North American airline.”