Am very sorry to hear that....
its usually very difficult to evaluate what could have gone wrong in an interview....I think its great you addressed the issue about your academic qualification - that would have been much better than denying it or making up excuses....
I am not sure about your aviation background - but one thing to try before your next application may be getting more flying experience?? Like I said, I don't know what experiences you have under your belt...but just a thought...