Delta Airlines – Question #12: Does your organization agree to comply with net 75 payment terms?


When we started this project in October 2019, in section 2.2.3. you already mentioned that the payment term is set at 75 days. We can agree on that again.

I do want to add the following: Our standard payment term is 30 days net. Any deviation from the standard is to be discussed with our Finance department. We are in the middle of a pandemic that is hitting our industry tremendously hard. We – as suppliers – depend on the income we receive from our clients. In almost all cases this is money we already invested months in advance when we ordered the goods at our factories. The financial clock starts to tick for us then already. Then we need to produce, ship and supply, which may take 3 months on top of that. That is why we normally have a standard 30 day net payment.

Without going into details who they are, but many airlines struggle to pay their invoices. Regardless how understandable that is, we need to be very cautious on the finance side. I hope you can understand that our CFO prefers to put everybody on the standard term right now, or even better than that. But we also know that is not realistic. And we know that eventually this pandemic will pass. It just might take some time.

So, we do re-confirm we can do 75 days net, but my Finance department will be right at my desk once the term has passed.