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Old 26th Sep 2010, 14:19
  #1543 (permalink)  
Bealzebub
 
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I will try.

On their cadet courses they require a bond deposit of around £69,000. This is in addition to a total outlay of roughly another £10,000 for a foundation course and various insurances. On top of this there is a requirement for the candidates to provide for their own living costs (excluding accomodation which is already included in the above sum.) The bond is payable in defined instalments over a period of some 14 months. This bond is either provided by the candidate directly from their own resources or via a secured loan through a commercial bank.

As a "bond" it serves two purposes. It provides the underwrite for the costs of the integrated training programme. In other words if there is no employment offered or accepted at the end of the training course, or if the employment is offered on terms that do not include "bond transfer" (for example, the candidate obtains their own employment, or accepts an offer where the company does not assume the bond, or there is simply no employment to be offered,) then the bond is converted into the training providers costs of providing that training.

If the candidate is succesfully placed with a partner airline that does recognise the bond facility, then the successful candidate would be transferred to the partner airline usually on a six month without prejudice transfer where the airline provides the candidate with a type rating and a short term period of line flying. In the past these transfers have often been on the basis of no salary other than expenses for the initial period, although the training provider has returned around £1000 a month from the bond security during this phase.

During better economic conditions, many (but not all) of these placed candidates were kept on by the partner airliners, who (presumably) paid the provider for their services and as part of that package, then received the remainder of the candidates "bond" to then provide their own security. This remaining sum was repaid to the new cadet pilot in monthly sums over an agreed period, in addition to the cadet pilots entry level salary.

The advantages of this arrangement over more conventional integrated courses are that in certain circumstances it does provide an opportunity for the bulk of the ab-initio training costs to be repaid to the candidate, although this is by no means a surety. It also may provide an opportunity for the candidate to be placed in an airline career with low levels of experience, although balanced in some measure by airline orientated training regimes and facilities. For the partner airline it has the advantage of recruiting low hour cadet pilots with little financial risk and outlay, during a fixed probationary period. These pilots also have a consistent and recognised training history that aids in selection. If offered an employment contract subsequent to the initial period, there is a monetary bond that provides security to the employer, and also supplements the real costs of remuneration to the employee.

There are also limited protections in place for possible repayment of the bonded amount up to a defined ceiling (£40,000 I believe) should the candidate fail to the complete the training for specific reasons and in defined circumstances.

In summary, you may get the monetary sum of this bond repaid back to you over a period of some years, thereby reducing your ab-initio bill for training if all goes well. That is by no means guaranteed though, and it should be clearly understood that the bond is in effect the cost of the training provided, that will be converted into the price paid by you should the bond not be assumed for whatever reason after the course has been completed.
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