£160/hr (inc VAT) should buy you time in a brand new (c. £170k + VAT) PA28 Archer, in which everything works, the instructor is a career instructor on PAYE (not an ATPL hour builder on £10/day retainer plus £10/hr for flying time), plus a pretty but very efficient girl on the reception desk
My guess :
Variable costs (hourly):
Fuel £30
50hr check £6
150hr check £8
Engine fund £10
Total variable costs = £54
Fixed costs (annual):
Annual £1500 (includes 1/3 of the extra CofA cost)
Insurance £4000
Hangarage £3000
Annual costs per hour, based on 500hrs/year = £17
So provided the plane is being worked, and provided it is new-ish so there are no major maintenance suprises, the hourly cost to the operator is £71 + VAT and they will claim back the VAT.
So at £136/hr (£160 inc VAT) they are getting an annual contribution of £32,500 towards their fixed costs and the instructor.
Obviously if it does only 200hrs/year then the annual contribution the plane generates is reduced to £7,900 and this is easily wiped out by the typical maintenance costs of an old aircraft.
Any comments from flying school operators? Where is the money going? Is it because most operate decrepit old junk which costs £10k to get through the annual?