By James Careless | November 10, 2011
Estimated reading time 16 minutes, 44 seconds.
Despite rising operating costs, increased regulation and falling domestic enrolment, many Canadian flight schools are continuing to soldier on.
It never been easy to operate a flight school in Canada. Even in the best of times, aircraft and classroom equipment have always been expensive, and the resulting high cost of tuition has kept many prospective students from applying. Yet, despite these facts, Canadian flight schools continue to find ways to soldier on.
A Shrinking Industry
Today, there are 161 flight training schools registered with Transport Canada, said Wayne Gouveia, vice-president of commercial general aviation at the Air Transport Association of Canada (ATAC). A considerable number of these schools do not offer a significant amount of commercial training, or are not even open to the general public, Gouveia told Canadian Skies. Instead, they are associated with private pilot training or military flight training.
However, as Bob Connors, general manager of the Waterloo-Wellington Flight Centre (WWFC) in Kitchener, Ont., explained, One hundred and sixty-one is a big drop from the 200-plus schools that were in operation five or six years ago. Overall, this year has been tough on the Canadian flying school industry.
That said, the WWFC is still doing pretty well. Based at the Region of Waterloo International Airport at the eastern tip of Kitchener, the school fleet of 23 training aircraft is one of the largest in Canada, and consists of twin-engine Piper Seminoles; single-engine Cessna 152s, 172Ns, 172SPs and 172RGs; and single-engine Diamonds, DA20s and a DA40. (It also has an Elite Simulation Solutions flight training device [FTD].)
Since we are a fairly large organization, said Connors, we have been able to cover the extra costs associated with running a flying school these days. It also helps that we are a non-profit club, and that we offer diploma/degree programs in association with Conestoga College and the University of Waterloo. But, this is no help to tiny schools in small Canadian communities. Many are now gone, forcing prospective students to either leave home to learn to fly, or give up on the opportunity altogether.
Over in Canada rotorcraft sector, There have been a number of small single-pilot/single-helicopter schools that have closed, reported Jamie Sibley. He handles IT, advertising and purchasing for Abbotsford, B.C., based Chinook Helicopters, whose fleet encompasses Robinson R44s, Bell 47s and Bell 206s. The last few years of low enrolment have been hard on the small operations, said Sibley.
What caused the decline in schools? Connors pointed the finger of blame at governments. In Ontario, the province introduction of private career college regulations a few years back forced many smaller schools out of business. They just couldn’t afford to comply with the regulations and had to check out.
Connors believes Transport Canada has also played a role: All the documentation you have to submit for approval and the fact that Transport direction on what is expected or required is vague and subject to individual TC staff interpretation means you end up going back and forth with them. Smaller schools just don’t have the staff or income to do this.
When we queried Transport Canada about this, media relations advisor Melanie Quesnel told us: To enhance its service to the air community, TC appointed associate directors of operations in each of its five regions. Each associate director of operations is responsible for managing the technical work of the regional team of inspectors. Individuals who believe they may have been treated differently than their counterpart in other areas should discuss the issue with their local associate director of operations.
Mountain View Helicopters of Springbank, Alta., (just west of Calgary) is one of those schools that takes this advice to heart; it prides itself on having a good working relationship with Transport Canada. We like to follow the rules and do what is right, said Paul Bergeron, Mountain View president and chief pilot, whose school (see p.50, Vertical, Dec’08-Jan’09) flies Robinson R22s, R44s and Bell 206s. Still, The fact that Ottawa has granted an American flight school operating authority does not sit that well with us, but it seems to be out of our control and we have to live with it. It would have been nice if TC [in] Ottawa would have asked us if the American operating authority would affect our business at all, but I guess under the NAFTA agreement they did not have to.
Quesnel confirmed that the foreign air operator certificate granted to the American school was issued in accordance with procedures established to comply with the North American Free Trade Agreement. And while she said no other schools have applied for similar authority, Bergeron and others (schools and operators) are concerned about the precedent this sets and hope the situation will be dealt with before the quality and safety of Canadian flight training is affected.
Escalating Costs
Beyond the potential added work of dealing with increased government regulations, flying schools are facing a variety of ever-growing costs. The price of fuel keeps soaring, while aircraft prices haven’t exactly hit rock-bottom, either, even with a recession on. Then, there the impact of new technology: both in terms of digital avionics in the cockpit and computerized flight simulators in the classroom. That these items represent real advances is without question; the trouble is they also add to a flying school capital costs which get passed on to students.
Innovative thinking and partnerships can help in this regard. For instance, Chinook has partnered with the Professional Flight Centre and Coastal Pacific Aviation so its helicopter students that lack minimum flight time requirements for the IFR rating can fly time building or dual training hours in an airplane or approved flight simulator, or combination of the two. From a fixed-wing school standpoint, those additional helicopter students can certainly help defray some of the capital costs of IFR and simulator equipment.
