The Lufthansa Group’s flight school, the European Flight Academy (EFA), is now able to offer frozen Air Transport Pilot Licence (fATPL) training programs that only require a €10,000 payment contribution from cadets, regardless of individual financial circumstances, thanks to a tie-in with finance company Brain Capital.
Income Share Agreement Details
According to EFA, an applicant can receive financing from Brain Capital without asking for extra monetary protection, as the person’s relatives guarantee, provided to those who already have a training contract with the European Flight Academy.
Rather than paying their entire training expenses in one, graduates from EFA’s flight training programs will instead join an income share agreement in which they pay back a set percentage of their salary after they start employment. According to EFA, the precise repayment amount depends on the income; the higher the wage, the greater the repayment amount, and vice versa.
Affordable Pilot Training Costs and Payment Structure
Cadets will pay €10,000 to the academy upon acceptance of the training contract, with Brain Capital paying the remaining €110,000 in costs. Graduates will begin payments once they complete training and earn a minimum annual income of €30,000.
After 11 years, graduates must pay 11% of their salary toward educational costs if they receive the maximum loan.
According to EFA, there’s an efficiency limit on salary. If previous students find jobs at a Lufthansa Group airline, the financing option won’t come with rates of interest higher than 8% (compared to other possibilities like taking out an ordinary school loan). Therefore, even if they secure a well-paying pilot job, the financing cost will remain fixed and cannot increase.
Statements from Raymund Obst, Head of Pilot Schools at EFA
Raymund Obst, the Head of Pilot Schools at EFA, made the following statements about the new funding strategy: “Flight school training is time-consuming and expensive. We know that only very few people can afford to pay for the training to become an airline transport pilot out of their resources. At EFA, it is our goal that career prospects are not determined by the size of the parent’s wallet.” “Turning this goal into reality is facilitated to a great degree through the significantly improved financing model with our partner Brain Capital: Anyone who signed a training contract with us and has equity of €10,000 can start their dream of flying with us. In this way, we also contribute to diversity within the Lufthansa Group.”
Overview of the EFA Affordable Pilot Training Program
The approximately 24-month educational institution starts with theoretical knowledge lessons in Bremen or Zurich, Switzerland, and closes with flying instruction in Goodyear, USA, or Grenchen, Switzerland. Cadets completing training in Grenchen will fly Diamond training aircraft, while those undergoing training at Goodyear will fly Cirrus SR20 aircraft.
According to EFA, cadets’ access to the Lufthansa Group airline is an essential asset. Graduates can apply to Lufthansa Group and receive job preference over candidates with different educational backgrounds.
Fleet Expansion and Commitment to Advanced Technology
Other news from EFA confirms its Bremen training fleet has received three additional DA-42NG-VI twin-engine trainers. In August, the manufacturer symbolically handed the three aircraft to the flight school at an induction ceremony.
Raymund Obst, the head of EFA’s pilot schools, made the following comments about the fleet expansion: “We are proud to be able to offer our students training on the latest state-of-the-art technology with these new aircraft. Our decades of experience as a Lufthansa Group flight school complement our unique connection to active airline operations.”
