A Perth firm which has trained thousands of pilots and aircraft engineers since 1931 has entered administration.

Air Service Training (Engineering) Limited (AST) is a wholly owned subsidiary of UHI Perth.

It was established almost 100 years ago to provide approved courses in aircraft engineering.

Since its formation, it has trained more than 190,000 engineers and pilots from approximately 150 countries. The business currently has 28 members of staff.

Why has Air Service Training 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.

Its owner, UHI Perth, has stepped in to provide funding to ensure the BSc in aircraft maintenance engineering and management programme will continue until the end of the academic year.

However, all other courses will end immediately.

Air Service Training was earmarked for £8 million of Tay Cities Deal cash to create a national aviation academy.

This project was to be a partnership with Tayside Aviation of Dundee, which went into administration two years ago and its business case has not been approved.

Shona Campbell of Henderson Loggie has been appointed as administrator.

She said: “AST has faced prolonged financial challenges, making this a difficult but necessary decision.

Shona Campbell, head of business recovery and insolvency at Henderson Loggie, is handling the administration of Air Service Training.

“Our priority now is to support staff and ensure they receive the support and assistance they are entitled to.

“We will work closely with all affected parties to manage this transition as smoothly as possible and ensure optimum returns to creditors, including students.”

Financial challenges in historic training firm

AST has 28 employees, some of whom will be retained until the summer to deliver the BSc course.

164 students are currently attending courses in the UK, of which 46 are on the BSc. A further 98 attend AST courses at overseas locations.

A spokesperson for UHI Perth said: “AST has been experiencing financial challenges for some time.

“The board of the company has been considering its future and, having exhausted all options to save the company, has taken the difficult decision to place AST in administration.”

The Air Service Training building at Perth Airport. Image: Google Maps

“Our primary concern throughout the process has been our staff and our students, and we have worked with the administrator in an attempt to ensure the most acceptable possible outcome for all of them.”

The aviation regulatory bodies UK Civil Aviation Authority (UK CAA) and the European Union Aviation Safety Agency (EASA) have been informed of the decision.

They will work with the administrator to ensure their regulatory and statutory requirements are respected.

First Minister John Swinney said: “This is very concerning news and my thoughts are with those affected by this announcement.

“For nearly a century, AST has been a hugely important contributor to the aviation industry.

“Accordingly, I will ensure that I work with all stakeholders in an attempt to find a way forward.”