The Professional Flight Centre (a.k.a. Pro IFR) is a Delta, B.C., based flight school that boasts a fairly large training fleet: its 23 planes include two instrument-flight-rules [IFR] certified Beechcraft Duchess twin-engine trainers, one visual-flight-rules-equipped Duchess, a twin-engine Piper Seminole, a twin-engine Piper Seneca and 17 single-engine aircraft, including Cessna 152s and 172s, a Piper Warrior and an American Champion Citabria, for aerobatic training. It also has Redbird FMX full-motion advanced aviation training devices.
As a large school, Pro IFR can take many hurdles in stride, including increasing costs and regulations, but all of its strengths go for naught when it can’t earn revenue. Times have been tough due to regulatory requirements, said Pro IFR president John Montgomery. However, the regulation that really hurt us was the three-month airspace shutdown in Vancouver during the 2010 Olympic Games. We were prevented from flying in the area, which seriously affected our ability to train students!
Since the Olympic ban was lifted, Pro IFR and other local aviation companies have filed a class-action suit, managed by ATAC, against the federal government, just to recover the money lost. But, nothing has come of the suit to date.
How are other schools fairing? We are holding our own in the present economy, but being very careful about spending and operating costs, said Mountain View Paul Bergeron. Fuel costs are always going to be an issue.
Operating the Bell 47 helicopter makes for a high-cost operation, said Chinook Jamie Sibley. As for fuel: I’m not sure it even warrants a conversation. We will always pay too much for fuel and our cars/trucks/aircraft will always use too much fuel. Fuel goes up, training costs go up, students are unhappy; such is life.
Shifting Focus
With Canadian students finding it difficult to finance the high cost of attending a flight school, and banks continuing to be reluctant to loan money for pilot training, schools with the active support of ATAC have been wooing international students. As a result, The international market is growing, while the domestic market is flat or getting slightly smaller, said Adam Penner, operations manager at Harv Air. His father, Harv Penner, established the school in 1972 at the Steinbach South Airport, about 50 kilometres southeast of Winnipeg, Man. Today, Harv Air flies a Diamond DA40-180, 16 Cessna 152s, seven Cessna 172s, three Citabria 7-ECAs, a Piper Warrior PA-28, a restored Taylorcraft L2, four twins (Piper and Beech) and even a Pitts S-2B biplane for aerobatics training. (It also has four FTDs three from Elite and one from Redbird.)
Mindful of the Asian market, where a growth in airline traffic is resulting in a shortage of pilots, Harv Air has been actively recruiting students from this vast region. The company website even has a separate section aimed specifically at India. It explains why Harv Air is an attractive choice for Indian students, and takes pains to explain the cultural differences between Indian and Canadian approaches to education.
Quebec Cargair Flight Academy is another school that counts on international enrolment. Operating out of airports in St-Hubert and Mascouche, Cargair training fleet includes twin-engine Beechcraft King Airs and Piper Aztecs, and single-engine Cessna 150/152s and 172s.
We have had a drop in Canadian students, as well as European, but an increase in Asian students, said Mathieu Desjarlais, Cargair advanced training director. He attributes the drop in European students to the Canadian dollar high value versus the Euro, which effectively raises tuition fees for European students. Still, business is going so well for Cargair that, We added a wing to our existing building in 2008 and we bought the neighbouring building in 2009 to house our Level 5 FTD, said Desjarlais. We have also been replacing our Cessna 150s with Cessna 152s, and have added two Piper Aztecs to the fleet.
On the helicopter side, neither Chinook nor Mountain View rely much on the international market for students. Mountain View has had a few international students, but they are not that important to our operation, said Bergeron.
In contrast, Capitale Helicoptre of Quebec City whose fleet encompasses Robinson R44s and Eurocopter EC120s, EC130s and AS350s said international students make up one-third of its enrolment. That a number that will grow every year, said Colin Simard, Capitale marketing manager.
Operational Challenges
Even for flight schools that are doing well, there are many operational challenges to overcome. For instance, teaching international students requires schools to provide housing, and deal with linguistic and cultural differences. This is why India is a preferred market, because Indian students tend to have a good command of English.
As mentioned earlier, government regulations are widely seen to be a major challenge for the industry. In this regard, Adam Penner of Harv Air shared the sentiments expressed by WWFC Bob Connors, and actually takes them one step farther. Transport Canada seems to have no concern about the cost of flying and its impact on students, declared Penner. Furthermore, Transport Canada is contributing to major cost increases and complexity with new regulations. The lack of support for the LSA [light-sport aircraft] airplanes out of the U.S. will also become a problem in the future and affect our international competitiveness.
That not all, continued Penner: Lack of credit for newer flight simulators [from Transport Canada] is also a problem, because Canada flight training device and simulator rules are old. I also have problems with regional disparities at Transport Canada. I have to deal with different rules and procedures from different offices of Transport Canada when it comes to administering our online ground school. They all interpret the CARs [Canadian Aviation Regulations] differently.
