NWA FCU calls airline lawsuit ‘groundless'

APPLE VALLEY, Minn. (7/15/03)--Northwest Airlines filed a lawsuit against its employee credit union NWA FCU last week, a move the credit union CEO calls "groundless."

The lawsuit, filed Thursday in federal district court in Minneapolis, seeks to stop the credit union from using the airline's name and trademarks.

In a letter to members on the NWA FCU Web site, President and CEO Paul Parrish wrote, "We believe Northwest's actions today are groundless and we are confident that our position will be upheld in court."

Parrish noted that the credit union has operated as the NWA FCU since 1988 and received no complaints from Northwest Airlines when it filed for the trademark in 1996.

The airline counters that the credit union has used Northwest logos without authorization and should pay $6 million a year for use of its name and logo and for workplace access to Northwest employees (St. Paul Pioneer Press July 12).

In the lawsuit, Northwest says that the credit union sought to veto the use of "NWA" by a financial services partner--unidentified in the suit. However, Northwest Airlines has a lengthy relationship with US Bank, which issues its NWA WorldPerks frequent flier credit card.

The airline also claims it will sever the 65-year-old relationship with the credit union as of March 2004 and seek another financial services provider to replace the credit union.

Nearly 90% of Northwest Airlines employees are members of NWA FCU.