YARMOUTH, NS – The Cape Breton Flight Institute is disappointed Enterprise Cape Breton felt it was necessary to seek the appointment of a receiver despite CBFI’s offer to settle its debt with the federal agency.
“This is a responsible company that meets its commitments. We made ECBC an offer that would have resulted in repayment of the loan and we are sorry they didn’t see fit to accept it. They have to do what they think is best, and I guess we have to live with it,” said Bill Gardiner, chairman of the Flying Phoenix Aviation Group, the parent company of CBFI.
Mr. Gardiner acknowledged that the company ran into a number of obstacles in its plans to open a flight school in Sydney, but says those obstacles are delays only and can be overcome. The company has not given up on Sydney.
Private investment in CBFI and FPAG exceeds $1.1 million and the private investors are confident in the solid business plan. That plan is based on training pilots, maintenance engineers and other workers required for the burgeoning Chinese airline sector – expected to double in size and become the second largest aviation market in the world within five years.
“We have an outstanding team in Nova Scotia and have built vital links and partnerships in China that position our company and Nova Scotia to take advantage of an excellent opportunity to compete successfully in the global marketplace in the aviation education sector,” Mr. Gardiner said Tuesday.
The flight school plan hit a snag when the Chinese government’s aviation regulator, Civil Aviation Authority of China froze all international applications for accreditation to train Chinese pilots. That freeze won’t be lifted until procedures to assure the quality of training programs that receive Chinese students are in place. FPAG has Transport Canada certification which will meet the Chinese standard.
Mr. Gardiner said he understands why ECBC felt it necessary to call its loan, as little progress has been made on the Sydney school since the CAAC freeze. However FPAG has significantly advanced its connections in China and plans to operate additional training programs that do not require CAAC sanction, from the Yarmouth airport.
The company had offered to sell an airplane hangered in Sydney in order to repay ECBC and meet any other outstanding obligations to Sydney airport. The aircraft has a market value of $200,000 and would seem to be adequate security for a $108,600 loan.
China intends to build 240 new airports and acquire thousands of new aircraft over the next decade. That expansion will require thousands of trained aviation professionals.
Mr. Gardiner said Nova Scotia has the assets to take advantage of that market, including under-used infrastructure, particularly at the Yarmouth and Sydney airports. English is the language of international aviation, making North America a preferred destination for international aviation training.
