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Old 17th Mar 2010, 13:12
  #241 (permalink)  
 
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But they still do the ground school in Woodford.

The pay to fly thing has actually been mentioned on pprune.

If it does kick off I think the mods will again be put in a difficult position having to remove posts on the subject for legal reasons.
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Old 17th Mar 2010, 18:53
  #242 (permalink)  
 
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Concerning the email from Will Gilligan to VE FO Interviewees, I assume the fictitious name is pretty damning, but what if Halstead had sent them in his own name? Would it still be fraud? There are two more facts that are not yet in evidence, that could still make it fraud, and if they are proved later, make the case pretty strong. I will pose them as questions.

1. Did Varsity Air Service's contract with Links Air grant VAS the right to hire FO's for the flights or barring this, did LA and VAS have an agreement in place wherein VAS' Directors could recommend FOs to LA for this route?

2. Did Links Air or Varsity ever discuss with OAA that they would send FOs to Manchester (or Stockholm, or anywhere else) for OAA provided Jetstream 31 Type Ratings?

There are three follow up questions:

3. Where have Links Air previously sent FOs for Type Ratings?

4. Did OAA have a Jetstream 31 type rating course scheduled to start on the date in question, or if not already scheduled, could they have met that date?

5. How much do OAA charge for a Jetstream 31 Type Rating?

It is sad that the people who paid £15K got suckered in when the FO interview was with a company that did not hold an AOC and was subcontracting the flight ops. Shouldn't it have been Links Air doing the interviews and hiring? Links Air probably should have pulled the plug as soon as they heard VAS was interviewing FOs, but maybe they never heard since PPrune had to pull so many threads.

Potential has written that he applied for a Cabin Crew position with VE. The same set of questions applies to this, but since there are no claims yet of charging for CC training, perhaps there was no fraud in this regard. It does make me wonder why VAS bothered to hold CC interviews though.
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Old 17th Mar 2010, 19:02
  #243 (permalink)  
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I refer the honourable gentleman above to post 51....

Can I have a 'Told You So' t-shirt as well?

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Old 17th Mar 2010, 19:04
  #244 (permalink)  
 
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I'm sitting in Terminal 5 and, with an hour to kill, bought a copy of Airliner World - as has been mentioned before it contains the most vomit inducing article about MH.

If you've not read it, you should (oddly, it's quite amusing) and so should the Police, but for different reasons. Anyway, let me give you the highlights (insert your own sarcasm/irony smiley as appropriate) :

Alpha1 only went bust because a Middle Eastern Investor pulled an investment of £250,000 but, happily for MH, he (investor) made an out of court settlement before Alpha1's lawyers could drag him through the courts.

Even more happily, MH ensured that all creditors were paid off out of his own money.

Fortune favours the good, obviously, and MH secured a job as a Flying Ambassador for Virgin, flying alongside cabin crew (not as one of them, clearly), giving advice on how service and operational procedures could be improved.

Then, out of the blue, he was offered a job with Blue Islands only to fall foul of the economic downturn six months later, being made redundant(not sacked - heaven forbid)...

Luckily, though, at just the right time, a group of Tenerife/UK based investors approached MH for the fifth time (no, honestly) and, although, MH told them that managing another airline wasn't on his agenda, he was persuaded. After all, as he so eloquently put it - "it was time to put baby branson to bed and sing him a lullaby. I want to be the first Martin Halstead from here on in."

Happily for all concerned the fundamental business plan was strong and a lot of funding was in place. Hence the reason that MH now owns 50% of the business, having invested some of his own money.

You might need to wipe a tear of admiration from your eye as you consider MH's final point :"I guess I had a point to prove to myself that I could do it."

I always thought the Michael Foot Labour party manifesto was the most damaging piece of self-puffery in the world but i've changed my mind....

At least Michael Foot didn't bring his mother along to the launch day to be photographed with a bottle of champagne.

On the Oxford News Website tonight:

