Looking to start a small flight school

[forseth11]

Hello everyone. I am currently training to be a CFI, and I plan on taking my checkride in December. (I'm all set, just waiting on my Mooney to have the overhaul finished). Anyways, am buying a Cessna 150 to rent out and teach in while I am in college, and I have some questions. I plan on doing this for 4 - 6 years, and if possible, keep it going with more planes after that.

First off, I have determined that the aircraft will cost $66 per hour to operate (not account for loan payments). The spoiler below has all the prices I have accounted for.

Spoiler: Cessna 150 Costs

Direct operating costs:

• Fuel: $29.05 / hour
  
• Oil: $0.81 / hour
• Oil Change: $1.45 / hour (I can do this myself as the owner, so this is just material costs)
• 100 hour: $300 total - $3 / hour
• Extra cash for avionics and air frame work: $7.96 / hour

Reserves:

• Engine overhaul: $9.80 / hour (assuming engine will last 85% to TBO which is 1530 hours) I was also quoted $15,000 for a major overhaul.
• Propeller overhaul: $0.59 / hour (fixed pitch is cheap at $850 for an overhaul. This is also at 85% TBO of 1530 hours)

Fixed Costs:

• Hangar: $0 (I have a deal with my dad.)
• Insurance: $2,500 (This is the max AOPA quoted for a 150 for rental and instruction. The lowest is $1,500, but I am being conservative. I also have over 170 hours in this specific 150, so that may drop the price a bit.)
• Annual Inspection: $600
• Transponder and static IFR: $250

The total I determined is assuming I would get 250 hours on the plane in a year. Is that a fair estimate? Is it too low or two high?

I have determined, with my weight, I can teach students up to 190 pounds, but if I take some fuel out, I can get up to 230 pounds, but it is still a 150.

Spoiler: About the Aircraft

Type: Cessna 150M, 1974
Hours: about 950 (It has a top overhaul less than 100 hours ago)
Paint: Fuselage is great, wings are okay
IFR: Yes (2 vors, glideslope, dme) equipment A
ADS-B: Yes
Fuel burn: 6gph
Cruise Speed: 85kts

I trained in this aircraft, and I know it is very reliable. I got my private and instrument in this plane.

The below spoiler is my basic business plan regarding money:

Spoiler: Business Finances

Rental for students: $90 / hour ($24.47 / hour profit)
Rental for anyone else: $95 / hour
(150s around Fort Worth go for around $95 - $105 per hour IF you are on a flight school's yearly rental subscription. If this isn't enough to attract students, since I am trying to flight instruct, I may make the student rental as low as $73 / hour to make it more affordable)

Estimated hours flown in a year: 250
Rental income (yearly): $6116.80

Instruction: (Are these prices fair? What did your instructor charge)

• Flight $45 / hour - 8 hours per week ($17,280.00 yearly)
• Ground $35 / hour - 4 hours per week ($6,720.00 yearly)

Fees:

• Loan (I am getting this from family, so it is low interest of 3%): $10,000 in 48 months, or $221.34 / month
• Website: $9.33 / month (The development is free because I am a computer science major)
• Advertising: $3.86 / month (The airport I am at is very busy because of a restaurant. I was going to place a large banner at the airport entrance. I am also going to hand out business cards EVERYWHERE I go.

NET:
I expect to make $24,243.98 per year before taxes. 50% of the aircraft rental income will go to someone else because this 150 is split ownership, but it is purposed for this business.
This is $2,020.33 per month for working only 12 hours a week (perfect for college on the side)
Since this is going to be a business, I do not have to pay the 15% tax until I have income, so I can put most expenses on the business before taxes.

If this takes awhile to get off the ground, I will get a job at one of the other flight schools around me, but they give a small cut which is why I am doing this. Also, I figured, since these flight schools are always short of instructors, I may have a chance in this market.

