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Steven JC
17th Oct 2001, 01:21
Generally I try to be optimistic but the following challenges my normal outlook.

Does anybody want to risk paying up-front 32k, agreeing to a security of 40k, then paying 20k back from your salary, that is if you are offered a job.

Let us analyse this in terms of risk and calculate a real cost, assuming you are currently in a job paying 20k and take out an HSBC career loan for 32k.

32k plus interest over a five year period equals approximately 40k in total payed back.

Assuming you are offered a job having successfully completed training, £500 per month (approximately according to other threads) is deducted from your salary for the first 3 years or so. Not including any interest charges which could amount to a further £3000 if applied.

If not then you can also account for a loss of earning ie 20k

Hence a total potential cost of 83k. This is almost a mortgage and without a decently paid job, one would struggle to pay this over a 10 year period at least.

Unless you are offered a guarantee, which you aren't then how can you justify any expenditure of this order. :confused:

Did I mention the 40k retainer for 5 years and the lose definition of 'market rate' for cadet starting salary?

The overriding factor of course is how badly do you want it. Either very badly, or you have seriously rich parents who will help.

I am begining to feel that given the economic climate it may a better idea to continue flying as a hobby/pleasure whilst maintaining my current career path as a chartered engineer.

Please don't misunderstand me - I am very sorry that we are all going through this experience but feel it highlights the need for a back up plan the need to be sure about our commitments which we make to any training etc. :(

Good luck to anybody going for the BEship. I don't think I will be having reviewed the financial and cntractual terms !

skysoarer
17th Oct 2001, 02:59
I daresay your figures are probably a little off and on the high side ... BUT ... the finance section doesn't make good reading and I do think it is a measure of how far you will go. I shall give it a shot, and no my parents are not rich!

I do want to fly commercially ... quite a bit ... so I am prepared for the financial consequences. i.e. eating nothing but dry rice in order to pay the rent/fuel costs.

Regards;

Sky

HomerSimpson
17th Oct 2001, 03:08
These figures seem correct to me. The cost of borrowing in the present climate is challenging especially if you can convince HSBC to lend you the money!

I think that there will be alot of banks not being so generous in handing out loans and alot of new students wanting to break into the industry holding back for about 6 months.

This sadly will have a big impact on training organisations in 6 months, which means grounds schools will be trying to keep their heads above water and the knock on effect will be the CPL/IR courses. I think this will hit the likes of SFT/Cabair and Oxford in about 12 to 18 months time, and many of the small operators across the UK.

Best of luck to them all.

Regards,
Homer

fritz_2001
17th Oct 2001, 14:04
I have to agree with those figures I'm afraid :( Initially I thought that it was a great opportunity, but £60000 in total (after interest + BE repayments) is a lot of money to try and pay back over 5 years and this is the sole reason why I am no longer able to apply for this scheme. IMHO BE would be a great company to work for, but this deal is simply not realistic for the majority of people.

So goodbye for now BE, if only it had been under different circumstances.

MW

EGDR
17th Oct 2001, 15:41
This hardly seems like 'sponsorship' and more like pay through the nose to be part of our company !!!

No thanks !!!!!!

RVR800
17th Oct 2001, 17:49
Tom Ahawk

...I know exactly what you mean my IT position looks relatively attractive compared to this as well..

It wont be long before you will have to pay
for a first officer position in the UK at
this rate...

BE are really taking the pi55 - I dont really
know what THEY get out of the process

It is not really sponsorship as it excludes
most people without time and money to burn
The assumption seems to be that if you are

A/Financially reckless

B/Have Money and lots of it

C/A gambler

D/Poor grasp of contract law

Then you 'may' be the type of person
lucky enough to be 'sponsored'? and be
made of the right stuff..whatevver that is

It can only be just a tick in the box so that the chief pilot can say that they have a sponsored scheme - makes them feel important and that the have forward options
on fATPLs

Why dont they just take from the unemployment pool? ...

[ 17 October 2001: Message edited by: RVR800 ]