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Old 08-04-2008   #1 (permalink)
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Default Training Contracts

Hey Bob:

I was going through airlinepilotcentral.com and looking at some of the profiles of regionals and such and I came across a couple that had some details of training contacts. I was wondering if you could go some more in depth about those? Some say that you recieve a $16000 training bond and such.... Thanks
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Old 08-04-2008   #2 (permalink)
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Hi Jason,

As always... every regional is different. But yes... some do have "training contracts".

The fact is... when an airline hires you, they invest tens of thousands of dollars in you during your initial training. Ground school, hotel, per-diem, travel, FTD's, Full motion SIM's, and IOE (Initial Operating Experience).

So, some of the airlines want a promise from you that you won't leave in a few short months since they consider you an investment. Thus... the idea of a training contract. Some may say that you have to pay back "training costs" if you leave before "X" date. While other's may have pro-rated pay back schedule based on a timetable they set up.

Personally... I'm not a big fan of "training contracts". Typically you'll see them offered from some smaller airlines or even some without a strong organized pilot group, and maybe even some from some airlines that are less desireable to work for due to poor contract rules, pay, pilot retention/turnover, etc.


Either way... you have to weigh your personal and professional options when it comes time to apply for a professional pilot position with a 121 carrier. As you can plainly see... not all airlines are created equal.

Researching each airlines work rules, contract, pay structure, etc... is a great place to start. It seems you are already on a good path of research. Keep it up!

Bob
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Old 08-04-2008   #3 (permalink)
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Thanks..... I figured I should start now.

Using Compass Airlines as an example:
Must sign $12,000 training contract, valid for 1 year. Amount is pro-rated $1,000/month.

So are you saying that if I were to leave before one year of service I would have to pay $12,000? If I complete my year of service though I don't have to pay anything, right....? I was also wondering about the $1000/month pro-rated?

Thanks
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Old 08-04-2008   #4 (permalink)
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Basically... Compass is saying that if you leave in the first month... then you owe the company $12k... if you leave in the second month then you owe $11k, third month = $10k, etc.

So... if you left in the 12th month... you would only owe $1k. Not the full $12k.

That's the nature of what "pro-rated" means... and you are correct in thinking that if you left after the contractual 12th month, then you would owe nothing.

Bob
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Last edited by ExpressJet_Bob; 08-04-2008 at 02:00 AM.
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Old 08-04-2008   #5 (permalink)
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Ok thanks Bob. I just couldn't make sense of the whole training contract deal.
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Old 08-04-2008   #6 (permalink)
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No problem...

Is it getting any clearer? I hope I'm explaining it clearly enough for you... but if I'm not, just let me know and I'll try to explain it a bit better. It's late... so who know's what I'm typing...

Bob
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Old 08-05-2008   #7 (permalink)
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No it makes perfect sense to me now. Thank you
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