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When organizations that have formed partnerships uniquely meet customer needs, they see their market share increase and their customer satisfaction ratings rise. When Northwest Airlines formed a partnership with KLM Royal Dutch Airlines, international travelers on both sides of the Atlantic were offered an increased number of destinations. Beyond this added value, these travelers benefited from such improvements as shared frequent flyer awards, improved reliability performance, and coordinated scheduling. Passengers saved time making connecting flights and were able to spend more time at either end of the trip—a considerable marketing advantage to Northwest–KLM’s time-conscious business travelers.
As a direct result of their partnership, Northwest Airlines increased its pretax profits by $50 million a year and KLM enjoyed a healthy $150 million-a-year pretax profit increase. In December 1997, Northwest Airlines repaid a $39 million loan to the Metropolitan Airports Commission (MAC) in Minnesota more than fifteen years ahead of schedule. The loan was part of a $45 million package Northwest negotiated in 1992 with the State of Minnesota to save it from bankruptcy.