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Legitimacy of MALGUS

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Old 14th Oct 2001, 14:44
  #41 (permalink)  
 
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Cool

I agree with EnglishPilot. Its up to the individual to decide whether or not they want to go for this. There are very few opportunities out there at the moment and the most committed amongst us will go for any opening that we can find. Maybe those sceptics are not committed enough, but if you look at the people who are being critical about the scheme you`ll notice that the majority are not in a position to apply anyway (I am not sure why certain people are taking such an interest in something that really does not even affect them???).
When it comes down to it to get a job in this industry you have to take hell of a lot of risks - isn`t this just one of them? Ultimately £147 is not THAT much money and if it gets you where you want to be then its an absolute bargain. Who else is there to turn to for a sponsorship at the moment?? Air 2000, Airtours, BA, BMI, Air Atlantic, BEA, Aer Lingus......I don`t think so.

At this stage of the Flying Start saga, the whole thing had been rumbled and hey we did actually get our money back. Ok, so this scheme may sound too good to be true and it may not work out (Who knows!), but its got to be worth giving it a shot. I bet the cadets who were on the Aer Lingus, Airtours and BMI courses that got chopped recently thought that they were onto a winner ( and why wouldn`t they?), which only goes to show that you do take huge risks in this industry. However, you certainly will not end up in that left hand seat without taking them.


Edited for spelling....

[ 14 October 2001: Message edited by: Rigidity ]
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Old 14th Oct 2001, 14:45
  #42 (permalink)  
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[edited to avoid confusion]

Remember that in the UK (according to Vref + 50) there are only some 450 new pilots per year. Now, I'm not sure whether that covers the whole gamut from PPL up to ATPL or whether that's ATPL only, but whatever it is, it's one tenth of what Malgus require to get every three months!

The thing that makes it seem really fishy to me - and to everyone else that I've discussed it with - is that they give you your rating and wave you a cheery farewell. If I was doing something like this, you'd be bonded to me for the next five years, during which I'd be subcontracting you out to whoever was prepared to take you - and the money from that part of the operation is where the real profit would come from.

It would also have the added advantage that those applying for selection would know that you'd be working your butt off trying to organise them work when they come out of the other side of the course, clutching your shiny new FATPL. This, in turn, would incentivise far more people to apply - which means you could run more courses; which means you'd have more people on your books at the end of it.

As I said in a previous post on this, Scottish Enterprise were really rather puzzled as to why they should be backing something which has no benefit for Scotland - and doesn't even involve any training there. My contact there is investigating the matter (she's very senior in their transportation department) and I'll post the results there. She did, however, say that it may well simply be that they are getting help from the Small Business Gateway scheme - which is like the old Enterprise Allowance Scheme - in which case definitely don't take that as any sort of a recommendation!

Finally, according to my solicitor (who being the former owner of a small airline knows a thing or two about this industry) if you're guaranteeing to repay funds in the event that the project doesn't go ahead, all applicants funds must either be held in a separate account (an escrow account) and not touched until the 'go' decision is taken; or alternatively bank guarantees must be in place to cover the monies taken. I've asked that question of Malgus and it will be interesting to see what the response is!

What I will say is that if it's done properly and as I've described above, with that ongoing commitment where you're effectively paying back the investment then it's very viable. In fact, so much so I'm going to look into doing it myself!

Incidentally, with the Flying Start scheme (or scam, depending on your outlook) did everyone get a full refund of their money?

[ 18 October 2001: Message edited by: The Guvnor ]
 
Old 14th Oct 2001, 16:09
  #43 (permalink)  
 
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Why do you think the fee is pitched at £147? It might be because thats just small enough for the average desperate wannabe to consider write-offable.

The million dollar question is how many people will stump up the cash.

Looking for reasonable comparators one might look the to BALPA employment conference. To attend requires a modest cost and a reasonably serious intention to become a pilot, i.e. its not full of dreamers with nothing better to do that day. Now in the very good years they were getting just under 500 people attending.

My hunch is that they might get up to 1,000 applicants at this first event. Subsequent adverts will draw only a small fraction of that number.

