Bankrupt Northwest wants to start new regional airline

Northwest Airlines which aims to launch a regional carrier called Compass Airlines in June, has asked the government to approve its purchase of Independence Air's operating certificate. Northwest bought the operating certificate of the defunct low-fare airline Independence Air this month. Independence Air ceased operations in January. In a filing with the Transportation Department this week, Northwest outlined its plans to start Compass, which it is expects to have a fleet of at least 36 76-seat planes within 5 years.

"The expansion of Northwest's regional flying through the proposed Compass Airlines operation is an essential part of Northwest's restructuring plan," Northwest said in a statement. "Compass is expected to enhance Northwest's service in a variety of small and medium-sized markets by providing convenient connections at Northwest's domestic hubs at Minneapolis/St. Paul, Detroit and Memphis," it said.

Transfer of the Independence operating certificate requires approval from the Transportation Department as well as the court overseeing the bankruptcy of Independence Air. As part of its restructuring. Initially, Compass would fly the same type of 50-seat jet as Independence Air and would continue to be based at Washington Dulles Int. Airport. Additional service with larger 76-seat jets is anticipated during the first full year of operations under a growth plan that forecasts a fleet of at least 36 such aircraft within five years, Northwest announced.