Silver State Helicopters - R.I.P.
This school, and Jerry Airola, have been discussed many times over the past 4 years or so 
Threads:
Is there a new scam being perpetrated in the USA?
Helicopter Industry Executive runs for Sheriff's office
Silver State Helicopters heli license in under 18 months.....
Very sad
Threads:
Is there a new scam being perpetrated in the USA?
Helicopter Industry Executive runs for Sheriff's office
Silver State Helicopters heli license in under 18 months.....
Very sad
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For shame....
I've never been involved with Silver State. However, I vividly remember the hairs standing up on the back of my neck when I saw an ad for them on cable television.
Anyone who follows this industry couldn't help keeping up with their rapid expansion via the hundreds of press releases they issued over the last several years. Through all this, I never could figure out just where they were getting the capital for this type of explosive growth when other firms were barely getting by. I'm intimately aware of the profit margins that most helo companies work with, and Silver State's business model just didn't add up. Now, after seeing the countless number of testimonials from former students, it all makes sense. Pre-payment for entire ratings??? Job "guarantees???" What a joke. These guys were snake-oil salesmen.
This should be a wake-up call for the industry and should really cause us to look at some increased self-regulation. When a firm carries itself as the model for the rest and then falls on its face - we all end up looking silly.
Anyone who follows this industry couldn't help keeping up with their rapid expansion via the hundreds of press releases they issued over the last several years. Through all this, I never could figure out just where they were getting the capital for this type of explosive growth when other firms were barely getting by. I'm intimately aware of the profit margins that most helo companies work with, and Silver State's business model just didn't add up. Now, after seeing the countless number of testimonials from former students, it all makes sense. Pre-payment for entire ratings??? Job "guarantees???" What a joke. These guys were snake-oil salesmen.
This should be a wake-up call for the industry and should really cause us to look at some increased self-regulation. When a firm carries itself as the model for the rest and then falls on its face - we all end up looking silly.
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rotorheadgirl, 'I did some research on Jerry Airola'?!? Not to be flippant or anything but shouldn't you have done that before you signed up? This guy and his flight school have been controversial for years. Look at the threads John has dug up. I am terribly sorry for your misfortune and I wish you well with your lawsuit but I certainly hope that others will benefit from your experience and do their due dilligence a little sooner.
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Yeah SSheli modeled themselves after the U.S. Government which is just a bunch of paid off "snake-oil salesman" So I guess if our government does it it's justified. And Yes I did vote and serve in the military so I have a right to complain. They swindled everybody for a buck but there time will come. 
Last edited by Senior Pilot; 6th Feb 2008 at 03:30. Reason: Let's keep the personal vitriol until after the court case!
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I am also a former Silver State Student from St. Louis...our only hope is a class action against our lenders to cancel our debt since we aren't secured crediters. We as a group in STL are looking into this option. We can all complain about how badly we got screwed or we can try to get some thing done. This was a trade school and we have a few more rights then people are giving us credit for. We all need to band together on this one or just kiss our money goodbye. everyone keeps sayin 70k. Are we forgetting about the interest already. for some of us its more than that.
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I am also sick of everyone who is not in debt with this company putting their two cents about the research about this company. I researched this company for a few months before entering the program. It was on the Forbes list for one of the fastest growing companies in the industry. Yes they had a few law suits but all of the lawsuits seemed to be about one location based out of arizona. They offered a way to finance the program and i myself could'nt afford to pay block time out of pocket to another flight school. I also couldn't move anywhere else to go to school. MY options were limited i got screwed. I'm so glad some of you were SO smart to have done months of the research you did to not enter the school but I DON'T CARE TO HEAR ABOUT IT. Thanks but No thanks. I wish i was so fortunate to have found another school like some of the other putting there comments in. If any one has ay helpful INFO for me lease post but if your going to repremand me right now please dont bother.
Revolutionary
Your last post is plain unhelpful. And completely unrealistic. Nice contribution when so many people are having to come to terms with a large debt for which they have little to show. It isn't the students' fault that the man is a fraudster is it?
Your post prior to that shows a lack of knowledge (and thus research?
) about the credit arrangements for heli training in the US. Students don't have the money personally and give it to the school. More usually ,the school gets the funds on the students behalf.
