No Virgin, a FI does not need a JAA licence but does require an authorisation to teach on a JAA course; there is an Appendix to the relevant JAR describing the procedure (I can't remember the reference but could look it out if you are really interested
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Obviously, there may be other downward pressures on prices, but this will be a dramatic upwards pressure on costs to the FTOs, which of course they will want to reflect in higher prices to maintain their margin...