Would you open/invest in a flight school?

ActiveAir

ActiveAir

Pre-takeoff checklist
Joined
Sep 20, 2008
Messages
299
Location
SoCal
Display Name
Display name:
ActiveAir
If the stars lined up, (in current economy) would you open or invest in a flight school? Start with a couple/three planes and build? I know liability is a big hurdle as well as maintainance, etc.
 
ActiveAir said:
If the stars lined up, (in current economy) would you open or invest in a flight school? Start with a couple/three planes and build? I know liability is a big hurdle as well as maintainance, etc.
Click to expand...

I've been there, done that except I did it with helicopters. I did fine and later sold the company at a profit, but I would never do it again, especially today.

The liability is atrocious. We live in a society of hungry attorneys looking at every avenue possible to make a buck, which drives the insurance up to almost unattainable limits. Plus the profit margins are very slim after you account for the maintenance, insurance, fuel, facility, etc.
 
Not a chance, the flight schools at Gillespie Field seem to be hanging on for dear life. Expect insurance alone to be in the neighborhood of eight or nine thusand a year per plane, assuming the plane is worth around 50K. Then you have your 100hr inspections, fuel, etc.

The old adage about making a small fortune in aviation definiitly applies to this proposition. Start with a large fortune.

John
 
Rotor&Wing said:
I've been there, done that except I did it with helicopters. I did fine and later sold the company at a profit, but I would never do it again, especially today.

The liability is atrocious. We live in a society of hungry attorneys looking at every avenue possible to make a buck, which drives the insurance up to almost unattainable limits. Plus the profit margins are very slim after you account for the maintenance, insurance, fuel, facility, etc.
Click to expand...

John Baker said:
Not a chance, the flight schools at Gillespie Field seem to be hanging on for dear life. Expect insurance alone to be in the neighborhood of eight or nine thusand a year per plane, assuming the plane is worth around 50K. Then you have your 100hr inspections, fuel, etc.

The old adage about making a small fortune in aviation definiitly applies to this proposition. Start with a large fortune.

John
Click to expand...


Yep, the liability thing. Damn attorneys ruin everything...mostly, (even the ones I've hired). I've heard that it's a great way to make a small fortune from a large fortune. Try and bust out a dream and actually enjoy what you do, or just too heavy of a lift.
 
If it starts with F or has a view . . .

ActiveAir said:
If the stars lined up, (in current economy) would you open or invest in a flight school? Start with a couple/three planes and build? I know liability is a big hurdle as well as maintainance, etc.
Click to expand...
 
Ken Ibold said:
Depends entirely on the local market.
Click to expand...
Care to elaborate?

Are you saying the locals are the bread and butter vis a vis attracting clientele from around the country?

I think the model for such an enterprise has to be further defined than just putting out a shingle. I think a full service business has a better chance at success...unless one caters exclusively to a specialized market.

A business needs to go beyond the offerings of BFR/PVT/IR/COMM.
 
ActiveAir said:
If the stars lined up, (in current economy) would you open or invest in a flight school? Start with a couple/three planes and build? I know liability is a big hurdle as well as maintainance, etc.
Click to expand...

If it could be done on a private strip or smaller local airport within 50 miles or so of a big city. One of the partners is an AI, one is a lawyer, and one is a banker.

Dan
 
stingray said:
If it could be done on a private strip or smaller local airport within 50 miles or so of a big city. One of the partners is an AI, one is a lawyer, and one is a banker.

Dan
Click to expand...

Finding all three is tough. Finding them in one place, after the lobotomy, even tougher.
 
I would enjoy doing it. But, I know the things I would not do as well as would do.

Willing to make it long-term a sweat equity start while paying to keep good people is key. Much of what I see now are not like that.
 
Yes if: I knew I would have a good supply of international students. The overall, long term need for airline pilots is already putting pressure on flight training capacity. While the current economic situation will alleviate the shortage to some extent, it is only a short term respite. If all of my aviation investment bucks hadn't sunk to the bottom of the Caribbean I would be looking at both domestic and overseas opportunities.
 
Want to be a millionaire in this business? Start with $2M.

Not a snowballs chance in this market.
 
steingar said:
Not with fuel prices being so wildly unpredictable. How can you budget?
Click to expand...
The same way we do... step up prices accordingly. Sometimes, you suck it up for a period of time but when fuel prices come back down, you delay reducing rates to cover costs previously incurred.
 
If I didn't live in Hooterville, I would give it a try. I would have to be in control of maintenance and own the aircraft too. I've seen owners get completely up-side down on lease back agreements due to high maintenance costs and low utilization.

The other FBO on the field has tried several times to lease my 172, by the time I'm done I end up paying them to use the plane.

Time to spare, go by air.

Kevin
 
Well, looks like the majority feeling would be NO! I can see why, the odds appear stacked against a favorable return/survival in the near term. The school I just (just over two weeks ago) went through for my PPC, just closed their doors two nights ago. They were poorly run, however (that's my arm's length opinion, but there may have been many underlaying factors aside form the glaringly obvious). I would've done many things differently. RIP


KennyFlys said:
I would enjoy doing it. But, I know the things I would not do as well as would do.

Willing to make it long-term a sweat equity start while paying to keep good people is key. Much of what I see now are not like that.
Click to expand...

These are my thoughts exactly for even entertaining thoughts of it.


KennyFlys said:
The same way we do... step up prices accordingly. Sometimes, you suck it up for a period of time but when fuel prices come back down, you delay reducing rates to cover costs previously incurred.
Click to expand...

Yep. I think everyone understands the direct correlation with prices and fuel costs.
 
The key to some schools' survival lately is a neverending flow of foreign students.
 
You must log in or register to reply here.
Back
Top