TT
Your last post is plain unhelpful. And completely unrealistic. Nice contribution when so many people are having to come to terms with a large debt for which they have little to show. It isn't the students' fault that the man is a fraudster is it?
Your post prior to that shows a lack of knowledge (and thus research?
) about the credit arrangements for heli training in the US. Students don't have the money personally and give it to the school. More usually ,the school gets the funds on the students behalf.TT
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Torquetalk, I'm sorry if I hurt your feelings but I believe you're missing the gist of my post, which is this: If you're a prospective student, please do your research before you hand over a large sum of money to a flight school, not after. That's not unrealistic is it? You're acting like people didn't have any choice but to sign up with Silverstate because they're the only ones who would finance their training. Well, pilots have been going to flight schools for decades before Silverstate came along and have been paying for it somehow...
If you're a Silverstate student, stop for a minute and ask yourself why you signed up with the school that ran the pie-in-the-sky radio ads and offered the 'free' training ('just pay us back later with all the moolah you'll be making as a helicopter pilot!') scheme instead of the other schools that would have given you a more sober outlook on the profession and would have offered a more conventional student loan such as Sallie Mae. It reminds me of the people in this country who took out a sub-prime mortgage to buy a house that was out of their league and now feel sorry for themselves because their ARM just reset and they can't make the payments anymore.
See Torquetalk, contrary to what you might think I do understand the credit arrangements people made with Silverstate. They got the loan because it required no financial sacrifice on their part. The fact that the loan didn't go through them but went directly to Silverstate to the tune of tens of thousands of dollars for services not yet rendered should have been a clue that they were hanging their ass out a little far financially. There were other options. They could have taken a second mortgage, borrowed from their own bank or (*gasp*) saved the money before starting training. You know, the things people used to do before Silverstate came along. All those options would have been more difficult to be sure, but they would have kept them in control financially.
Again, I'm verry sorry for their predicament and believe me there's no schadenfreude but the only helpful thing to come out of this mess is for Silverstate students and for any prospective student who might read this thread to resolve to learn from this experience, do the research, and not sign up for a school that promises the world and offers a loan that is too good to be true.
If you're a Silverstate student, stop for a minute and ask yourself why you signed up with the school that ran the pie-in-the-sky radio ads and offered the 'free' training ('just pay us back later with all the moolah you'll be making as a helicopter pilot!') scheme instead of the other schools that would have given you a more sober outlook on the profession and would have offered a more conventional student loan such as Sallie Mae. It reminds me of the people in this country who took out a sub-prime mortgage to buy a house that was out of their league and now feel sorry for themselves because their ARM just reset and they can't make the payments anymore.
See Torquetalk, contrary to what you might think I do understand the credit arrangements people made with Silverstate. They got the loan because it required no financial sacrifice on their part. The fact that the loan didn't go through them but went directly to Silverstate to the tune of tens of thousands of dollars for services not yet rendered should have been a clue that they were hanging their ass out a little far financially. There were other options. They could have taken a second mortgage, borrowed from their own bank or (*gasp*) saved the money before starting training. You know, the things people used to do before Silverstate came along. All those options would have been more difficult to be sure, but they would have kept them in control financially.
Again, I'm verry sorry for their predicament and believe me there's no schadenfreude but the only helpful thing to come out of this mess is for Silverstate students and for any prospective student who might read this thread to resolve to learn from this experience, do the research, and not sign up for a school that promises the world and offers a loan that is too good to be true.
Last edited by Revolutionary; 6th Feb 2008 at 13:46.
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According to the press release, silver state has filed chapter 7. This means they are asking the federal court for a liquidation. If you are a student and the money was truly "escrowed", I would make sure that the escrowed amount is returned to the lender as you are the borrower. To the extent, they were simply deposited into the Silver State account and it was not an escrow account or a trust account, you will most likely become an unsecured creditor which unfortunately could result in the debt remaining payable by the borrower with little assets from the liquidation available to fully repay your unsecured claim.
In any event, if I was in this situation I would do the following.
1) Read your loan documents. Look for a clear explanation of whether the money was sent to Silver State or it was sent to a trust or escrow account where the money would be released as you received services.
