FORT WORTH, Tex. – Citing its national track record in operatingairport ATM facilities, American Airlines Federal Credit Union,joined by a small minority CU in Dallas, has landed the ATMconcession at the Dallas-Fort Worth Airport. The airline CU calledthe five-year contract a coup since it allows the CU to broaden itsservice reach locally and also because it replaces Bank of America,which previously held the ATM concession. Under the agreement,effective next month, the logo of American Airlines FCU partneredin the deal by New Mount Zion Baptist Church CU of Dallas willappear on the 21 ATMs spread across five different DFW airportterminals and other facilities. The ATMs will serve more than 20million airline passengers who pass through the airport each year.“We are very excited to add the DFW ATMs to our ever-growingnetwork across the country,” said John Tippets, AA FCU president/CEO. “We have extensive airport ATM experience operating directlyor in partnerships with other financial institutions – 93 ATMs at18 different U.S. airports – and feel we were the perfect fit” tomeet needs of DFW needs and CU members. Like it has in the past atits other ATM installations from Honolulu to Chicago, AAFCU said itrealizes the facilities are not moneymakers and yet the exposureand transaction activity warrant the outlay. “We realize thatconcession rental incomes are critical to the airport and to theairlines that guarantee the airport bonds, pay the rents andlanding fees,” said a CU summary report. “With 70% of surchargerevenues required to be paid to the airport, there is very littlemargin in our pro forma projections, but transaction activityshould be sufficient to justify the guaranteed rents over the fiveyears of the contract.” In its sales pitch to the airport, AAFCUsaid it was able to be “aggressive” on the rent offer because “ourgreatest advantage was to expect a smaller percentage of theconcession's ATM transactions to be on-us (our members) surchargefree.” In partnering with the $700,000 New Mount CU, AAFCU said itwas joining up with a CU that is Dallas based – apparently arequirement of city officials -and one “with substantialAfrican-American ownership.” AAFCU did not disclose the number ofbidders and how many were banks but said, “We had been working witha major bank on preparing to respond to the DFW ATM RFP until at alast moment when they told us we were not needed and they would bidwithout us.” The name of that bank was not revealed in AAFCUreleases, but the $4 billion Fort Worth CU in 2004-after prolongednegotiations with the city, the airport authority and federalagencies – did manage to partner with one of Chicago's largest, the$62 billion Dutch-owned LaSalle Bank, on ATMs at O'Hare and Midwayairports. Also in that deal was Seaway National, a minority bank.In its formal proposal to the DFW Airport Board, AAFCU CEO Tippetsemphasized the CU's role in the airport community. “Approximately75% of the DFW Airport's airline employees are already its membersand the health, prosperity and national reputation of this airportis critical to their personal and collective interest,” said AAFCU.Moreover, the CU has been a “lead sponsor in raising funds for theairport's United Way campaign,” has supported various charitableactivities like Special Olympics and “Give Kids the World” flights,and it has funded “the commemorative piece for DFW's 30-yearanniversary.” Tippets has been chair of the DFW United Way campaignand another staffer has been co-chair. The CU noted also that foryears it has maintained its own proprietary ATMs in the DFW Airportin a car rental facility and thus “the airport staff knows us andour capabilities.” But with respect to the “bank ATM concessionoperator,” which it did not name in its proposal bid, it said thatinstitution-an apparent reference to Bank of America – “declinedthe airport's requests for additional ATM deployments.” AAFCU“stepped in and provided those services” at the car rentalfacility, in an American Eagle satellite terminal and in a facilitywhich was the former hub of Delta Airlines. As for New Mount CU, itsaid its 3,000 congregant church sponsor and its leadership “areengaged in all forms of out-reach, educational initiatives andhuman services for the African-American community” in the HamiltonPark area of Dallas. New Mount's financial participation in theconcession contract amounts to 5%. However, “the new learning andexperience benefits” to the CU “will be substantial,” forecastAAFCU. The CU's proposal to the Airport Board concluded thatairport ATM operations “are a world which AACU knows well and whichwe are dedicated to serving.” [email protected]

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