Aviation credit union’s life payout takes a nosedive

SOME sectors appear to be faring relatively well through the pandemic and its economic fallout. Others not so much.

Aviation and credit unions are two of the hardest hit. Put the two together and you’re bound to have a challenge. No surprise that the main aviation credit union in Ireland might be feeling the heat. St Joseph’s Irish Airports & Aviation Credit Union has written to members to advise them of a change to its free loan protection policy, which repays a loan should a member pass away up to the age of 80.

As of July, the maximum life savings insurance benefit payable in the event of their death will reduce from €12,700 to €3,000.

“I am acutely aware that this is not good news to hear and it is not a decision taken lightly by the board of directors,” said chief executive Edel Bourke in the letter. “Due to low and negative investment returns, increased levies imposed on credit unions and an incredibly challenging trading environment brought about as a direct result of Covid-19, we must now adapt our business to ensure we remain safe, strong and secure.

“The pandemic has meant that a large proportion of our membership working in the airline and aviation business, which has been one of the industries hardest hit, are now faced with unemployment and wage cuts.

“It is clear that the sector is going to have many challenges ahead due to the impact of Covid-19, and St Joseph’s Irish Airports & Aviation Credit Union are adjusting to ensure we are prepared to help our members through these times,” she added.