Aviationfly – Pilot Training Industry – Market Intelligence – Week 18 of 2021

Aviationfly – Pilot Training Industry – Market Intelligence – Week 18 of 2021

Every Monday Aviationfly releases the latest Aviation Industry news headlines, Marketplace Request for Proposals and Supplier Directory updates from the previous week. Here is a recap of last week (we are temporarily not publishing Marketplace or Supplier Directory updates):

Aviation Industry News:

  • Aviationfly Team predicts large scale defaults of Flight Schools in a number of countries as "deferred revenue training liabilities" become too large to absorb or refinance
    As the global pandemic continues and travel restrictions / lockdowns remain in place in a large number of countries outside the US and China - we have been doing extensive research on the global flight training infrastructure and the financial status of numerous organizations. Through multiple sources and information points we predict that over the coming months the industry will see a large number of defaults in numerous countries (even when the flight training activity ramps up again - more on that further below). The completion of training of international students enrolled before March 2020, reduced enrolment of new students due to travel restrictions and lockdowns, less government support packages compared to 2020 and especially deferred revenue training liability levels which are unsustainable to service or refinance will result in a significant chunk of the global pilot training infrastructure going offline.

    Especially the trend of growing deferred revenue training liabilities is something which will be difficult for flight schools to manage as training activity ramps up again. Deferred revenue training liability is a balance sheet item which should be closely monitored by each Flight School owner / individual in a leadership position. It shows the outstanding training liability owed to students which needs to be closely monitored together with the cash-flow forecast. If one was to assume stopping cadet intake and then balancing the deferred revenue training liability figure out with the current assets would give an indication of the additional funding required to complete the training of individuals.

    As we predict an increasing number of flight schools to stop operations the reactivation of these organization will only be possible through new capital and it would take time to ramp up the operations. Especially on the capital side the flight training industry is known for being quite complex to institutional investors and most investments are too small which is why a large number of the flight schools globally are owned by airline pilots (which are also not in a great liquid position).

    The result of this environment is going to benefit the larger groups and organizations which are managing well throughout the pandemic. As a global recovery accelerates - airlines will ramp up quickly again while the global flight training industry will take much longer to recover to pre-pandemic infrastructure size resulting in opportunities for established players.

    If you would like to connect on this subject kindly email us.

  • High Profile Pilot Training organization defaults from the last week
    150 Student, 26 Aircraft French Flight School - Airways College declares bankruptcy
    There is misinformation spread on social media and through the industry that ESMA Airways Aviation has stopped operation but this is not the case - the similar sounding Airways College also located in France stopped operations and declared bankruptcy. The Flight School had four center in France and is rumored to have offered large discounts for full tuition fee payments and other cash generating offers over the past few months. With the most recent competition on social media being a draw prized at EUR200 per person from which 12 people would be picked from the draw to receive fully sponsored pilot training. 1,042 individuals entered the draw this year just before the liquidation event (please note that this information has not been verified). There are a number of forums and individuals calling for the assistance of established European Flight Schools to come to the assistance of these cadet pilots.

    Hong Kong Airlines Aviation Training Centre defaults on loan payments
    The 11 story HKA Training Academy is a full fledge training center including 12 simulator bays and cabin crew training equipement. The Simulator Training Center contains two CAE Full Flight Simulators of aircraft type A330 and A350.

