I don't know how exactly the Australian industry is facing the problem of rising fuel prices. That was the reason I posted this thread. The industry in India, for example, is suffering badly. Although, I think overly aggresive expansion plans and mismanagement are partly to blame for this. But, I think elsewhere as well, including the US, there have been many closures, and many more operators at the brink of closing down.
The school I trained at in Australia, increased the size of its fleet from 15 planes to about 35 planes, in less than a year. The number of instructors also doubled. A lot of the experienced and knowlegeable instructors found jobs with regional/charter operators. Still a whole bunch of new ones filled the ranks.
I saw a similar pattern at other schools in the airport. Many of these schools, including mine, were, almost exclusively, catering to students from south-east asia. Surely, the flow of new foreign students, and the large amounts of advance course payments, must have decreased substancially in recent months. How are these schools planning on maintaining such large fleets?
I know the industry in Australia was facing a revival just before I left. I'm interested to know if this upsurge has persisted, despite the cost of fuel, and what measures are being taken by operators to minimise the damage caused by the rising cost of gas.
From previous posts it seems that rental/training prices have increased substancially, and it is one way to mitigate rising costs for operators. However, every price increase brings with it a decrease in the number of people willing to pay for that service. Australia is a pretty expensive place in which to train, in the first place. Not only are hire charges quite expensive, but the cost of living is also pretty high. Of course, compared to the UK things aren't as bad, but in comparison, the US is way cheaper (especially now with the depreciation of the dollar). How are Australian flight schools planning on remaining competitive?
A previous poster mentioned that rates for a baron charter had increased by $45! Moreover, most of the planes in GA are old and fuel inefficient. Surely having to pay almost twice as much for fuel now, as compared to a year ago, must have a huge impact, no?