Therefore Malgus might just be able to send one or two men to Jerez for free training. Which will be nice for them. I do hope they aren't the sons of Mr Malgus's old school mate... If the tests are set at a lowish pass level and the final selection runs off an interview, employment discrimination law would not apply, and hey presto. Jobs for the boys.

But probably that is not going to happen.

Probably what is going to happen is that you englishpilot AMS and others will pay for Bob Evans and Paul Bloggs to get their ATPL's. They might even buy you a beer one day for your help.

The odds and hundreds and hundreds to one. IF you like those odds then go ahead.

But please don't questions the motives of those like the Guv, IFinRetirement, Sir Algie or Wannabes very own WWW when they point out the high odds and dubious merits of this new business venture. All of them have no other motive than to pass on their advice in your best interests.

Frankly you should thank people for taking the time to put negative posts here. It allows you to have considered all the angles of what you are getting involved with. It allows you to frame and compose your own questions for the time when you meet Malgus Ltd.

There were people at the time of Flying Start whose puppyish enthusiasm blinded them and they too decried the nay-sayers on these pages.

"It Could Be You."

VREF
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Old 14th Oct 2001, 16:54
  #44 (permalink)  
 
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This , on the face of it, appears to be genuine. I do however feel that is somewhat like going down to William Hill's and putting £147 on a 1-470 bet. If I had the spare cash, to squander, I would go down to the bookies or maybe I'll put on the DJ and goto the casino tonight.
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Old 14th Oct 2001, 17:12
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It has been said several times the final decision will rest with the individual,but they are very high odds.
There is an alternative.........You could all send me £100 and I will guarentee you a RHS.....unfortunatly this will only be for about one and a half hours and in a C152 whilst I fly it around booking P1 at your expence.....
Just be careful folks £147 is still £147.
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Old 14th Oct 2001, 18:57
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well, buy my sums you arrive at £147 by taking £125 (maybe £100 for the training, £25 for the expenses?) and adding VAT. That comes to £146.87 - rounded up to £147.

Here's a thought - the Spanish government does not levy VAT (or IVA as it's known here) on pilot training - having your pilots trained is not deemed to be a "luxury" like Gordon Brown believes.

There is a strong likelihood that a similar regime (no VAT on training) would make pilot training in the UK cheaper, more attractive to self-sponsors who can't claim it back like the airlines do (unfair or what?) and so UK schools would not be moving overseas or subcontracting to the states. That would mean more money earnt and spent in the UK, compensating for the loss of VAT income.

We took 100 jobs away from Ayrshire when we relocated to somewhere where we could afford to provide quality training at the sort of prices less "quality-oriented" providers can charge. Read it and weep Tony, Gordon and the Scottish "Pretendy, Wee, Parliament" (to quote Billy Connolly).

[ 14 October 2001: Message edited by: moggie ]
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Old 14th Oct 2001, 19:07
  #47 (permalink)  
 
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"Remember that in the UK (according to Vref + 50) there are only some 450 new pilots per year." Quote from "The Guvnor". Absolute Crap. You invalidated your claim anyhow - the 450 pilots is the people who get in, not the people who apply. BA alone get 30000 a year, what about flying instructors, other part sponsoring airlines, regional airlines, etc, etc. Those figures were just made up on the spot with absolutely no evidence to back them up at all. Get your facts right people. I recommend this post be taken down. There is too much speculation against Malgus.
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Old 14th Oct 2001, 19:57
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Hi All

OK, there have been a few viable questions asked. I will try and respond as best I can.

Scottish Enterprise - They are a government body who help start up companies who base themselves in Scotland. We have support from them as we require to employ around 10 people to ack as invigilators when we run the tests and then employ around 2-3 in a back office to process all the paperwork. Since we require staff scottish enterprise help us find suitably qualified unemployed people to help us. We have also set up in an area of Scotland called Renfrewshire which entitles us to support from certain departments of Scottish Enterprise to help find us premesis and IT equipment.

BAE SYSTEMS are not offering us courses for 26,000 We are paying the current cost.

I will be pleased to provide anyone with our legal team contacts who are also based in Glasgow.