  • Global Consulting Group - Oliver Wyman predicts that "After Covid-19, Aviation Faces a Pilot Shortage"
    Including 10 year forecast for Global pilot demand versus supply and magnitude of surplus/shortage per region. We highly recommend reviewing the data.
  • FAA Certifies MPS Simulators At Purdue University!
    Both MPS simulators owned and operated by Purdue Polytechnic Institute located in West Lafayette, IN, United States have received FAA level 5 qualification by the (FAA). The MPS A320 as well as the recently delivered B737 NG FTD serve as essential tools to students preparing for the flight industry making this FAA qualification an important milestone for the Purdue program. Currently the MPS A320 and B737 NG FTD’s are used in Purdue’s professional flight program allowing each student to gain proficiency in modern generation transport aircraft flight decks. With the completion of the level 5 qualifications, Purdue is developing an Enhanced Qualification Program through which the amount of flight hours under FAA requirements may be reduced due to the quality of instruction and training saving its students both time and money.
    Check out the profile of MPS.
  • Virgin Australia gets CASA certification for its new B737MAX Full Flight Simulator housed at the Ansett Aviation Training/Virgin Australia Training Centre in Brisbane!
  • Did you know that Australia's largest Airline is hiring again? But it is hiring from one specific source..
    Qantas’ first pilot hires since the start of the COVID pandemic are to come from its own academy. The airline is offering its Wellcamp-based pilot academy alumni the opportunity to apply for first officer positions on turboprop Dash 8 aircraft operated by its regional subsidiary brand, QantasLink. The new-hires will jump aboard as Qantas eyes a return to 90 per cent of its pre-COVID domestic capacity by Q4 FY21, while its budget subsidiary Jetstar simultaneously looks to “exceed 100 per cent” of pre-COVID levels due to “strong leisure demand”. Qantas and flight training provider FTA jointly run the academy. In fact, FTA recently pledged to employ its graduates, who were at the time not seeing any employment opportunities at Qantas due to COVID, as future flight instructors at the academy.
    Source and discussion through this link.
  • Airways Aviation and Padpilot announce new partnership!
    With more than 30 years of experience, Airways Aviation is a leading global aviation school providing training in the main aviation trades. Its team is working with motivation and dedication towards the success of all its students. The school’s growth is based on renewed quality training programs, a professional and outstanding teaching staff, and modern and improved infrastructure. That’s why Airways Aviation is starting a new partnership with Padpilot. From Foundation stage to ATPL, the interactive book series’ contain career-focused theoretical knowledge content for the regulatory exams, delivered in an interactive and engaging format that helps bring aviation theory to life.
    Source and discussion through this link.
  • Did you know that in 2019 - European OSM Aviation Academy placed an order for 60 all-electric aircraft from Colorado based aircraft manufacturer Bye Aerospace, Inc.
    These will be used for training at the OSM Aviation Academy flight training centers to qualify pilots for the future on sustainable wings. "We're proud to take the lead in the future of green aviation," says Espen Høiby, CEO of OSM Aviation Group. "This is the largest order for commercial electric planes to date."
    Source and discussion through this link.
  • This week's Pilot Training industry vacancies:
    - Cambodia's new Airline Training Center - Lanmei Airlines Training Center is looking for a Chief Flight Instructor:https://lnkd.in/dqPdunT
    - European BAA Training is looking for certified B1.2 Engineers for its Flight School base in Spain:https://lnkd.in/ds5A8ZM
    - Delta Air Lines is recruiting a Manager of Flight Ops Training: https://lnkd.in/dDaaJ9i
    - JetBlue is looking for a Flight Simulator Instructor: https://lnkd.in/dekzUsN
  • New Pilot Training Tech Ventures being launched:
    - OLIPEO: Is a new app that has launched focused on building a pilot-oriented community to assist pilots looking for instructors, examinators and other pilots to connect them better.
    Website: https://olipeo.com/
    - ZuluPilots: Is a new online platform which aims to improve the process of connecting directly with TRE/TRI near you.
    Website: https://zulupilots.com/
  • ATP expecting 25 low-wing trainers for 2021 delivery!
    Since the flight training company jointly announced a 100-aircraft order with Piper Aircraft Inc. in 2018, 55 Archers have been delivered. The base price of an Archer TX is $380,000. An ATP representative said the new aircraft will primarily be placed at locations along the East Coast and will support training centers that are opening this year in Baltimore; Washington, D.C.; Birmingham, Alabama; Memphis, Tennessee; and Lakeland. By year-end, 80 Piper Archer TX models will have been delivered since 2018, upping the school’s overall Archer count to 180 aircraft. To date, there are 155 Piper Archers in ATP's training fleet of 425 aircraft at 59 locations stretching from Florida to California. ATP expects the 2021 deliveries to bring its total aircraft on the flight line to 450 by December 31.
    Source and discussion through this link.
  • New UK based Flight School - Aware Aviation ready to go live with FlightLogger in under 3 weeks!
    Leeds-based Aware Aviation was founded by Terry Preston and Nick Denby early 2021 to offer a diverse range of services ranging from aircraft sales and management to ferry services – and of course pilot training. 25th academy to join FlightLogger during the pandemic!
    Check out the Profile of FlightLogger.
  • Latest Airlines to announce hiring:
    - American Airlines recalled all Pilots (returned to flying status) and starts pilot hiring
    - Envoy Air in the US has resumed pilot hiring
    - Qatar Airways restarting cadetship program for Qatari Nationals
    - Boutique Air has opened their First Officer window for low-time pilots
    Source and discussion through this link.
  • Delta orders 25 additional Airbus A321neo jetliners, options for 25 more!
    US based Delta's total firm orders for the narrow-body planes stand at 125. “Adding these new efficient narrowbody jets to our fleet means more career opportunities for our pilots and more capacity to grow our network during the recovery, solidifying our leadership position as more customers return to fly with Delta,” John Laughter, Delta’s senior vice president and chief of operations, wrote in a memo to pilots, which was seen by CNBC.
    Additionally - Aeromexico buys 28 planes from Boeing (24 of Boeing's 737-8 and B737-9 MAX planes, and four 787-9 Dreamliners). Aeromexico which already has 107 planes, filed for Chapter 11 bankruptcy protection in a U.S. court in June.
    Source and discussion through this link.
  • "GoAir will emerge as very strong 2nd player to IndiGo" - Ben Baldanza, vice-chairman, GoAir
    The recent appointment of Ben Baldanza as vice-chairman of GoAir and promoters, the Wadia family, opting out from the day-to-day functioning of the airline and GoAir being positioned as an Ultra-Low Cost Carrier. Ben Baldanza was previously the president of Spirit Airlines and led its successful growth phase.
    Source and discussion through this link.
  • Singapore Rolls Out IATA Travel Pass Acceptance To All Arrivals!
    In a massive boost to the International Air Transport Association (IATA) Travel Pass, the Civil Aviation Authority of Singapore (CAAS) has announced that it will accept the IATA Travel Pass from all arriving passengers. In what it calls a move to restore air travel safely, anyone arriving in Singapore by air will be able to use the IATA Travel Pass to prove a negative pre-departure COVID-19 PCR test.
    Source and discussion through this link.

If you have a Pilot Training Industry announcement that you would like to share with a larger audience please contact us.