Air Safety Academy Money Grab??

Lima_Charlie

Lima_Charlie

New Member
So I got wind of an email that was sent out from Air Safety Academy about the whole Key Bank Funding issue and how it will affect Air Safety. The reason I am posting this email is as a "buyer beware" notice. As I read this email, it strikes me as an ATA'esque "money grab". I get the feeling that this guy is trying to get his hands on as much money as he can before Key Bank cuts him off on May 30th. I really hope that is not the case, as I don't want to see anyone end up in the same situation as those that were training at ATA!!

So here you go...

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Subject: URGENT - Key Bank Financing Ends in 30 Days!!!!

Sorry to be the bearer of bad news but I am sending out an email to all students to let everyone know that Key Bank has discontinued all aviation loan programs effective immediately! None of the schools, including us, where given any advance notice of their decision to terminate their aviation loan program.

This is going to have a massive impact on every student who is trying to finance a flight training program. With Key Bank dropping their loan program, my guess is that over 90% of all the students who need financing for professional flight training will be unable to obtain funding elsewhere. Needless to say, this is an EXTREME set back for our industry. Perhaps the largest set back ever, and this includes the 9/11 disaster.

However, there is a silver lining in the cloud for those that can act fast. Key Bank has agreed to continue our loan program for another 30 days before they shut it down. This hopefully will allow sufficient time for students such as yourself to get approved and funded prior to the loan program shutting down. For those students who can get funded prior to the end of May, things will be as they always have been. The key to this is get approved and to get funded prior to the end of May.

I know this may mean obtaining financing earlier than you might have intended but there simply is no other choice. Any future finance program that will take the place of Key Bank will not be in place any earlier than the Spring of next year and certainly will have no where near as good of terms. The differences of a new loan program compared to the Key Bank program are as follows:

* Interest rates will be rising from the current rate of 6.5% with Key Bank up into the 10-12% range with a new loan program

* Loan amounts will be dropping from the the current aggregate amount of $100,000 with Key Bank down into the $25,000-$30,000 range

* Origination fees which do not exist with Key Bank will probably be charged in the 3-10% range

* Payback on the loan will no longer be deferred as it is currently with Key Bank. Payback on interest and possibly principal will begin immediately upon origination.

* And even the loan qualification is expected to be more difficult with a new loan program than it currently is with Key Bank

So in a nutshell, not good. Not good at all.

We do still have the ability to fund with Key Bank but only for the next few weeks.

If you interested in financing your flight training program please give me a call or drop me an email immediately and I will quickly walk you through the application process.

If you have any questions please do not hesitate to let me know.

Sincerely,

Dee Pinkston
President
Air Safety Flight Academy
623-872-8851
Toll Free 866-872-1151
www.airsafetyacademy.com

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All in all, I really hope that I am reading this email wrong. If anyone else has more info, please share!!
 
Yes this is true, my flight school notified me yesterday that Key Bank was dropping their alternative loan program for aviation loans.

The owner of my school suggested that I get what I need from Key ASAP.

Also are you talking about FlightSafety Academy? I've never heard of Air Safety Academy.

Naunga
 
nope.. Air Safety...

I've never heard of them and they're based here in phx...maybe we've never heard of them because they're based over at the Glendale airport? Their history shows being operational since 1990...

and then there's this:
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Owned and operated exclusively by current and former airline pilots, AirSafety Flight Academy’s roots date back to the early 1990’s.

Having successfully co-founded Westwind Aviation Academy (now Pan Am Flight Academy), Westwind School of Aeronautics and AirSafety Flight Academy, Dee Pinkston has now pioneered a new generation of flight training - merging state-of-the-art aircraft technology with professional flight training. As Pinkston explains, "With the new generation of aircraft now being equipped with glass cockpits a new generation of pilots must now be developed. With 20 year’s experience in the [aviation] industry, it was clear that it was time to merge pilot training with technology…and that’s exactly what we’ve done at AirSafety.”

_____________________________________


so i take it their a spinoff of Westwind??? or they sold Westwind to PA and started their own FA to compete with PA??

is key bank the only way to get an aviation loan?? and an aviation loan is considered an "alternative loan" or are there other forms of key bank aviation loans?
 