"A YOUNG pilot claims to have been left high and dry by the demise of Oxford airline Varsity Express after he invested £15,000 to be trained by the collapsed carrier.
Twenty-three-year-old Peter Chilvers borrowed cash from his parents, grandmother and other family members so he could fulfil his childhood dream of becoming an airline pilot.
Mr Chilvers is one of four recently-qualified pilots who handed over a total of £52,500 to be ‘type-trained’ – to learn to fly the company’s 18-seat Jetstream 31 plane.
Varsity Express, which offered daily flights between Oxford and Edinburgh, was grounded after just a week, leaving passengers – and Mr Chilvers – stranded in the Scottish capital last week.
Thames Valley Police has launched an investigation into allegations of “fraudulent activity” at the airline.
However, the entrepreneur behind Varsity Express, Martin Halstead, has denied any wrongdoing and has pledged that all the pilots will be repaid in full.
Mr Chilvers was offered a £24,000-a-year job after being interviewed in London and had been due to start his first pilot’s job with Varsity in May.
However, he needed to hand over the money, including £4,000 from his 89-year-old grandmother Barbara, so he could be type-trained.
Mr Chilvers, from Newcastle-under-Lyme, in Staffordshire, underwent training at Oxford Aviation Academy.
He said: “I always wanted to be a pilot. I was incredibly excited to begin work. It would have been real flying and a great route to start off on, with short sectors all in the UK.
“Being based out of Oxford would have been the ideal location.
“Varsity held the interviews in the ‘Gherkin’ in London and that sort of thing doesn’t come cheaply, so I thought these guys were well backed.
“I’m desperate to get that money back.”
Mr Halstead, 23, from Summertown, said he had written off £3,500 of his own money that he put into Varsity.
However, he added: “The pilots will be reimbursed. We are in discussion with them at the moment about a payment schedule to get their refunds returned.
“That money was put into the company and used as part of the working capital, but we are working on getting it back.
“It’s a priority that no-one should be out of pocket on this.”
Mr Chilvers fears that losing the money would harm his chances of future employment in the industry, as it is now commonplace for pilots to pay for their training.
He said: “Currently in the airline industry companies that are taking on the most pilots want some financial contribution.
“Having no money rules me out of quite a lot of jobs in the industry that are open to someone of my experience level.
“My family have stood by me and helped me as much as possible but their finances have been completely ex-hausted.
“My main concern is being reimbursed for this money and being able to pay my debts off to my family. I’m devastated.”
Mr Halstead has already insisted that between 350 and 400 passengers who had booked trips with Varsity would be refunded within 14 days.
He said the pilots would have their money returned within three months."

Note that MH admits to using the £52,500 as working capital.

Last edited by Captivep; 17th Mar 2010 at 19:11. Reason: update and spelling
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Old 17th Mar 2010, 19:15
  #245 (permalink)  
 
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MH secured a job as a Flying Ambassador for Virgin, flying alongside cabin crew (not as one of them, clearly), giving advice on how service and operational procedures could be improved.
Good grief.

A further insight into the boys mentality if it was required. This individual has a sense of elevated importance over eveyone around him, I imagine it helps him be so ruthless towards his innocent victims.
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Old 17th Mar 2010, 20:12
  #246 (permalink)  
 
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Other pilots?

My goodness, what a mess. I simply can't understand how MH might think that using a fake name to do any of the following is not a business use of this fake Commercial Director -

1. Communicate with potential employees (as noted on this forum earlier)
2. Communicate with Oxford Airport (as confirmed by an Oxford Airport spokeswoman in one of the early press articles)
3. Comment on the state of the company in VE-issued press releases posted on VE's website and throughout the internet

MH was quoted as saying “I went along with it. I never saw it as an issue because Will Gilligan was never actually conducting any business for the company.” Making arrangements with airports, communicating with potential employees, making statements in VE issued press releases....that sure sounds like Gilligan was doing "business for the company," does it not?

I, too, have many questions. First of all - where are the other 3 pilots? Nothing has been mentioned about them. Surely they're wanting their money back too. I really hope they all come forward to collect their money back from VE and I hope those who were interviewed for the FO jobs will submit any info they have to the police. Also, admitting you used the pilots' money as capital for the company when they handed it over under the pretense that it would pay for their training...that seems like a horrible idea when trying to claim innocence, no?

I'm eager to hear what the police have found and whether or not there will be official charges brought against VE/MH. However, this is a very sad event for legitimate airline entrepreneurs. This will, no doubt, make it very difficult for future start ups.

Last edited by iris0202; 17th Mar 2010 at 20:44. Reason: reformat
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Old 17th Mar 2010, 20:27
  #247 (permalink)  
 
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Nice article Captivep - didnt know MH was so accomplished. He should go far...like Brazil. Anyway lets hope Mr Chilvers gets his money back and more...


- TR J31 with OAA = Euros 21375 PER CREW (includes CAA exam fees) or approx £19k.

- Given that the J31 is a multi-crew aircrfat it is fair to say that the cost for the J31 on your license is approx. £9.5K per crew member.

- This cost excludes base training - which, i think, OAA cannot conduct.

- £15k - £9.5k = £5.5k x 5 FOs = £27.5k

- The cost of base training for 5 FOs in one day would not amount to £27k (J31 = approx £800 - £1k hourly operational rate?) possibly £5k maximum.

- Line training can be done during normal commercial/revenue earning sectors.

So even if MH had paid for the TR with OAA and had sent the email in his own name that still leaves the question of the £20k odd leftover. Where did it go?