QUESTIONS:

1. How many hours should I expect the plane to be flown per year? I estimated 250. Is this too low or too high?
2. How many students can I expect if I actively seek students with business cards and word of mouth and the internet?
3. Are any of my prices incorrect?
4. What should I expect during the first few months?
5. Is there anything I can do to decrease costs?
6. How much does your instructor charge?
7. How much do you pay to rent?
8. I have a friend who is going for their CFI in about 6 months. Should I potentially add-on someone else for while I am in college?
9. How many hours can I possibility instruct per week? (I know I can do a max of 56, but what can I expect realistically?)

Thanks for the responses everyone!

I made my price table public. It is located here:
https://docs.google.com/spreadsheets/d/123rj-tli1kuxfBncU3CSDYbMDXSVCF6eMHZjViYhSxc/edit?usp=sharing

 

[frfly172]

Have you done research,that shows the amount of potential students,in the area,and how much competition .you might want to be a part time instructor,for an established FBO in your area. Have you considered ,what your availability will be while in college? Any idea of how many flyable days a week on average? Wish you luck.

 

[skier]

How would you market your service against the established operations in the area. Make sure you can answer the question: why should I choose you over XYZ school next door.

What are you studying in college? What year are you in? How much free time do you expect to have?

 

[Dana]

If you expect to make money instructing with one airplane you're probably going to be disappointed. Thinking of it as a way to partially subsidize your own flying might be more realistic.

Are you allowed to instruct at your local airport? Many FBOs have an exclusive deal with the airport owner that prohibits any competing businesses.

What's your plan (do you have reserves) for unexpected maintenance expenses? And what happens to that income if the plane is down for an extended period of time?

 

[coloradobluesky]

Have you obtained a quote on insurance for your airplane? Also, what are you going to use for a syllabus? Its very difficult to instruct more than 20 hours a week due to weather and aircraft maintenance, and that would be almost impossible while going to college too. Who is going to do your maintenance? Are you going to be based at an airport with an FBO that offers instruction? If so, they will "Ice" you and/or try and get you to put your plane on leaseback and instruct with them. Lots of politics involved in that one. They know what they are doing, you don't.

 

[falconkidding]

snip
Are you allowed to instruct at your local airport? Many FBOs have an exclusive deal with the airport owner that prohibits any competing businesses.

snip

I've seen this mentioned a few places online. Does that apply at public use airports? I can see being booted from the fbo but seems sketchy if you can be booted from a hanger or something.

 

[mondtster]

I've seen this mentioned a few places online. Does that apply at public use airports? I can see being booted from the fbo but seems sketchy if you can be booted from a hanger or something.

Many seem to try to control such activity for various reasons. Depending on how they go about it, it may be enforceable or it may not. You may also face problems with hangar leases and what you're using the hangar for. It's best to know if the specific airport in question takes grant money and what the grant assurances allow or don't allow. You may be in for a fight.

 

[forseth11]

Have you done research,that shows the amount of potential students,in the area,and how much competition .you might want to be a part time instructor,for an established FBO in your area. Have you considered ,what your availability will be while in college? Any idea of how many flyable days a week on average? Wish you luck.

I have 2 to 3 students willing to start with me when I begin. However, I am unsure how many i can get. I do know there there is one flight school on the field but they have a very bad reputation and they almost only offer flight training for international students. Another is at a large controlled airport and they have rentals for a 152 at $105 (after paying some yearly fee). They also do flight instruction for $50 per hour. They average at $11,500 to private pilot if I am correct. Other flight schools I found are 60 minute+ drives away from mine.

There is no FBO at my airport. My airport is apart of Fort Worth which is highly populated.

I know I will have either half of everyday available, or all day for 3-4 days a week.

How would you market your service against the established operations in the area. Make sure you can answer the question: why should I choose you over XYZ school next door.

What are you studying in college? What year are you in? How much free time do you expect to have?

You should choose AirNyx because:

1. Rental prices are $5-$10 cheaper than elsewhere.
2. Training is very personalized
3. Instructor is focused on you, not gaining hours
4. The checkrides are $400 (cheaper than most) because the examiner is three hangars down and he charges less if it is on the field.
5. I live in the hangar, so any reschedules are allowed and easily done since I don't have to commute.
6. We provide both a ground-flight based course like normal, or we integrate sportiest ground course with flight training to reduce costs drastically and you can learn at your own pace.

