Dallas wrote:
Why didn't rental rates come back down with the price of fuel?

Renters saw major increases in rates during the fuel price run up. After
the oil bubble burst my FBO dropped their rates a tiny fraction as the
price of fuel dropped back down to where it used to be. When I asked what
was going on the chief pilot explained that they call around to other FBOs
and their price is competitive.

I called around and found that he was correct, everybody's price is still
up. I also ran a quick study from their online booking system and found
that their rentals were down 60% in December and 54% in January.

My comment to the chief pilot was that airplanes sitting on the ground
aren't doing anybody any good. He ignored me.

So what is going on? Is there some invisible expense increase at FBOs
that's keeping their prices up or do they not understand the laws of price
and demand?

At least you are still able to fly. At the FBO/Flight School I have
rented from for more than six years, the entire fleet of aircraft have
been grounded since January. The excuse was that they can no longer pay
for the insurance on those aircraft. So now the only 2 remaining flight
instructors are biding their time manning the front desk. I fully expect
the place to close up completely within 12 months. 30 or 40 renters are
now either not flying at all or being forced to drive 40 miles to the
next closest FBO with rentals.

Zack Sten