Do Airlines Have Enough Data to React to Brexit?

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  • Research shows nearly 40 percent of airlines don’t have an effective predictive cash-flow forecasting solution

Zug, Switzerland | June 27, 2016– Nearly 40 percent of airlines don’t have an effective cash-flow forecasting solution in place to respond properly to the turmoil posed by Brexit, according to recent research by Sapphire Innovation.

Paul Smith Eldridge, General Manager and President of Sapphire Innovation, said, “Every business decision, particularly in uncertain times, has to start with a proper understanding of the company’s financial position. But our survey findings tell us a lot of airlines just don’t know the detail to assess the impact Brexit could have on their business and to take the appropriate actions.”

Sapphire Innovation’s research was carried out among over 20 carriers. One survey respondent said, “Forex exposure is surely an issue especially with the sterling/euro/dollar exchange – it’s true for every carrier.” Another respondent said, “Foreign exchange and lease payments are in USD and GBP. That’s a concern.”

Smith Eldridge concluded, “No one knows exactly what’s going to happen following Brexit but our clients can predict the impact of the various scenarios to ensure the best outcome for their airlines. Therefore, the question every other airline CEO and CFO needs to ask themselves is whether they know what will happen to their cash-flow position now? Sapphire Innovation’s You Predict enables our clients to accurately simulate and predict their cash-flow over the next 13 weeks and for the next year or beyond, across their entire business, irrespective of the data sources, and all at the click of a button.”

“External factors like foreign exchange, fuel prices, and supporting multiple currencies and entities, are all contributing factors in cash-flow forecasting. Our solution provides airline managers with the ability to examine the impact of different scenarios and therefore make the best decisions.”

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