Aircraft & Instruction Variable Assumptions

Aircraft Lease

$24,000

# of Planes
# of Total Students

4
80

Ave Hrs / Month

Fuel Price
Gal/Hr
Rent/Hr

100
$6.50
7.5
$120.00

Cash Flow

1st Year

Instruction Hours
Instruction
Rate Fee-one
per Hour
Student Entry
time
Monthly fee (ACH)
Aircraft Rental
Gross Income/Benefit:

4,800
$75.00
$500.00
$100.00

Instruction Costs
Initial Aircraft Costs
Lease Service
Fuel
Insurance
Maintance
Misc
Total Costs:

62%
$10,000
1%
$48.75
$12,000
$10.00
$5.00

Aircraft & Instruction Income-(Loss):

$360,000
$40,000
$88,000
$576,000
$1,064,000
$222,480
$40,000
$96,000
$234,000
$48,000
$48,000
$24,000
$712,480
$351,520

Pro Forma Statement of Operations

REVENUES
Flight Instruction
Flight Tests
FAA Written Tests
Academic Instruction
Supplies
Total Revenues
Cost of Sales
Flight Instruction
Flight Tests
FAA Written Tests
Academic Instruction
Supplies
Total Cost of Sales:
Gross Profit:
As a %:

72%
63%
64%
62%
50%

G & A Expenses
Management Salaries
Administrative Staff Salaries
Industry Consultants
Bonus
Labor Tax & Fringes
Utilities
Facility Rent
Health Insurance
Postage
Bad Debts
Subscriptions
Legal & Accounting
Conventions & Trade Shows
Telephone
Information Technology
Life Insurance
Liability Insurance
Documentation
Miscellaneous
Total G&A Expenses:
Net Income (Scholrship Fund):

1st Year
Plan A
$1,151,156
$14,850
$12,500
$16,500
$37,830
$1,232,836

Plan B
$1,151,156
$14,850
$12,500
$16,500
$37,830
$1,232,836

Plan C
$1,151,156
$14,850
$12,500
$16,500
$37,830
$1,232,836

$828,832
$9,356
$8,000
$10,230
$18,915
$875,333
$357,503
29.0%

$828,832
$9,356
$8,000
$10,230
$18,915
$875,333
$357,503
29.0%

$828,832
$9,356
$8,000
$10,230
$18,915
$875,333
$357,503
29.0%

$55,000
$68,000
$30,000
$0
$33,660
$32,358
$80,400
$12,000
$1,000
$1,000
$600
$0
$12,000
$10,066
$2,400
$0
$0
$1,000
$8,000
$347,484

$55,000
$68,000
$30,000
$0
$33,660
$32,358
$4,020
$12,000
$1,000
$1,000
$600
$0
$12,000
$10,066
$2,400
$0
$0
$1,000
$8,000
$271,104

$55,000
$68,000
$30,000
$0
$33,660
$32,358
$0
$12,000
$1,000
$1,000
$600
$0
$12,000
$10,066
$2,400
$0
$0
$1,000
$8,000
$267,084

$10,019

$86,399

$90,419

Assumptions and Basic Computations

Student Flying
Instructor
$75

11E
$99

Arrow
$149

Seminole
$249

FTD
$75

Freshman

Sophomore

Junior

Senior

Total

60

40

35

33

168

Hrs./stu
60

10

Hrs./stu
30
20
0
20

Est. Completion rate

75%

80%

Estimated Hrs/year
QMA 11e
Piper Arrow
Piper Seminole
Flight Training Device

Aircraft Hours Per Year

Price per hr. to students

No. of Students by class

Ideal student activity

QMA 11E
Piper Arrow
Piper Seminole
Flight Training Device

Hrs./stu Hrs./stu
30
15
10
10
15
15
15
5

Total

Total Hours per year

85%

Total
135
40
30
50
255

Cost of Flight Training to the Student

Item
$/hr.
hrs.
Total cost

11E
Arrow
Seminole
FTD

$99.00
$149.00
$249.00
$75.00

$135.00
$40.00
$30.00
$50.00

$13,365
$5,960
$7,470
$3,750

$30,545
Commercial - Instrument and ME ratings
Flight Instructor - Instrument and ME ratings

85%
Total Hrs.

2,700
0
0
450

960
640
0
640

893
298
446
446

421
281
421
140

4,973
1,218
867
1,677

3,150

2,240

2,083

1,262

8,735
Instructor Flight Hours per year

Percentage of Estimated Hrs/yr with an Instructor

80%
75%
75%
QMA 11E
75%
75%
Piper Arrow
75%
Piper Seminole
Flight Training Device

100%

100%

100%

Freshman Sophomore

75%
75%
100%
100%

2,160
0
0

720
480
0

450
640
Basic Instructor Hrs

Junior

Senior

669
223
335

316
210
421

446
3,970

140

Advanced instructor hrs.

