Integrated schools that train abroad (outside Europe) per unit trainee make a healthy profit. USA and NZ in particular.
£120 an hour is not too bad depending on the aircraft.
- About £20 an hour will be for the instructor.
- On a PA28 at a fuel burn of around 35ish ltrs an hour at about £1.50 a litre for 100LL gives a cost of £52.50
- Insurance on top and the cost of having the aircraft and a landing fee unless that is not included means there is not much margin.
Consider a Seneca, you can hire one of those for £280 -290 an hour.At Oxford it costs £485 an hour. How much extra are they paying the instructors? Even for the IR apps and airways don't cost that much. They take the piss when you really can't afford it.