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This page updated:
    February 27, 2008

Cost Justification

IT'S A MONEY MAKER

MAKING ‘Cents’ WITH THE FLYIT PROFESSIONAL AIRPLANE SIMULATOR

Frequently Asked Questions

HOW DO I FIGURE OUT WHAT TO CHARGE STUDENTS FOR TRAINING IN THE FLYIT PROFESSIONAL AIRPLANE SIMULATOR (PAS)?

·         The national average for PAS simulator training is $75/hr dual instruction

·         This includes both VFR and IFR training

·         Students are Internet savvy and “shop” flight schools to get the best deals.  Any “price reduction” from real aircraft training is attractive to students; they want to SAVE money

 HOW MUCH WILL THE FLYIT PAS COST ME TO OPERATE? 

·         Based on an average of 10 hours per week:

Electricity consumption                                             .25 per hour

Housekeeping and general maintenance                     .25 per hour

Projector bulb amortization                                        .25 per hour

Equipment maintenance                                            .25 per hour     

 Total Cost of Operation                              $1.00 per hour

 WHAT CAN I EXPECT FOR RETURN ON INVESTMENT BY USING THE FLYIT PAS?

·         Based on $70/hr student charge, and $1 direct operating expense = $69/hr net profit, and

·         Assuming a monthly debt service of $2,000 plus insurance at $100 =  $2,100
(60 month, 5.9% APR/OAC lease, $1 simulator buy-out):

 

	Training Hours	Net Annual Profit
Break even	7.5/hr per week = $2,100/month  That’s less than 1 hour per day	$0
Net Profit	27.5/hr per week =	$72,800 after debt service
	37.5/hr per week =	$109,200
	47.5/hr per week =	$145,600