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DOT clears airline deal
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December 4, 1998: 6:17 p.m. ET
Northwest, Continental to implement frequent-flier alliance
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NEW YORK (CNNfn) - The Department of Transportation Friday cleared the way for Northwest Airlines Corp. and Continental Airlines Inc. to proceed with their frequent-flier alliance program.
A DOT spokesman said the companies made changes to the deal to satisfy competition concerns cited by the agency and the Justice Department.
In January, Northwest, the nation's fourth-largest carrier, agreed to acquire a controlling stake in Continental, the nation's fifth-largest carrier, from Air Partners LP, a Texas investor group led by David Bonderman.
Under the alliance, which was short of a full merger, the two airlines will combine frequent-flier plans and sell seats on one another's routes, even as they continue to maintain separate fleets.
Northwest and Continental had a 30-day waiting period to implement the plan after submitting their proposal to the DOT on Nov. 5. Bill Mosley, a DOT spokesman, said the government decided to waive an extension of the waiting period after the companies made modifications to their agreement.
Mosley declined to detail those changes because they involved confidential business information. A Northwest spokeswoman said the changes were minor, adding the company is pleased that it is clear to move forward with the Continental alliance.
Northwest (NWAC) shares slipped 1/8 to close at 24-3/16. Continental (CAI.B) shares gained 1/2 to 35-1/2. 
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