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Abrupt flight school closure impacts students

Virginia business took cash up front

Editor's note: This story was updated August 15 to correct inaccurate information about the nature of a personal loan. AOPA regrets the error.

A flight school in Manassas, Virginia, closed its doors abruptly on August 1, leaving an unknown number of students in the lurch—at least one of whom had paid an enormous deposit and received a small fraction of what she had paid for.

Thida Aung, pictured here with an American Aviation aircraft, said she was surprised when the school abruptly closed August 1. Photo courtesy of Thida Aung.

The flight school, registered in 2007, according to state records, as American Aviation LLC, more recently renamed American Aviation Manassas LLC, operated at Manassas Regional Airport/Harry P. Davis Field in Virginia, though it appears to have conducted business under various names, including American Helicopters & Aviation, and American Aviation Services LLC, the name displayed on a sign at the airport.

On August 6, the school's owner, Kevin C. Rychlik, filed personally for Chapter 7 bankruptcy protection, citing business debt (between $10 million and $50 million, based on the box checked on the petition form) as the primary reason, and leaving dozens of creditors—including customers of his flight school—at risk of never being repaid.

The petition lists 123 creditors, including individuals, financial institutions, aviation businesses, health care providers, and insurance companies. It is unclear how many are students.

One of those students, Thida Aung, is listed in the bankruptcy petition, which was submitted to the court lacking many of the details that are required for a Chapter 7 petition. Rychlik will be required to file additional documents, including lists of amounts owed to specific creditors, in coming weeks or the case could be dismissed under federal bankruptcy court rules.

Aung, 42, told AOPA that she had given the school her life savings—$100,000—up front, to train for a new career as an airline pilot.

"This was my dream and now it's probably no longer coming true," Aung said.

'Special price… For am wire on 5/16/24 only'

Aung, who holds a master's degree in business administration, said she had felt stuck in her career in chemical engineering. It had always been her dream to fly, and she decided that as a small business owner she had enough independence to transition into an aviation career.

Manassas Regional Airport being closest to her residence, she did some research and found American Aviation's offerings competitive with other nearby options. Aung said she found the Rychliks very relatable, and it resonated with her that "they were engaged in charities, taking care of the homeless." They assured Aung they would “be with me every step” and would work with her timeline, so on May 15 she signed up for a 250-hour "Airplane Career Package," a transaction documented in a text message, at a discount: "all inclusive VIP with 30hr job guarantee as a CFI upon completion. $59,900.00 price … Special price of $50,000.00 For am wire on 5/16/24 only."

Aung said she provided an additional $50,000 as a loan to the school in order to help financing an airplane, with a written promise from Rychlik to repay her.

Aung began to suspect something was wrong when her schedule for July was changed, and planned lessons were canceled or rescheduled, then rescheduled again.

Aung had logged 3.5 hours by August 1, when she received an email addressed to "American Helicopters & Aviation Customers" signed by "Kevin & Ann Rychlik," announcing: "It is with heavy hearts that we must inform you that after 21 years American Helicopters and American Aviation has closed. All flights are canceled, and our office will not reopen."

The school website where Aung spotted the deal was offline by August 7, when a local TV station reported the school's abrupt closure.

'A massive stroke'

The Rychliks (Ann Rychlik is listed as the president of the limited liability company in state records) cited the challenges of parts availability related to of the COVID-19 pandemic, and that "fuel and insurance rates have skyrocketed. Mechanics are nearly impossible to hire as the industry has a massive shortage … We worked tirelessly to continue to operate a safe and top-notch operation."

The email, which Aung received after she contacted Rychlik left Aung distraught and confused: "How can they fold when there's such a huge demand in the market for pilots?" Aung said she called Rychlik, who told her that there would be no refund.

The email also cited health issues: "In September of 2023, Kevin suffered a massive stroke. Since then, he has had 5 more st[r]okes/stroke-like episodes. The most recent stroke on July 19 was very serious. Ann found Kevin unconscious and unresponsive, and on the way to the hospital, his ambulance was T-boned by a car causing him additional injuries."

All of this came as a surprise to Aung, who met both of the school's owners before enrolling in their career pilot program. "He was a picture of health, very strong, the both of them," Aung said.

Questions about the details of the bankruptcy, including amounts owed to creditors, and the disparity between Aung's observations and the health issues cited in the August 1 letter to the school's customers, were emailed to bankruptcy attorney Timothy McGary, who filed the Chapter 7 petition on Kevin Rychlik's behalf, and directly to Rychlik, who previously filed for Chapter 7 bankruptcy protection in 1989, court records show.

"We are still in the process of finalizing information in this matter and will not be in a position to comment until after the Section [341] hearing in September," McGary responded.

Rychlik responded to the question about his health issues in a subsequent email: "I had strokes on September 21, 2023, January 17, 2024, March 5, 2024, March 25, 2025, June 20, 2024 and July 19, 2024. We notified our entire staff and customer base of my stroke events On 11/3/23, 2/29/24, March 16, 2024 via schedule point, our customer management software."

Rychlik provided a link to online information about strokes, and concluded, "No other comments at this time. Please be very cautious of libel, slander and defamation of character in your articles."

The court scheduled a September 5 hearing to include a meeting of creditors and to allow the trustee and creditors to question the debtor, and set a November 4 deadline for creditors to object to the discharge of debt. Creditors are not asked to provide proof of claim, according to an August 9 notice from the court, because "no property appears to be available to pay creditors."

The case schedule may change. The court set an August 20 deadline for Rychlik to file the missing documents, though an extension could be granted if requested. Another hearing on the petition is scheduled for September 10 before Judge Klinette H. Kindred.

Aung has not given up on achieving her dream in Manassas. "I'd like to acquire the whole outfit. I'd need investors, but I think I could make it work."


Sylvia Schneider Horne
Digital Media Editor
Sylvia Schneider Horne is a digital media editor for AOPA's eMedia division.

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