Calculating pricing for aircraft rental and flight training operations is an important skill for a business to conduct. Any business that cannot accurately calculate its cost of services and products cannot ensure its profitability and as a result, its survival.
Below are resources that are used in conjunction with a presentation conducted by Jason Blair for businesses and associations that work with the flight training community to develop the skills and knowledge of considerations important to determine break even and profitable aircraft pricing.
A description of the seminar available is as follows:
Calculating Rental and Flight Instructor Rates: Skills for Flight Training and Aircraft Rental Operators to Increase Profitability – This seminar is a discussion of how flight training and aircraft rental providers can calculate rental rates for their fleet. Additional discussion of flight instructor wage pricing is included The goal is to help providers determine how to charge realistic and profitable rates. This seminar is designed to run approximately 1 hour with discussion and examples of modifications to pricing that providers may make included.
This seminar has previously been presented at the Flight School Association of North America 2013 Conference and the Cessna Pilot Center 2013 Seminar.
Spreadsheets for Estimating Costs and Pricing:
Calculating Rates for Flight School Rental Aircraft – This spreadsheet is a tool created for aircraft rental and flight training operators to calculate the required rental rate to be charged to customers in order to generate a break even and profitable pricing structure.
Calculating Employee Wages and Flight Instruction Rates to Charge Customers – This tool is a spreadsheet created to help flight training providers calculate the appropriate price to charge customers for flight instruction services. It includes consideration of wage witholdings, benefits, insurance, and profits.
Bankrate Cost of Living Adjuster – Use this to compare wages in your locale to others around the country and to help set rates relative to them for competitive pricing.
Aircraft Operation Cost Resources:
Estimated Hourly Operation Cost for Personal Aircraft – A spreadsheet provided to help personal aircraft operators calculate the operation cost of their personal aircraft.
Conklin & deDecker Aircraft Cost Evaluator – A consulting firm that that offers resources for aircraft valuation and operating cost calculation.
AOPA Operating Costs Calculator – Intended to help AOPA members complete an estimated operating cost calculation for a broadly defined group of aircraft. You will be asked a series of questions to guide you in the process of calculating operating costs for the aircraft you choose. When complete, you will be shown a detailed breakdown of operating expenses on an annual and per flight hour basis.