[ QUOTE ]
All in all, I really hope that I am reading this email wrong. If anyone else has more info, please share!!

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Sounds to me like they got the same 30 day deal Pan Am did, they just aren't in a position to get re-certified like Pan Am. The e-mail reads more like an "act now to take advantage of these low interest rates" than a "ATA-esque money grab." Their web site is only plugging Sallie Mae, so if they were going for a money grab, my bet is they'd have Key Bank on the site for another 30 days. Plus, just b/c they're losing the Key Bank loan doesn't mean they're gonna pull an ATA and bail. I disagree with their 90% figure, though. THAT looks like pure marketing shine to get students to apply quicker.
 
Wow.

Thanks for edumacating me Kristie.

I wonder though how many people go there thinking they're going to FlightSafety?

Kinda like showing up in the wrong homeroom in high school...opps.

Naunga
 
[ QUOTE ]
[ QUOTE ]
All in all, I really hope that I am reading this email wrong. If anyone else has more info, please share!!

[/ QUOTE ]

Sounds to me like they got the same 30 day deal Pan Am did, they just aren't in a position to get re-certified like Pan Am. The e-mail reads more like an "act now to take advantage of these low interest rates" than a "ATA-esque money grab." Their web site is only plugging Sallie Mae, so if they were going for a money grab, my bet is they'd have Key Bank on the site for another 30 days. Plus, just b/c they're losing the Key Bank loan doesn't mean they're gonna pull an ATA and bail. I disagree with their 90% figure, though. THAT looks like pure marketing shine to get students to apply quicker.

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Well, from what I know, Air Safety has only been around as is own entity for maybe a year or so. Sure they might have roots that extend back to Westwind, but those roots are very short.

What concerns me, and someone with more flight school operational knowledge than me can correct me if I am wrong, is that Air Safety is getting the operating capital that they need upfront knowing that the largetst source of funds, Key Bank, is going to dry up. If that main source of fund is gone, what happens 3-6 months down the road when the pool of operating funds is gone?? Looking at their website, they are selling a $58k pilot program. Sallie Mae does not offer loans that big! So that kind of kills the Career Pilot program for all but the "self-pay" people, and those are pretty few an far between, I would imagine.

Oh, and it is not the same deal Pan Am got... We have until Sept 30th to get our shizznat in order.
 
[ QUOTE ]
Wow.

Thanks for edumacating me Kristie.

I wonder though how many people go there thinking they're going to FlightSafety?

Kinda like showing up in the wrong homeroom in high school...opps.

Naunga

[/ QUOTE ]

Can you imagine showing up in Glendale, AZ, seeing their 3 planes on the ramp and saying..."So this is Flight Safety??!! It looks nothing like the brochure!! So where is the beach?"
 
[ QUOTE ]
What concerns me, and someone with more flight school operational knowledge than me can correct me if I am wrong, is that Air Safety is getting the operating capital that they need upfront knowing that the largetst source of funds, Key Bank, is going to dry up. If that main source of fund is gone, what happens 3-6 months down the road when the pool of operating funds is gone?? Looking at their website, they are selling a $58k pilot program. Sallie Mae does not offer loans that big! So that kind of kills the Career Pilot program for all but the "self-pay" people, and those are pretty few an far between, I would imagine.


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Funny because Matthew and I were talking and I told him the exact same thing and for that the reason I chose not to continue my training with them. They are a great bunch, but the business realities broke the string of loyalty.
 
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What concerns me, and someone with more flight school operational knowledge than me can correct me if I am wrong, is that Air Safety is getting the operating capital that they need upfront knowing that the largetst source of funds, Key Bank, is going to dry up. If that main source of fund is gone, what happens 3-6 months down the road when the pool of operating funds is gone?? Looking at their website, they are selling a $58k pilot program. Sallie Mae does not offer loans that big! So that kind of kills the Career Pilot program for all but the "self-pay" people, and those are pretty few an far between, I would imagine.


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Funny because Matthew and I were talking and I told him the exact same thing and for that the reason I chose not to continue my training with them. They are a great bunch, but the business realities broke the string of loyalty.

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That's too bad, especially since you felt good about the service you were getting there. But in the end, you have to make decisions based on facts and not just feelings. If you know anyone else over there, you might want to advise them to fly the CRAP out of their flight account as soon as they can!!!
 