I am majoring in computer science. I am starting next year and I expect to end 5 years later.

If you expect to make money instructing with one airplane you're probably going to be disappointed. Thinking of it as a way to partially subsidize your own flying might be more realistic.

Are you allowed to instruct at your local airport? Many FBOs have an exclusive deal with the airport owner that prohibits any competing businesses.

What's your plan (do you have reserves) for unexpected maintenance expenses? And what happens to that income if the plane is down for an extended period of time?

I understand. That is why I am trying to be very conservative on my calculations.

There is no FBO at my airport. There is one other flight school and some freelance instructors instructing in their own planes there.

I wrote that information in the spoiler sections. I accounted for all reserves and potential unexpected maintenance. I have been a part owner with a mooney so I am familiar with the long periods of unexpected maintenance.

Have you obtained a quote on insurance for your airplane? Also, what are you going to use for a syllabus? Its very difficult to instruct more than 20 hours a week due to weather and aircraft maintenance, and that would be almost impossible while going to college too. Who is going to do your maintenance? Are you going to be based at an airport with an FBO that offers instruction? If so, they will "Ice" you and/or try and get you to put your plane on leaseback and instruct with them. Lots of politics involved in that one. They know what they are doing, you don't.

Yes, $1,500-$2,500
I am 70% done with my own syllabus. I'm writing it as part of cfi training.
The hours a week assumes that I will have a total of 6 weeks a year where I will be unable to fly. I live in Texas, so weather is good almost all the time. If not, it is still high enough for dual, but sometimes too low for solo. I am going to use the same mechanics I use for my mooney. Two of them often times let the owner do a majority of the work then they inspect it for a fraction of the cost. There is no FBO.

Thank you everyone for the responses.

 

[overdrive148]

If ypu want another data point, Delta Qualiflight at FTW Meacham quoted me 200 an hour and like 60-75 an hour for instructor...for a Cherokee!

And for FBOs I would stay as far away as possible from Cornerstone at FTW.

I went to Aviator Air at GPM Grand Prairie for my FR instead. 150/hr for a 172 (glass or steam same price) and like 45/hr for instructor.

 

[Radar Contact]

Making money with a flight school startup = hard (not impossible).

That said, given your plan, I'd say go for it. It appears your most likely worse case scenario is you aren't flying it enough to justify what you are doing and you sell the 150 for close to what you bought it for. If you were buying a hanger or signing a long term lease to an FBO I would say maybe not attempt it but it sounds like you have a best case scenario developed to give it a shot.

If you were close to me I'd sign my son up with you in the next year or two.

What ever you decide, I wish you luck.

 

[flyingron]

The biggest issue with such operations is AVAILABILITY both of aircraft and the instructor. Students aren't going to deal with instructors, no matter how great they claim to be, that aren't available when they are ready and able to fly.

 

[forseth11]

If ypu want another data point, Delta Qualiflight at FTW Meacham quoted me 200 an hour and like 60-75 an hour for instructor...for a Cherokee!

And for FBOs I would stay as far away as possible from Cornerstone at FTW.

I went to Aviator Air at GPM Grand Prairie for my FR instead. 150/hr for a 172 (glass or steam same price) and like 45/hr for instructor.

Thank you!
If you were still learning, would you choose me ($95 / hour rent wet; $45 / hour instruction)?

If Meacham's school is able to charge that much and still fly every single day (I live close enough to see training planes fly every single morning to early afternoon), then wouldn't I have a shot at potential business. Especially since I would be MUCH cheaper.

Making money with a flight school startup = hard (not impossible).

That said, given your plan, I'd say go for it. It appears your most likely worse case scenario is you aren't flying it enough to justify what you are doing and you sell the 150 for close to what you bought it for. If you were buying a hanger or signing a long term lease to an FBO I would say maybe not attempt it but it sounds like you have a best case scenario developed to give it a shot.

If you were close to me I'd sign my son up with you in the next year or two.

What ever you decide, I wish you luck.

