Thursday, September 17, 1998

Bank, Hawaiian deal should be permitted

Regal Travel Inc. is protesting Bank of Hawaii's use of its automatic teller machines to distribute Hawaiian Airlines coupons, saying the bank is performing the role of a travel agent.

Bank of Hawai`i responded by saying that it is only playing the role of a middleman, in the same way it distributes postage stamps for a 25-cent fee.

Since the coupons are not tickets, which are what the government prohibits banks from selling, airline coupon distribution should be permitted.

The ATM coupons still belong to Hawaiian Airlines. The money it receives is for the airline's use of the machines.

What's more, the bank only started this service to offer more convenience to its customers, not to break into the travel industry. For consumers, there's no reason to disallow it.

Rather, it gives consumers more options. If they wish to pay the extra four or five dollars to get a travel coupon conveniently, they can.

Regal Travel is just creating excuses to prevent competition.

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