Madam Chair, good morning and thank you for the invitation to participate today. I'm going to be reading from notes because I want to make sure I don't miss anything.
Southern Interior Flight Centre is a part of the Carson group of companies, which provides flight training in Kelowna, B.C., and medevac, freight and fuel and hangarage services in Kelowna, Calgary, Vancouver and Abbotsford. We get to face the challenges related to the pilot shortage in all aspects, not just training, but that's the focus for today.
At the flight school level, we train students to become recreational, general commercial, airline and instructor pilots, and we have a commercial aviation diploma program with Okanagan College. We have formal training partnerships with WestJet Encore, Jazz, Porter, and Carson Air, as well as informal connections with many companies seeking our graduates. As to the challenges, some of these you will recognize from previous meetings.
First, there is inadequate financial assistance for students. The high cost of initial training for a commercial pilot's licence combined with low funding leaves students deeply in debt. Available student loan assistance combined through Canada student loans and B.C. student loans, for example, in our province is a mere $5,440 per semester. Put this against the demonstrated need for $23,519 per semester and this means the typical unmet need in this is $18,000 for each semester, or over $90,000 one might need for a five-semester diploma program.
Second, we are facing increasing training costs. To acquire instructor staff, we now have to train flight instructors at a burden of $10,000 per instructor. This used to be a revenue stream generated from commercial pilots who wanted to instruct and has, instead, become a cost that now has to be passed along to the general flight training student group, thereby increasing their financial burden. The costs of aircraft parts and fuel are also unstable and increasing significantly. For example, a single-engine Cessna 172 aircraft new from the factory is currently $411,000 U.S. and requires a lead time of 14 months for delivery. Used aircraft result in bidding wars and still run 50% to 75% of new cost before adding in the high cost of overhauling major components like engines and propellers.
Not only is the domestic training demand fuelling aircraft sales and prices but international companies have been purchasing aircraft in groups of 25 or more for their own training use overseas. In addition to costs being increased through those means, the pool of aircraft maintenance engineers is also being depleted, thereby requiring higher pay and incentives to attract and retain qualified maintenance personnel.
Our third challenge is our general lack of access to potential staff. With the current state of hiring in the industry, new pilots do not need to spend time instructing to build experience to move to being commercial operators. Many graduates are going straight to airlines or other companies directly out of flight school. The lower availability of instructors equals fewer instructors who advance through the instructor class system in order to become supervising instructors or to be able to train new instructors.
As a temporary solution, hiring qualified international applicants for instructor positions is not a viable option for us as the current LMIA process is overly onerous and the lengthy Transport Canada licence conversion process also holds up the administrative processing of international applicants. Medical requirements are also overly restrictive in some circumstances, for example, when dealing with correctable colour blindness or when preventing retired airline pilots who no longer hold medicals from teaching in a simulator for us as they were already able to do at the airlines.
To counter that, our recommendations fall into two groups.
First, we need more aviation-specific funding. I think that's pretty clear. We need to increase federal funding in the way of additional student loans and loan forgiveness programs for students. We need to look at federal funding support in the way of instructor training or retention grants to help alleviate the financial burden passed along to the students. We also need to look at federal funding or tax credits for capital purchases to also help cover the extremely high and increasingly higher equipment costs.
The second group of recommendations involves being able to increase access to instructor staff. First, an increase in student funding would allow flight training units to pay instructors and aircraft maintenance engineers higher wages to be able to retain them. Next, providing easier access in the short term for international employees through the LMIA programs, either on a fast track or by exempting suitable candidates entirely, would allow us to hire pilots or aircraft maintenance engineers who are available internationally to fill the gap.
Reducing turnaround times at Transport Canada for the licence-conversion—