The reality is that flying instruction in this country is far too cheap. as some of you posters have pointed out people are prepared to pay over £200 for rotary instruction in an R22. If we were to operate new aeroplanes for training, then the punter would be prepared to pay proportionally more. It is all about impressions.
Why do you think people pay to do their PPL with a certain company that has a uniform with the instructors wearing gold bars even though they have minimum hours? It is a fantasy that they are all going to become airline pilots and that company gets away with charging £40 per hour more than most others.
The answer to all of our problems is to put up the price of flying instruction by about £60 per hour so that there is adequate margin to pay the instructors a decent wage and a bit over for the owner to make a profit. What do people pay their golf pro or their tennis pro or their masseur or their therapist? I bet you none of these guys would work for less than £30 per hour,so that is what you should be shooting for. If anyone agrees with me then please let me know.