For now however I would request that all questions are sent to [email protected] as we have not paid for advertising on PPrune yet and do not wish to annoy the owners here any more.

I hope this helps.

Malgus
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Old 14th Oct 2001, 21:04
  #49 (permalink)  
 
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englishpilot - the 450ish figure is correct and I have used it myself many times. It is the number of pilots that get hired for full time flying jobs other than instructing and excluding cadets.

It is an educated guess derived from data held by the Co-Pilot Register at Gatwick, the Independent Pilots Association and BALPA.

The figure cross checks roughly if you look at data from the CAA showing the numbers of pilots at retirement age each year coupled with CAA Medical data on the annualised losses of Class One medical status.

It also 'feels' about right to many people in the industry myself included.

You are quite correct to assert that many more people apply and get some way down the road of becoming commercial pilots than actually make it. Similarly there are significant numbers who get the licences but for various reasons never make it into an airline position.

You appear to be a trifle hysterical about people pointing out potential pitfalls about your application. There really is little need to become so irrate is there. Its your £147 and its yours to spend as you see fit and I doubt anyone would persuade you otherwise.

Good luck,

WWW
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Old 14th Oct 2001, 21:05
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Guv. Wrong again! It's 16x£47k. THAT.....is £752,000!
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Old 14th Oct 2001, 21:50
  #51 (permalink)  
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Uncle Tom Cobbley - I was using the lower figures postulated by Rich Tea on page 3 of this thread. Malgus themselves have confirmed above that this is incorrect and they are paying the standard rate.

Of course, if they are paying the full whack of £47,000 and only intend to put through one person, then the sums come out as follows:

Income:
'Training fee' @ £100 x 470 = £47,000
'Management fee' @ £47 x 470 = £22,090

Expenses:
Transaction costs (estimate) £5 per application = £2,350
PARC and hotel fees (estimate) £5 per application = £2,350
VAT @ £21.89 x 470 = £10,228
€50pw pocket money x 54 weeks = €2,700 (approx £1,800)
Travel say £500

Total expenses: £17,228

This means that they are trousering just under £5k gross per person that they put through the course. However, from that they still need to pay their office staff (2-3 people), plus management expenses, rental, print, postage, travel, etc. It all looks rather iffy to me - certainly as a business proposition I wouldn't back it!

Moving on...

Scottish Enterprise - so as I said in a previous post, they are not, contrary to what someone said earlier, supported or endorsed by them in any way other than through the Small Business Gateway scheme. Incidentally, what's with needing ten(!!) invigilators when I was under the distinct impression that Parc are handling the tests?

Security of funds paid - I note that this question - together with that about the lottery nature of the operation - was ducked completely by malgus and is one that really needs to be answered as a matter of some urgency.

Finally, malgus, as it has been made clear that this thread will not be closed and it is of significant interest to the wannabes, I suggest that your own cause would be best served if you are able to answer all the questions raised on here.
 
Old 15th Oct 2001, 17:08
  #52 (permalink)  
 
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IMHO dodgy! do you honestly think think they are doing this out the goodness of their hearts? Don't be a sucker, save that £147 for something worthwhile.
Checked out the website too....... says it all really!
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Old 15th Oct 2001, 21:50
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"Malgus ltd is a new company with one objective in mind - we wish to allow everyone the chance of becoming a commercial pilot."

Ah, how charitable.

Have you had a look at the FAQ section of their site? It's aimed at wannabes that haven't a clue. Why are BA's entry test so hard? For a good reason. How can Malgus administer tests that are "not very hard"... covering only "basic questions" (see FAQ 4.4) and then still get just the right person - out of hundreds?

Never mind. You can always try again. "We will be running future tests during the year. You are welcome to try again, but you will need to pay for the tests again. " (FAQ 8)

hm... hmmmmm....

[ 15 October 2001: Message edited by: Capt Rommel ]
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Old 16th Oct 2001, 23:44
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Just a couple of points
1. Nothing in life is free. regardless how good it seems however takes up this offer will end up paying the piper in the long run.
2. Who is supplying the money?? if an airline who, in the present climate of cost cutting layoffs etc . when most have frozen all recruitment who has the money, will the deal that was struck months ago still be valid.
3. having spent a long time in the avitation industry before getting that flying job, and meet a lot of people!!. Watch what you are getting into.
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Old 17th Oct 2001, 04:38
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Malgus? HellllLOOOOOOoooooooo, ANYBODY THERE?

