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Falling student numbers and rising costs have been blamed for the sudden closure of a Scottish aviation training provider linked to the University of the Highlands and Islands (UHI).?

Air Service Training (Engineering) Limited (AST), a wholly owned subsidiary of UHI Perth, has entered administration, impacting over 250 students enrolled on AST¡¯s courses in the UK and abroad.

A spokesperson?for UHI told?Times Higher Education?the university is ¡°working closely¡± with administrators and UHI Perth to ¡°provide clear communication and appropriate support to all affected students¡±.?

Perth-based AST, which was established in 1931, provides courses in aircraft engineering and has trained over 190,000 engineers and pilots from approximately 150 countries.

However, the provider has struggled financially since the pandemic, with falling student numbers, reduced commercial contracts and rising costs putting a ¡°significant strain on its cash flow¡±, according to a statement about the closure.

UHI Perth, a?constituent college?of UHI, is providing funding to ensure the 46 students enrolled on AST¡¯s BSc programme in aircraft maintenance engineering and management can continue until the end of the academic year.

It is unclear what will happen to both those students after that point and the remaining students enrolled on the provider¡¯s other courses, which are set to end immediately.?

The UHI spokesperson clarified that AST is not owned or operated by UHI itself, but said the university is focused on ¡°minimising disruption and helping to safeguard learning wherever possible during this time¡±.

In total, 164 students are currently enrolled on AST courses in the UK, in addition to a further 98 at overseas locations.

¡°AST has faced prolonged financial challenges, making this a difficult but necessary decision,¡± said Shona Campbell, chair of accountancy and tax advisory Henderson Loggie, which has been appointed to oversee AST¡¯s administration.?

¡°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.¡±

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.

¡°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.¡±

helen.packer@timeshighereducation.com