If by that you mean it costs more, you are correct.
Bond: £69000 (which does eventually get paid back over a period of around 6 years however during this time you can't leave the MPL company if you want to see that 69k back. I believe that if you are fired or dropped you will not receive the remaining value of the bond.)
MPL Training: £18670 + £11940
Living costs estimated: £5000
+ Insurance, Medical etc...
+ Don't know if type rating is included
TOTAL = £104,610+
Please correct me if I'm wrong.
You're wrong - you've missed out on the massive interest repayments.
Let's say you do a standard integrated course at CTC - this costs £73,400
Costs and Bookings - CTC Aviation
Where it says:
Additional costs (where applicable): Aircraft hire for tests CAA test and examination fees CAA Licence and Ratings issue fees Accommodation and transport to Crew Training Centres Flying in addition to the course syllabus
Means you can add on about
:
£250 per month for food
£100 per month for petrol
£50 per month for car insurance
£20 for a mobile/ comms costs
£4000 a year for accommodation
£2000 for CAA exam costs and licence issues
8 hours ME piston hire for tests (170A times 2, CPL and IR) - I'm being conservative when I say £3000
Make sure you pass them all first time - all 14 ATPLs, PT1, PT2 with there pre tests, 170A for CPL, CPL, 170A for IR and the IR.
Buying a car in NZ - 1500 NZD so maybe £800 (for an old banger)
A
fund for extra flights because you WILL cock up some things - have £2000 just in case.
On an 18 month course that'll be:
£4500 for food
£1800 for petrol
£900 for car insurance
£6000 for accommodation
£360 for comms
£2000 for CAA fees
£3000 for acft hire for tests
£2000 in case you cock something up.
Total before interest:
£94000
With interest over 7 years repayments + 18 month payment holiday on a 4% loan (you'll be lucky)
Gives:
94000 X 0.04 = £3760
3760 X 1.5 years (18 months of payment holiday where no payments are made during your training) = £5640
So now you have £99640 of debt to repay before interest in 7 years (84 months) should you be very lucky and gain employment immediately on qualifying.
Using this loan calculator and a 4% interest rate:
Loan Repayment Calculator
Over 84 months the total loan to be repaid is about £114400 requiring a repayment of £1360 EVERY month for 84 months.
Using the following salary calculator:
The Salary Calculator - Take-Home tax calculator
You'll see you need to earn £20000 a year before tax to earn £1368 a month after tax.
Oh and by the way for the first 8 months on flexicrew with easyJet which I understand now costs £8000 approximate for a type rating you'll only earn £1200 a month ( no tr cost + sector pay with Mon - defo a better deal!) - £160 short of paying the loan. Then you'll need a place to live, a car, insurance, petrol, food, mobile, Internet etc.
If the loan is secured on your parent's home and they aren't financially comfortable it could all become quite upsetting and stressful.
All of this said - there are those that have done it and it invariably works through parents and banks being flexible - not the airlines.
I was fortunate enough to have the unsecured loan from HSBC through CTC and I can tell you it's an expensive drag!
Now for some happier info - the job is a pleasure. Someone has to do it. If you're not a quitter, you'll find a way.
Cue a certain poster (with a devilish name) with his pro-CTC, a yellow and purple airline has saved the day for 2% of graduates, war and peace like posts.