Given he did not enter into consultation with the FOs with regards to the real cost and how this extra cash would be distributed contractually then this in itself is fraud. The fact he used Will Gilligan as an alias to solict the money in the first place just galvanises any case against him further.
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Old 17th Mar 2010, 20:33
  #248 (permalink)  
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He talked about "Will Gilligan" as if its a real person.
I found that interesting and looked-up "pathological".
Its worth a look, gives a lot of answers!
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Old 17th Mar 2010, 20:38
  #249 (permalink)  
 
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Interesting discussion. I recall at the time of the interviews the TRs were being advertised as being with OAA/CAE in Stockholm. I spoke to CAE before deciding whether to submit an application to VE, they (Stockholm) were very helpful and advised me they had no knowledge of VE or any bookings in their names. Furthermore, they said £15k was a lot for a J31 TR and wondered if it included line training?

No, I didn't apply and, yes, I did pass the info on to those I knew invited to VE for interview. Their views are shown elsewhere.
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Old 17th Mar 2010, 20:59
  #250 (permalink)  
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In response to the post by captivep. Some may remember the september 09 issue of airliner world and their patheticaly sensationalist pat-on-own-back, for playing their part in uncovering the 17 year old Adam 'Tait' and his bogus airline.

Perhaps the bosses at the mag should take a look at why they can vindicate a young kid who, after themselves suggesting he had a form of autism, was setting out to hurt no one, yet they are prepared to give good publicity to 'baby Branson' and his next failed venture. Incidently it would seem his actions have had serious financial implications on a number of people...

Im sorry for side tracking the thread, just thought it was worth pointing out. Perhaps they will be backpeddling for their next issue as i type this? hmm
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Old 17th Mar 2010, 21:00
  #251 (permalink)  
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The waters around Oxford seem to be getting murkier and murkier. If you hold solid information, not hearsay or papertalk, you should consider passing it on to the authorities. This man is a menace and has temporarily destoyed the dreams of guys who were about to embark on their future life's work. This is, of course, why we re-opened this nightmare - so that you are aware as you could be.

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Old 17th Mar 2010, 21:28
  #252 (permalink)  
 
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Hidden truth

Back several months ago colleagues were approached by an aviation consultant with industry experience at other airports, saying he was representing a new airline operation interested in linking EDI, CBG, OXF and NCL amongst other destinations at a later date. It looked and smelled like another infamous green liveried J31 operation with all the hallmarks of MH. As time progressed, the consultant clearly focused on OXF-EDI rather than CBG and that was that. Having blatently denied any MH involvement when asked, lo and behold, once commitments to launch the OXF-EDI route had been secured, who should crawl out of the woodwork but MH.

I don't think our friends at EDI or OXF would have let the outfit through the door had they known from the outset, hence the whole charade with fake backers, fake directors, fake addresses, fake finances, fake employees etc. Once the route was announced and sales of tickets went live, it's argually too late to tell the operation to forget it and dissapear - you go with it and hope it all works.

Fees to the airports would have been paid upfront by the actual operator, Linksair, not Varsity who were just a marketing brand and ticketing agent, so they ought not to be out of pocket.

Unfortunately, everyone else touched by this outfit would appear to be owed money.

All who seem to have had contact with Varsity/MH from the tail end of last year to even the papers yesterday seem to have been consistently lied to. It's just a catalogue of deceit.

MH clearly has a mental problem and actually needs therapy. He's probably not a true 'criminal' in the conventional sense, nor stupid in the low IQ sence, but very foolish, nieve, desperate and simply dishonest.

Lucky escape really!
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Old 17th Mar 2010, 22:17
  #253 (permalink)  
 
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I rather think LONDON AIRPORT (OXFORD) !!!! with the fancy sign on the Langford Lane roundabout would be an embarassment for any sound organisation based at Kidlington....a piece of puffery appropriate as a setting for the Varsity Express Enterprise.

At least young Halstead didn't try to sell his tickets from LONDON to Edinburgh!
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Old 17th Mar 2010, 22:18
  #254 (permalink)  
 
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Pilot Positive,

I don't think the fact that the numbers don't add up is criminal. Does anyone doubt that Ryanair profit from SSTRs? There would be nothing illegal about MH marking up the training, either for profit or for off-setting costs of some sort. Exploitative? Maybe, but not criminal in itself.

The reason I asked about the cost of an OAA J31 rating was simply to get an idea if he was even in the ball park with his figures because I doubt he ever priced it out or checked on course availability, much less reserved course seats or drafted any contracts. I would not be surprised if he just pulled a figure out of thin air, a nice round figure at that.
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Old 17th Mar 2010, 22:43
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MH secured a job as a Flying Ambassador for Virgin, flying alongside cabin crew (not as one of them, clearly), giving advice on how service and operational procedures could be improved.


