Feb 18, 2008 2:23 pm US/Pacific
Students Grounded When Oak. Flight School Closes
Linda Yee
OAKLAND (CBS 5) ―
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Helicopters sit idle after Silver State Helicopter School abruptly shut its doors after filing bankruptcy.
CBS
The helicopters are grounded. The doors to the Silver State Helicopter School at Oakland Airport, padlocked. Now 132 Bay Area students who were hoping to be pilots, have had their wings clipped.
"It was like somebody hit me in the stomach. It was a total, and complete shock," said Silver State Helicopter student Shaun Matthies.
The school shut down without notice February 4. The owner filed for bankruptcy, saying operating expenses were too high, the cash flow, low.
The helicopter school had 33 locations across the country, including one at Oakland Airport. Students would come two, three or four times a week for classes.
Wendy DeBolt had just practiced landing a helicopter on February 4, when instructors told her the school just shut down.
"I think I was emotional. Crying, upset," said DeBolt, "What am I going to do from here? I have this $80,000 loan on my credit now."
Students paid $70,000 in tuition up front. Most got private loans at 10% interest. They'll still have to pay off the loan, even though they won't be getting any more classes.
They're particularly angry at owner, Nevada millionaire Jerry Airola.
"He's sleaze," said Silver State student Jeff Morgan, " he promised a whole lot of stuff, he delivered about 10% of it. And left us with nothing but debt for student loans."
He's not new to controversy. Airola lost his 2006 bid for sheriff in Las Vegas when it was revealed he lied about his police credentials.
Now his business practices are being examined by the attorneys general in at least two states, including California.
Spokesman Gareth Lacy told CBS 5, "We're taking complaints from students and reviewing letters sent in. We have to determine what, if anything, we can do."
The students say they've hired attorneys and will try to get their money in bankruptcy court. And they plan to find another school. And another loan, they hope.
"Can we get another loan? Will someone approve us? We don't know, " wonders DeBolt.
And they pray their dreams of being a pilot don't crash and burn, like their helicopter school.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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