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Why haven't rental rates come back down?



 
 
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  #11  
Old May 11th 09, 11:13 PM posted to rec.aviation.student,rec.aviation.piloting
Robert M. Gary
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Posts: 2,767
Default Why haven't rental rates come back down?

On May 7, 4:24*pm, Dallas wrote:

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?

--
Dallas


I think that many FBOs were just losing money during the fuel
increases and are now recouping.

-Robert
  #12  
Old May 12th 09, 06:53 PM posted to rec.aviation.student,rec.aviation.piloting
Dallas
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Posts: 541
Default Why haven't rental rates come back down?

On Mon, 11 May 2009 15:13:50 -0700 (PDT), Robert M. Gary wrote:

I think that many FBOs were just losing money during the fuel
increases and are now recouping.


I'm sure you are right, but that's a goofy way to run a business... It
uses the assumption that the same number of rentals will occur at any
price.

Given that they call around to check each other's prices, once everyone's
price has floated upwards, they feel comfortable leaving them there. They
love the new profit margins and no one considers dropping their price.

When the rental volume drops, they blame it on the recession and use that
as further reason to hang on to the increased margins.

They don't understand they've exacerbated the effects of their recession by
choking off demand with higher prices.


--
Dallas
  #13  
Old May 12th 09, 09:07 PM posted to rec.aviation.student,rec.aviation.piloting
Bob
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Posts: 2
Default Why haven't rental rates come back down?

Dallas wrote in
:

An old 1970's Cessna 172 costs $120 an hour. It wasn't that long ago
you could get a factory new Skyhawk SP with a G1000 for $120.


My FBO/Flight School charges $95.00 (wet) for a 172, a $3 increase from
last year. 15G
http://skyparkaviatorsclub.com/skypa.../indexnew2.php
  #14  
Old May 13th 09, 06:54 PM posted to rec.aviation.student,rec.aviation.piloting
Dallas
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Posts: 541
Default Why haven't rental rates come back down?

On Tue, 12 May 2009 20:07:24 GMT, Bob wrote:

My FBO/Flight School charges $95.00 (wet) for a 172, a $3 increase from
last year.


Those are sweet prices. I hope you appreciate the good deal you've got
going there.


--
Dallas
  #15  
Old May 13th 09, 07:10 PM posted to rec.aviation.student,rec.aviation.piloting
Mark Hansen
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Posts: 420
Default Why haven't rental rates come back down?

On 05/13/09 10:54, Dallas wrote:
On Tue, 12 May 2009 20:07:24 GMT, Bob wrote:

My FBO/Flight School charges $95.00 (wet) for a 172, a $3 increase from
last year.


Those are sweet prices. I hope you appreciate the good deal you've got
going there.



Not to make you feel worse, but in my club, we rent IFR-certified 172s
for around $80 wet. Plus we have great insurance for a club membership
fee of $19/month.


--
Mark Hansen, PP-ASEL, Instrument Airplane, USUA Ultralight Pilot
Cal Aggie Flying Farmers
Sacramento, CA
  #16  
Old May 14th 09, 03:06 PM posted to rec.aviation.student,rec.aviation.piloting
Bob
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Posts: 2
Default Why haven't rental rates come back down?

Mark Hansen wrote in
:

On 05/13/09 10:54, Dallas wrote:
On Tue, 12 May 2009 20:07:24 GMT, Bob wrote:

My FBO/Flight School charges $95.00 (wet) for a 172, a $3 increase
from last year.


Those are sweet prices. I hope you appreciate the good deal you've
got going there.



Not to make you feel worse, but in my club, we rent IFR-certified 172s
for around $80 wet. Plus we have great insurance for a club membership
fee of $19/month.



No yearly or monthly membership fees. Club has a bonus program that
actually lowers the prices for members. Deposit at least $300 in your
account, and get a 20% bonus. This brings the cost of a 172 down to
$79.00. We are also reimbursed for fuel if we have to buy it at another
airport.
One of the busiest flight schools in the area. Several distinguished
graduates, including a several astronauts.
  #17  
Old May 14th 09, 03:39 PM posted to rec.aviation.student,rec.aviation.piloting
Mark Hansen
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Posts: 420
Default Why haven't rental rates come back down?

On 05/14/09 07:06, Bob wrote:
Mark Hansen wrote in
:

On 05/13/09 10:54, Dallas wrote:
On Tue, 12 May 2009 20:07:24 GMT, Bob wrote:

My FBO/Flight School charges $95.00 (wet) for a 172, a $3 increase
from last year.

Those are sweet prices. I hope you appreciate the good deal you've
got going there.



Not to make you feel worse, but in my club, we rent IFR-certified 172s
for around $80 wet. Plus we have great insurance for a club membership
fee of $19/month.



No yearly or monthly membership fees. Club has a bonus program that
actually lowers the prices for members. Deposit at least $300 in your
account, and get a 20% bonus. This brings the cost of a 172 down to
$79.00. We are also reimbursed for fuel if we have to buy it at another
airport.
One of the busiest flight schools in the area. Several distinguished
graduates, including a several astronauts.


Sounds great. What kind of insurance do you get for that? Like I said,
at my club, the members are all "named insureds" on the club policy,
so we are completely covered (1M total/100K per seat, full hull
damage, etc.). The club even pays the deductible in the event of an
accident.

I was very happy to find this club. At other rental outlets in the
area, I was going to have to pay over $100/hr for a plane and still
have to deal with my own insurance.

Regards,

--
Mark Hansen, PP-ASEL, Instrument Airplane, USUA Ultralight Pilot
Cal Aggie Flying Farmers
Sacramento, CA
  #18  
Old May 14th 09, 05:29 PM posted to rec.aviation.student,rec.aviation.piloting
Kai Rode
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Posts: 14
Default Why haven't rental rates come back down?

Club has a bonus program that
actually lowers the prices for members. Deposit at least $300 in your
account, and get a 20% bonus. This brings the cost of a 172 down to
$79.00.


I *really* have to go to the US to do some serious flying soon. I'm
currently renting a 172R for €175 ($237) per hour wet...and it's not even
IFR certified in Germany. It has the U.S. standard IFR avionics but Germany
requires a DME in addition to all the other stuff. When was the last time
you heard "expect localizer/DME approach"? :-(
  #19  
Old May 14th 09, 07:23 PM posted to rec.aviation.student,rec.aviation.piloting
Dallas
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Posts: 541
Default Why haven't rental rates come back down?

On Wed, 13 May 2009 11:10:40 -0700, Mark Hansen wrote:

Not to make you feel worse, but in my club, we rent IFR-certified 172s
for around $80 wet.


Well, you made me feel worse anyway. :- )

You guys are proving to me that there hasn't been any structural increase
in the expense of running a flight school/rental operation. These guys in
the DFW area have just colluded to hold their prices up.

--
Dallas
  #20  
Old May 14th 09, 07:25 PM posted to rec.aviation.student,rec.aviation.piloting
Dallas
external usenet poster
 
Posts: 541
Default Why haven't rental rates come back down?

On Thu, 14 May 2009 18:29:55 +0200, Kai Rode wrote:

I *really* have to go to the US to do some serious flying soon. I'm
currently renting a 172R for ¤175 ($237) per hour wet...


*Now* I feel better.

:- )

--
Dallas
 




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