Finance: Mango and Nedbank Sign Nedbank Greenbacks Deal
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Low cost airline Mango and Nedbank today announced that the parties have concluded an agreement that will see Nedbank’s loyalty currency, Nedbank Greenbacks, accepted as payment in lieu of travel booked on the airline. The agreement marks a new phase in business and distribution strategy for the carrier. Mango has refrained from initiating its own loyalty programme due to the opportunity cost directly affecting affordability of travel.
“It makes sense for our business,” says Bezuidenhout, “to instead partner with a successful, existing loyalty and benefit programmes as opposed to creating our own.” He says that while loyalty schemes fit well in the legacy airline business, adding the additional cost and complexity into the low cost model does not resonate. Partnering with loyalty programmes creates an additional payment channel extension for Mango whose spread of payment options (Edgars, Jet and CNA store cards, Debit transfers, credit cards, debit cards) and distribution channels (online, call centre, travel agents, Shoprite, Checkers and Checkers Moneymarket Kiosks, Nedbanks’ Npay hosts sites) rank among top international benchmarks.
“Partnering with Mango fits in with Nedbank’s bank for all strategy and adds to our range of quality partners to cater for all South Africans,” says Sydney Gericke, Managing Director, Nedbank Card.
Bezuidenhout has set his sights on several other innovations for the year. “The Mango strategy is working,” he says, reflecting on the airline’s successes during the past two years. “Mango plans to continue to explore several innovative and lateral ideas based on the three pillars of our business case: A comprehensive channel distribution and payment option strategy, effective use of our assets and operational efficiencies.” He says that while the domestic decline in travel may slow down growth, Mango is expected to deliver a solid performance.
Business News Sector Tags: Motoring| Finance|