How to save more than 200.000 euros on flight training?
To save more than what you would actually spend at a regular flight training in the Netherlands? Is that possible?? Yes it is! Continue reading.
Borrowing a lot of money is one thing. But paying everything back after obtaining your pilot’s license is a whole other story! Moreover, what many flying schools’ students don’t realize is that there are a lot more expenses in a regular trajectory. Think about the cost for a type rating, visa procedure, loss of license insurance, guarantee fund and travel and accommodation abroad.
Unfortunately, most airlines have stopped reimbursing the type rating for e.g. the Boeing 737 and the Airbus A320. And some airlines such as Ryanair even ask you to pay for your online training and assessment. The cost for a type rating is between 20.000, – and 40.000, – euros.
Travel and living expenses during your flight training
After all, for the duration of your pilot training abroad you’ll have to live, travel and eat.
Not being able to work / study in addition to your flight training abroad
Although one can still become a working student or do a second study in the Netherlands, these options have ran out abroad.
The interest on a loan for a pilot training of roughly 150,000 euros at a 6% interest rate amounts to no less than 9.000, – euros per year. This is similar to a mortgage for a house that has caused your total outstanding debt to increase rapidly during your studies already.
Hours of experience
Don’t think that having finished your studies at a flight academy and having gained 200 flight hours is going to get you hired at an airline just like that. In most cases you’ll need to gain experience, for example as a flight instructor. It may also be necessary for you to temporarily take another bridging job. So these early years are no repayment years. You’re probably starting to understand where this is all going. It is important to minimize your student loan.
Think of so-called “loss of license” insurances when you unexpectedly lose your pilot’s license or cannot obtain one (not succeeding the course, medical reasons), a life insurance (should you decease, the bank would still really want to see her pennies back) and a health insurance. Also the bank wants you to put payments into a policy to build up capital for the debtor’s risk to be lower. All together these costs can add up up to 12,000 euros during your studies.
These are very high in the Netherlands when compared to other countries . 10-60, – euros per landing. You land 300+ times during an ATPL trajectory. These costs are often excluded from tenders.
What does this all mean for you, the student?
Below we compare the total outstanding debt of a regular flight school with that of the Executive Flight Academy program. And… the results are spectacular!
Your net savings at Executive Flight Academy
Your gross savings at Executive Flight Academy
Subsequent to compound interest charges and principal payments, insurances, etc. for 8 years after finishing your studies your gross savings are almost 100,000 euros !! (See tables below.)
However, after 8 years the loan is far from repaid and lasts 20 years. So the differences are ultimately twice as large after 20 years!
Remaining debt prognosis regular flight school student
Assumptions: To repay 500, – p / m immediately after the study. 400, – p / m for a room rent abroad. 600, – p / m additional costs of living abroad. 12,000 euros cost of insurance for loan / study at bank. Income after study 1500 p / m.
Remaining debt prognosis Executive Flight Academy student
Source: © www.qrioz.com/airwork
If you want to make your own individual prognosis, then this is a perfect tool.