Airline Transport Professionals
A Prospectus for Flight Training Loan Co-Borrowers

Introduction to ATP

“Flight School Review ”
Published in Flying Magazine

ATP has been training professional pilots since 1984. Today ATP’s management consists of pilots who have flown for major airlines including American Airlines, FedEx, and previously TWA. ATP’s program development team includes active major and regional airline pilots who fly for ExpressJet (Continental Express), ASA (Delta Connection), AirTran and Jet Blue. ATP owns a fleet of 139 aircraft, including 83 multi-engine aircraft and one Citation Jet, and 45 simulators, 5 of which are CRJ-200 Regional Jet simulators. ATP has 26 training centers across the U.S., emphasizing multi-engine, cross-country, crew-concept experience. In addition, ATP’s success over the past 25 years has enabled the company to own–not lease–all of its aircraft and its largest flight training facilities. When it comes to resources, experience, and stability, ATP is unmatched by any other flight training academy.

Growing Demand for Professional Pilots

American Eagle Airlines Hiring Agreement

In early 2010, American Eagle resumed hiring. When American Eagle needed to fill its first new-hire pilot classes, they came to ATP as one of their best sources of qualified pilots. In this open letter, American Eagle's leadership explains the future of airline pilot hiring and why American Eagle recruits ATP Graduates.

The FAA projects the largest increase in passenger volume, on a percentage basis, to occur at regional airlines. The agency believes that the industry will add more than 1,300 jet aircraft with less than 70 seats during the next 12 years, an increase of more than 81%. Few industries demonstrate as quantifiable of a demand for new employees as the regional airline industry.

Those knowledgeable about the airline industry recognize that at least three factors will contribute to a pilot shortage within 5 years or less:

Mandatory Retirements for Pilots Age 65
Fewer Military Pilots Entering Civilian Workforce as Airline Pilots
Increasing Qualifications Required of Civilian Pilots

Read more about these factors in "Understanding the Coming Pilot Shortage" and "Age 65 Retirements Begin Soon" on PilotJobs.com. Notice that these factors do not include any industry growth. As the US economy recovers, increasing demand for air travel will cause pilot hiring to accelerate as fast as it ever did during the last pilot shortage just a few years ago.

According to FlightGlobal.com’s David Learmount, "The gloomy current airline market may cast a long shadow over the training industry, but historic experience of market cycles combined with contemporary economic trends present a much more complex and–in the medium term–promising picture for the airlines and flight training."

Alteon, Boeing’s worldwide training organization, forecasts that, from 2007 to 2027, airlines will take delivery of 29,400 new aircraft to replace old fleet and cope with the growth in demand for air travel. This will require an average of 18,000 new pilots a year to be trained to replace those who retire and also to crew the increasing numbers of aircraft in the world fleet. Only by training at those annual rates will the industry be able to meet the estimated need over the next 20 years for a total of 360,000 new pilots, Alteon calculates. North America heads the league in terms of the number of pilots it will need in the next two decades, at 98,000.

Corporate Pilot Jobs

Business jet and turboprop deliveries continue to climb with no end in site. And the market for the new "Very Light Jets" or VLJs looks bright with a few manufacturers now putting the planes into service, and several more prototypes flying. What does this mean for the prospective pilot looking to enter the job market? "To operate this expanding fleet will require about 1,500 new pilots each year, not including additional pilots to replace those who retire, transfer, or who are removed for other reasons. Companies are expected to be in competition with the airlines in the hiring of qualified pilots, most of whom will be instrument rated." (Source: www.avjobs.com)

Success of ATP Graduates

Over half of ATP’s students are career changers. Many successful lawyers, dentists, information technology, real estate, marketing and business professionals have changed careers to become commercial pilots. Traveling around the world, getting to know dozens of different cities, flying a jet at mach .80, and accomplishing a new mission with every flight induces a romance unattainable in other professions.

In order to help our graduates succeed, ATP has formed regional airline hiring alliances that allow us to get our graduates hired faster than those applicants coming to the airlines “off the street” or from other flight schools. Also, by utilizing our 5 CRJ 200 Regional Jet Flight Training Devices, ATP pilots are extremely well prepared for both their interviews and initial training at a Regional Airline.

Pilots can expect to earn over $30,000 during their second year of employment with a regional airline, and during their fourth year of employment, pilots earn over $45,000. Keep in mind that the airline pilot workforce is unionized and pay determined by union-negotiated contracts and seniority. Despite the misleading and heavily publicized instability of some major airlines, job stability at the established regional airlines is excellent. Finally, professional pilots have FAA certificates and credentials that allow many other employment options in corporate aviation. For additional information on airline pilot pay and the regional airline industry, see AirlinePilotCentral.com or ATP’s PilotJobs.com.

Diamond Aircraft has selected ATP to provide the factory-authorized training for its new D-JET personal jet that will enter production in 2010. The on-going training and pilot monitoring ("mentoring") that ATP's network of alumni will provide to D-JET operators will offer ATP graduates a unique career opportunity with higher pay than starting pay with the airlines.

