Northwest To Operate Smaller Subsidiary?

Following on the heels of Delta and United, which both tried to operate smaller regional subsidiaries flying small jets, bankrupt Northwest Airlines has purchased Independence Air's "operating certificate".

The document is issued by the Federal Aviation Administration. Industry observers Consumer Help Web spoke with say that similar transactions are common when an airline is liquidated. One likened the process to selling a taxicab medallion in New York on a much grander scale.

Northwest and Delta remain in bankruptcy protection although both observers we spoke with said that customers shouldn't panic over their frequent flier miles. "Seats will be tough to find," said one source, "because they will sell a seat instead of giving it away." The source recommended travelers with flexible plans continue checking because seats allocated for "revenue" customers may be freed up later for award travel.

posted by Consumer Help Web Editorial Team at 8:17 AM |