PPRuNe Forums - View Single Post - why are people paying so much to fly?
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Old 28th July 2010 | 20:41
  #5 (permalink)  
michael95u
 
Joined: Jul 2008
Posts: 61
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From: Prairie Village, Kansas
The price is the price the market will bear. If people are willing to pay a high price, the price will stay high. Take ATP Flight School in the US as an example. In the peak of pilot hiring from 2005-2008, their price went up to at least $60,000.00. Now it is back down to $48,000.00. If there were people willing to pay $60,000, then they would not have lowered the price. So part of the problem is the uneducated potential students who fall for the marketing trap of a lot of the flight schools and end up paying more than they had to for a mediocre product.

The other thing students need to understand is just because the price is high does not mean the flight school is "fleecing" the students. I can tell you that most flight schools operate on ridiculously low margins. 10-25% margins are typical profit margins. That is pretty bad, especially when there is no volume (ie little to no flight students).
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