Let's see here. If I may summarize.
- Increased oil prices.
- Aircraft acquisitions
- Major improvement to the school
. . .and you're passing these costs onto the consumer? Is that a legitimate business practice? Hmmm, some people comment so negatively about the equipment there, perhaps they should pay us to fly, ya think?
(Do I need a
logo for the above listed questions?
)
Maybe lets take a look at your points.
I am going to use the price at the Jet Center (FS). Mike claims he pays less and is SS so my numbers will be higher.
A few points to keep in mind when you read the numbers are: Mike doesn't pay reimbursement for fuel on any XC. When setting his prices he knows the fuel cost I don't think ATP can. I do not know the price ATP pays for fuel. Keep in mind the ATP price includes all books and hotels on the X-C. At ATP you get less TT only 140 hours
The PA-44 burns more fuel then the BE-76
12/2002-$2.29 Pro Course 11/2002-25K ATP-32K
12/2003-$2.90 Pro Course 12/2003-30K ATP-35K
06/2006-$5.04 Pro Course 05/2006-34k+
1500 Fuel Surcharge ATP-45K
05/2007-$4.47 Pro Course 05/2007-36K ATP-50K
01/2008-$5.80 Pro Course 01/2008-45K ATP-55K
With those numbers in mind let us look at your points:1) Increased Fuel, 2)Aircraft acquisitions, and 3)Improvement to the school.
Has the price of fuel increased? Yes, by about 153% man that sucks. I feel a better way to look at that number would be fuel cost to total cost. I am going to use 16 GPH for the BE-76 and 24 GPH on the PA-44. I have time in both and this is about the numbers I get.
11/2002 Aviator-about 30% ATP-about 24%
01/2008 Aviator-about 41% ATP-about 35%
I will give you that fuel cost has something to do with the increased cost, but now let us look at the increased cost of fuel in the big picture(your #2,3 Points).
You are 100% correct with it being ok to pass the costs of improvements on to the consumer. So let us take a look at what the consumer got for their 80% at the Aviator and 70% at ATP increase in price from 2002-2008.
ATP: Net gain of 20 PA-44's (New MSRP $450,000), 5 DA40's, 26 172's, 5 CRJ FTD's, 15 Frasca Truflite FTDs w/GNS 430, 5 Elite RC-1 Training Systems, opened new locations (all that goes with it)
Aviator: Net gain of two BE-76's(From Mike about $60,000) and loss of one 172.
Someone needs a new accountant and banker.
FYI- Skymates over the same time frame has only gone up 21% in price and has added some New aircrafts.