FTA-Global collapses

[nibs2007]

https://www.*****************/2023/05/23/fta-global-collapses/

https://www.balpa.org/2023/05/23/balpa-supports-members-as-fta-global-goes-in-to-administration/


Posted on May 23, 2023

UK flight training academy FTA-Global has entered administration, becoming the second UK Approved Training Organisation (ATO) to fold this year, following the demise of Tayside Aviation last month.

FTA, based at Brighton City Airport, is an ATO specialising in commercial flight training programmes, both integrated and modular and was the only integrated academy providing all of its training in the UK.

Due to its location on the UK’s south coast the school was well placed to provide dual EASA/UK CAA licence training, being in close proximity to EU airspace, able to undergo EASA Instrument Rating testing at nearby Le Touquet Airport.

Somewhat ironically, earlier this year the school had introduced a ‘Fair Fees’ payment programme for future intakes of students, allowing them to spread their training payments rather than depositing large sums upfront. Unfortunately, early indications appear to show that a significant number of students who commenced their training ahead of the ‘Fair Fees’ programme will still potentially be left significantly out of pocket if the administrators, FRP Advisory, are unable to recover the school and sell it as a going concern.

According to sources, FTA’s closure had been preceded by the company’s aircraft maintenance business being declared insolvent just a few days previously.

Established in 2006, FTA had quickly grown to become one of the leading ATOs in the UK, earning a reputation for high-level quality of training. Alumni from FTA have joined airlines from the UK, EU and further afield.

In a letter sent to students and staff members the evening before the school’s closure, seen by FTN, FTA MD Sean Jacob said: “It’s with a very heavy heart that I write this note to you all this evening… I have explored every possible avenue to avoid this and, even today, I had hoped there might be a route forward. I can confirm that one of our competitors is already in discussions with the landlord about rapidly opening a satellite operation here at Shoreham Airfield and that they plan to do this very quickly. I will be in contact with other commercial flying schools to see how they might be able to help.

“I am very sorry. I have already made considerable personal investment to try and keep FTA Global going. I have nothing left to give… Flying Time Limited is not in a position to make any immediate refunds. We are working with an Insolvency Practitioner from FRP Advisory and their details will be available on our website from tomorrow.

“We will ensure all training records are brought completely up to date over the next few days and these will all be available to you via FlightLogger. We will keep the FlightLogger accounts active for the next month. Some students are just awaiting a test flight to finish and their tests are already booked and paid for… This will be the same situation for students who had exams booked with the CAA this week.

“Again, my apologies – this is an email I hoped never to write.”

[Alex Whittingham]

Yes, the competitor is Skyborne, and their intentions will become clear at a 'roadshow' presentation on the 25th. I imagine they will want to take on the assets and goodwill but not the liabilities, or maybe just let FTA fold and restart a Skyborne ATO on the same site. Bristol Groundschool will do as it has done with Tayside pilots, we will finish off the FTA Global pilots' groundschool at no charge, should they wish to transfer. Unfortunately we can only help modular candidates, those on integrated courses can choose to either pay it all again to Skyborne (assuming that is their offer) or bale out ebtirely of the integrated scheme, get a PPL and go modular, which I would recommend for reasons which will now be obvious. If they choose that path, and have to interrupt their ATPL theory studies to do it, we will give them a modular groundschool FOC so that they can continue once they have their PPL issued. Let's hope there are no more ATO failures, although I fear there will be at least one more fairly soon.

[rarebus]

Hi Alex,
New to the forum. Care to explain which ATO you think will be going bust next? Was looking at Int. ATPL however this collapse has made me question it, especially if its rumoured another ATO appears to be on the verge of collapse too.

[portsharbourflyer]

My understanding (correct me if I am wrong) is Skyborne will simply take over the premises as a Satellite base to Gloucester, so there will be no taking on any assets or any of the entity that is associated to FTA.

[Alex Whittingham]

Certainly That's what I would do, who would want the debt? Either way the customers will be left high and dry.

[ManFlex40]

There is another flight school ‘Leading’ the way towards the ‘Edge’ of insolvency…

[Alex Whittingham]

@rarebus may I refer you to the thread about L3/CAE/Leading Edge and FTA just next to this?

[flybyschool]

@rarebus may I refer you to the thread about L3/CAE/Leading Edge and FTA just next to this?

very sad news indeed

it is also true, cost of conducting pilot training from the UK has become almost impossible… at reasonable levels…

It is specially painful to see this happening at the same time other flight schools are growing so strongly.

