Falcon, Embraer, Bombardier: FlightSafety specializes in pilot training for business and regional aircraft. Its customers include billionaires and armies from all over the world, as well as automakers and airlines. The aviation sector has been particularly tense since September 11, making customer risk management a strategic issue. Review with Monique Zaccardelli, Administrative and Financial Director.
Monique Zaccardelli: It’s harder to get payments on time, and the number of disputes is increasing. Some of our customers have been the subject of insolvency proceedings, which often fail to protect creditors’ interests. Just recently, an airline, unable to pay, agreed in return to participate in the training of some of our instructors. However, the insolvency administrator objected to offsetting the invoices, and we had to pay, with no hope of recovering payment for our service. A dry loss of 35,000 euros.
M. Z.: We’ve tightened up our general terms and conditions of sale, and we’re keeping a tighter rein on our business. Beyond a certain threshold, when invoices are not paid, I block the delivery of training certificates to the customer, as well as access to flight simulators. On the other hand, credit insurance is not a profitable option, as it is too costly and many transactions are deemed too risky and are not guaranteed.
M. Z.: Because I was assured of a real return on my investment with Cabinet ARC. They are highly-skilled business lawyers capable of handling complex issues, with a real mastery of negotiation. They also have a very good knowledge of our business, the airlines and their culture. They are also active on the international scene, at airports all over the world – an imperative for a company like ours, which works with the whole world.