2) Call your lender. Explain the situation calmly and rationally. Try to get them involved as they will understand that their default rates will rise in this situation as many who borrowed will not have the resources to pay.
3) Once you have the factual informatin, contact the federal court where the Chapter 7 was filed and ask for the United states Trustees office number. Call them, explain to them the situation to include your inability, if true, to pay for counsel, and ask for the number of the free legal resource available through the federal bankruptcy courts.
4) Most likely the United States Trustees office is going to assign a trustee to this case. Get their number and call them.
If the money was escrowed or in a trust account, you are out what you have consumed, if it was deposited in the general silver state account you are in a more tenuos position.
Good Luck
In any event, if I was in this situation I would do the following.
1) Read your loan documents. Look for a clear explanation of whether the money was sent to Silver State or it was sent to a trust or escrow account where the money would be released as you received services.
2) Call your lender. Explain the situation calmly and rationally. Try to get them involved as they will understand that their default rates will rise in this situation as many who borrowed will not have the resources to pay.
3) Once you have the factual informatin, contact the federal court where the Chapter 7 was filed and ask for the United states Trustees office number. Call them, explain to them the situation to include your inability, if true, to pay for counsel, and ask for the number of the free legal resource available through the federal bankruptcy courts.
4) Most likely the United States Trustees office is going to assign a trustee to this case. Get their number and call them.
If the money was escrowed or in a trust account, you are out what you have consumed, if it was deposited in the general silver state account you are in a more tenuos position.
Good Luck
Last edited by diethelm; 6th Feb 2008 at 21:47.
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I've got to agree with Torquetalk. I have watched this fiasco from start to finish. I've seen and heard the BS from JA and the SSH gang of crooks. Those of us who do this for a living should direct our energy towards some helpful advice for those who have been royally screwed, or just shut the hell up.
Revolutionary
Luckily, I am unaffected by the SSH bankruptcy. But I do think your attitude is inappropriate.
You speak of due diligence. What “due diligence” have the banks conducted before handing such large sums of money over to SSH? You would expect each and every student ought to have done that, but not the banks doing the lending? Please.
As to other financing options:-
2nd mortgage? Why would you take out a loan secured on your house if you can get a good rate on an unsecured loan?
Saving first? If you were in the happy position of earning plenty in your current work, a good choice; but most people would lose out by delaying training to save as that could represent lost years at their earning peak.
A Sallie Mai loan (or like) may have offered more protection of funds, but the difference to many prospective students would not be obvious. And there would be no additional sacrifice as you mention. Ease of funding and the security of those funds are the issues, not whether students are financially savvy.
If you are making a general point about irresponsible lending you may have a point, but this isn’t the place to make it. But, Schadenfreude or not, implying that students have been irresponsible because they were tempted at what seemed like a good idea and got defrauded is just wrong.
Thread drift: I'm done
TT
Luckily, I am unaffected by the SSH bankruptcy. But I do think your attitude is inappropriate.
You speak of due diligence. What “due diligence” have the banks conducted before handing such large sums of money over to SSH? You would expect each and every student ought to have done that, but not the banks doing the lending? Please.
As to other financing options:-
2nd mortgage? Why would you take out a loan secured on your house if you can get a good rate on an unsecured loan?
Saving first? If you were in the happy position of earning plenty in your current work, a good choice; but most people would lose out by delaying training to save as that could represent lost years at their earning peak.
A Sallie Mai loan (or like) may have offered more protection of funds, but the difference to many prospective students would not be obvious. And there would be no additional sacrifice as you mention. Ease of funding and the security of those funds are the issues, not whether students are financially savvy.
If you are making a general point about irresponsible lending you may have a point, but this isn’t the place to make it. But, Schadenfreude or not, implying that students have been irresponsible because they were tempted at what seemed like a good idea and got defrauded is just wrong.
Thread drift: I'm done
TT
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Wow, torquetalk, you are taking me to task for suggesting that people do things like borrow conservatively or perhaps save money first before spending it. I didn't know my ideas were so far out of the mainstream. My apologies.