I cannot reinforce the message to check Companies House website and accounts of the companies you sign up for. I am yet to find more than 1 company financially sound (and its name has not been mentioned on Pprune… to my limited knowledge)
There are similar sites for European companies… even if you have to pay some quid for the accounts… it is worth investing!!

I must disagree with Alex’s view on integrated vs modular… it depends on where you go integrated… as many people over here suggested … do your due diligence before signing up!!
It is also true Alex’s views are based on UK main flight training providers…

In the meantime, we will try to provide assistance to any affected students

keep fighting!!

FlyBy

[VariablePitchP]

Hi Alex,
New to the forum. Care to explain which ATO you think will be going bust next? Was looking at Int. ATPL however this collapse has made me question it, especially if its rumoured another ATO appears to be on the verge of collapse too.

Take his advice on the Modular route very seriously. He knows exactly what he’s talking about.

Why take on all that extra risk, and cost, to get exactly the same bit of paper at the end.

Big differences with integrated courses are the marketing of the product and the way it’s presented. You get your lovely gold bars and a nice shiny uniform. Brilliant. Lot of good that’ll be when the school goes flop and you’re totally out of pocket.

[parkfell]

The CAA need to start to take an active interest in the financial state of ATOs, by introducing a mandatory ESCROW payment system.
The regulator scrutinises airlines for financial soundness, perhaps a similar scheme for ATOs?
Until MPs start to take an interest & beef up the legislation the customers are potentially in a precarious position. Pay as you fly even on Integrated Courses (one week flying in advance through escrow?). Otherwise PAYG ~ Modular route.
CAVEAT EMPTOR

[Warlock1]

There is another flight school ‘Leading’ the way towards the ‘Edge’ of insolvency…
Someone mentioned that they have stopped their operation in Spain already. Can anyone verify?

[PinguGoesFlying]

Is there no reason the CAA cannot clamp down on this, I graduated from another ATO and was pressurized to pay upfront (negotiated them down to 50:50 on the ME IR to mitigate risk, at the worst I was £9k in credit - was up their ass daily to get training done quickly when the credit balance was high!).

Buy a package holiday & the tour companies are usually ATOL protected, they usually make a big thing of it on their adverts, that way you are covered if the tour company goes bust, why not the same for the training schools?

Another thought, could Ryanair demanding foreign licenses be contributing? Ontop of Easyjet slamming the door on Modular (I trained Modular, 95% average on theory, first time passes on all theory & practical and hold an APS MCC, yet have been told several times by easyjet I have no chance of getting a job with them, as I didn’t train at ‘their’ school) there is not much call jobs-wise for UK fATPLs at the moment. I know FTA did dual licenses but if your goal is airlines, MPL easyjet or a foreign (no VAT) Ryanair mentored license is going to seem more attractive perhaps (or sit it out for a bit let the dust settle). The UK government allow Ryanair, the biggest recruiter of low hour fATPL graduates to demand foreign licenses for UK jobs then two schools go bust close together… Couple that with all the issues the MPL has, but the largest UK airline wont look at you unless you did an MPL…

[SamPope5]

Deleted

[Arena_33]

I am currently a student at edge in ground school. I requested a meeting with the COO yesterday and we spoke regarding a few concerns I had as far as I am told the fair weather base is still operating and there are plans to send additional resources there to address outstanding issues. This posts have really stressed me out recently along with the rumours circulating with other students. I have not made huge amounts of up front payments yet as I am following a modular pathway, but my instalment payments are due soon….

I'd go and have a look at their balance sheet position on companies house before paying another penny if I were you...

[Alex Whittingham]

Anyone paying an ATO up front should do it in part or in full with a credit card in order to get s75 protection. For more info on this see the Which? website (https://www.which.co.uk/consumer-rights/regulation/section-75-of-the-consumer-credit-act-aZCUb9i8Kwfa?fbclid=IwAR3QD0Vrt2UsWqJsLoXr-1eeU0xyi_QOjbvv9sMlQ391VqzSD3xj5S7Pi_I)

[ASRAAMTOO]

There is of course no reason that those on an integrated course should be made to pay up front, other than the fact that the schools can get away with it and students are desperate for a flying job. I can see the benifits of an integrated course IF its a sponsored cadetship. The airlines get the product they want fairly quickly. This is fine if the airlines are taking the financial risk.

If the individual is taking the risk then I would remind them that there are probably as many schools that have departed the fix leaving students high and dry as there are succesful ones, and that even if the school remains solvent the completion of the MPL relies upon an airline taking them on at the final stage. Something like covid or 9/11 resulted in most airlines walking away from their obligations leaving the students to stump up again to complete a modular ATPL.

