Certified flight schools

Financial requirements set for flight schools (FTO and TRTO) are covered in regulation on licences no. 401/2008 cf. Annex 1 a) to JAR-FCL 1.055 and Interpretive/Explanatory Material IEM No. 2 JAR-FCL 1.055.

With reference to this, certified flight schools shall provide the Icelandic Civil Aviation Administration (ICAA) with the following information regarding assessment of financial standing:
• Financial statement – General submission deadline 30 June
  An audited financial statement shall be submitted no later than six months after the end of the financial year in question. The financial statement shall be composed of an itemised income statement, balance sheet, and cash flow. If the operation of a flight school is part of a consolidated group, an itemised financial statement for the business unit shall be submitted. A financial statement without an audit opinion from a certified public accountant is not considered satisfactory.
• Fiscal and operational plan – General submission deadline 31 March
  An operational plan for the next financial year shall include detailed income and cost items and shall be in a form which is comparable with the financial statement. If the operation of a flight school is part of a consolidated group, an itemised operational plan for the business unit shall be submitted. The plan shall also include a liquidity plan for the coming financial year. The plan shall be itemised by month. Calculation premises shall be specially stated as well as all operational changes which have taken place since the previous year. A financial assessment can not be carried out if these requirements of the ICAA are not followed.

If there is doubt as to whether a certified flight school fulfills financial requirements, the ICAA reserves the right to get an opinion from an accountant under the auspices of the ICAA at the cost of the certificate holder cf. Article 10.3 in the tariff for services from the ICAA no. 661/2009 with subsequent amendments.

All financial information concerning certificate holders is treated as confidential.

A request for an extension of the deadline to provide requested data shall be in writing and shall state the reasoning for the request. The request shall be submitted as soon as possible and no later than on the specified submission date.
This information shall be submitted directly to the Head of the Finance Section of the ICAA.

Inspection of information and issued assessment by the ICAA: The ICAA reserves the right to take 30 workdays to inspect information and carry out a financial assessment. There can be exemptions to the submission deadline if an authorisation is to be renewed more than 30 workdays prior to the general submission deadline.

See also requirements in regulation on flight schools no. 692/1999 regarding registered flight schools. The same requirements as specified above apply to registered schools, except that less detailed information may be submitted following consultation with the ICAA.