Falcon Aviation Academy Closes Permanently

BrianNC

BrianNC

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Falcon Aviation Academy in Newnan, Peachtree City, and Athens GA. The virus finally took it's toll. They didn't have enough money to keep operating. Here is a letter to employees. Website is already shut down. http://faa-air.com

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Wow! This is very surprising and sad. They flew their DA20’s up here all the time for check rides. I’m sorry to hear this...
 
Sad new for the employees and especially for any students that put money down.

In my experience when a flight school closes overnight like this it’s rare for students to get any refunds for money they’ve paid ahead. I hope this case will be the exception.
Gary
 
Two weeks severance is a bit surprising. I wonder if that will actually be paid out.
 
Definitely a big player in the Atlanta area for some time. I definitely feel sorry for those losing their jobs.
 
BrianNC said:
Falcon Aviation Academy in Newnan, Peachtree City, and Athens GA. The virus finally took it's toll. They didn't have enough money to keep operating. Here is a letter to employees. Website is already shut down. http://faa-air.com

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Probably not the last one this is going to happen to. I wonder what’s in that release. What actions could the employees take that it’s worth two weeks salary to get them to sign away a right to take those actions.
 
Brad Z said:
Two weeks severance is a bit surprising. I wonder if that will actually be paid out.
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Only those that sign some kind of ‘release’ get it. Yeah, how will “...as soon as administratively feasible...” work out.
 
luvflyin said:
Probably not the last one this is going to happen to. I wonder what’s in that release. What actions could the employees take that it’s worth two weeks salary to get them to sign away a right to take those actions.
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Most likely a general release of all claims against the company, which is not uncommon in severance agreements.

The likelihood of being able to successfully win a lawsuit against Falcon in the future is pretty much zero, so what value is there in giving up the severance in exchange for retaining those rights?

Here’s a template of one from one of the two big HR associations.

https://www.shrm.org/resourcesandtools/tools-and-samples/hr-forms/pages/waiverexitincentive.aspx
 
I've gotten calls from a number of their instructors over the last couple of weeks. I guess this is one of the dangers with specializing too much. It was a very busy flight school.
 
write-stuff said:
I guess this is one of the dangers with specializing too much. It was a very busy flight school.
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In today’s world, can you build a large flight school without it being an Asia centric puppy mill?
 
Well their whole business model revolved around Chinese training. I stopped in there a few years back and it was nothing but Chinese students wearing epaulets. Reminds me of a school in Savannah that was getting military tuition assistance for flight training. Once everyone deployed, they closed up shop. Kept our $$$ in the process.

Hate to hear this king of stuff and I hope the staff in this situation can find employment elsewhere.
 
Sorry to hear. Too bad the newly release government assistance for small business didn't come in time. I'm pleasantly surprised they are offering severance. In a chapter 7, it is the creditors who are first in line for any remaining assets. Odd that just because they weren't getting this month's crop of new students they went under. They still have the current students in training, unless China pulled the plug on even the current students.
 
So a bunch of planes are hitting the market?
 
Bunch of DA-20s and DA-42s.
 
Sad affair indeed. The instructors are getting their first lesson in real life aviation. Sadder still is this won't be the last time something like this happens.

Sometimes it is just easier to close the doors than to try to continue. Fear not, The owner(s) will not leave this endeavor without money in their pockets.
 
I’m feeling extremely fortunate right now. Late last year I turned down an instructor offer from them. I was very torn by this decision as I knew several people who instructed there and liked it. I decided I was better off keeping my day job and just building hours on my own. Most of their airplanes are looking pretty rough these days. There were signs everywhere warning the Chinese students that “if you are caught speaking anything other than English you will be fined”. They had a lot of debt for sure. Two flight schools in nice big buildings. Fairly new aircraft and sims. They also owned an old hotel that students stayed in. When you bet the farm on Chinese and it bites the dust there is no way to cover that overhead quick enough.
 
Wow now the CN students need to head back to the land of the Wuhan. That’s terrible indeed! I wonder how many will “miss” their flights home.
 
WDD said:
..... I'm pleasantly surprised they are offering severance. In a chapter 7, it is the creditors who are first in line for any remaining assets.....
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The deal is “That severance will be paid to you in a single lump-sum as soon as administratively feasible following the date you sign and return the release.”

That Chapter 7 thing sounds like payment could become unfeasible. So uh, if so, does the ‘Release’ become unenforceable?
 
YooperMooney said:
Wow now the CN students need to head back to the land of the Wuhan. That’s terrible indeed! I wonder how many will “miss” their flights home.
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I thought US flights to China are cancelled. Maybe flight to mid-east and then camel along the silk road to China?
 
luvflyin said:
That Chapter 7 thing sounds like payment could become unfeasible. So uh, if so, does the ‘Release’ become unenforceable?
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The trustee could enforce it until the process is wrapped up.
 
Debt holders come first. Then suppliers who are owed money. Employees are far down on the list. And what are the releases for anyway I wonder.
 
WDD said:
Debt holders come first. Then suppliers who are owed money. Employees are far down on the list. And what are the releases for anyway I wonder.
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The precious client list....
 
That’s the way it is for any chapter 7 or 11. The hardest hit are owners / stock holders. They get nothing.
 
WDD said:
That’s the way it is for any chapter 7 or 11. The hardest hit are owners / stock holders. They get nothing.
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The voices in my head say that the owners may have extracted a little money in the days leading up to the filing.
 
luvflyin said:
The voices in my head say that the owners may have extracted a little money in the days leading up to the filing.
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Insider chicanery? In this industry? No way dear sir, I do declare, no way. :D
 
Those who were enrolled under 141 through Liberty University just received official word:

We will have the option to transfer, continue and pick up where we left off in our 141 syllabi at Pheonix East Aviation out of RYY OR Pheonix East Aviation out of Daytona Beach, FL. You’ll need to let the falcon management (that email we all got in the talon notification) know before the weekend is over which one you’re going to go to. They are coordinating the transfer of all our records and financials.

For those concerned about future stability; Yes, the investment company that put money into Falcon has invested some money into both companies, but they do not control the companies. Each company has their own management. Phoenix East has very strong financials, and purchased Superior Flight School, and Liberty is taking steps to try and bring them on as an approved location for all, soon. Phoenix East even has self-examining authority for its 141 courses.

This is great news for us. Looking forward to getting back into the saddle next week.
 
And here we go. An average of $46,551.72 per aircraft.

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Sad, never good for the aviation community.
 
Man that sucks. I was just thinking about giving them a visit to check out the DA-42 fleet.
 
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