It's not all "doom and gloom".
The school that I work for has become noticeably busier over the last couple of years. Therefore it's not all "doom and gloom" in the GA world.
We're currently fortunate enough to be booked solid for at least a month in advance at any given time. Weekends are always exceptionally busy. I've currently got approximately 35 full-time (once every week or so) PPL students; and over the last four weeks I've achieved 80 hours of flight training.
I believe our success is due to a number of factors:
1) A very good catchment area.
2) Career instructors. We get a fair amount of business through "word of mouth".
3) We're delivering JAR PPL courses in Cessna 152's for between £5000- £5500 (including books, examiner fees, etc).
The only downside to our success is that one of the reasons that we're cheaper than some other schools is possibly down to the fact that the word "pay rise" isn't often heard. Therefore, as instructors we're possibly subsidising the courses. But we are busy, and therefore making money. I guess it all comes down to whether you want to be very busy while earning £15/ hour or dead quiet while earning £25/ hour? All I know is that given half a chance I would rather be both busy and on £25/ hour. This however rarely seems to be the case.
P.S. Note to OrionsBelt. I see that you mention having to revalidate your IMC Rating. Have you got a JAR or a UK CPL? If you hold a UK CPL then are you aware that you don't need to revalidate your IMC rating? Have a look at LASORS Section E. I quote: "IMC privileges are contained within UK CPL(A)..............."