Here are some real world examples of why we don’t have block rate accounts or accept advanced payments for our flight training.
I was involved with the largest helicopter training company in the US that went bankrupt, leaving myself and about 2100 other students, with a huge training bill for hours never flown, but long spent by the school.
I have trained two students who both lost several thousand dollars when their previous flight school went out of business and they lost all of their money in a block rate account. These were well established flight schools that had been in business for years.
We have trained other students who felt they were getting sub-standard training at another school and did not want to continue training there. They could not get their money out of their block rate accounts unless they were ready to forfeit from 20% all the way to 100% for some schools. They had two choices, loose a percentage of their money, or continue to get their sub-standard training until they had flown their accounts to zero.
Our words of advice – Never give any flight school 100% of your money for training up front. Only deposit with them what you are willing to lose should something happen to the school.
California has recently passed a law AB-48 to try and protect student’s money from the above scenarios.
This will allow our qualified prospective students to secure a training loan with us for all or part of their training.
The funds will be deposited in a secured escrow account and will only be available for flight training. The funds will only be released to us after you complete a training flight or ground lesson.