[605carsten]

Go Modular.. keep financial leverage on your side… forget integrated as its a dead duck.. Flight schools having been doing this ever since the dawn of time.. nothing new here..

[Alex Whittingham]

The problem with an ATOL style bond is that it is funded from industry. You'd need at least £10m in it now to cope with the potential losses in the next 6 months. And who would pay? Would modular ATOs who operate a responsible pay-as-you-fly scheme be required to pay into a fund to protect customers of their competitors who choose to take huge payments up front? Its shocking the effect this has on the youngsters who have worked and saved, only to have all their money stolen and their dreams trampled on. For shame.

[mavisbacon]

How can you run an integrated (or modular) course at an airport with no instrument approach? Always going to fall over in MHO.

[parkfell]

How can you run an integrated (or modular) course at an airport with no instrument approach? Always going to fall over in MHO.
Perth seem to cope…?

[paco]

To answer your poitnt, Alex, not a chance! :) But then, based on my experience running a small airline, the whole industry is run from month to month, as people who have tried to get refunds from lost seats recently have found out.

[Cistor]

Any testimonies from inside? Curious as the school was quite recently bought by a new owner...

[PV1]

January 2023
https://flyer.co.uk/fta-appoints-advisor-ahead-of-investment-drive/

[spitfirejock]

PV1 -- Agreed..... the very point I made on the adjacent thread to this where just months ago it was all up beat and frankly BS....sadly, there seems to be no repercussions for CEO's who clearly are running a company which is insolvent.

The only thing we can keep repeating is go modular and don't pay large sums up front. Along with Alex Whittingham I am suggesting ATO's get together and petition the CAA (see thread) this might at least level the playing field and allow a larger number of smaller ATO's to survive giving wider choice and overall lower costs with more security to the customer. The way things are going, after the next predicable casualties, students will be left with less choice and even higher prices to pay and more upfront.

SJ

[CG01]

Anyone have a lead onto who may take on that space now and offer CPL IR etc... Now there's no major names the south side of Oxford...

[ManFlex40]

Anyone have a lead onto who may take on that space now and offer CPL IR etc... Now there's no major names the south side of Oxford...

There may be a new route to the sky, borne unto the south soon…

[spitfirejock]

CG01 - Why do you need a "major name", isn't that the route of the problem?

SJ

[CG01]

CG01 - Why do you need a "major name", isn't that the route of the problem?

SJ

It's not for me personally. I just assume there's a big gap down here now and interested to see if a new school would come from this or the market becomes more and more oligopolistic.

[flybyschool]

It's not for me personally. I just assume there's a big gap down here now and interested to see if a new school would come from this or the market becomes more and more oligopolistic.

I am also curious to see what happens in Brighton.
the trend I see from afar is that fewer and fewer training is taking place in the UK. Larger schools are conducting most of the training abroad… don’t have insights on the numerous smaller ones.
From what I learnt about costs of conducting training in the Uk, I do not see any large operation taking place but will the students go mostly abroad? Will there be room for a medium size school looking after the ones that don’t want to move abroad for the training?
We will soon see what happens

[PV1]

I am also curious to see what happens in Brighton.?
Shoreham

[CG01]

I am also curious to see what happens in Brighton.
the trend I see from afar is that fewer and fewer training is taking place in the UK. Larger schools are conducting most of the training abroad… don’t have insights on the numerous smaller ones.
From what I learnt about costs of conducting training in the Uk, I do not see any large operation taking place but will the students go mostly abroad? Will there be room for a medium size school looking after the ones that don’t want to move abroad for the training?
We will soon see what happens Not to stir the pot with any leads, but the ground crew at Shoreham did say to me last week Leading Edge came by to 'scope'. doubt they're really in a position to be opening a new base though...

[CG01]

Not to stir the pot with any leads, but the ground crew at Shoreham did say to me last week Leading Edge came by to 'scope'. doubt they're really in a position to be opening a new base though...

Just to update this situation for those in the south of the UK hoping for a training location at shoreham.

skyborne are receiving their EASA ATO approval in about 6 months time and will use shoreham as a base to conduct EASA MEIR skills tests due to its proximity to French airspace. I have been told they will not be intaking any sort of ‘full courses’ from this location; simply just conducting MEIR for there to be current EASA students. Suppose it’s more financially efficient to do that than to open a whole new Base in EU?