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Friday, September 3, 2004
Northwest Airlines Announces Changes to Its Distribution Cost Reduction Efforts
MINNEAPOLIS, Sept. 2 /PRNewswire-FirstCall/ -- Northwest Airlines (Nasdaq) today announced changes to the distribution cost reduction initiative that it announced on Aug. 24, 2004. The initiative was part of an effort to align the airline's cost of distributing tickets with those of the low-cost carriers it increasingly competes with for today's traveler.
Effective immediately, Northwest has withdrawn its US$3.75/CAD$4.75 one- way, US$7.50/CAD$9.50 roundtrip per-ticket "Shared GDS Fee" incurred by travel agencies in the U.S. and Canada, for tickets on travel in the 50 United States, which use a Global Distribution System (GDS) to issue tickets on Northwest.
Northwest also announced other changes to the fees it announced on Aug. 24.
Effectively immediately, the $5 "Call Center Ticketing Fee," originally on tickets for travel in the U.S. purchased through one of Northwest's reservations call centers, is expanded to include all tickets issued by one of the airline's U.S. call centers, including tickets for international travel.
The US$10/CAD$13 "Airport Ticketing Fee," originally on domestic tickets issued at Northwest airport locations in the U.S. and Canada, is expanded to all tickets issued by the airline at all airport locations in the U.S. and Canada, including tickets for international travel.
In addition, fees that originally applied only to domestic WorldPerks frequent flyer program award tickets are expanded to include all award tickets issued by the airline in the U.S. or Canada.
All tickets purchased through the airline's Web site, do not include ticketing fees.
The airline also said that tickets for members of its WorldPerks program who achieve "Platinum Elite" status will not include the Call Center Ticketing Fee or Airport Ticketing Fee on either paid or WorldPerks award tickets. WorldPerks members achieve Platinum Elite status by flying 75,000 qualifying miles or 60 qualifying flight segments in a calendar year.
Tickets for unaccompanied minors (travelers that are five to 14 years of age), are also exempt from the ticketing fees, effective immediately. The fee is also waived for travelers ages 15-17 who pay the fee for Northwest's unaccompanied minor service.
Northwest Airlines is the world's fifth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,500 daily departures. Northwest and its travel partners serve nearly 750 cities in almost 120 countries on six continents
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