Growing evidence that the downturn is upon us....

[HappyFran]

What will the FTO's do viz Cost of Training ?

If we accept the rather inconvenient truth, (rather difficult to ignore), that a significant economic downturn is upon us. And we want, nay need, with every beat of the heart to become a commercial pilot, I assume the logical route would be to slowdown our rate of training, and focus a bit more on the pennies.

So my question is what are the real economics of a FTO and how far can they go to reduce prices and still remain in business.

If we take a typical training flight hour in a PA28 at say currently £130 /hr, what is likely to be the cost build up.

I guess they are something like;

Variable: Fuel £25.00
Instructor £20.00
Maintenance £10.00
Land fees etc £10.00
Total Variable £65.00

Fixed: Depreciation £20.00
Admin £10.00
Overheads £10.00
Total Fixed £40.00


Total Cost £105.00


Profit £25.00 @ £130.00 /hr

N.B. these figures are my own work of fiction; I have no real knowledge or experience.

But if they are half way accurate then in the short term an FTO can forgo most profit and ignore depreciation (bit of a problem if need new aircraft in LT). So we have around £40.00 to discount off the cost of the flying hour, in order to get bums on seats.

This case is for a UK modular FTO.

What do the experts / wannabee experts think?