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Uncover the role of Lumion's expertise in Flex Air Flight School's growth. Learn how their payment solutions unlocked veteran benefits and fostered a 20% increase in retention within the unpredictable world of flight training.
Students are subject to wildly different disbursement schedules that are conditioned on everything from weather to checkride availability to flight hours. This creates lots of cash volatility and uncertainty. Lumion allows us to establish stable cash inflows based on terms that we control.
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Objectives:
- Founded in 2018 with the objective of providing high-quality flight training.
- Aimed to address the underrepresentation of women and minorities in the aviation industry (only 5% of US pilots).
- Focused on enhancing accessibility by addressing affordability and financial challenges in flight training.
Challenges:
- Unpredictability influenced by weather and aircraft availability, added complexity to student budgeting in flight training.
- Limited to credit card and ACH payments, a weekly billing cycle, and highly variable payments.
- Credit card usage resulted in payment declines and fraud monitoring issues, creating discontent for students.
- Establishing a veterans' program was challenging as benefits did not cover education until the private pilot license was obtained, creating financial barriers.
Solutions:
- Preset and streamlined payments addressed unique financial challenges, and enhanced financial adaptability for both students and the school.
- Payment plans were instrumental in expanding opportunities for veterans, even those with limited credit history, through manageable payments for their first pilot's license.
- The convenience of automated billing and management reduced manual administrative tasks and emphasized exceptional student service.
Impact:
- Rapid Growth in Veteran Program: Collaboration with Lumion allowed the flight school to target and support veterans, leading to an increase of over 150% in revenue and flight hours.
- Increased Retention: A 90% retention rate for Lumion students, compared to as low as 70% for traditional loan-funded students in the civilian segment.
- Accessibility & Flexibility: Increased student intake and experienced 4x (or 300%) growth since 2021, with at least half of the growth attributed to access to payment plans and other payment options.
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