Leasing a 172R to start a flight school

wanabe

wanabe

Well-Known Member
I am in the process of leasing a C172R in order to instruct students part time. The lease has a 20 month minimum and will be for 6 months. Considering my insurance costs, hanger and fuel I will need the airplane to fly 20 months to break even. My motivation for this move is to be able to instruct in a nice airplane and to get a taste of running my own business.

Two things working in my favor:

1. The plane will be based at an existing flight school which has one instructor who has such a good reputation that she regularly turns away students. She specializes in tailwheel transitions and aerobatics and isnt interested in doing Primary or Instrument training.

2. As part of the deal to base the plane at said location I will be required to do my own maintenance under the supervision of one of the most well respected A&P/IA's in the area. This works out great because I really want to get my A&P.

The possible downside is that my regular job (corporate) may pick up which will leave me unable to serve my students. Currently I am working 12-15 days per month. I guess at that point I would need find a part time instructor to fill in.

Just wanted to run this by the group to see if anyone had any advice.
 
I would also open the airplane up for rental as well. Dont limit yourself to just using it when your instructing students. If the plane is nice and the price is right, people will use it for weekend trips and just to go flying around. This should help when your not around enough to get that 20 hours as dual given.
 
wanabe said:
Just wanted to run this by the group to see if anyone had any advice.
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People that do this sort of thing have typically said the plane needs to fly 30 hours per month to break even. They have to pay for their own maintenance, though, so you're better off in that respect, possibly. If you have another job, then it seems unlikely you'll be able to make the plane pay for itself. And if you spend time doing your own maintenance, the plane will fly even less.

I think you'd be lucky to break even.
 
First things first folks. What's the rental rate? Wet or dry?

You can do all the maintenance you want but if you're still over priced, you won't get anyone to fly it. If you under-price, you won't be able to pay for gas.

-mini
 
Rental rate will be $115 wet. There was a 172I model that was online 2 months ago that was flying 30 hours per month at $105 wet. The numbers I have ran including a maintenance reserve per hour shows it breaking even at 20 hours. There will be other CFI's using the plane as well and it will be available for rental. It will be the nicest 172 on the field.
 
I don't know what the competition is like in Texas but here in the Tri-State Area you can probably get an extra $10 per hour on the rate. What are you charging for instruction?
 
wanabe said:
things working in my favor:

1. The plane will be based at an existing flight school which has one instructor who has such a good reputation that she regularly turns away students. She specializes in tailwheel transitions and aerobatics and isnt interested in doing Primary or Instrument training.
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Hopefully there are other instructors. Otherwise, she is turning away your business.
 
Sounds like a interesting idea. I've always thought that down the road, I'd like to perhaps start something like this. One airplane, couple of instructors, at at decent rental rate. I'll be watching this to see how it goes for you.
 
172R's range from $98 to $135 in the Houston area. Instruction will be $30 per hour. I got my insurance quote today and it looks like I am going to pull the trigger. Should be a mid March launch.
 
wanabe said:
172R's range from $98 to $135 in the Houston area. Instruction will be $30 per hour. I got my insurance quote today and it looks like I am going to pull the trigger. Should be a mid March launch.
Click to expand...

Would bump the instruction up to $40-$50 & the airplane to $125.
 
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