We consider the online impairment-aware routing and wavelength assignment (IA-RWA) problem in transparent WDM networks. To serve a new connection, the online algorithm, in addition to finding a route and a free wavelength (a lightpath), has to guarantee its transmission quality, which is affected by physical-layer impairments. Due to interference effects, the establishment of the new lightpath affects and is affected by the other lightpaths. We present two multicost algorithms that account for the actual current interference among lightpaths, as well as for other physical effects, performing a cross-layer optimization between the network and physical layers. In multicost routing, a vector of cost parameters is assigned to each link, from which the cost vectors of the paths are calculated. The first algorithm utilizes cost vectors consisting of impairment-generating source parameters, so as to be generic and applicable to different physical settings. These parameters are combined into a scalar cost that indirectly evaluates the quality of candidate lightpaths. The second algorithm uses specific physical-layer models to define noise variance-related cost parameters, so as to directly calculate the -factor of candidate lightpaths. The algorithms find a set of so-called nondominated paths to serve the connection in the sense that no path is better in the set with respect to all cost parameters. To select the lightpath, we propose various optimization functions that correspond to different IA-RWA algorithms. The proposed algorithms combine the strength of multicost optimization with low execution times, making them appropriate for serving online connections