holty40,
The simple answer is yes. The training organisation can certainly not refer him to a partner airline if they felt his level of attainment fell below an acceptable standard. In fact it would be their duty not to do so. The airline is expecting the candidates to have reached a level of attainment that prepares them for what is going to be a very steep learning curve from that point forward, and it is not going to be in anybody's interest to put forward weak trainees.
The courses are structured such that each module or section is subject to assessment throughout and at the conclusion of that section. It is not implausible (although it rarely happens) that a students training can be terminated if they fail to maintain a minimum standard. There are insurance polices that may help mitigate some of the costs incurred up to that point, however they do not (as I understand it) cover any and all reasons for failure. However they do provide some assurance. There are also options whereby a student can pay for additional training if remedial action is required that falls outside the scope of what is considered "normal." The wings cadet (airline) courses are selective, and if a candidate consistently fails to meet the standards required, they may be offered the option of switching to a regular integrated course which would likely involve not only additional cost, but also remove the inclusive AQC (Airline qualification course) which would then become an additional cost for the candidate. It would also shift a significant element of risk onto the candidate as graduates from the secondary programme are only put forward when they have demonstrated the same level of achievement as the wings cadets.
Having said that, most of the selected wings cadets (for the airline programmes) do go on to graduate successfully although even that provides no guarantee that the airline partners would necessarily have any requirement for cadets at the point of graduation. In recent years it hasn't been at all unusual for successful graduates to have to wait (in holding pools) for sometimes significant lengths of time in order to be placed with a partner. It is also true that people often do find hurdles in their training whereby they fail (usually only at the first attempt) one aspect of the course or other. As is the case in any other form of training or education, this is often part and parcel of the learning process. It is up to the airline what requirements they set in this regard, but it is unusual for a short term area of weakness that is subsequently redressed to present any problems beyond that point. Unless the failure was chronic and persistent, it would be very unlikely to impact on the graduates transition to advanced flight training (the airline part.)
Again, to highlight the big warning here....There are no guarantees! The airline industry is notoriously volatile! There simply are no guarantees, and it would be extremely unwise to plan or assume on a seamless transition from start to finish. The training courses are generally in the order of 15-18 months, and however things may look at the beginning of that period, they can look very different at the end of it! If an airline has no requirement for cadet pilots at any point in time, it simply will not take them on. That is something that needs to be planned for and very seriously considered in any financial planning.
The bank guarantees that are typical of these programmes usually require the guarantor to show that even with the secured loan it represents no more that 60% of the value of the security (home!) It usually also requires that the applicant and any guarantors furnish evidence of their ability to repay the loan schedule even if a job is not forthcoming at the point of graduation.
If an applicant couldn't satisfy these conditions it is unlikely they would be approved for the loan. In any event, if the prospect of this would be likely to cause undue hardship and certainly if it were to cause bankruptcy, then my advice would be not to consider it for one moment longer.
I consider this to be one of the better routes into fasttrack airline employment. It has been for some considerable time now. However, it comes with very significant risks. It comes with absolutely no guarantees, and it requires candidates to be ready and able to embark on a very steep and long term learning curve.