29 June 2007

NWA - First to cross the barrier wi9th Paypal

Not that we are against the credit card companies in any way - but we have been a long believer that the next major cost battle in airline distribution cost reduction would come in credit card fees. With Google Checkout our dark horse bet - we believe that the airlines stand to gain significant bottom line benefits in enabling non-credit card financial fulfilment from such players as Paypal and Google.

NWA finally becomes the first airline (by our understanding) to announce such a deal. It is even offering bonus worldperks miles to anyone who uses the service.

The leverage that this gains as well as the additional customers it enables is a win win for the airline. We are particularly encouraged about the impact in non-traditional (and therefore emerging) financial markets such as across Asia Africa and Latin America.

Pay attention boys and girls - this is a big shift

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