The problem with a business such as this is that its difficult to control costs
This whole industry is based on paying forward - the present students will always be covering the costs incurred by the previous generation (if you're lucky!). If you are going to attract new students with competitive prices, you are going to run with insufficient margins. Eventually you will go bust.
All of us who have been suckered into an FTO for going the cheapest route (understandable) are to blame for this. This is why the CAA needs to be an arbiter and regulator of these organisations and provide a structured payment system with safeguards. After all, we can only train at establishments with their blessing.
The obvious conclusion, I believe, is that flight training is too cheap. Sometimes cheap is expensive!
Contentious, eh?