Yea, I understand that it will be difficult. Thankfully, I have two people to help guide me: My dad (worked as a flight instructor for 10 years), his friend (owned his own flight school). I think I am going to go for it. Like you said, the worse case scenario isn't that bad.

The biggest issue with such operations is AVAILABILITY both of aircraft and the instructor. Students aren't going to deal with instructors, no matter how great they claim to be, that aren't available when they are ready and able to fly.

I live in the hangar in an apartment I built with my dad, so my availability should not be an issue. As for the aircraft availability, in the past, the annual took half of a day, and the other inspections took less than a few hours. I once had vor issues, but there is another one, and I could still fly it for private pilot training. The big thing is when an overhaul comes around. Those can take 2-12 weeks depending on what needs to be replaced. In the past, the overhauls were so delayed due to funding and other things being added or changed while it was all apart. There are many mechanics on this field, so it makes it a bit easier to get it done quickly.

Thanks everyone!

 

[jsstevens]

[snip]
If Meacham's school is able to charge that much and still fly every single day (I live close enough to see training planes fly every single morning to early afternoon), then wouldn't I have a shot at potential business. Especially since I would be MUCH cheaper.

If you're that much cheaper you might want to raise your prices a little.
[snip]

The big thing is when an overhaul comes around. Those can take 2-12 weeks depending on what needs to be replaced. In the past, the overhauls were so delayed due to funding and other things being added or changed while it was all apart. There are many mechanics on this field, so it makes it a bit easier to get it done quickly.

Thanks everyone!

If you have the capital, you could reduce the overhaul downtime by buying an engine and swapping. Buy a runnout and have it overhauled early or buy an overhauled engine shortly before you need it (assuming you're using the TBO clock for overhaul.) Then sell the one you take out to recoup your investment. It's a way to trade time for money.

John

 

[overdrive148]

Thank you!
If you were still learning, would you choose me ($95 / hour rent wet; $45 / hour instruction)?

If Meacham's school is able to charge that much and still fly every single day (I live close enough to see training planes fly every single morning to early afternoon), then wouldn't I have a shot at potential business. Especially since I would be MUCH cheaper.

I went back and found my notes from when I was shopping around for the Flight Review. Delta Qualiflight quoted $200/hr for the Cherokee and $79 an hour for the instructor. They have a LOT of international/foreign students. There are a couple of other flight schools at FTW but I don't know their rates. I do know that Delta flies a LOT though.

The only problem is that I am firmly outside of the weight limit for your 150 and as a bigger guy, I would much prefer to spend more money to fly in the roomier 172. I live in Arlington and Aviator Air is about 20-30 minutes away depending on traffic. Meacham is the same distance. The rates are reasonable but I think you could possibly get a bit more money out of it with a slightly higher rate.

You might get more market data by calling up Rich Aviation Services and American Pilot Academy (both smaller flight schools based at KFTW) and see what they charge. I am pretty sure it's not 200/hr.

 

[forseth11]

If you're that much cheaper you might want to raise your prices a little.
[snip]


If you have the capital, you could reduce the overhaul downtime by buying an engine and swapping. Buy a runnout and have it overhauled early or buy an overhauled engine shortly before you need it (assuming you're using the TBO clock for overhaul.) Then sell the one you take out to recoup your investment. It's a way to trade time for money.

John

Perhaps, but only after I get my feet a little wet.

That is a great idea. I should have the capital, or at least 75% by overhaul and I could get a loan for the rest. So I will buy an engine and just replace it, then overhaul that one and I would likely keep it for the next overhaul and just cycle engines. Would that be worth it?

 

[Sinistar]

Are you confident that your overall wet cost of $66/hr is correct? For a 150/152 I think you are looking at $25/hr just for fuel. That leaves $41/hr for annuals, overhaul reserves, hangar, lots of tires and brakes , ADS-B out mandate prior to 2020, etc.

As for more income, if you have your commercial you can also offer "Scenic" flights and "Discovery" flights. Ideally you'd have a 4-seater for this. At the FBO where I started I would look at the schedule and there would be like 1...3 1 hour scenic flights per instructor spread between 1...3 instructors on Saturdays. Lots of them were 2 passengers plus the pilot. They get a lot of them via groupon's.

