Originally Posted by
Officer Kite
Well I for one think this is the best news since Concorde
Some very interesting points, however personally I think that the exact opposite outcome might be more likely in the short to medium term, and that costs will rise even higher for student pilots.
Based on the fact that BBVA have quit the market and that no other bank offers a similar product, I think we can safely assume that pilot training loans are not an especially profitable business, relative to other lending markets for the banks.
I think that means that if a new supplier is found, then rates will be higher, pushing the costs up for trainees.
Alternatively, maybe there'll be a continued rise in airlines providing collateral for loans, which has the advantage of no longer putting your house (or your parents house) at risk, but will push-up costs for the airlines. Surely, in cost-sensitive times, this will ultimately be passed-on to trainees in the form of higher fees?
We've already seen a large-scale separation of type rating costs from course costs (I think I'm correct in believing, for example, that the £109k ezy mpl at CAE three years ago included a rating, now this is £30k extra) so I expect that ways will be found to ensure cadets can get finance for the initial course in some way, even if there are then extra costs later on in training.