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Worldspan reworks funds flow.

Article Excerpt
Worldspan is creating new economic models with its largest agency subscriber and second-biggest airline customer and collaborating with its former airline owners to go after traditional agencies both here and abroad, according to a document filed last month with the Securities and Exchange Commission. The filing provides the most detailed available picture of the new Worldspan, which is second to Sabre Holdings in U.S. transactions processed.

According to the Sept. 24 document, Worldspan and American Express have adopted a new model in which the former pays the latter for travel segments booked, instead of the other way around as per standard industry practice. "Although the substantial majority of our electronic travel distribution revenues are derived from booking fees paid by travel suppliers," recent agreements, including a deal with Amex, Worldspan said, "do not follow this traditional business model. Under our agreement with American Express, which will be implemented in the latter half of 2003, we anticipate charging a transaction fee to American Express--rather than the travel supplier--based upon travel segments booked or messages processed by us."

While reluctant to provide additional details, an American Express spokesperson confirmed that the new economic model...

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