3,240

Aircraft Operations
Fuel

Av Gas

Lbs/gal.
6.0

$/ gal.
$4.50

Fleet
Size

Avg. Price
per Aircraft

Fleet
Value

Hull Ins.
Rate

10
2
2
1

200,000
180,000
150,000
160,000

2,000,000
360,000
300,000
160,000
2,820,000

2.1%
0.0%
0.0%

0.0%
0.0%
0.0%
0.0%

Fuel
Gal./hr.

Eng.
TBO

Eng & prop

OH cost

Airframe
Mant/hr.

Avionics
hr.

8
11
22

2,000
2,000
2,000

$0
$0
$0

$12.00
$0.00
$0.00

$0.00
$0.00
$0.00

Flight
Hours

Flight to total
hrs. multiplier

Instructor
Hours

Charge
Hour

Instruction
Revenue

$1.50
$1.50

4,861
5,955

$75.00
$-

364,542
0

Aircraft
Direct (fixed) costs

QMA 11E
Piper Arrow
Piper Seminole
Flight Training Device
Totals
Indirect (variable) costs
QMA 11E
Piper Arrow
Piper Seminole

Deprec. InvestmentLiability Ins Storage/yr

Rate
Rate
per AC
per AC

Flight Training Device

Employment
Flight Instructors

Advanced instruction 3,240

Basic instruction
3,970
Total revenue

364,542

Training

Initial

Recurrent

QMA 11E
Piper Arrow
Piper Seminole

Instr. / yr. Hrs./instr.

$10.00
$4.00
$6.00
$5.00
5
15

Instr. / yr. Hrs./instr.

$5.00
$2.00
$5.00
$2.00
5
2

Flight Training Device

Benefits

Benefits/yr/employee 4,800
Workmen's comp. gen. 0.010
Workmen's comp. flight 0.100

2,250
0
0

0
0
0

LEASE
FLIGHT SCHOOL
CASH FLOW ANALYSIS

MEMO
Yellow highlighted areas are changeable
The formulas adjust the outcome
QMA 11E
$189,000.00

MONTHLY FIXED COSTS:

INSURANCE
HANGAR
MONTHLY LEASE RATE
TOTAL:
HOURLY COSTS:
MAINTENANCE
ENGINE RESERVE
FUEL
TOTAL:

$1,200.00
Per Month $200.00
1.50%
$2,835.00
~~~~~~~
$4,235.00

$1,100.00
$200.00
$2,545.00
~~~~~~~
$3,845.00

Per Month
1.00%

$1,150.00
$200.00
$2,640.00
~~~~~~~
$3,990.00

$12.00
Per Gallon
$0.00
$4.50
$42.75
Gal-Hour ~~~~~~~
$54.75
9.5

$12.00
Per Gallon
$0.00
$4.50
$42.75
Gal-Hour ~~~~~~~
$54.75
9.5

$4,235.00
$120.00
$73.50
~~~~~~~
91.08

$3,845.00
$120.00
$54.75
~~~~~~~
58.93

$3,990.00
$120.00
$54.75
~~~~~~~
61.15

100
~~~~~~~
$115.85

60
~~~~~~~
$118.83

60
~~~~~~~
$121.25

$12,000.00
$11,585.00
==========
$415.00
$4,980.00

$7,200.00
$7,130.00
==========
$70.00
$840.00

$7,200.00
$7,275.00
==========
-$75.00
-$900.00

MONTHLY HRS TO OFF-SET COSTS:

EXPECTED MONTHLY RENTAL HRS:
BREAK EVEN HOURLY RENTAL RATE:

MONTHLY PROFIT (LOSS):

YEARLY PROFIT (LOSS):

Per Month
1.00%

WARRIOR
$264,000.00

$15.00
Per Gallon
$0.00
$6.50
$58.50
Gal-Hour ~~~~~~~
$73.50
9.0

SUMMARY:
MONTHLY FIXED COSTS
RENTAL RATE
HOURLY COST

TOTAL MONTHLY REVENUE

TOTAL MONTHLY COST

172SP
$254,500.00

PURCHASE
FLIGHT SCHOOL
CASH FLOW ANALYSIS

MEMO
Yellow highlighted areas are changeable
The formulas adjust the outcome
QMA 11E
$189,000.00

MONTHLY FIXED COSTS:

INSURANCE
HANGAR
MONTHLY NOTE PAYMENTS
TOTAL:
HOURLY COSTS:
MAINTENANCE
ENGINE RESERVE
FUEL
TOTAL:
SUMMARY:
MONTHLY FIXED COSTS
Owner RENTAL RATE
HOURLY COST
MONTHLY HRS TO OFF-SET COSTS:
EXPECTED MONTHLY RENTAL HRS:
BREAK EVEN HOURLY RENTAL RATE:
TOTAL MONTHLY REVENUE
TOTAL MONTHLY COST
MONTHLY PROFIT (LOSS):
YEARLY PROFIT (LOSS):

$900.00
Int Rate
$200.00
8.00%
$3,313.78
Term
~~~~~~~
$4,413.78
72.0

