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SkyHigh 11-18-2012 09:27 AM

AOPA
 
I was told recently by an industry professional that the practice of renting planes to the public is a failed business model. I did not believe it so I made a few calls and it seems to be true.

AOPA and the National Association of Flight Instructors realize it as well. Traditional mom and pop flight schools are fading away. In their place factory style flight academy's are taking over and that works for the professionally minded pilot but not for the hobby guy who wants to rent planes after graduation.

As a result AOPA is starting to focus on non-profit flight clubs as a way to perpetuate general aviation. I believe that we are on the precipice of massive change in GA. In addition the 1500 hour rule could have effects that few now can predict. In any case GA as we have known it for the last 50 years is changing.

Skyhigh

JamesNoBrakes 11-18-2012 09:49 AM

I think the decline of mom and pop fbos/flight schools has been going on for a while. A lot of people remember it differently than it is now. Less planes to rent, less places to get instruction.

Std Deviation 11-18-2012 12:42 PM

Many people just vanish after they get their license. It's crazy. They spend all this time and money (and I'm talking recreational not those on a pro track) and then it comes to a halt.

I believe minimums required to keep the A/C overnight are one reason. Want to fly from Dallas to Houston for the weekend? Schools want 5 hours per day on Sat and Sun. Which is 2x the actually flight time.

I get the need for profit but it does discourage rentals.

Std Deviation 11-18-2012 12:44 PM

My college roomate is behind this one:
OpenAirplane - Coming Soon!

They've had press but are still in the startup phase.

Denver 11-18-2012 02:12 PM

The flight school I have been working at for 13 years has always subsidized GA. The maintenance pays for the flight school part but the school takes a loss every year. The only reason why we are still in business is due to sentimentality.

The owner says GA is our last vestige of freedom in this dwindling country. I agree with him.

NoyGonnaDoIt 11-19-2012 03:16 AM

There's also a wide disparity in the health of the rental industry geographically. I'm in the process of a move from an area where there are multiple airports with multiple flight schools and a wide variety of good rental aircraft at a good price to another where they are virtually non-existent.

Std Deviation, where have you seen a 5 hour daily minumum? In more than 20 years of renting I've never seen one higher than 3 with 2 being the most common I've come across. And, despite a number of multi-day trips, I've only actually had to pay them twice.

jonnyjetprop 11-19-2012 03:50 AM

It's interesting because I spoke with a former student, now instructor. He owns a Cessna 172 restart and was telling me how he has been making money with it on leaseback. The numbers he told me would lead me to believe him.

AOPA has been trying to do a lot to stem the tide of GA pilot losses. I think looking at "best practices" in promoting flying clubs isn't calling out a death sentence for the FBO. It is geographically driven.

jonnyjetprop 11-19-2012 03:56 AM

I haven't seen 5hr daily minimums in the Orlando market, but daily minimums have always been an issue when costing out renting a plane for a family trip.

In the old days, there was a mix of planes that were used for training and those that were for traveling. Now, it's hard to find planes other than 172 and warriors. This is the area where I think AOPA is smart to bring up flying clubs.




Originally Posted by Std Deviation (Post 1295332)
Many people just vanish after they get their license. It's crazy. They spend all this time and money (and I'm talking recreational not those on a pro track) and then it comes to a halt.

I believe minimums required to keep the A/C overnight are one reason. Want to fly from Dallas to Houston for the weekend? Schools want 5 hours per day on Sat and Sun. Which is 2x the actually flight time.

I get the need for profit but it does discourage rentals.


Sata 4000 RP 11-19-2012 05:36 AM

I rent out of two types of markets, one being ultra-rural and the other being a major city and the rural mom and pop just sold the plane to a student because they went $4K into the hole last year on the plane. That was the only rental plane in a 30 mile radius.

That said, the metro area planes need to be booked almost a week in advance for 1-2 hr weekend rentals due to demand. Good luck getting one for a weekend overnight on only a week in advance.

2StgTurbine 11-19-2012 09:45 AM


Originally Posted by NoyGonnaDoIt (Post 1295549)
Std Deviation, where have you seen a 5 hour daily minumum? In more than 20 years of renting I've never seen one higher than 3 with 2 being the most common I've come across. And, despite a number of multi-day trips, I've only actually had to pay them twice.

I have been to two flight schools with a 5 hour minimum that have caused me much grief trying to make a fun trip.

cjgreen91 11-19-2012 11:11 AM

The most I have ever seen is a 3 hour per day. Just plan a farther trip to avoid it ha.

To me the flight school is like any other business. They are out there to make money. The owners have to make a living to.

Best way to cut down costs. Fly with another pilot. Cuts all costs in half.

prwest 11-19-2012 12:01 PM

The school that I rent from only requires one hour per day, but good luck getting a plane.

threeighteen 11-19-2012 02:53 PM

The biggest issues that we face:

EPA and their two pronged war against mogas and 100LL.

Torts - Why should the manufacturer be responsible for all crashes of their airplanes? GM isn't responsible if you crash a chevy cruise into a bank. If its not a defect of manufacturing or an issue that was hidden or unknown to the public, I don't see how the manufacturer should be liable.

Certified engines - Too costly. I don't see why an engine designed 60 years ago from basic materials needs to cost more than a brand new car designed 2 years ago.

Std Deviation 11-20-2012 08:12 AM

The demise of the mom and pop school is a reality and is going to have a big impact. When I operated one we sold NOAA charts and were a Lasergrade testing Center. The Feds have now taken both of those away if you don't sell a certain amount. That revenue kept the lights on during Feb when we were snowed in.

On another note - the 5 hr mins I've seen are in DFW.

The mom and pops tend to have lower restrictions, but see note above.


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