Bank of Scotland in talks with Airtours to launch online bank

The Bank of Scotland is in talks with Airtours, Britain's second largest package holiday company, to launch an online banking service.

The proposed partnership would be similar to other joint ventures run by the Bank of Scotland, including savings accounts and credit card schemes for supermarket chain Sainsbury's and a credit card for Sony, as well as affinity credit cards ranging from Star Trek and James Bond to football clubs Arsenal, Everton and Blackburn Rovers.

"We are in talks with Airtours, but no deal has been finalised yet," commented a spokesperson for the Bank of Scotland. "We have a whole range of packages we could offer them."

A spokesperson for Airtours said the company is keen to expand its online interests in "appropriate areas", but declined to comment further.

Airtours, which is believed to be working on a separate brand identity for its online banking venture, has a huge customer base ready to tap into. The company sells over 10.5 million holidays each year.

It is likely that Airtours will offer internet based banking and travel insurance as well as a credit card.

Airtours has just splashed out £240 million to buy Travel Services International in a bid to give it a higher internet profile. The company specialises in cruises, car hire and hotel bookings in the US.