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No one pays a contractor completely before a job is done. This is not fraud by lenders. If you are capable of being a professional pilot you are capable of reading the documents and understanding what the risks were. Different schools treat the loan balances and advances differently. We are all capable of doing the analysis.
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Silver State
Hi everyone,
I’m very sorry to hear about the closure of Silver State Helicopters and the loss of all the students money. I’ve been reading all over the net yesterday and today of Silver State’s closure. It greatly saddens me because I was sooo close to joining the academy. I’ve been in contact with my local administrator Kurt Robertson, and also with Frank Long from Las Vegas corporate office. I’ve been saving up for a long time to join the Tacoma, WA academy, which is only 20 minutes away from my home. When I spoke with Frank last week he said that Silver State was expanding and in the process of breaking up into 2 separate new companies, one would be owned by Jerry Airola, and the other owned by a different entity. He said that once a company gets that big they have to divide up eventually to sustain financial growth. That struck me as kind of strange.
I joined this forum today, and I’ve been following Silver State for about 3 years now. What they have done to everyone is unacceptable. I think I can help you guys wipe out the complete amount owing to Citibank, etc. Contact me at [email protected] (Seth Schrock) or call me up, 253-831-2851. I spoke with a friend earlier today who is a very experienced specialized lawyer in this exact type of fraud situation, and he said you (SSH students) have an unsecured student loan type AND your full service heli training was NOT delivered by Silver State! So he says that there is a strong possibility that you will not have to repay this unfulfilled student loan at all. If we can spread the word to other SSH students locked into these same loans then we can help them also to get out of this nightmare.
I’m very sorry to hear about the closure of Silver State Helicopters and the loss of all the students money. I’ve been reading all over the net yesterday and today of Silver State’s closure. It greatly saddens me because I was sooo close to joining the academy. I’ve been in contact with my local administrator Kurt Robertson, and also with Frank Long from Las Vegas corporate office. I’ve been saving up for a long time to join the Tacoma, WA academy, which is only 20 minutes away from my home. When I spoke with Frank last week he said that Silver State was expanding and in the process of breaking up into 2 separate new companies, one would be owned by Jerry Airola, and the other owned by a different entity. He said that once a company gets that big they have to divide up eventually to sustain financial growth. That struck me as kind of strange.
I joined this forum today, and I’ve been following Silver State for about 3 years now. What they have done to everyone is unacceptable. I think I can help you guys wipe out the complete amount owing to Citibank, etc. Contact me at [email protected] (Seth Schrock) or call me up, 253-831-2851. I spoke with a friend earlier today who is a very experienced specialized lawyer in this exact type of fraud situation, and he said you (SSH students) have an unsecured student loan type AND your full service heli training was NOT delivered by Silver State! So he says that there is a strong possibility that you will not have to repay this unfulfilled student loan at all. If we can spread the word to other SSH students locked into these same loans then we can help them also to get out of this nightmare.
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You guys think you took a hit. I wonder whats going through Frank Robinsons mind. I do hope he was smart enough to have someone else finance the aircraft.
Remember first one to invent a better Mousetrap wins. Lets see who scarfs off with a Robbie and tells Silver State, you pay me back and I will tell you where your Helicopter is...........
Remember first one to invent a better Mousetrap wins. Lets see who scarfs off with a Robbie and tells Silver State, you pay me back and I will tell you where your Helicopter is...........
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The reality is that these kids are going to be stuck with their loans forever. These loans are unsecured training loans and are not issued through the federal student loan system- therefore, the students do not have any protection from the Feds- these are private loans, that were issued on the basis of creditworthiness, not student loans... the viability of SSH as a business was not a factor in determining whether or not a $70k loan would be issued to the student and then delivered to the school- the only thing the lender cared about was the creditworthiness of the student that they had contracted with.
These flight training loans were issued through 2 lenders who contract directly with the students; the lenders have no dealings with the SSH, other than dispersing the borrowed money directly to the student's school of choice (SSH).
In hindsight, the loans were way higher risk that the bank realized. No doubt, they are ****ting bricks right now, since most students are not going to be in a position to repay. A $70k training loan that has been accruing interest since for 2 years is already around $110,000. Payments on a 30 year plan would be about $1,100, with most going to the interest. The lenders are going to lose on this one, big time.
