Banks have been reluctant to loan money for flight training. Talbot Biggs reports on alternatives.
John Gronlund is typical of many young Canadians who dream of a career
as a pilot. He took money he had saved from working for three and a
half years after university, got a $25,000 line of credit from the TD
Bank, plus another line of credit, to scrape together the $40,000 he
needed to get his multi-engine, instrument rating commercial licence
from the Brampton Flight Centre. Gronlund graduated last September and
a couple of months later went to Yellowknife with his wife in search of
his first flying job. He is working temporarily supply teacher while
actively seeking a flying position.
“Financing
is a problem for many people,” he said. “I was lucky I had some
savings. A couple of guys I knew had to stop their training because
they didn’t have enough money and had to get part-time jobs. It’s a
very intense course and you just don’t have time for a part-time job.
Financing is a real barrier for many people.”
Financing flight
training, particularly a commercial licence, has been a challenge for
many years. A survey by the Air Transport Association of Canada (ATAC)
and the Department of National Defence found that the average cost of
obtaining a private pilot’s licence, based on full-time attendance and
48 hours of flying time, was $6,869.19. For the more career-minded
student, the costs are much higher. Tuition for a commercial pilot
licence with a multi-engine and instrument rating ranges from $30,000
to $50,000, depending on other educational requirements such as a
degree or diploma. “Financing any human activity involves risk, but
flight training is higher risk than many,” said Glenn Priestley, ATAC’s
vice president fixed-wing, air taxi and flight training. “Most banks
aren’t interested in taking on the risk unless they get the parents to
co-sign or have large collateral. It’s a real problem.”
|