Oh yeah, is your other 50% partner okay with the plane being beat up during training? And do they expect to trump your training schedule? Those can make for yucky times later on.

I think its cool, just don't let it slow you down from getting the CS degree. Its gonna pay way more than a aviation career for quite some time. Actually, if there is a way you could get a 2yr aviation degree while doing the CS degree I think it lowers your minimums to the big league.

 

[forseth11]

I went back and found my notes from when I was shopping around for the Flight Review. Delta Qualiflight quoted $200/hr for the Cherokee and $79 an hour for the instructor. They have a LOT of international/foreign students. There are a couple of other flight schools at FTW but I don't know their rates. I do know that Delta flies a LOT though.

The only problem is that I am firmly outside of the weight limit for your 150 and as a bigger guy, I would much prefer to spend more money to fly in the roomier 172. I live in Arlington and Aviator Air is about 20-30 minutes away depending on traffic. Meacham is the same distance. The rates are reasonable but I think you could possibly get a bit more money out of it with a slightly higher rate.

You might get more market data by calling up Rich Aviation Services and American Pilot Academy (both smaller flight schools based at KFTW) and see what they charge. I am pretty sure it's not 200/hr.

Okay I'll look into it. That makes sense with the 150. Because I'm so light, I could actually train someone up to 230 pounds.

 

[bnt83]

Two people in a Cessna 150, in the heat of Texas sounds miserable to me. Especially when bumping around in low altitudes on hot days. Long climbs but doable.

 

[jsstevens]

Perhaps, but only after I get my feet a little wet.

That is a great idea. I should have the capital, or at least 75% by overhaul and I could get a loan for the rest. So I will buy an engine and just replace it, then overhaul that one and I would likely keep it for the next overhaul and just cycle engines. Would that be worth it?

Depends on how long you go between overhauls, I'd think. You'd have to properly pickle the engine you're storing.

 

[forseth11]

Are you confident that your overall wet cost of $66/hr is correct? For a 150/152 I think you are looking at $25/hr just for fuel. That leaves $41/hr for annuals, overhaul reserves, hangar, lots of tires and brakes , ADS-B out mandate prior to 2020, etc.

As for more income, if you have your commercial you can also offer "Scenic" flights and "Discovery" flights. Ideally you'd have a 4-seater for this. At the FBO where I started I would look at the schedule and there would be like 1...3 1 hour scenic flights per instructor spread between 1...3 instructors on Saturdays. Lots of them were 2 passengers plus the pilot. They get a lot of them via groupon's.

Oh yeah, is your other 50% partner okay with the plane being beat up during training? And do they expect to trump your training schedule? Those can make for yucky times later on.

I think its cool, just don't let it slow you down from getting the CS degree. Its gonna pay way more than a aviation career for quite some time. Actually, if there is a way you could get a 2yr aviation degree while doing the CS degree I think it lowers your minimums to the big league.

I am very confident with the costs I determined. They are taken from some my dad had when he owned a 150 at the same airport. It also already has ADS-B in and out.

The other 50% partner is all for the flight school because they get some rental money from it. They are also going to be trained by me as soon as we start. They know that the student schedules go above their flying schedule.

My degree is a backup plan. I plan to work for an airline, but I hope to grow this and possibly have it on the side. I have always wanted to start a business and I thought I would do it with something I love.

As for scenic flights, if this works out, I own 1/3 of a mooney (my dad owns rest). I could upgrade insurance and pay the 100hour then do both commercial training and scenic flights. It has 4 seats and get 9gph.

 

[forseth11]

Two people in a Cessna 150, in the heat of Texas sounds miserable to me. Especially when bumping around in low altitudes on hot days. Long climbs but doable.

I would do most training early morning or late afternoon. It isn't too bad in this one. When I learned in the summer, I did all around lunch time. The plane has two opening windows and two great vents. Once you get going it cools down quickly. It actually climbs pretty well until you get to 6000 feet.

