Starting a flight school.

[minitour]

The business model is hey you have spent $4k already trying to get your license if you quit now you lose all the time/money you have invested. I always equate running a flight school to selling used cars.

Just to add if you are going to start a flight school, simulator time and ground instruction is were the $$$ is at.

Quite interesting. Our business plan ("model" if you will) doesn't look anything like that. Our goal is to get the students in, get them trained proficiently and safely and get them on their way to whatever awaits them, be it a career, the $400 hamburger (gas prices are up ) or just taking the family around the patch.

As for your second paragraph....we don't pay our bills from airplane rental, we pay them on instruction. Simulator time is golden for us because it's $0 to us. The simulator is ours...yea we could break down the $7,000 acquisition cost into an hourly figure and figure out when we actually start "making money" on it, but we wrote the $7,000 into the "cost of doing business" category. Much like mx and insurance, it's the cost of doing business.

I wouldn't say that all flight schools try to get someone in with block money and then bleed them dry, though I have seen it happen before. Just try not to generalize...it pisses us that try to do an honest business off.

-mini

 

[AC560]

it pisses us that try to do an honest business off.

No offense intended but it is a scummy business and for the most part if you want to make a living at it you need to squeeze a little blood from the rock. I have seen a lot of great guys start up flight schools, piss away a small fortune, and go tits up. The next guy to come in generally is universally hated by all, has sh!t maintenance, and retards for instructors. Inevitability this guy goes on to running 135 charter and retires rich.

If you have managed to create an environment where your CFI's are making $30k + a year with 401K/insurance, your students get their PPL in 40-50hrs, and you are making a good buck then I salute you. Write a book telling others how to do it, because the industry could definitely use it.

 

[Amish RakeFight]

I agree.

Any school I've worked or trained out of had crappy customer service and no real marketing all while milking the student.

Once I became an instructor, I saw how things looked from the other side of the counter. Students are walking money bags and every owner tries to separate them from it.

 

[FlyingToIST]

i just spent a bunch of money on my private and instrument ratings over the past year in florida as well. i am also a small business owner. when searching for a flight school i was shocked to see the way these operations were generally run. it takes a lot of time and cash to learn to fly proficiently and safely. most flight schools that i looked at were unprofessional at best, with customer service that would put most small firms out of business very quickly. also not one marketed itself effectively. To attract the type of people who can afford training, you need to go out and target your market. I have been extremely happy with the fbo i trained with, my only comment is it seems insane that cfi's are not paid enough to attract and retain talent. i would have gladly paid a living wage to a cfi with an atp rating instead of someone with a paper commercial certificate. soon it will cost so much to train that only those with extreme wealth will be able to do it. these guys should not balk at higher instruction rates if you can show them that an experienced cfi will be able to transfer more knoweledge that may save their ass one day. just my 02.

Flyinggator,
you are a minority. Here's the reason why..
- We have 'buy 10 hrs get 1 free' type of generous block time. Despite all this we are being asked even more favors.. 'Can i have this, can i have that?".. well, we are giving you something better than other schools..
- Customers don't compare any place where they receive service. The only comparison is $$$$. American public forgot what 'value' is.. You can see this trend in airline travel.
- Insurance for 5 plane operation is $35K/year. That's the money that i have to come up with even if i fly 1 hrs.
- The markup on the flight schools are in instruction. Despite the fact that i am paying more than average local schools, i am having hard time finding instructors. They leave at the end of 6 month period. Most of them are young, inexperienced and low paid.. I wish i was able to pay them $30/hr and some of them are worth that money but are you willling to pay $100/hr for instruction?
- We compete with pilot certificate mills..
- Flying has gotten more and more expensive; not only because of fuel but also because of insurance. I am charging $20/hr more for a Tomahawk than what i used to pay for an Arrow 7 years ago..
....
shoot.. someone remind me why i am in this business

 

[AC560]

- Customers don't compare any place where they receive service. The only comparison is $$$$. American public forgot what 'value' is..

And what does a student pilot have to compare against to know whether or not he is getting something of value or not. Sure you can do your research but at the end of the day how does a student know that local FBO charging $X an hour is a better value then some other place which charges more or less.

The only way to really increase the demand for quality instruction and reduce the number of bad pilots out there is for the FAA to raise the requirements to get a license (harder check rides, knowledge tests, and more ground/book training). Until then the certificate mills will continue to fill the world with poor pilots and good flight schools will continue to go under. You think AOPA shoveled cash to save Miegs, watch how fast they spring into action if somebody suggests it should be harder to become a pilot (or God forbid to stay a pilot).

 

[flyin'gator]

i fully agree that the flight school business is filled with adversity, rapidly rising costs, fierce competition and a public perception problem. this is becomming very true for almost any business. I have been an air conditioning contractor for the last 7 years, and my industry shares many of the issues facing yours. most critically, our profession is largely seen as "ripping off" our clients. this is a major public relations problem that hurts our entire industry.

one response to this is to make a certification like "a.s.e." for automobile mechanics, or in our industry it is called "n.a.t.e", and market the fact that your company "upholds the standards of this regulatory body...etc. this helps build value and trust with the customer.this is part of relaying to the public that your outfit represents the highest standards and ethics. in order to seperate the good from the bad, the customer has to be made aware that there is a better alternative.

some clients are always going to look for the lowest cost and we do lose business because of our pricing. Overall, most clients who try us appreciate the service quality, equipment quality, and manners and ethics of our employees, and more often than not they refer us to a friend or family member.

I'm not trying to lecture anybody here, i just see many parallels between my own experiences as a small business operator and the flight school industry. this thread seems to be a good exchange of ideas and opinions so i worked up enough nerve to post.