172SP
$254,500.00

Int Rate
8.00%
Term
72.0

$1,100.00
$200.00
$4,462.21
~~~~~~~
$5,762.21

WARRIOR
$264,000.00

Int Rate
8.00%
Term
72.0

$1,150.00
$200.00
$4,628.78
~~~~~~~
$5,978.78

$12.00
Per Gallon $12.00
$4.50
$33.75
Gal-Hour ~~~~~~~
$57.75
7.5

$12.00
Per Gallon
$12.00
$4.50
$42.75
Gal-Hour ~~~~~~~
$66.75
9.5

$12.00
Per Gallon
$12.00
$4.50
$42.75
Gal-Hour ~~~~~~~
$66.75
9.5

$4,413.78
$120.00
$57.75
~~~~~~~
70.90

$5,762.21
$120.00
$66.75
~~~~~~~
108.21

$5,978.78
$120.00
$66.75
~~~~~~~
112.28

60
~~~~~~~
$131.31

60
~~~~~~~
$162.79

60
~~~~~~~
$166.40

$7,200.00
$7,878.78
==========
-$678.78
-$8,145.39

$7,200.00
$9,767.21
==========
-$2,567.21
-$30,806.52

$7,200.00
$9,983.78
==========
-$2,783.78
-$33,405.31

==========

==========

LEASE
FLIGHT SCHOOL
CASH FLOW ANALYSIS

MEMO
Yellow highlighted areas are changeable
The formulas adjust the outcome

NEW QMA 11E

$189,000.00

MONTHLY FIXED COSTS:

INSURANCE
HANGAR
MONTHLY LEASE RATE

$900.00
Per Month
$200.00
$1,890.00
1.00%
~~~~~~~
$2,990.00

TOTAL:
HOURLY COSTS:
MAINTENANCE
ENGINE RESERVE
FUEL

$12.00
Per GallonGal per Hour
$0.00
$33.75
$4.50
7.5
~~~~~~~
$45.75

TOTAL:
SUMMARY:
MONTHLY FIXED COSTS
RENTAL RATE
HOURLY COST

$2,990.00
$120.00
$45.75
~~~~~~~
MONTHLY HRS TO OFF-SET COSTS: 40.27
EXPECTED MONTHLY RENTAL HRS:

60
~~~~~~~
BREAK EVEN HOURLY RENTAL RATE: $95.58
TOTAL MONTHLY REVENUE
TOTAL MONTHLY COST
MONTHLY PROFIT (LOSS):
YEARLY PROFIT (LOSS):

$7,200.00
$5,735.00
==========
$1,465.00
$17,580.00

PURCHASE
FLIGHT SCHOOL
CASH FLOW ANALYSIS

MEMO
Yellow highlighted areas are changeable
The formulas adjust the outcome

NEW QMA 11E

$189,000.00

MONTHLY FIXED COSTS:

INSURANCE
HANGAR
MONTHLY NOTE PAYMENTS

$900.00
$200.00
$3,313.78
~~~~~~~
$4,413.78

TOTAL:
HOURLY COSTS:
MAINTENANCE
ENGINE RESERVE
FUEL

Int Rate
8.00%

$12.00
Per GallonGal per Hour
$10.00
$33.75
$4.50
7.5
~~~~~~~
$55.75

TOTAL:
SUMMARY:
MONTHLY FIXED COSTS
Owner RENTAL RATE
HOURLY COST

$4,413.78
$120.00
$55.75
~~~~~~~
MONTHLY HRS TO OFF-SET COSTS: 68.70
EXPECTED MONTHLY RENTAL HRS:

75
~~~~~~~
BREAK EVEN HOURLY RENTAL RATE: $114.60
TOTAL MONTHLY REVENUE
TOTAL MONTHLY COST
MONTHLY PROFIT (LOSS):
YEARLY PROFIT (LOSS):

Term
72.0

$9,000.00
$8,595.03
==========
$404.97
$4,859.61