Continental Hub is Nexus of CU Competition

Correction appended below.NEWARK, N.J. – Newark International Airport, one of the main hubs for Continental Airlines, has become a microcosm of credit union competition, as increasing numbers of credit unions have entered the market to serve the hundreds of thousands of airline employees over the last few three years. Since then, three credit unions, including the giants American Airlines FCU and Chartway FCU, as well as FAA Service FCU, have established a presence on the ground here; even before the hostile offer earlier this month from $1.6 billion Wings Financial FCU to take over Continental FCU. The growing competition has put Continental, which is in a five-year steady decline in membership, at a disadvantage, according to some of the credit union’s own members and ex-members. “I used to have all my accounts there, but now I went over to Chartway,” Jose Coste, an airport worker, told The Credit Union Journal yesterday, one of a series of interview yesterday with Continental members. Gladstone Hall, another ex-Continental member, said he moved his accounts to Chartway because he was disappointed in the fees he paid at Continental FCU. Christian Cepeda, another Continental FCU member, said he opened a Chartway account to get a new iPod, even though he likes the service at Continental, but now he can shop th better rate between the two credit unions. Several Continental workers cited the open access to American Airlines FCU’s new branch, as opposed to the secure entry at the Continental branch, limiting access to members. Many other credit unions without a physical presence, except for ATM networking, also vie for the allegiance of Continental employees, they said.Correction: The above article incorrectly states that Gladstone Hall, a member of Continental FCU, had closed his CFCU membership. While Mr. Hall has opened anaccount with Chartway FCU, he remains a member in good standing withContinental FCU.