The UK's general aviation (GA) industry has come under pressure because of global economic woes and increasing regulations by the European Aviation Safety Agency (EASA). A number of flight-training organisations (FTO), such as Cabair, which operated several campuses in Britain, have collapsed, while others have been reorganised to weather the storm.
Unless used to generate financial return, say, through pilot training or as transport means for business trips, flying private aircraft has always been for people who are sufficiently affluent to buy, operate and maintain aircraft, be they self-owned or club-chartered, or who are willing to sacrifice other leisure pursuits, such as family holidays, for their airborne ambitions.
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The economic uncertainties since the global financial crisis in 2008 have further reduced the limited pool of potential customers. There are fewer private pilot licence (PPL) trainees and qualified PPL holders who keep up the minimum flying hours to renew their ratings on a biennial basis.
UK-based Sky Leisure Aviation, which offers private and commercial pilot training at Shoreham, Redhill and Blackbushe airports, saw the number of its PPL trainees halve in 2011 after a fall in the previous three years, says chief flying instructor Martyn Blunden.
FEWER LICENCES
Martin Robinson, regional vice-president of the International Council of Aircraft Owners and Pilots Associations (IAOPA) for Europe, and chief executive of the UK branch, says that the total number of PPLs, which are newly issued for light aircraft in all categories, fell from around 3,300 per year in 2005/06 to just under 2,500 now.
This is mainly a result of the economic downturn and fluctuations over the past years. Blunden and Robinson agree that, more than anything else, the GA industry depends on confidence in the economy. "When people are worried about their jobs and mortgages, that's what they will prioritise first," says Blunden. "While the idea of learning to fly is still attractive, they are not prepared to make that investment right now."
He adds that, apart from affecting their customer base, the global financial crisis also had an impact on flying schools in terms of arranging bank credits to run their operations. Like other small to medium-sized businesses, they are suffering from tighter credit regulations.
The restricted access to capital has also made it difficult for young people from poorer backgrounds who want to become commercial pilots to finance their training through loans. While this is not directly related to recreational flying, it nevertheless reduced the pool of potential customers for flight schools.
As a result, FTOs need to cut their costs and become more efficient. One challenge is to strike the right balance in terms of employing instructors. As the PPL qualifies pilots to operate only under visual flight rules (VFR) in daylight with basic instrument navigation skills, practical training takes place mainly between April and October. So schools operate with a limited number of full-time staff and in summer take on part-time instructors who typically have other jobs elsewhere.
For many instructors the training job is a stepping stone to a career as a commercial pilot on corporate aircraft or with an airline. So the flying schools need to find replacements when the instructors move on. This typically happens when airlines recruit pilots during a market upturn, which may also lead to more pilot trainees thanks to the better job prospects and a greater need for instructors. Blunden says that running an FTO is a "very flexible business" and that it can be difficult to find instructors when required.
Increasing fuel prices is a central reason for the reduced flying activity both by aspiring and qualified pilots. This not only pushes up the hourly aircraft rates but also reduces the disposable income of pilots because of the higher cost for domestic and vehicle fuels.
Some flying schools and clubs have converted their Cessna 172s and Piper PA28s to use diesel engines or employed aircraft that were factory-equipped with more modern powerplant. While it consumes Jet A-1 fuel and is more efficient than conventional Avgas engines, some clubs have stayed away from kerosene or even returned leased diesel aircraft.
CONVERSION COSTS
Blunden says Sky Leisure Aviation decided not to convert its aircraft even though it would be from a purely flight training-based perspective "probably quite a sensitive move". Apart from the conversion costs which might not warrant the installation in old aircraft, he thinks that the Diesel engine could have a negative impact on the charter business. The engine is heavier than its conventional Avgas counterpart, reducing the available payload and brings the centre of gravity forward with an associated change in the aircraft's handling. Customers who want full payload to take up three guests to split the costs might thus be reluctant to use a converted aircraft, he says.
Bringing private pilots together to fly as teams and share the costs is a measure to keep PPL holders and aircraft in the air. While the club has always tried to encourage pilots to meet up for flights, Blunden says this has become more important as the cost went up and flying hours came down in recent years. The advantage is that pilots can maintain or even extend their skills while not paying the full rate. This may be beneficial for less experienced pilots who can learn from those with more hours in the log book. The club thus organises, for example, cross-country routes with demanding navigation or sorties to farm airstrips to practise soft field landings. "In a flying school, people [usually] turn up, go for their flight, come back, sign everything off, pay and go home," says Blunden. "They don't actually meet other pilots very easily."
Increasing regulation is a reason why recreational flying has become more expensive and less attractive, says Robinson. Under EASA rules, flying clubs must be approved training organisations (ATO) and as such need to be audited every two years. Similarly, aircraft maintenance needs to be conducted by EASA-certified continuing airworthiness management organisations (CAMO).
CHANGED REGULATIONS
While this has increased the clubs' cost base, Robinson doubts whether the new rules have led to improved training quality and aircraft safety. He expects that it will drive more pilots to fly microlight aircraft, which fall under national regulations, or to complete their mandatory flying hours abroad, for example in the USA, in combination with a holiday. "The regulations changed over the past 10 years and really had an impact on what used to be a relatively straightforward business," he says. Taking the economic climate into account, he says: "It is remarkable how aero clubs manage to survive in the current state of the market."
AOPA estimates the European GA industry contributes $30 billion to the region's gross domestic product, while the US sector creates $100 billion, even though the EU has a much larger population. This corresponds to around 200,000 PPL holders in Europe compared with 600,000 in the USA. Robinson says there is "room for growth" on this side of the Atlantic but governments would need to change their course towards less regulation.
Source: Flight International
