Paying for UK flight schools

[Will66]

Hi there!

Looking to start an integrated flight school, with an overall cost of around £95,000

I am hugely worried due to the volatile industry, if the flight school was to cease trading as seen in some schools around the UK recently.

The school take payments in around £20,000 instalments throughout the course which is below the £30,000 limit for section 75.

My question is, would each instalment be protected under section 75 in case the collapse of the company?

And would it be even possible to get a credit card, put on 20,000 and pay. Or does it not work like a debit card? Never had one!

Thanks

[VariablePitchP]

Hi there!

Looking to start an integrated flight school, with an overall cost of around £95,000

I am hugely worried due to the volatile industry, if the flight school was to cease trading as seen in some schools around the UK recently.

The school take payments in around £20,000 instalments throughout the course which is below the £30,000 limit for section 75.

My question is, would each instalment be protected under section 75 in case the collapse of the company?

And would it be even possible to get a credit card, put on 20,000 and pay. Or does it not work like a debit card? Never had one!

Thanks

I’ve copied and pasted my response from the other thread you made on the same topic should anyone else stumble across this in the future… In short if you get over this desire to go to a ‘premier’ instagrammable flight school where you get given gold bars and get to dress like an Emirates captain from day 1, then you won’t have an issue. Modular, you’re not paying them the whole lot upfront, the risk is massively reduced.

You’re paying an extra 30K for the privilege of potentially taking longer to train, and having no control of your finish point. That 30K goes into glossy brochures and the RS6 that the executive director parks out front when they come to visit…

Imagine £30K of cash, piled up on a table. Actual solid bank notes. Then douse the pile in petrol and throw a match at it. That’s what you’re doing by going integrated. In fact worse than that, at least you’d reduce your heating bill doing that.

’The scenario you’ve hypothesised is another fantastic reason not to go with an integrated sausage factory school. Go Modular, you’ll save £20/30K before we even discuss the risk element.

Modular you’ll pay as you go. May need to block buy 10/15 hours at a time, worst case if they fold the second you’ve paid you’re down £3/4k at best. Annoying but it won’t materially change your life.

And you won’t be treated like a 5 year old.

It’s an endless list of reasons, question answered? https://www.pprune.org/images/smilies/badteeth.gif’

[rudestuff]

Looking to start an integrated flight school, with an overall cost of around £95,000It's like people don't read anything before they post...
There seems to be a never ending supply of people who want to spend £95k on something they can get for £40k.

[paco]

Whatever company you start in aviation, multiply your estimates by 5

[RichardH]

Will66

Section 75 of the Consumer Credit Act only covers losses on CREDIT cards not debit or charge cards. That's why it is always best to pay for large items using a credit card if you can. However lots of businesses restrict the amount you can pay for on a credit card eg. buying a car they are happy for a deposit up to £2K ish but not the remaining balance. Getting a £30,000 credit card limit will be very difficult without a good credit score history, the days of bank/branch approved limits & recommendations are long gone.

However the best advice on your thread given by others is don't go integrated. The reason why integrated schools steer you down this route is there are much larger margins in it for them, hence the CEO's RS6. Modular as stated by me & lots of others on numerous posts over many years is without doubt it's the most flexible and least risk option in an increasing risky world. Modular schools normally like to see you in credit for your flying training but anything over £5k think twice.

Finally don't believe ANYBODY (usually a big integrated selling point) that there is a better chance of a guaranteed job at the end of it, that will primarily depend on market forces at the time. I was a ATPL theory instructor at Oxford when 9/11 happened, the fully sponsored Aer Lingus course & a British Airways course were cancelled within 48 hours so much for guaranteed job.