I know the maths on this are the most appealing sums in the world, but as someone said earlier its the difference between you having to ask HSBC for £38,000 compared to £60,000 for the TCX/Excel type schemes at OATs. At least Flybe are putting their hand in their pocket for the remaining sum, and are theoretically 'loaning' you this amount interest free for 6yrs or so until your debt to them is repaid. Also remember that they are a company paying for professional training, so they are not paying VAT on their share, which again saves you a few pounds!
People are always so quick to praise the OATs and CTC style scheme, but none of the airlines in those dip into their pockets to help you up front and as a result they have no real inclination to take you on as an F/O at the end of the day if the market has taken a downturn. At least with the Flybe scheme, you know that they will be fairly keen to get their £20,000 back out of you!
So the sponsorship isn't 100% free like the good old days of BA, but it strikes me that for anyone looking at starting training in the near future that this scheme brings the cost down from the £60,000 for an integrated towards the amount of money you would need to find to do the modular route.
One final thought ... I suggest to you all that if you talk to HSBC about borrowing the money and you can go to them saying that you have a guaranteed job at the end with a starting salary of £26,000 + duty pay and that the company involved are helping out by paying a third of your training costs up front, that you are a lot more appealing candidate for the loan than the guy who has not been through an airline selection process and beaten 300 other people to a place on the scheme but wants £60,000 in the hope that at the end you will walk into a job - seems a bit risky to me!