Building Qualifications

As the demand for regional airline pilots grows, so too does the demand for flight instructors. Upon completing ATP’s Airline Career Pilot Program, many students build their flight time and experience as a paid flight instructor with ATP prior to their advancement to the airlines. ATP does not guarantee an instructor position to all graduates. ATP only hires the graduates who excelled in the program. Students at ATP receive instruction from only the best–not those guaranteed their jobs. Graduates who do not instruct for ATP are consistently able to find other flight instructor jobs with other flight schools. There is tremendous demand for flight instructors graduating from ATP due to their high multi-engine experience. Graduates from other schools can’t even meet multi-engine insurance requirements. Whether instructing at ATP or elsewhere, pay usually starts at $1,500 per month during this flight-time and experience-building phase.

A recent pilot hiring poll taken by AIR, Inc. found that at least 92% of pilots hired by Major Airlines held a Four Year Degree. The same poll reported that at least 60% of pilots hired by the Regional Airlines held a Four Year Degree. While these statistics show that a college degree is not required to secure a job with the airlines, it is highly desired and makes you a more competitive candidate for an airline position.

For students who wish to pursue a Bachelor degree in an aviation related field, the FAA certificates and ratings acquired in ATP’s Airline Training Programs will transfer to earn equivalent college credit. This is the most efficient and economical way to earn both FAA certification and a college degree. ATP’s affiliations with some of the nation’s leading Aviation Universities allow you to receive up to 44 college credits for the training and certifications earned at ATP while completing college coursework on-line.

Financial Considerations

As a potential co-borrower, there are three important facts you should know about ATP’s payment structure:

ATP receives payments incrementally throughout the program.
ATP quotes a fixed price.
Refunds are issued in 10 days or less.

ATP’s multi-disbursement payment structure allows us to determine a student’s ability to be successful in this career early in the program, prior to spending the entire amount of tuition. Unlike other flight training academies, ATP’s program is structured so that ATP is motivated to quickly discontinue those who are unlikely to excel at ATP’s pace. With a fixed-cost pricing structure, ATP does not benefit from having to provide more and more training at an hourly rate—a common tactic found elsewhere.

ATP’s complete Airline Career Pilot Program (including the private pilot certificate) costs $48,490. Add $4,000 for checkride fees, which are paid directly to pilot examiners, and the total amount of tuition is $52,490. (If the student enters the program with the Private Pilot Certificate, then the total cost of tuition is $39,995. Add $3,500 for checkride fees for a total of $43,495.)

Loan Details

Students who apply with co-borrowers generally receive lower interest rates and can finance a larger portion of tuition costs. Sallie Mae, one of our largest lenders, requires co-borrowers on all private student loans they originate. While other flight schools have been eliminated from the Sallie Mae program, it remains available to ATP students thanks to their excellent track record of completing training and achieving success as professional pilots.

Essentially, as a co-borrower, you agree to pay the student’s loan payments if he or she for some reason does not. Usually a family member or friend will sponsor a student’s airline pilot career financing. Having a co-borrower qualifies the student for the following benefits:

Higher loan amount–up to full tuition.
Lower interest rate.
Establish a solid credit history for the student.

Sometimes a second co-borrower will be required for approval of the full tuition amount.

Some lenders offer a co-borrower release option. After making a certain number of on-time payments, the borrower may request that the lender remove the co-borrower from the loan entirely as long as the borrower has sufficient credit individually. After achieving a regional airline pilot job, it may be possible to refinance the loan at a lower rate and without a co-borrower.

If a student discontinues training with ATP, the refund will be issued directly back to the lender, not the student. This minimizes interest expense and protects the co-borrower. A student may choose to discontinue the program at any time, for any reason.

Additional Benefits for the Co-Borrower

As a friend or relative of an airline employee, you can often take advantage of airline-employee friend/family benefits, including:

Free and/or discounted airline travel, including First Class
Vacation discounts
Auto-rental discounts
Hotel discounts

Next Step

The student can apply on-line at ATPFlightSchool.com/apply and send you an email invitation to complete your section of the application. You can choose whether or not to share your information with the student, and all of the information you submit will be kept strictly confidential. It will only be shared with lenders in order to find the best possible financing package for the student.

Approval decisions can be obtained in as little as 24 hours, but can sometimes take up to several weeks depending on the volume of applications currently in process. Once an application is approved by one of our lenders, you will be contacted and some additional documentation will be requested in order to complete the loan transaction.

Conclusion

Airline pilot careers were once reserved for highly experienced military aviators or civilian pilots who spent years trying to achieve the high level of flight time that used to be required to find airline employment. Now is the best time ever for aspiring professional pilots to enter the industry. With ATP's airline-recognized training program and proven curriculum, ATP graduates are the best-trained and most well-equipped in any job market.

Not only will demand for professional pilots continue to grow, but ATP offers the best choice in flight training academies. Nowhere else will you find better aircraft, a more cost and time-efficient program, or a team of professionals more dedicated to training the best professional pilot applicants.

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