The Calgary-Okotoks Flight School is suing the Okotoks Air Ranch Airport.

In a press release from Aug. 26, the school alleges a breach of contract with the closure of the airport, which was announced in June of this year.

The school claims the rental agreement gave the school exclusive rights to operate in the airport for ten years, ending in 2028.

The school's general manager, Tim Ulmer, says the decision came following months of trying to work for a solution with the airport.

"We advised them saying, 'If you do this, it's going to affect a lot of people. Not only is the school going to close, but all these people are going to lose money. All the vendors aren't going to get paid, and the community is going to be affected greatly.' But they went ahead on June 8th and made that announcement."

The release states the "multimillion-dollar" lawsuit was launched to seek compensation after the airport offered none.

Ulmer says the announcement of the closure spelled the end of the school pretty quickly.

"Our creditors came in and said, 'Hey, how are you going to pay your bills? We've got these long-term loans with you. You have no business plan and no way to move forward.' So they basically accelerated our credit facilities and ended up ultimately seizing our planes and repossessing them, which meant, obviously, we had to stop training at that point. So there are a lot of students who have paid money and are no longer able to receive value for the money they've paid."

It's left several students frustrated at having put out thousands of dollars only to have the school close all of a sudden.

According to Ulmer, the lawsuit is largely aimed at providing compensation for students and any other stakeholders, as well as the school itself.

"I feel I understand, and I agree 100 per cent with the students. They paid for a service that we were unable to deliver, but our inability to deliver it was based on the actions of the owners of the airport who decided to repudiate our rental agreement for use of the airport over the next seven years. We're doing everything we can, all legal means, everything at our disposal, to try to get some sort of compensation for the students."

He says it's unlikely the school would be able to continue operating, even if the airport suddenly announced they will no longer be closing.

"At this point in time, even if the airport were to change their minds and say, 'You know what, let's stay open,' the damage has been done. Our planes have been repossessed. They've been sold. They're gone. Money has been lost. We haven't been able to take revenue in since they announced closure in June. We'd be in a worse position to restart today than we were three years ago.

"Three years ago the future was bright. We had good credit ratings. The community was all behind us, and we grew tremendously in those three years."

The press release offered thanks to the community for their support while the school was in operation.

"Fulfilling aviation dreams has been the greatest pleasure we could imagine. We have met incredible students and learned so much. We thank, from the bottom of our hearts, all
those who welcomed us into the aviation community and became our students, friends, and mentors. We will be ever grateful for your love and friendship. It is uncertain what the future holds for COFS, but we will take this incredible experience with us for the rest of our lives."

 

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