Flight schools throughout California may receive a reprieve in enforcement of a new law requiring the schools to be approved by the state and pay a one-time $5,000 application fee. The law going into affect on Aug. 1 has caused a stir among operators of flight schools because of the financial hardships the new regulations may create. Pending legislation would delay the regulations. The schools, including many in the San Fernando Valley area, are small businesses just breaking even and the application fee, a $1,000 annual fee, the cost of providing audited financial reports and remitting 0.75 percent of annual revenues to the California Student Tuition Recovery Fund could result in closure of their doors. The law, signed by Gov. Arnold Schwarzenegger in May, puts flight schools under the auspices of the state Bureau for Private Postsecondary Education. The schools had previously been exempt because they had been approved by the Federal Aviation Administration. Lawmakers made the change to protect students if the flight school went out of business, as happened in 2008 when a helicopter training facility ceased operations leaving the students on the hook for thousands of dollars in loans for a program they never finished. Flight school operators, however, were never consulted about the changes and many were not aware of them until receiving a letter earlier this year from the bureau, said Michael France, director of regulatory affairs for the National Air Transportation Association. Added expenses These schools are different from the other postsecondary institutions the bureau regulates such as trade schools because they have no prepaid tuition. “I don’t think that was the intent of this whole thing,” said Dusty Rhodes, who has operated a flight school at Whiteman Airport in Pacoima for nearly 25 years. Vista Aviation would be able to afford the application fee but the other added expenses would prove too much, Rhodes said. Bridgette Doremire has operated the Silver Wings flight school at Van Nuys Airport for four years. In 2007, the school had 12 instructors and five airplanes. These days there are only two instructors and they use planes belonging to other flight schools. Harsh prediction The new regulations would likely result in Silver Wings closing down. “Those (flight schools) that are struggling to keep doors open will go out of business,” Doremire said. “For those that can keep their doors open this is a significant financial penalty.” A survey of 25 flight schools in California by the National Air Transportation Association showed that one-third of the respondents had no net revenues or operated at a loss in 2009. Those schools with net revenues had an average profit margin of 5 percent. Legislation is now before state lawmakers that would delay enforcement of the regulations. The bill in the Senate would place a 12-month hold while the version in the Assembly is for 18 months. The NATA has put out a call to action to its members to urge their representatives to vote in favor of the delay, France said. “One of the key things in how big this issue is is even the AOPS (Aircraft Owners and Pilots Association) are working with us as well as we try to find a resolution to this,” France said. “They don’t think these rules are in the best interests of pilots. The state law does allow for exemptions from the regulations but the criteria used is confusing, Doremire said. The NATA is also looking for clarity in the exemption process. In comments to the bureau, the NATA said all flight schools are exempt because they help students in tests to receive an FAA license.
Flight School Operators Hit Turbulence of New State Law
