First Minister John Swinney is demanding immediate answers from the head of UHI Perth over the collapse of its aviation engineering subsidiary.
Air Service Training (Engineering) Limited (AST) is a wholly owned subsidiary of UHI Perth.
It plunged into administration earlier this month, putting 28 jobs at risk.
More than 190,000 students have qualified through its courses since it was founded in 1931.
UHI Perth has provided enough money to ensure its BSc in aircraft maintenance engineering and management programme will continue until the end of the academic year.
However, all other courses will end immediately.
This has troubled Mr Swinney, who is the MSP for Perthshire North where the airport and college is located.
He has now written to the institution demanding to know what safeguards are in place and whether there are any further “financial difficulties” UHI Perth needs to make public.
Most recent financial accounts for UHI Perth show it posted a deficit of £1.7 million to July 31 2024.
What First Minister wants to know
In a joint letter, Mr Swinney, local SNP’s MP Pete Wishart and fellow Perthshire MSP Jim Fairlie, “seek urgent clarity” from Dr Cook on a number of unanswered issues, including:
- When Dr Cook became aware of the extent of the financial difficulties, and what was done from that point to try to prevent the current situation from unfolding.
- Why AST’s financial difficulties were not disclosed to the Board earlier.
- What is being done to address the situation surrounding student teachings and exams.
- What provisions are being made for students who fail their exams at first sitting to ensure they can re-sit.
- What is being done to ensure UHI upholds its legal obligation to provide eligible students with the Part 66 licence accreditation, and that the hours completed so far by first and second year students will be accepted should they go on to enrol on a course with a different provider.
- Whether compensation is going to be offered to students for the disruption that has been inflicted upon their studies.
- What is being done to find a buyer for AST
- Whether there are other financial difficulties at UHI Perth which could lead to further cuts.
John Swinney letter to UHI Perth
Mr Swinney said: “AST is a world-class facility located in the heart of Perthshire.
“It has a rich history of providing specialised training and has a profoundly positive impact on the local economy.
“To that end, it is vital that all possible avenues to save AST are explored.
“Along with Pete Wishart and Jim Fairlie, I will continue to engage with all stakeholders and strongly advocate for a solution that secures the future of AST and safeguards the jobs and training opportunities that it provides within the local area.”
Why has AST entered administration?
The company has struggled financially since the pandemic, due to falling student numbers, reduced commercial contracts and rising costs.
This combination of factors has put significant strain on its cash flow.
AST was to receive up to £8m in funding from the Tay Cities Deal, in a partnership with Tayside Aviation.
Tayside Aviation collapsed in 2023, and subsequently no business case has been submitted for the cash.
UHI Perth and Dr Cook have been approached for comment.
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