prices are up

S

SharkFisher

Well-Known Member
Great! I always go to my local FBO website and check out the rental fee for the 152 that I anticipate to plan to fly on in...well in about 2 years. When I started it was $73 and then after a while it was $77 (maybe for like 8 months?). and now it's $85!!! Oh no, by the time I start training it will be well into the 100s. Great!

p.s. I have 100 posts yes by the time I have 150 posts the cost will probably be $150 an hour for that aforementioned plane
 
That's one of the reasons I don't think loans are all bad when it comes to flight training. I believe in keeping debt to a minimum, but when you see rental rates going up $12/hr over a couple years, interest on a loan isn't as bad as it sounds at first.

On a related note, my supervisor recently told us CFIs in a meeting that they are aiming to actually reduce the fleet rental rates at my school in the future, due to a new insurance carrier and streamlined mx. My roommate (another CFI) and I had a good chuckle about that later. I'll believe it when I see it. Increased rental rates are in the same category as taxes and death, in my book.
 
Cost of gas goes up... cost of flying goes up.

We started 2 years ago at $99/hr for our SPs now we're up to $120/ hr. Don't see it going down anytime soon either. Avgas has gone up about $2 a gallon in those 2 years, so at 10 GPH it makes sense...

It's a shame, big oil controling everything... I wish the gas companies would just give everyone a break. I can remember in 2001 paying $.98/ gallon for auto gas. Now I just filled up at $2.71. Why the price change... got me? But it's the way the greedy world is going.
 
Grabo172 said:
It's a shame, big oil controling everything... I wish the gas companies would just give everyone a break. I can remember in 2001 paying $.98/ gallon for auto gas. Now I just filled up at $2.71. Why the price change... got me? But it's the way the greedy world is going.
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Sometimes I think the same way...but then I laugh all the way to the bank when I see my investment in an energy sector mutual fund up 50% in just over a year. ;) It makes the thought of gas prices a little more bearable.
 
Perhaps I am biased but I have this strong feeling that I should atleast pay off on my own for the PPL. The reason is because I have read in this very same forum about people spending anywhere from $5000 to even $7000 and more for their PPL. So it all depends on how much time you devote, whether you train part time or full time and finally on your abilities and the FBO's. After that I will probably know where I am at and I won't have to worry about getting loans after my PPL. And most of all if you are gonna borrow the money how much are you going to borrow? Would it be too much? Too little? Which can get you in trouble in the long run. hmm...
 
Grabo172 said:
Cost of gas goes up... cost of flying goes up.

We started 2 years ago at $99/hr for our SPs now we're up to $120/ hr. Don't see it going down anytime soon either. Avgas has gone up about $2 a gallon in those 2 years, so at 10 GPH it makes sense...

It's a shame, big oil controling everything... I wish the gas companies would just give everyone a break. I can remember in 2001 paying $.98/ gallon for auto gas. Now I just filled up at $2.71. Why the price change... got me? But it's the way the greedy world is going.
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When Exxon post the #1 profit margin in the United States for 2005...higher than even Wal- Mart, we should wake up and realize that it is corruption and greed taking the airlines and trucking companies of this great country down!
 
SharkFisher said:
I have this strong feeling that I should atleast pay off on my own for the PPL.
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For sure, there's nothing wrong with that. I would never fault somebody for paying as they went. Like you mentioned, that's a surefire way to stay out of trouble financially.

In my earlier post, I was just saying the training cost analysis can get complicated. It's not as simple as always doing it this way or that way. People oversimplify it when they say to never take out a loan because of the interest. There are factors like increasing rental rates that may or may not make a loan worth it...it's a calculated gamble.
 
Man, I remember in 1999 when I rented a C-152 for $55 an hour and a PA-28 for $65 an hour.

These days I'm paying triple figures per hour for a C-172...or close. I can't believe a C-152 is nearly $100.
 
bwade210 said:
When Exxon post the #1 profit margin in the United States for 2005...higher than even Wal- Mart, we should wake up and realize that it is corruption and greed taking the airlines and trucking companies of this great country down!
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Exxon hasn't had any where near the highest profit margins.

Profit margin

* In fairness, Market Dispatches should note that Exxon's net profit margin (10.7% for the quarter and 9.7% for the year) is actually fairly moderate. Consider:
* Despite disappointing Wall Street with its fourth-quarter report, chip-maker Intel's (INTC, news, msgs) net profit margin was 24.5% for the fourth quarter and 22.4% for the year.
* Internet giant Yahoo! (YHOO, news, msgs) had a net profit margin of 36% for the fourth quarter and 34% for the year.
* Standard & Poor's estimates the 2005 net profit margin for the S&P 500 at 8.2%.


Be careful what you wish for. I knew pilots that got upset when some airlines made their first billion dollar profits, since "obviously" that meant they could have paid their employees more.

Now some of them (not all) see airline profits as actually a good thing.
 
For teh rates they are charging you are quickly approaching break even for buying your own 150 and flying it to get your private and possibly instrument too. You may want to consider it if you say you have two years to go and the price keeps going up. The great thing with a 150 is that with the right STC you can use autofuel. (Unless they really start putting ethanol in all of it then you are stuck with avgas.)
 
I worked with a guy who did a lot of flying back in the early 1970s. Suffice it to say that when he told me how much it cost him to fly down to the Carribean from Florida, my jaw hit the floor.
 
When I was in McMinnville, Oregon for my Evergreen Airlines internship last summer, a Cessna 150 rented for $55 /hr wet.

Here in Ann Arbor, a 1982 well-equipped Cessna 152 goes for $66 /hr wet (no tax even for solo flights).

That's not too bad at all.

Now that I've got a job in the DC area, I'm having heart attacks looking at the expensive prices for airplanes.
 
Check out a flying club. You will have to buy a share, which will cost you upfront, but you will save a hell of a lot of money in the long run.
 
mtsu_av8er said:
JB, remember when a 152 was $38 at THA??:)
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I think it was 38 for the 150 and 40 for the big upgrade to the 152...If I recall...That could be wrong though...Man, that was cheap!!
 
Good old days:

ERAU Cessna 172Q = $50/hr in 1988. PA-44 = $120.
 
flyover said:
Exxon hasn't had any where near the highest profit margins.
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Not the highest margin, no. But they made the largest corporate profit in history. This becomes wrong is when it adversely affects other sectors of the economy, as is the case with fuel prices.
 
aloft said:
Not the highest margin, no. But they made the largest corporate profit in history. This becomes wrong is when it adversely affects other sectors of the economy, as is the case with fuel prices.
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Baloney. That corporation has invested billions of dollars into equipment, infrastructure, and wages for the express purpose of making a profit. As long as they are playing by the rules, there is nothing wrong with making a large profit. If the profit level is too large, one of their competition will undercut them, lower prices, and steal their business. Guaranteed that every oil company out there is adjusting their prices by fractions of a cent to maximize their profits, and if any one of them steps out of line the others will gobble up their market share in a heartbeat.

If you have a problem with a capitalistic system running the oil industry and want to have the government take over, well, in my opinion you haven't seen high prices until you give that system a try. Either the oil prices will go higher or your tax dollars will to subsidize lower fuel costs. Either way, good luck. :)
 
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