TC Melanie Quesnel reiterated the suggestion that schools speak with their region local associate director of operations regarding interpretation issues.
She then addressed Penner LSA concerns with the following details: The light-sport aircraft classification does not exist at the present time in Canada. Following the recommendation of a working group, notices of proposed amendments will be drafted in consultation with the industry, which will follow the Canada Gazette process. However, LSAs are eligible for the special certificate of airworthiness in the limited classification. Interested parties can find the requirements for the limited classification in the Canadian Aviation Regulations (CARs) online at:
www.tc.gc.ca/CivilAviation/Regserv/Affairs/exemptions/docs/en/2108.htm.
As to Penner simulator concerns, Quesnel said: The department [TC] has implemented new initiatives, such as the multi-crew licences, which introduces the opportunity for expanded use of newer simulators and flight training devices. Credits for flight simulation training program devices are outlined in the licencing standards for most flight crew permits and licences. Refer to CAR 421.26, 27, 30 and 31, for private pilot licences, airplane and helicopter, and commercial pilot licences, airplane and helicopter, respectively. The appropriate page online can be accessed via:
www.tc.gc.ca/eng/civilaviation/regserv/cars/part4-standards-421-1086.htm.
Mountain View Bergeron, meanwhile, laments both the regulations and the tactics of new competitors: Keeping up with all the regulatory paper work is a challenge. Also, trying to keep up with the new operators in the area who feel the need to cut prices to attract business is a challenge.
Interestingly, Cargair Mathieu Desjarlais has a very different challenge: finding teachers for certain classes of aircraft. It is very difficult to find qualified multi-engine/IFR instructors as they all aspire to fly for a 703 [air taxi] operation. Since January 2011, I have lost 10 qualified multi/IFR instructors to the charter companies. We train our Class 4 [initial level] instructors in-house, so we do not have a problem finding Class 4s. The major problem is that these Class 4s do not have the experience required to teach the multi-engine rating.
Obtaining money for aircraft and simulator upgrades is also an industry issue: revenues are tight, and banks are unwilling to lend. At Pro IFR, John Montgomery is glad that the school fleet and simulators are relatively modern. We just don’t have the money available to think about substantial upgrades at this time. We’re not even going there until the global economy recovers and revenues become more stable.
And then there the weather… a factor for any Canadian flight school. In the Vancouver area, clear skies can be a rarity. But, this summer has been cloudier and wetter than most. As a result, The weather has been a big factor this year in limiting flight time for our students, said Montgomery. That really hurts.
The same has been true for Quebec Cargair. And, the nature of its fixed-price international contracts makes it worse. Should something happen that delays training like bad weather the additional costs incurred come out of Cargair pocket, not the customers’. Having contracts with foreign airlines, we must deal with the weather, as well as operational problems and increasing fuel prices, said Desjarlais. These factors become difficult to deal with when you have only a few months to train these cadets while on a tight, pre-determined budget.
Staying the Course
Even with all of these challenges, the flight school representatives interviewed for this article were quite clear about their determination to keep teaching. This attitude persists despite the fact that extensive government regulations, rising equipment and fuel costs, and falling domestic enrolment are making it harder for some Canadian flight schools to make a living.
So, why would they stay in the business when there are so many associated issues and risks? The answer to that question is best summed up by Adam Penner: Put it this way: we are all into’ the aviation industry. Here, we have worked in it for 39 years. We have faith that people will continue to use airplanes and need pilots in the future.
It a sentiment echoed on the rotorcraft side by Paul Bergeron: Mountain View Helicopters has no intentions of stopping our flight training or charter operations anytime soon. We have a devoted crew of professionals who want to continue to train and help low-time pilots forge a career in the helicopter industry.
And Chinook Jamie Sibley had a similar take: We will be here, in business, until helicopter flight is illegal!
It is this attitude familiar to anyone bitten by the flying bug that explains the Canadian flight training industry resilience. People don’t embark on aviation careers for the money; they do it for the passion. And this passion translates to all sectors of the business, including training tomorrow pilots today.
Still, the outlook on the future of flight training in Canada is hopeful. There is a coming shortage of pilots as the baby boomers retire, said the Waterloo-Wellington Flight Centre Bob Connors. The pilots of tomorrow will have to be trained somewhere; namely here in Canada, where the combination of teaching capabilities versus price is among the most attractive in the world.
The world will always need pilots, and Canadian flight schools are well-placed to train them, added Pro IFR John Montgomery. Of course, it would be nice if the weather co-operated! But, whatever happens, we do the best we can.
Adam Penner shared this determination, although he admitted there might be a time to throw in the towel. Specifically, If a Star Trek transporter gets invented, then I have 34 airplanes for sale! But until that time, Harv Air will continue to train pilots. We are in it for the long haul.
James Careless writes on aerospace issues for Canadian Skies, Vertical, Rotorhub and Aviation Maintenance magazines. He is a two-time winner of the PBI Media Award for Editorial Excellence.