I have flown with the guy at VS and was quite surprised to read the above. He was Cabin Crew, a junior in fact and the ambassador title is given to normal crew members who volunteer to gain other crews views regarding the service onboard any route.

Must admit some of his stories told were a bit OTT.

Cheers
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Old 17th Mar 2010, 23:08
  #256 (permalink)  
 
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Jetlinks haven't put anyone through a type rating they use contract pilots.

There are 2 options for J31 ratings you can go the sim solution which is 8 sessions of 4 hours. Sim is @ 400 quid an hour and the TRI/TRE is 900 quid a day but that does a crew. Then LPC which is 4 hours and 900 quid for TRE. Base training again is 900 quid for the TRE and 800 quid an hour for the airframe plus approach fees. Factor in staying in Sweden and flights to Sweden it ramps up.

Second option is in the aircraft which I think is 8 hours min and you already have the 6 landings so you don't have to do base training.

After training it is very rare in the UK for jetstream 31/32 pilots to ever see the sim again because of the costs. All the checks are done in the aircraft.
Which if you don't have your own TRE are going to cost 2k plus per pilot.

Tech training last time I heard was under 2k for the 2 weeks.
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Old 18th Mar 2010, 06:39
  #257 (permalink)  
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TwinAisle

I refer the honourable gentleman above to post 51....

Can I have a 'Told You So' t-shirt as well?

TA
I refer the honourable gentleman above to post 33.......

Does that mean I get a t-shirt too?!?!?

- Once again, the true and useful value of PPRuNe is identified, if these posts saved one person from depositing £15k into a bank account for nothing then it's been worth it. There were so many clear questions to be asked that I strongly believe it was worth asking them.

Learjet50, who I'm very pleased to know by his real name off this board, was knocked for his views (and spelling), yet he was spot on.

Those of you who know him will know that he doesn't hold back on his opinions and as they were blunt people naturally dived in with a "it's the recession, the guy's trying" defence. Well, yes, it is the recession, but alledged fraudsters will remain regardless of the economy and the views of people like Learjet50, who have been around for years and have seen it time and time again are very valuable and shouldn't be so readily dismissed - even in an anonymous forum where it's easy to do it. The good thing though is that when we're wrong, I'm always confident that we're the first to hold our hands up and admit it.

Like I said though, if our collective postings saved one pilot from shedding £15k for nothing (and don't knock them too much, they are new to the industry and it's no different to the requests I'm seeing from pilots who will fly for food at the moment) then I think we should be pleased with what PPRuNe can achieve.

Danny can proudly add another one to his tally.

- Finally, I can only hope this is the last the industry hears of Martin Halstead. This a microscopically small industry and the likes of the failings of AlphaOne and now Varsity Express do nothing to serve any of us - they leave the industry in general with a bad reputation with the travelling public and make our collective employees (pilots, cabin crew and engineers) trust us less with every failed venture because the people who usually get hit the most financially (percentage of income-wise) are them.
 
Old 18th Mar 2010, 11:48
  #258 (permalink)  
 
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And still the attempted cover up and lies continue. I received this today:

Unfortunately on March 8th 2010 at 3pm Varsity Express ceased services due to operational differences with the operator, Linksair

All passenger refunds have been processed and customers can expect to receive their funds within 14 working days. Varsity's credit card clearing house, Pensio, is based in Denmark and are handling the refunds. All passenger funds were kept securely away from the working capital of the company and so all passengers who were unable to fly with Varsity can be assured of a full refund

There are currently many inaccurate and factually untrue media reports surrounded the Varsity Express operation and the individuals behind it. Many of these stories are completely false and untrue and the company will not be drawn into discussion over such claims.

Many thanks to all of our customers, it was with deepest regret and under very trying circumstances that we were forced to withdraw services. We apologise for the obvious inconvenience caused

Varsity Express Customer Services
][email protected]
www.flyvarsity.com
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Old 18th Mar 2010, 11:54
  #259 (permalink)  
 
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Adios, point taken. Although perhaps we need to do everything we can to deter other people who might think to emulate MH?

Anyway, lets leave it to the police and the courts to decide....



PP
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Old 18th Mar 2010, 11:59
  #260 (permalink)  
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There are currently many inaccurate and factually untrue media reports surrounded the Varsity Express operation and the individuals behind it. Many of these stories are completely false and untrue and the company will not be drawn into discussion over such claims.
So either MH is going to sue The Times, or sue himself.... it strikes me that our journo cousins have done a pretty fair and accurate job of reporting this debacle. Going waaaaay back to Stansdead's comment:

I quizzed him about Alpha One. He blamed everyone and anyone for it's failure except himself
or from Adios:

Preoccupation with fantasies of unlimited success
it seems obvious to me that he is completely oblivious to the damage he has done, since he himself is a legend in his own bedroom...

Yeesh. T-shirts for Daifly as well btw!



TA
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