Ouch - $2/gal/hr

Hi,

Our RHV-based club (San Jose) just increased its prices by $2/gal/hr
effective immediately; 172s are now over $100, Arrow is $130 - I don't even
want to think what the Duchess will be when it gets its new engines (pilor
error gear up).

They said it was entirely due to fuel prices. I asked if the prices would
go down when/if avgas proces dropped. I didn't really get a good answer,
but the suggestion was no, they wouldn't.

I remember when a 172 was around $65 or so and flying around the pattern for
a hour was a fun thing to do. Now I have to call my accountant to get
financial approval.

Hilton

On Wed, 07 Sep 2005 18:58:05 GMT, "Hilton"
wrote in et::

I remember when a 172 was around $65 or so

During my Commercial training in 1971, I was paying $6.75/hour (dry)
for a Cherokee on the FBO's line.

Of course, a good annual income in those days was $30K, and a week's
groceries cost $20 for a family of 4. The dollar's just not worth
what once it was.

I remember when I could fly a 172 for $16.00/hour.


Regards, Ross
C-172F 180HP
KSWI


Hilton wrote:
Hi,

Our RHV-based club (San Jose) just increased its prices by $2/gal/hr
effective immediately; 172s are now over $100, Arrow is $130 - I don't even
want to think what the Duchess will be when it gets its new engines (pilor
error gear up).

They said it was entirely due to fuel prices. I asked if the prices would
go down when/if avgas proces dropped. I didn't really get a good answer,
but the suggestion was no, they wouldn't.

I remember when a 172 was around $65 or so and flying around the pattern for
a hour was a fun thing to do. Now I have to call my accountant to get
financial approval.

Hilton

Our RHV-based club (San Jose) just increased its prices by $2/gal/hr... They said it was entirely due to fuel prices.

Did your fuel go up by $2/gal? Because ours only went up by 40 cents a
gallon, and we just got a new load this weekend. We're paying $3.35
per gallon now. That reflects the actual price increases in the bulk
fuel. Anything significantly higher is just gouging.

I asked if the prices would go down when/if avgas
proces dropped. I didn't really get a good answer,
but the suggestion was no, they wouldn't.

For years, the costs of renting airplanes really didn't keep up with
the costs of owning them - making the profit margins slimmer and
slimmer. It's gotten to where you really can't own a typical trainer
plane for less than you can rent it unless you fly 150+ hours a year.
I suspect that's going to change - but owning won't get any cheaper.

Michael

Michael wrote:

Did your fuel go up by $2/gal? Because ours only went up by 40 cents a
gallon, and we just got a new load this weekend. We're paying $3.35
per gallon now. That reflects the actual price increases in the bulk
fuel. Anything significantly higher is just gouging.

Remember, Michael, we are not talking one gallon per hour here... The
C172SP burns about 9.5 gallons per hour. Thus, your 40 cents per gallon
translates to $3.80 per hour more in hourly operating costs. If the Op's
fuel went up by 40 cents per gallon as yours did, the owner is actually
losing money.

--
Peter
























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Remember, Michael, we are not talking one gallon per hour here... The
C172SP burns about 9.5 gallons per hour.

I'm well aware of that. However, read the first line of the post
again:

Our RHV-based club (San Jose) just increased its prices by $2/gal/HR
(capitalization for emphasis mine).

Michael

Michael wrote:

Our RHV-based club (San Jose) just increased its prices by $2/gal/HR
(capitalization for emphasis mine).

Whoops. Two dollars *per gallon* per hour? I did miss that detail as I
have never seen rental rate increases discussed in terms of a gallon of gas
per hour before.

So, to the OP for clarification, the C172 is now about $20 more per hour
than a couple of weeks ago?

I guess that would be gouging.



--
Peter
























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I'm not worried about the price of gas to much, according to the email I
just got I won the lottery in Italy!!!

Patrick
student SPL
aircraft structural mech

"Peter R." wrote in message
...
Michael wrote:

Our RHV-based club (San Jose) just increased its prices by $2/gal/HR
(capitalization for emphasis mine).

Whoops. Two dollars *per gallon* per hour? I did miss that detail as I
have never seen rental rate increases discussed in terms of a gallon of
gas
per hour before.

So, to the OP for clarification, the C172 is now about $20 more per hour
than a couple of weeks ago?

I guess that would be gouging.



--
Peter
























----== Posted via Newsfeeds.Com - Unlimited-Uncensored-Secure Usenet
News==----
http://www.newsfeeds.com The #1 Newsgroup Service in the World! 120,000+
Newsgroups
----= East and West-Coast Server Farms - Total Privacy via Encryption
=----

We purchased several July and September calls on all sorts of fuel
last Winter, so far okay at a $26.50/barrel price. Has anyone else
seen fuel prices increase? WTTW, go long on fuel.

Bush

A part of Rome was built in a day.


On Wed, 07 Sep 2005 18:58:05 GMT, "Hilton"
wrote:

Hi,

Our RHV-based club (San Jose) just increased its prices by $2/gal/hr
effective immediately; 172s are now over $100, Arrow is $130 - I don't even
want to think what the Duchess will be when it gets its new engines (pilor
error gear up).

They said it was entirely due to fuel prices. I asked if the prices would
go down when/if avgas proces dropped. I didn't really get a good answer,
but the suggestion was no, they wouldn't.

I remember when a 172 was around $65 or so and flying around the pattern for
a hour was a fun thing to do. Now I have to call my accountant to get
financial approval.

Hilton

Michael wrote:
Our RHV-based club (San Jose) just increased its prices by
$2/gal/hr... They said it was entirely due to fuel prices.

Did your fuel go up by $2/gal? Because ours only went up by 40 cents a
gallon, and we just got a new load this weekend. We're paying $3.35
per gallon now. That reflects the actual price increases in the bulk
fuel. Anything significantly higher is just gouging.

Here are the numbers they mentioned (in the CFI meeting last night) - these
numbers are approximate, but they're ballpark enough for this NG thread.
Gas was costing them $2.50-$2.80 or so. This next batch will cost $4.80.
The following batch will have an additional 75c cost. When I asked my "will
the rental prices drop when the fuel price drops" I was told they they're
building in a cost so that they don't have to raise them again for the 75c
delivery. Read that however you want - but to me, I think you're right - it
all sounds like ripoff/gouging to me.

OK, I just called the 'fuel guy' at RHV. Price today for a gallon is $4.04,
tomorrow will be $4.40. He said it's definitely temporary. He added that
the flight schools in RHV are leaving their prices the same, but are adding
a temporary surcharge. He added that cheaper gas may be found at more rural
areas since they will still be using older gas and would not have been
affected with newer deliveries.

The surcharge sounds fair to me. Now whether or not the fuel companies are
gouging is a separate issue. It still hurts though. I guess it'll soon be
the $1000 burger.

Hilton
P.S.: Not sure where the FBO manager got the $4.80 and 75c numbers from.


Hilton