Don't Count On Discount Carrier From Northwest

If you were hanging around the airline counter, hoping to see Northwest Airlines dramatically drop fairs and transform itself into a discount airline, find a chair. You're going to be there awhile.

Other Airlines Hope Discount Is Way To Go

Delta Air Lines, the nation's third-largest carrier, plans to launch a low-cost carrier called Song in April. United Airlines the world's second-biggest, now bogged down in bankruptcy court, is using the internal code name of Starfish to develop its own low-fare airline. And American Airlines, the world's largest carrier, is looking at the possibility of a low-fare subsidiary as well.

Anderson: We Are A Low-Cost Carrier

But Northwest CEO Richard Anderson says, as far as his airline is concerned, it ain't happenin'. "The Northwest strategy is to be a low-cost airline across our whole system," Anderson recently told the Minneapolis Star-Tribune.

Northwest has lost $1.2 billion during the past two years. Domestic airlines have yet to recover from a huge drop in air travel after the September 11th, 2001 terrorist attacks. Now, they are expected to lose more business if a war breaks out with Iraq.

The world's fourth-largest carrier already has laid off thousands of employees, and has started negotiating labor cost cuts from its unions. Northwest is also looking at the possibility of new revenue by signing an alliance with Delta.

FMI: www.nwa.com