EMmariano

Hello guys, I am pretty new here. So please welcome me.

I am a 22 year old philosophy graduate, and currently working. I intend to become a commercial pilot one day but I dont have the resources to send me into one. But then, there is this loan package called "study now, pay later" from a major airline in my country. They offer pilot training that would lead to a commercial pilot license with an instrument rating, and 217 flight hours under my belt.

Here is the details:

I had summarized the loan details. Its a rough estimate for now, but this is generally what its going to be. I had indicated which part I am not sure about or only a rough estimate;

a.) The loan is immediately payable after 2 years. (so there is a two year leeway)
b.) The loan is 15 years to pay.
c.) The original $40,000 will become $60,000 in the 15th year. If we follow the monthly paying rate for 15 years, so the end interest is $20,000.
d.) Three missed payment, they will take the collateral. (Not sure if it has to be consecutive or not)
e.) Parents income must be above $3,000 a month.
f.) The loan needs a collateral. And only 75% appraisal value of a collateral will be credited for the loan.

I have the necessary requirements and we have a collateral, and my parents earns pretty much that $3,000 a month requirement.

My question is if it is wise for me to pursue an airline business during such economic crisis? Although the airline that would provide my training does prioritize their students for an opening in their ranks.

Do this 217 flight experience will get me anywhere landing a 2nd officer job? Thanks!

GrummanCT

IMO you should go out into the real world, work in another industry and save as much money as you can. This is not the time to get into a serious loan.

Attrition has stopped at all levels. I don't think anyone seriously believes any hiring will be going on in 2009 at any level.

I dont mean to be doom and gloom, but I think it would be in your best interest to hold off and save as much as you can. Things are not looking good at all right now.

usmc-sgt

First of all welcome to APC.

Second of all and I think it will be overwhelming...do not take out any loans at all for flight training right now. Get a decent job and figure out how much you can spare towards flight training. Find the absolute least expensive place you can with the least expensive plane and fly as much as your budget will possibly allow. By the time you are where you need to be there will be zero debt and the industry MAY be actually on the up again.

and third....join the military or the ANG and try to get a UPT slot. Get paid to fly heavies or fighters, serve your country part time while making good money and then bypass the regionals and CFI route and walk onto a job at fedex in 10 years.

Twin Wasp

You don't say what country you're from but 217 hours isn't going to get you very far. There are almost 0 airline jobs in the US. Many jobs overseas require 500 hours on the type of plane the airline is flying.

EMmariano

I'm from the Philippines. And the airline that offers that training is Philippine Air Lines. The bank that would offer this loan package is closely related to PAL since it is owned by the same person.

I guess, most of our local pilots here are being absorb by international ones since they are offering them much higher salaries. About 3x as much as what they would normally earn here.

EMmariano

Here are the details regarding the training guys.

Breakdown of Ab-initio training curriculum that would qualify a trainee
upon graduation for a Commercial Pilot License with Instrument Rating:

A.) Private Pilot Training Course:
i. Ground Training - 145 classroom training hours,
ii. Simulator, Basic Instrument Flying Procedure – 10 hours, and
iii. Flight Training – 53+30 hours.

B.) Commercial Pilot Training Course (with Instrument Rating):
i. Ground Training – 123 classroom training hours,
ii. Simulator, Advanced Instrument Flying Procedure – 20 hours, and
iii. Flight Training – 163+30 hours

Upon graduation, a trainee will have logged 217+00 flight hours to his
credit.

EMmariano

yes sir, i had noticed that. Even Philippine Air Lines do require 500 flight experience. but they would prioritize their graduates into a job in their air lines if there are vacancies. They tell me that they are prepared to waive that flight experience, if ever, for their graduates.

any ideas how can I earn easy and cheap flight hours?

EMmariano

Hey guys, I just want to add some details. This is from "Greg Bockelman" in http://www.airlinepilotforums.com/fl...udentpilot.com

Quote:
Hmm. What airline and what country? There are places in the good ole USA that are more than willing to take your money and make promises they cannot deliver.

I'm from the Philippines.

Quote:
That is a tad less than 6% interest rate. Red flag one for me because that is a low rate for this kind of loan.

The airline that offers that training is Philippine Air Lines. The bank (Allied Bank) that would offer this loan package is closely related to PAL since it is owned by the same person.

Quote:
What is the collateral? Another flag.

I got my parents' approval to use our house in Manila as a collateral. Its probably worth around $70,000 in my estimate. Since we have a neighbor that sold their house at $44,000 but is only half of what our lot area is.

Quote:
How do they feel about losing the collateral if you default?

Although this might happen, we do have another house just outside of Manila. We can stay there if anything goes wrong.

But I had thought about this, so I have another back-up plan. There is this government monetary assistance agency called PAG-IBIG, that can provide filipinos a way to purchase their own house. I just need to be a contributor of this agency for 2 or 3 years, and the monthly payment is very, very cheap (I'm shy to say it here, since its very cheap hehe). Then I can take out another loan which is a 30 years to pay, with very low interest rate. Which would enable me to buy my parents' house that we had used as a collateral to pay for the training, and transfer the property to my name. So in short, if I can buy my parents' house and transfer the title in my name, and the money that I used to buy it, will be use to repay Allied Bank's loan package.

Back-up Plan Summary:

Allied Bank's Loan Package
-2 years leeway, before the my very 1st repayment of the loan.
-if in an event that we cannot afford to repay the loan through normal means, i would take out another loan from a government agency that offers very low interest rate, and is payable in 30 years.
-thus saving my parent's property, repaying the loan completely and transferring the title to my name.

Quote:
The time to prepare for a career in Aviation is when times are bad. That way, when things pick up, you are in a position to take advantage of it.

Thank you for such encouraging words. Hehe.

Quote:
That is a plus, but how much are you willing to bet on this? The financial stakes are pretty high.

Realistically speaking, it would be hard, if not even remotely possible for me to land a aviation career immediately after graduation. I was hoping to be able to prove myself in the training so that they might offer me a co-pilot job within PAL, or they might really consider me since they claim to prioritize their graduates. I hope this is true.

Quote:
Depends. What does the sponsoring airline have to say about that? Otherwise, 217 won't get you much especially in this economy.

yes sir, i had noticed that. Even Philippine Air Lines do require 500 flight experience. but they would prioritize their graduates into a job in their air lines if there are vacancies. They tell me that they are prepared to waive that flight experience, if ever, for their graduates.

any ideas how can I earn easy and cheap flight hours?

Quote:
My advice is to not go into debt. But that is me.

Thank you for this. I really appreciate it. I promise that I will take all your help in serious consideration.