 

[Zeldman]

If Meacham's school is able to charge that much and still fly every single day (I live close enough to see training planes fly every single morning to early afternoon), then wouldn't I have a shot at potential business. Especially since I would be MUCH cheaper.

If you are too much cheaper, people might wonder what is wrong. Might think about being a little cheaper, then when people ask why, say something like I have no middle men to pay, or something similar.

We're pulling for ya, best of luck to ya..!!!

Also to add: I flight instructed for 18 months 20 years ago. It was a small airport, one runway, no taxi way, one FBO, I was the only full time instructor. I pulled my log book and looks like I averaged about 55 hours per month of dual instruction. This was in a very poor part of rural West Virginia.

 

[Matthew K]

My degree is a backup plan. I plan to work for an airline, but I hope to grow this and possibly have it on the side. I have always wanted to start a business and I thought I would do it with something I love.

Sounds like the flight school I rent from. The husband started the school and his wife joined on so he could do commercial aviation jobs for his main job.

 

[flyingron]

Two people in a Cessna 150, in the heat of Texas sounds miserable to me. Especially when bumping around in low altitudes on hot days. Long climbs but doable.

I learned in a 152 at BJC. My instructor was no lightweight.

 

[forseth11]

Sounds like the flight school I rent from. The husband started the school and his wife joined on so he could do commercial aviation jobs for his main job.

That's awesome.

 

[scorpio]

My biggest concerns for training were availability and convenience. I ended up buying a plane to help with both of these items. Cost was certainly a factor, but not the biggest factor. Be conscious of price, but leave some meat on the bone at the same time. Being known for being the cheap option isn't always good. It's a balance.

 

[forseth11]

My biggest concerns for training were availability and convenience. I ended up buying a plane to help with both of these items. Cost was certainly a factor, but not the biggest factor. Be conscious of price, but leave some meat on the bone at the same time. Being known for being the cheap option isn't always good. It's a balance.

I am a software developer, and I planned on making an account system on my website so people training and renting can schedule times from the website. This is the convenience factor. I am also going to wrap my schedule around the students. The good thing about college, is that you are in class for only a few hours a week; the homework can be done anytime between classes. Also with the website scheduling thing, I plan on making a bunch of resources available there too; kind of like on faa.gov, but easier.

I plan on keeping instruction price the same ($45). As for rentals, I plan on starting at $90 per hour (leaves me with $20 per hour profit), then after I get some business, and if possible, I will increase it slightly, but ONLY for new people. Anyone who starts will get the original price.

 

[scorpio]

That $20 profit is best case scenario. There will be issues that will need to be addressed. The costs won't be less than your spreadsheet, but they may be significantly more. That is cutting it pretty close.

It sure helps to have no hangar fees or rent. Go for it and keep detailed records. Best of Luck!

 

[SkyDog58]

I got my private through an independent CFI on a field (TOA) with a FBO that had a flight school. He kept pretty busy and seemed to do pretty well. He was the best instructor I ever had.

Go for it.

 

[mscard88]

Hmm wonder WTF TOA is....sigh.






Of I know where it is, just giving you a hard one, er, hard time as always.

 

[edo2000]

Sounds to me like you have a decent plan. Especially now, with the shortage of airline pilots which is projected to grow. Many years ago, I worked summers as an instructor and charter pilot in Alaska while studying computer science at a lower 48 university. I wouldn't have wanted to be doing the flying while in school, I was taking heavy course loads each semester trying to graduate ASAP, and had a wife and baby son. Remember the old rule of thumb - at least 2 hours of outside study for every hour in class.. Best of luck. I predict that you will be successful.

 

[Kritchlow]

Yeah, no clue if it will be a successful venture or not, but good luck to you either way!

 

[jsstevens]

I'll add what I told my son when he headed off to a new city to start a restaurant: "You're young, you're smart and you're capable. You'll either be successful or you'll learn a lot. Either way, when will there be a better time to try it?"

 

[ktup-flyer]

172, or Cherokee 180, would be much more attractive. I'd definitely look into going that route.

