Virgin flight training deal gets foreign investment approval

Virgin Australia Group has received approval from Australia’s Foreign Investment Review Board and Treasurer Josh Frydenberg to lease facilities in Tamworth for its pilot training program. Virgin, which needed to obtain the approval because it is mostly foreign-owned, intends to lease facilities from Tamworth Regional Council for its pilot cadet program. It will then sublease the facilities to Australian International Aviation College (AIAC) which will conduct training in Tamworth for the airline’s pilot cadets as well as overseas students. The airline group said Tamworth Regional Council would manage the establishment of the pilot training school and use of the facilities. READ: Aussie airfares take a tumble in October “Virgin Australia intends to use the flight training services of both AIAC and CAE Australia Flight Training to train its cadets, funneling talent directly into the Group,’’ a Virgin spokesman said. “Virgin Australia will continue to run its pilot cadetship program into the future and is committed to having this program run in Tamworth. “In addition, the Group remains committed to pilot training initiatives through our cadetship program, internal development opportunities, and current pilot training partners.” The $A30m project has been swept up in Australian angst about Chinese influence because Virgin investor HNA Group owns 80 percent of AIAC and another Chinese company, Winbright Overseas Investment, owns a further 10 percent. Many of the facility’s students are expected to be from China, where rapid airline growth and a limited number of domestic flying schools have prompted an overseas buying spree in countries such as Australia, Canada and the US. Almost half of more than 5000 Chinese trainee pilots in 2017 were trained abroad, according to The Financial Times. Tamworth Region Mayor Col Murray described the decision as great news and meant commercial negotiations with Virgin Australia could move forward. “Pilot training has a long history in Tamworth and it’s exciting we will soon see the addition of Virgin Australia cadet pilots at our purpose-built facility which is already being used by BAE Systems and CAE Australia Flight Training,” Cr Murray said in a statement. “Planning in readiness for the first cadet pilots to arrive is well advanced. “Council has called tenders for various operational aspects at the flying college including catering and food services to commence in the new year. “We will be ready for Virgin Australia’s cadet pilots to take up residency here as soon as possible.”