There are a few points raised above that could do with your clarification. People are clearly cynical which obviously isn't in your interest. Here is your opportunity to straighten the record. ?

Thanks in advance,
ck
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Old 17th Oct 2001, 19:37
  #56 (permalink)  
 
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Hello all

We do not monitor these forums as part of our working day so please direct all questions to [email protected] then we can reply more efficiently.

We ARE supported by Scottish Enterprise and I'm sure those of you who find the right department you will find that out.

The funds to be retured. We have spoken to our bank manager and on his instructions we can keep the funds in our own account. The bank will honor all refunds made by Malgus.

The Guvnor. Your look at our cashflow is way off, perhaps you should do some research.

We need invigilators as Parc are only providing qualified staff to perform the tests and the interviews. We need to use our own staff to collect papers etc on the selection days.

Again please send questions to [email protected] so we can respond faster.

MALGUS

[ 17 October 2001: Message edited by: Malgus ]
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Old 17th Oct 2001, 20:12
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im sorry but please correct me if im wrong

its up to malgus to honour agreements not the bank, so basically what you are saying is that the money will stay in your account and we are at your mercy if things dont work out.

the bank simply follows your instructions, if you say dont pay the bank manager cant do jack.
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Old 18th Oct 2001, 15:13
  #58 (permalink)  
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purple haze - I agree with you 100% - I find it almost inconceivable that a bank manager would advise his client - as is alleged by Malgus - that he can secure his customer's security interests by co-mingling funds in a regular account.

I also find it very interesting - not to say telling - that Malgus is desperately trying to take any questions or criticism off the public forums such as this and is instead trying to keep them on a one-to-one, private email basis. If I was running a legitimate operation and was coming in for stick such as this, I would be doing my utmost to answer any and all questions being raised - after all, my business' future depends on it!

Malgus says: "We do not monitor these forums as part of our working day..." - well, if I was aware of people raising questions about by business then I'd be checking up on it on a very frequent basis indeed; especially given that the people raising these very real concerns are my potential customers. To do anything else demonstrates either a complete ignorance and lack of concern about the market; or alternatively an overwhelming arrogance about it. Either way, it shows that there is little in the way of business accumen or ethics being employed.

Malgus then goes on to say: "We ARE supported by Scottish Enterprise and I'm sure those of you who find the right department you will find that out." - now, again the logical thing here would have been to provide the contact details for that 'right department'. Other than through services provided to everyone that wants them through the Small Business Gateway Scheme, how precisely - Malgus - are they supporting you?

Next, he says: "The Guvnor. Your look at our cashflow is way off, perhaps you should do some research." Fine - so where exactly is it off? The only figures I estimated are the costs of the Parc fees, hotel charges, and the transaction costs (ie the costs of processing credit/debit/charge cards levied by their service provider). The VAT is readily calculable; and the €50 per week pocket money comes from their website. They have confirmed the cost of training.

The person named in their website as their managing director is an FO with Aer Lingus.

There is another organisation which has been established for considerably longer and which has far more credibility than Malgus Limited - Pilot Assist Limited, which is associated with the Guild of Air Pilots and Navigators (GAPAN). Instead of gambling your £147 with these chancers, I'd suggest you contact GAPAN instead!
 
Old 18th Oct 2001, 17:55
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Angry

Seems it's a bit like a '200 club'. Each month 200 put £1 each into a fund, and each month someone wins the lot. Due to the law of averages, your name should come up at some stage (usually when you've paid about £200!)

So, 470 people, each month puttimg £147 into a fund, and each month someone wins the lot. Due to the law of averages......

Or else whilst you're waiting, take your £147 and invest it in yourself.
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Old 18th Oct 2001, 20:25
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fish

AVCP - Wow, you must have studied statistics at school.

The real question is - is there 470 wannabes a month ? perhaps for the first month/ month & half, even then .......
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