 

[forseth11]

Sounds to me like you have a decent plan. Especially now, with the shortage of airline pilots which is projected to grow. Many years ago, I worked summers as an instructor and charter pilot in Alaska while studying computer science at a lower 48 university. I wouldn't have wanted to be doing the flying while in school, I was taking heavy course loads each semester trying to graduate ASAP, and had a wife and baby son. Remember the old rule of thumb - at least 2 hours of outside study for every hour in class.. Best of luck. I predict that you will be successful.

True. Its cool how you went to school and instructed. I accounted for having enough time to do homework and projects. I also have two years of real world programming experience already, so I think some of the computer science classes will be a little easier.

172, or Cherokee 180, would be much more attractive. I'd definitely look into going that route.

I agree, but I am in a position where I can get a 150 which I have 180 hours in this specific one (which reduces insurance since my age hurts it). Also, I can get the 150 for $15,000, but a 172 would cost more around 30-45k, and I can't afford that. If this works out, I plan on getting a loan to buy a 172 to add on to this.

 

[ktup-flyer]

I agree, but I am in a position where I can get a 150 which I have 180 hours in this specific one (which reduces insurance since my age hurts it). Also, I can get the 150 for $15,000, but a 172 would cost more around 30-45k, and I can't afford that. If this works out, I plan on getting a loan to buy a 172 to add on to this.

Go for it. I wish someone would around here so we could have a flight school in the area. I can definitely relate on the insurance...

 

[Clark1961]

You haven’t included business start-up and admin costs. Are you going to handle everything yourself or are you going to use a CPA? Either way there are still fees for business registration and any local stuff (taxes) which may be required. Get your accounts set up correctly from the beginning.

 

[forseth11]

You haven’t included business start-up and admin costs. Are you going to handle everything yourself or are you going to use a CPA? Either way there are still fees for business registration and any local stuff (taxes) which may be required. Get your accounts set up correctly from the beginning.

I am going to be doing the accounting stuff on my own. My dad ran several businesses before and he has a business degree, so I will have assistance. I didn't put the start up costs on this post, but I accounted for everything already in the loan payment. I need $18,000. I am putting $8,000, and I have received $7,000 in investments. I just need $2,500 more, and I know where to get it once I have everything all figured out.

I am aware of the 15% taxes for federal business taxes. Texas has no additional business taxes. I also know that if I miss paying taxes or filing that I didn't make anything, then I am required to pay $1000, so I will be sure keep it all up to date.

I also am going to register either an S corporation (inc) or an LLC. I am leaning toward an S corp. In Texas, I can register and file both an LLC and S corporation for $49.

 

[josephades]

I purchased an archer with the same thing in mind as what you are thinking. Initially put it on leaseback with the intent to later start a flight school and add more aircraft.

Terrible idea

First, your reserve for maintenances are way too low. $300 for a 100-hour? Are you sure?

Owning a plane in general is a headache with maintenances. It’s like a tunnel but with no light at the end of it. Becusse the plane will be flying often, parts will break and wear out quicker. Students and renters WILL do damage. I guarantee it. It’s going to be an endless headache and every time your plane is down it’s going to hurt you financially as well.

Just my two cents

My plane is now off leaseback and I’ve never been happier

 

[weilke]

Look at your airports uniform commercial standards policy. While they can't block you from opening another flight school, they certainly can come up with sets of rules that make it near impossible to do so. They can have requirements like:
- availability of a bathroom
- availability of a 'classroom'
- minimum square footage
- requirements to have on-site front desk during regular business hours
- requirements to carry certain types of insurance
- a gross receipts tax on your income from aircraft rentals and teaching
.
.
.



One way to get around some of these requirements (e.g. bathrooms, facilities, staff) is to become a subtenant of an existing airport business. You rent a cubicle at the FBO and in turn they submit a letter to the airport authority stating that you have use of their facilities.

As for the economic viability: After you have sorted out the papwerwork aspects (license to operate on the airport, business license, insurance), it all comes down to treating your customers right. If you manage to get your students to their checkride with a minimum level of frustration, you are going to be very busy.