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What concerns me, and someone with more flight school operational knowledge than me can correct me if I am wrong, is that Air Safety is getting the operating capital that they need upfront knowing that the largetst source of funds, Key Bank, is going to dry up. If that main source of fund is gone, what happens 3-6 months down the road when the pool of operating funds is gone?? Looking at their website, they are selling a $58k pilot program. Sallie Mae does not offer loans that big! So that kind of kills the Career Pilot program for all but the "self-pay" people, and those are pretty few an far between, I would imagine.


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Well, seeing as how their other option is to lose those students to another school, I really don't see how they have a choice. I'm not saying you're wrong, just that it might not be so Sinister as you see it to be. Last time I checked, MOST flight academies wanted money up front. DCA, FSA, etc (not sure if Pan Am is pay as ya go, but it might be) all want cash in hand. Just because Key Bank is stopping the loans in 30 days (or whatever the count is now) doesn't mean that if the money isn't used by then they're gonna come knocking and take it back. If Air Safety has been around for about a year, odds are they already HAVE the operating capital, and this isn't some ploy to start a flight school. This is what it looks like to me: they know they're main source of Big Loans is getting cut off in a bit, and they want to get as many students as they can. The only way they can do this is by saying "Hey, if you want to train here and have the money you need, you better do it now!" If you can honestly tell me that Pan Am would NOT make the same marketing move if they were in the same situation, I'll back down. But I'm pretty sure if they didn't get the extension, they'd be firing off similar e-mails trying to get students to apply now before the loan disappears.

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Oh, and it is not the same deal Pan Am got... We have until Sept 30th to get our shizznat in order.

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Probably b/c Pan Am is in a position to qualify for the stricter rules of the loan. If they weren't in a position to do so, Key Bank would more than likely lump them in with other flight schools in a similar situation. Would be kinda silly to say "We're not going to offer the alternative training loan from May 31st until you get the stuff together we require." Key's just extended the deadline b/c Pan Am is in a favorable situation, IMO.
 
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[ QUOTE ]
What concerns me, and someone with more flight school operational knowledge than me can correct me if I am wrong, is that Air Safety is getting the operating capital that they need upfront knowing that the largetst source of funds, Key Bank, is going to dry up. If that main source of fund is gone, what happens 3-6 months down the road when the pool of operating funds is gone?? Looking at their website, they are selling a $58k pilot program. Sallie Mae does not offer loans that big! So that kind of kills the Career Pilot program for all but the "self-pay" people, and those are pretty few an far between, I would imagine.


[/ QUOTE ]

Well, seeing as how their other option is to lose those students to another school, I really don't see how they have a choice. I'm not saying you're wrong, just that it might not be so Sinister as you see it to be. Last time I checked, MOST flight academies wanted money up front. DCA, FSA, etc (not sure if Pan Am is pay as ya go, but it might be) all want cash in hand. Just because Key Bank is stopping the loans in 30 days (or whatever the count is now) doesn't mean that if the money isn't used by then they're gonna come knocking and take it back. If Air Safety has been around for about a year, odds are they already HAVE the operating capital, and this isn't some ploy to start a flight school. This is what it looks like to me: they know they're main source of Big Loans is getting cut off in a bit, and they want to get as many students as they can. The only way they can do this is by saying "Hey, if you want to train here and have the money you need, you better do it now!" If you can honestly tell me that Pan Am would NOT make the same marketing move if they were in the same situation, I'll back down. But I'm pretty sure if they didn't get the extension, they'd be firing off similar e-mails trying to get students to apply now before the loan disappears.

[ QUOTE ]
Oh, and it is not the same deal Pan Am got... We have until Sept 30th to get our shizznat in order.

[/ QUOTE ]

Probably b/c Pan Am is in a position to qualify for the stricter rules of the loan. If they weren't in a position to do so, Key Bank would more than likely lump them in with other flight schools in a similar situation. Would be kinda silly to say "We're not going to offer the alternative training loan from May 31st until you get the stuff together we require." Key's just extended the deadline b/c Pan Am is in a favorable situation, IMO.

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I see what you are saying, and I hope that you are right!! As I mentioned in the original post, I just want to make sure that all that surf this website are fully informed about their options.
 
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