Northwest Airlines Offers PayPal Option To Customers

Northwest Airlines said Thursday it will offer customers the option of paying for tickets purchased on its Web site using the online payment service PayPal.

Customers will be able to use credit and debit cards as well as bank accounts to purchase tickets via PayPal. The move makes Northwest the first airline to accept PayPal for bookings, PayPal said.

Shares of Northwest Airlines Corp. — which exited bankruptcy protection in May — rose 29 cents to $22.47 in afternoon trading. Shares of eBay, which owns PayPal, shed 5 cents to $32.03 in afternoon trading.

Thoughts// By offering the PayPal option to its customers, Northwest becomes the first airline in the industry to offer an alternate, e-commerce method of payment. Initially only available to WorldPerks frequent flyer members, the PayPal option will allow customers to pay for original tickets with the digital e-commerce provider. This is PayPal’s first venture into the lucrative online travel marketplace.

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