Why We Are Needed
GROUND HANDLING COMPANIES / FBOs/ FLIGHT SUPPORT COMPANIES / FUELERS/ IPA
- Allows an organization to avoid common compliance risks arising from a client breaking relevant laws and regulations in the aviation industry. That means more than just the basic rules about taxes and accounting. You may have to comply with large, complex sets of laws that have a significant impact on your operations.
- All services are paid via two main payment modes - on credit and on prepayment. As a result, the compliance manager needs to distinguish the degree of risk from a particular company in order to understand whether it is advisable to lend services to this company.
LEASING COMPANIES/ INSURANCE BROKERS
Non-payment for fuel or maintenance by the operator who rents an aircraft can be a wake-up call, especially if there is more than one such case in the registry. Agents and fuel and ground support providers are typically the first to suffer when an operator begins to face operational problems. Leasing companies often remain in the dark about this. When an operator allows delays in lease and insurance payments, as a rule the operator has debts to everyone around him by that time and is rapidly sinking.
CIVIL AVIATION AUTHORITIES
Some companies operating charter flights can pay navigation fees for years if they know that they will not fly in one direction or another for the nearest time. Therefore, such registry is helpful to calculate risks before issuing overflight and landing permits.
Airports also suffer from defaulting companies. As a rule, airports charge take-off, landing and parking fees from regular airlines based on the flights performed for a certain period. It is not uncommon for operators to delay such payments. There are frequent cases when operators owe large sums to airports and go bankrupt. As a rule, this is preceded by "alarm bells" in the form of non-payments to other counterparties in different countries, about which the airport may not know anything.
MRO Companies are just as dependent on an operator's solvency as airport authorities. The aircraft often arrives for maintenance, and is not released until the client pays for the service provided. However, if the Operator who provided the aircraft for repair is on the verge of bankruptcy, the serviced aircraft may be idle for a long time in the hangars of the maintenance station. In any case, this becomes a headache for the MRO station.
It is fairly common for charter brokers to book the plane at their own expense, and clients pay for the flight after it has been completed. In cases where the operator did not fulfill its obligations due to problems with non-payments to other participants in the aviation market and was stopped at any airport, the charter broker bears a guaranteed loss. Attempts to compensate for losses at the expense of the operator are most often unsuccessful.
Freight forwarding companies periodically become hostages of situations when the operator cannot fulfill its contractual obligations due to debts to the airport or the fuel company, or if they are in arrears in the payment of air navigation dues. Because of this, the cargo is idle at the airport much longer than the prescribed time. In case of timely receipt of information about the insolvency of one or another operator, the freight forwarding company can protect itself from possible problems when choosing an operator.
To know which of your agents at airports are blacklisted. Because potential agent problems can become operator problems. For example, even if a flight support company has not made a prepayment to the airport or local agent, the flight may not be accepted.
OTHER AVIATION INDUSTRY MEMBERS
To avoid unreliable suppliers and payment delays.