Shoreham makes it even harder

[AndyR]

Quote: "Please note at with effect from the start of business on Friday 1st June 2012 fuel purchases at Shoreham Airport will no longer be available on account. All purchases of fuel must be paid for by credit card, or cash, on delivery."



Less than a week for schools and clubs to organise credit card accounts for all their instructors and users? I sometimes wonder why I support and promote this place as much as I do, at personal cost too of late.

[Leighton CZ]

What's wrong with that? -- Pay as you go !

[Dave Phillips]

I think it is a trend that many will follow. When you get stung to the value of £100000+ by unpaid fuel bills, it is the sort of thing that could make a company topple. I'm sure local arrangements can be made for based companies but why should a private individual get fuel on 'tick'? Tesco doesn't give you a month's credit at the petrol pump.

The other element organizations may tighten-up on is the payment of maintenance bills.

[Leighton CZ]

Well said Dave -
If everyone paid their bills as they went the country would be in far better shape that it is.

[Arrow IV]

Unfortunately increasingly the case (check places like Fairoaks for the reasons why). In the end it's probably to the benefit of those playing fair and paying up, as I doubt it's the oil companies paying for the losses from airfields/clubs/etc going bust with fuel accounts still unpaid.

[Leighton CZ]

Maybe truth in that and the honest ones pay again --
While the 'Fly-by-nights' get away with it Again !!

[SteveN]

I think it is a trend that many will follow. When you get stung to the value of £100000+ by unpaid fuel bills, it is the sort of thing that could make a company topple. I'm sure local arrangements can be made for based companies but why should a private individual get fuel on 'tick'? Tesco doesn't give you a month's credit at the petrol pump.

The other element organizations may tighten-up on is the payment of maintenance bills.

Terms are Terms and factored into the customer decision to use any facility. Fuel on account means residents tend to fuel at home as it is less hassle than claiming it back from a group or business at the end each month. Pay as you go will make people fuel only when they really need it, not top up. That will be at the closest pump to them which typically has 50% chance of being home base. Tesco customers seldom top up and shop around constantly. Plenty of small garages survive by running fuel accounts.

By all means change your T&Cs to surcharge late payers. These people are in breach of contract but caution removing account facilities to everyone as your sales will be impacted. No doubt Shoreham are about to discover this.

[Leighton CZ]

Why do have to wait until the end of the month to settle your bill?
Whether you buy local or uplift -- with the internet systems available today there is no need for anyone to wait for payment !

[Monocock]

I can see Andy's point to some extent. Flying Clubs and Schools who have their cash-flow tailored to paying after a 30 day period will find it hard to suddenly push their cash flow forward by between 1 and 30 days. I'm not saying what Shoreham is doing is unfair, as after all it's business and I would do the same. But I can also see there will be knock-on financial effects for other businesses as a result.

I agree with the poster above who accurately and concisely said that it is extended credit that has got this country in the position it is. There has to be pain somewhere to mend that situation and Shoreham has the power (being the supplier) to inflict that pain to ensure it is still trading profitably tomorrow and the next day.

[Leighton CZ]

In my group the members fill up the aircraft -- the cash goes off the aircraft card that day / morning /afternoon --whenever -ZIP -GONE.
At 2.04 /litre I cannot afford to wait for the money, so the pilots pay by internet banking as soon as they get home.
If they don't I stop them making bookings -- they know the score and it all works very well.
When I was given credit , in the good old days (swing the lamp -war stories) I gave credit.
When it stopped for me -- it stopped for the members.

[peterh337]

Not a problem for private owners provided the credit card reader is located at the pump.

Otherwise there will be a long queue......................

[johnm]

Kemble operated a credit card driven pump when I was based there - no problem. Gloucestershire operate a credit account paid net monthly also not a problem and we do indeed pay via internet banking. Because it's easy we mostly refuel at base, occasional uplifts on foreign trips as there's little choice.

[peterh337]

Sadly I suspect this was triggered by the behaviour of a few businesses of the type which aviation is rather full of... but the proper way to deal with that is to pull their credit facilities.

[AndyR]

Sadly I suspect this was triggered by the behaviour of a few businesses of the type which aviation is rather full of... but the proper way to deal with that is to pull their credit facilities.

Exactly. Though the last big one that went bust everyone seemed to know about for ages prior to it happening, except the management of the airport.

And having run a business and had to wait months to be paid (always by the larger players) I do actually understand the cash flow thing.

I am looking at this from the school/club perspective I have to admit, rather than private owners who mostly tend to pay as they go anyway already.

However, four working days notice to arrange cards to every instructor or aeroplane? Single owners won't have a problem, but a school or club with several aircraft filled up by different people throughout the day and the week will need to issue multiple cards to individuals not really known to the bank. Are banks going to be willing to do that? Are owners going to want instructors/students wandering around with credit cards, losing them, taking them home in error, unable to fill up the aircraft because Bloggs has decided to forget to return the card after filling up and then gone on holiday for a fortnight?

Issue them to the aircraft and you need to let everyone who is flying that aircraft have the PIN number. Not a good idea surely?

One could of course just charge a dry rate. The last school that tried that almost got thrown off the airport and is not allowed to advertise as it makes them seem cheaper than the others. Maybe they saw it coming!

It all makes the administration task even greater, reconciliation of receipts and card statements and so on. More time spent on paperwork and not trying to ensure that ends are met. I work for three schools on the airfield, not sure I want to be responsible for three different cards for example. We could of course apply for fuel cards, but the airport doesn't accept them as the oil companies take too much from them.

A months notice may well be acceptable, it would at least give time to organise something. On its own it is probably not that big a deal, but the airport does seem to be making it harder and harder to do business as every month goes by. It is driving pilots and aeroplanes away who are relocating (quite a few now live a little to the west, a trickle that started a couple of years ago). That is trade that is disappearing not just for the airport but for all those businesses on site.

[AndyR]

When I was given credit , in the good old days (swing the lamp -war stories) I gave credit.
When it stopped for me -- it stopped for the members.

Which will now be more than likely be stopping for our club members as it is not fair on the school owner to fork out for fuel (nobody has mentioned if we can keep landings and touch and goes on account), when those who have flown can take a fortnight to pay. Time to fork out for a card machine (and up the hourly rates to absorb the cost) so everyone pays as soon as they have flown rather than wait for an invoice.