The students were, unknowningly, the only venture capital investors that kept SSH running. The school itself, even from the beginning, never had any cash on hand, at all.
Because SSH did not deposit these funds into a student trust account, all the students' money ($189 million last year, alone) was available for SSH to play with in any way that they chose.
If students default on the loans, they will ruin their credit- due to changes in the US bankruptcy laws in 2006, these loans are no longer dischargable in a personal bankruptcy, and the loans will remain as a debt on their credit reports until they have been paid in full.
So, the students have no protection from the Feds, and no protection available from the lenders to recover the money that was borrowed and delivered up front to SSH.
If the lenders were smart they would get involved to ensure that whatever can be returned to the lender, actually will be returned to the lender- but I think they won't because they have a binding contract for the entire balance with the student. They have someone to hang the debt on, and banks aren't in the business of trying to collect from a bankrupt third party.
SSH clearly exploited the lenders' loan system, but that is not a crime- it was simply a risk that the lenders did not foresee.
Had the lenders examined the helicopter career market, they would have seen that SSH was not a sustainable business- there was nowhere for 2700 pilots to go after graduation. Obvious to all of us, but not to the banks.
I would hope that the gov't steps in on this one if only because the fraud perpetrated was so large, against so many. But even if they do step in, what are they going to do? Many people lost just as much money in the junk bonds that Michael Milken sold, and then there was Enron- none of those people ever received assistance from the gov't for their debt.
Right now I cannot imagine how anybody will be able to help these students. Their only chance is if they can prove some impropriety on the part of the lender in it's relations with SSH. I do hope that they find something there.
Good luck to them all.
These flight training loans were issued through 2 lenders who contract directly with the students; the lenders have no dealings with the SSH, other than dispersing the borrowed money directly to the student's school of choice (SSH).
In hindsight, the loans were way higher risk that the bank realized. No doubt, they are ****ting bricks right now, since most students are not going to be in a position to repay. A $70k training loan that has been accruing interest since for 2 years is already around $110,000. Payments on a 30 year plan would be about $1,100, with most going to the interest. The lenders are going to lose on this one, big time.
The students were, unknowningly, the only venture capital investors that kept SSH running. The school itself, even from the beginning, never had any cash on hand, at all.
Because SSH did not deposit these funds into a student trust account, all the students' money ($189 million last year, alone) was available for SSH to play with in any way that they chose.
If students default on the loans, they will ruin their credit- due to changes in the US bankruptcy laws in 2006, these loans are no longer dischargable in a personal bankruptcy, and the loans will remain as a debt on their credit reports until they have been paid in full.
So, the students have no protection from the Feds, and no protection available from the lenders to recover the money that was borrowed and delivered up front to SSH.
If the lenders were smart they would get involved to ensure that whatever can be returned to the lender, actually will be returned to the lender- but I think they won't because they have a binding contract for the entire balance with the student. They have someone to hang the debt on, and banks aren't in the business of trying to collect from a bankrupt third party.
SSH clearly exploited the lenders' loan system, but that is not a crime- it was simply a risk that the lenders did not foresee.
Had the lenders examined the helicopter career market, they would have seen that SSH was not a sustainable business- there was nowhere for 2700 pilots to go after graduation. Obvious to all of us, but not to the banks.
I would hope that the gov't steps in on this one if only because the fraud perpetrated was so large, against so many. But even if they do step in, what are they going to do? Many people lost just as much money in the junk bonds that Michael Milken sold, and then there was Enron- none of those people ever received assistance from the gov't for their debt.
Right now I cannot imagine how anybody will be able to help these students. Their only chance is if they can prove some impropriety on the part of the lender in it's relations with SSH. I do hope that they find something there.
Good luck to them all.
Last edited by helicfii; 8th Feb 2008 at 03:23.
Well at least there should be a few robbie bargins around soon. How many aircraft did they have thought it was quite a few, or were they not owned by the company?
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Check Insurance - they have it
All who are affected by this might immediately consider investigating a claim against liability insurance that SSH carries.
