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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Northwest Puts Pressure On Klm

Compiled From Wire Services

Northwest Airlines said Wednesday it would set up its own ticketing procedures in the Netherlands, a move that could hasten talks to resolve a dispute that threatens its alliance with KLM Royal Dutch Airlines.

The alliance has been beset in recent years by disputes over KLM’s potential ownership stake in Northwest. Years of talks have failed to bring a solution.

By supplying its own tickets to European travel agents, instead of using KLM tickets, Northwest would be able to recoup more easily if the partnership ends. At the same time, the move puts more pressure on KLM to resolve the ownership dispute - particularly with KLM’s new president taking over the top job in a month.

As long as the partnership, which funnels trans-Atlantic passengers onto each other’s planes, continues to add about $50 million annually to Northwest’s profits and $150 million to KLM, few think it could fall apart.

But the dispute over KLM’s ownership stake has been a persistent one and KLM has sued Northwest seeking $150 million.