One operator hinted to me that smaller schools are facing another problem: training of CPLs. With the new multi crew license coming in, the airlines are looking for people with multi crew and multi engine time. Many smaller schools are also charter operators and the instructors double as charter pilots. Whereas that is likely to get them good twin time in Barons, Senecas or Navajos, it's usually single-pilot ops. The flying schools want their pilots to learn how to fly the thing alone, which is exactly what the airlines don't want.
Now that the big 'chain store' schools will be sending CPLs direct to the airlines to fly under the multi crew rules (I think QF have said they will take 100 from direct entry next year?), it's better for the CPL to learn at a 'chain store' than it is via a smaller school because they will start earning better money.
The result is a threatening shortage of both quality instructors and charter pilots at the smaller schools. Admittedly, QF have said that they will still take 300 through the GA path, but if the new ticket is successful, that will likely reverse in the future.
Solutions, opinions etcetera eagerly sought.
Walrus