My attorney has researched and found that their insurance company is:
AirSure Limited - Dallas Office
15301 Spectrum Drive, #500
Addison, TX 75001
Phone: (972) 980-0800
Fax: (972) 980-4090
My attorney has researched and found that their insurance company is:
AirSure Limited - Dallas Office
15301 Spectrum Drive, #500
Addison, TX 75001
Phone: (972) 980-0800
Fax: (972) 980-4090
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Bar talk.
At the start of this I posted a comment then I retracted it because I think it looked like I was kicking a man when he is down.
There are too many questions to be asked that I am sure on the minds of every body, I didnt want to ask I just want to know the answers and cannot find it.
If you can answer some of these, please do so.
If this post seems like thats where I am headed, please accept the fact that I am not aiming for the jugular.
This is simply a few questions and comments aimed at SSH not only at Jerry as SSH has more than one head at the top.
Firstly the event & timing of the whole thing is unfortunate for everybody involved and my sympathies go out to you.
I feel for ANYBODY who has lost when events like this unfold..... unless your a lending institution....( insert expletives here ).
Secondly I always find it interesting that when companies go down, there is usually no warning that its about happen.
But there is usually an intersting chain of events that unfold just prior that is odd at best.
I guess the first question I post is after you read this link.
http://www.marketwire.com/mw/release.do?id=814366
The date here is pretty close to the door shutting.
Was it chance that it happened?
Is Jerry still on the board?
Look at some of the good folk that are on the board, advisors to the board and what they do. It seems as though some of these PPL are not talking to each other .. or are they?
There are more questions to ask but lets leave it for another time.
Secondly for the $78.1 million in revenue from 2006 and the $189 million in students loans ( plus commercial contracts held ) in 2007........where does it go?
Does it cost $200m to run the company?
Will that ammount to the aircraft ( assuming that they are leased not purchased....that would be silly wouldnt it ) costs mtce, wages, etc?
IF the aircraft are leased, can you not break the lease, & return them?
Surely someone in this chain from the supplier to the financial wizards that approved the lease would have some sort of protection against this... its what usually happens.
UNLESS someone really smart decided to purchase the aircraft then selling them makes it harder to recover due to time & amounts recovered.
Lets face it all these aircraft will be up for sale from someone....I offer $1000 for anything with good maintenance logs and $1500 for anything turbine.
Or you can just let it sit and rot and in 2 years I offer $50 for anything still sitting.
I too would be thinking about zooming away in an aircraft to secure myself some sort of bargaining power if I lost a stack of cash in this but lets face it, your stealing an aircraft from a bank & they wont negotiate bugger all.
Though you have secured yourself a room in the big house with a nice permanent record.
I know that every business should try to trade out of trouble before closing the doors but dont you also have the forecasting ability to see the point where recovery is impossible.
Given that the it was the financial institutions that raked their rates so high that they busted the company, it shows that the company was running on fumes as it was and should have been concentrating on reducing debt not looking at ways of increasing it.
This is not one of those situations where foresight is an amazing thing, so many companies have made mistakes like this, why did SSH not learn from other mistakes this one?
When you are on the Forbes list, it says that you are smart, business & $$$ savvy.
Getting the money in is almost as important as PROTECTING it.
I cant believe a company would run so close to the limit that if the lending institutions raised the rates that the company will fold.
Surely SSH would have folded before now if that was the case.
I was not affected by this so my interest here is purely speclative though I feel enraged by this as so many of us are struggling to keep doing in this direction as a helicopter pilot, and as the industry is suffering due to a lack of pilots and will continue to do so.
By SSH closing their doors this single event has not only loaded up the other flight schools if these students are able to go somewhere else & those schools can take them but it has also taken these students and potential future commercial pilots out of the picture all together as most students will be unable to continue again.
Imagine going for a loan and already having a $70,000+ loan against your name & absolutely nothing to offer as colateral.
Its not like you have a car or a house that the $70k bought.
So unless I am totaly wrong about dreams and life, I imagine that alot of these students are going to be caught up in life and the dream will pass on by with monthly repayment reminders of what may have been.
SHAME SHAME SHAME.
HF
After thoughts.... the aircraft will need ferrying somewhere.
If there are students that need a few hours to get a rating, maybe they can offer to fly the aircraft for free to gain the few hours that they need.
