HOBOKEN, N.J. — As gas prices and economic troubles plague airlines and push credit unions tied to airlines into the news, Credit Union Times looks back four years ago when airline credit unions faced similar issues.
Four years ago, the aftermath of 9/11 was still being felt in the airline industry. At the time, Delta Airlines had announced it would cut of 7,000 jobs over 18 months and US Airways Group Inc. had filed for bankruptcy protection.
Delta Employees Credit Union was reassuring members it had no intention of changing its relationship with Delta Airlines. US Airways Federal Credit Union was still in a good position despite the troubles of its sponsor due to the decision made in the early 1990s to expand its select employee group and merge with smaller credit unions.
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Other airline credit unions had also began to add SEGs after the 9/11 attacks. United Airlines Employees' Credit Union changed its name to Alliant Credit Union in 2002 after United Airlines started to experience financial difficulty. Wings Financial Federal Credit Union had also changed its name from NWA Financial Federal Credit Union in order to stretch out from its sponsor Northwest Airlines. At the time, the airline carrier had lost $23 billion after 9/11, and the credit union had partnered with AirTran Airways and was actively seeking out other relationships through its trade-industry-profession charter.
American Airlines Credit Union had been recently granted a TIP charter as well, but President/CEO John Tippets said he built loyalty by offering work-out loan policies to laid off employees, hiring them and developing a check card for special assignment airline employees shortly after 9/11. Tippets also encouraged credit unions experiencing trouble with their sponsors to stay true to their core, saying, "Substantial changes in field of membership or products and services beyond what you know well will likely be expensive and unsuccessful in the long run."
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