Ouch - $2/gal/hr

"Hilton" wrote in
ink.net:

Michael wrote:
Our RHV-based club (San Jose) just increased its prices by
$2/gal/hr... They said it was entirely due to fuel prices.

Did your fuel go up by $2/gal? Because ours only went up by 40 cents
a gallon, and we just got a new load this weekend. We're paying
$3.35 per gallon now. That reflects the actual price increases in
the bulk fuel. Anything significantly higher is just gouging.

Here are the numbers they mentioned (in the CFI meeting last night) -
these numbers are approximate, but they're ballpark enough for this NG
thread. Gas was costing them $2.50-$2.80 or so. This next batch will
cost $4.80. The following batch will have an additional 75c cost.
When I asked my "will the rental prices drop when the fuel price
drops" I was told they they're building in a cost so that they don't
have to raise them again for the 75c delivery. Read that however you
want - but to me, I think you're right - it all sounds like
ripoff/gouging to me.


I just looked at some OLD data for fuel prices at RHV. In January of
2003, the largest fuel dealer was charging $2.69 per gallon. In July of
2004, it was $3.13. In March of this year, it was $3.26. These prices are
the discounted prices for customers with a charge account at the dealer.

The quoted $2.50 - $2.80 more in line with 2 year old fuel prices at
RHV. Have rental rates stayed the same since January 2003 through August
of 2005?

OK, I just called the 'fuel guy' at RHV. Price today for a gallon is
$4.04, tomorrow will be $4.40. He said it's definitely temporary. He
added that the flight schools in RHV are leaving their prices the
same, but are adding a temporary surcharge. He added that cheaper gas
may be found at more rural areas since they will still be using older
gas and would not have been affected with newer deliveries.

The surcharge sounds fair to me. Now whether or not the fuel
companies are gouging is a separate issue. It still hurts though. I
guess it'll soon be the $1000 burger.

Hilton
P.S.: Not sure where the FBO manager got the $4.80 and 75c numbers
from.


Hilton





--
Marty Shapiro
Silicon Rallye Inc.

(remove SPAMNOT to email me)

Marty,

I just looked at some OLD data for fuel prices at RHV. In January of
2003, the largest fuel dealer was charging $2.69 per gallon. In July of
2004, it was $3.13. In March of this year, it was $3.26. These prices
are
the discounted prices for customers with a charge account at the dealer.

The quoted $2.50 - $2.80 more in line with 2 year old fuel prices at
RHV. Have rental rates stayed the same since January 2003 through August
of 2005?

The comment was that the club had not increased rental prices *due to fuel*
in the previous two years. There was a (fairly) recent increase due to
insurance.

FYI: TWA and Nice Air's prices are still $80 and $90 respectively for a 172.
Not sure if/when/how they'll factor in the new (temporary?) fuel price
increase.

Hilton

Hilton,

You mixed em up, Tradewinds Aviation is $90, no clue what nice air is
but $80 sounds like what they would reasonably charge. I rent late 70s
archers out of tradewinds, which were $90 an hour in early 2004, $93
during the price jumps of 2004, and $97 an hour now. They haven't gone
up in several months (when avgas was a tad over $3 a gallon at RHV as
opposed to $4 now), I'm expecting a price increase of $5-$10 soon now
which will very likely lead to the end of my flying days. Which club at
RHV are you talking about, squadron 2? At tradewinds, after the 2004
gas increases eased off, I asked em to go back to $90 an hour, take a
wild guess whether it worked :-(

Gas was costing them $2.50-$2.80 or so. This next batch will cost $4.80.
The following batch will have an additional 75c cost.

That sure doesn't sound right. Like I said, we just got a batch of new
fuel last weekend, and prices on it only went up by 40 cents a gallon.
Sounds like someone is gouging.

Michael

We purchased several July and September calls on all sorts of fuel
last Winter, so far okay at a $26.50/barrel price. Has anyone else
seen fuel prices increase? WTTW, go long on fuel.

Bush

A part of Rome was built in a day.


On Wed, 07 Sep 2005 18:58:05 GMT, "Hilton"
wrote:

Hi,

Our RHV-based club (San Jose) just increased its prices by $2/gal/hr
effective immediately; 172s are now over $100, Arrow is $130 - I don't even
want to think what the Duchess will be when it gets its new engines (pilor
error gear up).

They said it was entirely due to fuel prices. I asked if the prices would
go down when/if avgas proces dropped. I didn't really get a good answer,
but the suggestion was no, they wouldn't.

I remember when a 172 was around $65 or so and flying around the pattern for
a hour was a fun thing to do. Now I have to call my accountant to get
financial approval.

Hilton

we've been paying $130 for an Arrow around here for a couple of years.. and
now we pay a surcharge on top of that for the increased fuel costs..

BT

"Hilton" wrote in message
nk.net...
Hi,

Our RHV-based club (San Jose) just increased its prices by $2/gal/hr
effective immediately; 172s are now over $100, Arrow is $130 - I don't
even
want to think what the Duchess will be when it gets its new engines (pilor
error gear up).

They said it was entirely due to fuel prices. I asked if the prices would
go down when/if avgas proces dropped. I didn't really get a good answer,
but the suggestion was no, they wouldn't.

I remember when a 172 was around $65 or so and flying around the pattern
for
a hour was a fun thing to do. Now I have to call my accountant to get
financial approval.

Hilton

I'm envy green.

Rates at our club, effective 1st May 2005:
Grumman AA1C / Cessna Aerobat $180 hr dual, $145 solo
PA38 $190 dual, $155 solo
PA28-140 $185 dual, $150 solo
C172N $205 dual. $170 solo
C172SP $255 dual. $220 solo
Piper Arrow 200R $255 dual, $220 solo
Cessna 180 $250 solo
Partenavia twin $390 solo
Plus landing fee: 2-seaters $16.00 C172/Pa28 $18.00 Arrow/C180 $19.00
Partenavia $23.00

No fuel increase as at today, but as road gas prices have soared we are
expecting an increase of $5 - $10 per hour.

You guys don't know how lucky . . .

flyernzl wrote:
I'm envy green.

Rates at our club, effective 1st May 2005:
Grumman AA1C / Cessna Aerobat $180 hr dual, $145 solo
PA38 $190 dual, $155 solo
PA28-140 $185 dual, $150 solo
C172N $205 dual. $170 solo
C172SP $255 dual. $220 solo
Piper Arrow 200R $255 dual, $220 solo
Cessna 180 $250 solo
Partenavia twin $390 solo
Plus landing fee: 2-seaters $16.00 C172/Pa28 $18.00 Arrow/C180 $19.00
Partenavia $23.00

No fuel increase as at today, but as road gas prices have soared we are
expecting an increase of $5 - $10 per hour.

Wow! Where are you? I belong to a flying group (not a club, because we
don't own the planes) in Orlando and our rates (dry) a
C-172N $40
C-172SP $65
C-172N (with newer avionics) $42

Beech Sundowner $48

They do ask us to buy fuel from the local FBO that handles the
scheduling and provides us meeting space and other services and that's
a bit pricey: $4.75/gal full serve (maybe more, I haven't flown in a
couple of weeks). But even with that, I get an IFR equiped 172 for
~80-$90 an hour.

John Stevens
SS ~30hours