Three airlines proceeding with alliance

Tuesday, Jan. 21, 2003 | 9:33 a.m.

WASHINGTON -- Delta, Northwest and Continental airlines said today they will go ahead with a marketing alliance and ignore government restrictions aimed at preventing them from dominating air travel in certain markets.

The "code-sharing agreement" among the third-, fourth- and fifth-largest airlines would enable each to sell tickets for all three airlines, allowing them to reach more destinations without flying more planes. They also could offer reciprocal benefits such as frequent flier miles.

The Justice and Transportation departments approved the plan Friday, but transportation officials did so with certain stringent requirements. The airlines reviewed the government's plan during the weekend and issued a statement today.

"Some conditions are unacceptable, and we will not agree to them," they said in a statement.

Bill Mosley, Transportation Department spokesman, said transportation officials don't have an immediate comment.

Darryl Jenkins, head of George Washington University's Aviation Institute, predicted the dispute will end up in court because transportation officials and the airlines are both entrenched in their positions.