Most people think that if there is a shortage of something then its price must rise until the demand drops enough to make the shortage go away. This principle holds up in most normal business but it fails where the demand is capped by some other factor.
In PPL training, the demand is capped to the number of people in a given radius interested in learning to fly.
Simple Keynsian economics, like wot we did at college.
Actually, there's more to supply and elasticity of demand than that. It you can differentiate your product, then you can revitalise demand.
Here's a case study.
Our airfield now has resident 13, count them, 13 of these Cirrus things. They weren't there 2 years ago. I understand prices start at £250k a pop, that's £3.25 million more investment on the airfield in 2 years. There's now a whole training setup just to cater for them. I don't know if the people keeping all these Cirri going have been lost to the existing schools or whether they were privateers who have changed to the new type. The pilots are I believe all post-PPL types (I don't know if anyone anywhere is offering ab initio training on a Cirrus).
My point is that you can generate additional demand if the product is right.
Another case study: the R22. We've got dozens of the things and they're out in all weathers zooming up & down parallel to the runway. Again, this seems like newly-created demand that wasn't being satisfied by the PA28/C152 operations. This market is now more mature because it started about 10 years ago. Look at Sloane at Sywell. I never heard of anyone half way through their PA28 course suddenly saying
'I'm off now to learn to fly helicopters instead' (or the other way round, either!)'
You can create demand. It's called Marketing. A part of it is having the right product, another part is promoting it appropriately.
A grubby caravan with a line of C152's then waiting for the punters to knock on your door is neither.
TheOddOne