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Northwest and Korean Launch Cargo Code-Share

Northwest Airlines
and Korean Air today announced a code-sharing agreement that will enable
both airlines to carry international cargo on each other’s scheduled
freighter flights between Asia and the United States, providing new
destinations, faster service and more frequencies for their cargo
customers. It is the first such agreement under a provision authored by U.S. Sen. Ted
Stevens (R-Alaska) allowing for allied U.S. and foreign carriers serving
Alaska to transfer international cargo—thereby increasing cargo traffic
in Anchorage and further securing Alaska’s leading role as a global
air-cargo hub.

Under the code-sharing agreement, the two carriers are able to sell cargo
space for their customers on each other’s code-shared flights. Northwest
is placing its “NW” code on cargo flights operated by Korean Air from
Seoul to Anchorage, Atlanta, Chicago, Dallas/Ft.Worth and San Francisco,
complementing Northwest’s current Boeing 747 freighter service from nine
Asia-Pacific destinations to Los Angeles, Chicago, New York and Cincinnati
through its cargo hub at Anchorage.

Korean Air, in turn, is marketing its “KE” airline code on Northwest-
operated freighters from Anchorage to Chicago and Cincinnati as well as
between Seoul and Anchorage.

Three times a week, a number of Korean Air freighters arriving in
Anchorage park next to Northwest freighters at the Northwest Cargo hub in
Anchorage. Cargo arriving from Asia is transferred between Northwest and
Korean Air freighters for connecting flights to the lower 48 states. The
process repeats itself for Asia-bound cargo. This activity is expected to
become daily later this year.

At a news conference today at Ted Stevens Anchorage International Airport,
officials from Northwest, Korean Air and the airport joined Senator
Stevens to outline the many economic and commercial benefits of the
agreement, made possible by the Alaska Air Cargo Flexibility provision,
part of the federal Vision 100 - Century of Aviation Reauthorization Act.


“As the number one cargo airport in the country, Anchorage has provided
the international air cargo industry a place to refuel as the planes cross
the Pacific Ocean and travel to the continental United States,” Stevens
said. “Now, airlines are able to maximize the use of alliance and
code-share agreements when moving international cargo. Cargo interlining
offers great savings to the airlines and it customers, and creates 90 new
jobs in Alaska and adds $13 million dollars to our local economy.”

“Today we celebrate a key development for both Northwest Airlines and
Korean Air,” added Jim Friedel, president of NWA Cargo, the cargo
subsidiary of Northwest Airlines. “Our customers will enjoy faster service
between the key markets of Asia and the United States, which is critical
for their express freight. At the same time, the code-sharing agreement
made possible by Senator Stevens’ provision makes our Anchorage hub a
stronger platform for growth as we prepare for additional flights into
China, and it keeps Northwest a leading player across the Pacific. We are
grateful for the support of Senator Stevens and thank the U.S. Department
of Transportation for its approval of our code-sharing agreement.”

Northwest currently operates about 48 Boeing 747 freighter departures per
week from Anchorage while Korean operates another 80 per week.

“With the cooperation of Northwest Airlines and Korean Air, we created
great benefits for customers and airlines,” said Derek Dai-hang Han,
managing vice president of Korean Air Cargo’s Americas regional
headquarters. “Korean Air Cargo can provide trans-Pacific cargo customers
more freighter frequency and shipping options without additional cost. Two
airlines will create more synergy with the connection of Northwest’s
Anchorage and Tokyo-Narita hubs and Korean Air’s Seoul-Incheon hub.”

Ted Stevens Anchorage International Airport Director Morton V. Plumb Jr.
said airport staff worked for seven years to help get the legislation
approved. “With the airline industry constantly evolving, the airport
strives to give airlines a solid reason to operate out of Anchorage,”
Plumb said. “This cargo liberalization helps make doing business in Alaska
more attractive and profitable for carriers which helps us maintain our
competitive advantage.”