Try not to get lost with that aircraft along the way, a short flight may end up being a good 20 or 30 hrs...I hope you have gas money.
Sorry, this is the best silver lining I can see right now.
Good luck
There are too many questions to be asked that I am sure on the minds of every body, I didnt want to ask I just want to know the answers and cannot find it.
If you can answer some of these, please do so.
If this post seems like thats where I am headed, please accept the fact that I am not aiming for the jugular.
This is simply a few questions and comments aimed at SSH not only at Jerry as SSH has more than one head at the top.
Firstly the event & timing of the whole thing is unfortunate for everybody involved and my sympathies go out to you.
I feel for ANYBODY who has lost when events like this unfold..... unless your a lending institution....
( insert expletives here ).Secondly I always find it interesting that when companies go down, there is usually no warning that its about happen.
But there is usually an intersting chain of events that unfold just prior that is odd at best.
I guess the first question I post is after you read this link.
http://www.marketwire.com/mw/release.do?id=814366
The date here is pretty close to the door shutting.
Was it chance that it happened?
Is Jerry still on the board?
Look at some of the good folk that are on the board, advisors to the board and what they do. It seems as though some of these PPL are not talking to each other .. or are they?
There are more questions to ask but lets leave it for another time.
Secondly for the $78.1 million in revenue from 2006 and the $189 million in students loans ( plus commercial contracts held ) in 2007........where does it go?
Does it cost $200m to run the company?
Will that ammount to the aircraft ( assuming that they are leased not purchased....that would be silly wouldnt it ) costs mtce, wages, etc?
IF the aircraft are leased, can you not break the lease, & return them?
Surely someone in this chain from the supplier to the financial wizards that approved the lease would have some sort of protection against this... its what usually happens.
UNLESS someone really smart decided to purchase the aircraft then selling them makes it harder to recover due to time & amounts recovered.
Lets face it all these aircraft will be up for sale from someone....I offer $1000 for anything with good maintenance logs and $1500 for anything turbine.
Or you can just let it sit and rot and in 2 years I offer $50 for anything still sitting.
I too would be thinking about zooming away in an aircraft to secure myself some sort of bargaining power if I lost a stack of cash in this but lets face it, your stealing an aircraft from a bank & they wont negotiate bugger all.
Though you have secured yourself a room in the big house with a nice permanent record.
I know that every business should try to trade out of trouble before closing the doors but dont you also have the forecasting ability to see the point where recovery is impossible.
Given that the it was the financial institutions that raked their rates so high that they busted the company, it shows that the company was running on fumes as it was and should have been concentrating on reducing debt not looking at ways of increasing it.
This is not one of those situations where foresight is an amazing thing, so many companies have made mistakes like this, why did SSH not learn from other mistakes this one?
When you are on the Forbes list, it says that you are smart, business & $$$ savvy.
Getting the money in is almost as important as PROTECTING it.
I cant believe a company would run so close to the limit that if the lending institutions raised the rates that the company will fold.
Surely SSH would have folded before now if that was the case.
I was not affected by this so my interest here is purely speclative though I feel enraged by this as so many of us are struggling to keep doing in this direction as a helicopter pilot, and as the industry is suffering due to a lack of pilots and will continue to do so.
By SSH closing their doors this single event has not only loaded up the other flight schools if these students are able to go somewhere else & those schools can take them but it has also taken these students and potential future commercial pilots out of the picture all together as most students will be unable to continue again.
Imagine going for a loan and already having a $70,000+ loan against your name & absolutely nothing to offer as colateral.
Its not like you have a car or a house that the $70k bought.
So unless I am totaly wrong about dreams and life, I imagine that alot of these students are going to be caught up in life and the dream will pass on by with monthly repayment reminders of what may have been.
SHAME SHAME SHAME.
HF
After thoughts.... the aircraft will need ferrying somewhere.
If there are students that need a few hours to get a rating, maybe they can offer to fly the aircraft for free to gain the few hours that they need.
Try not to get lost with that aircraft along the way, a short flight may end up being a good 20 or 30 hrs...I hope you have gas money.
Sorry, this is the best silver lining I can see right now.
Good luck
Last edited by HELOFAN; 8th Feb 2008 at 15:50.