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Talked with someone in the "know" today. Seems like most homebuilt and small singles are still selling well, but no so well for gas hogs. Can't believe some of the diehards that are selling their planes!!!! To make things worse. (maybe this is a common thing). The airport I'm on is requesting full insurance on my bird with them listed as a payee. Don't know for sure, but sounds like they want the basic insurance so they don't need the liability. Also, more insurance just in case I'm behind on hanger rent? We have to come up with some creative solutions here. What can a guy do to reduce his costs? Where are the majority of the expenses? I can tell you it's not on the A&P labor side. Those guys work for little monies. I own several auto shops. In most cases it works out 50% parts 50% labor. In aviation it's more like 90% parts 10% labor. When the owner complains, they sometimes get a discount... usually it's not on the parts side.
This leads to a new thread.... not for this board, but... look people. It's not really an issue of labor cost here in the U.S. that makes us uncompetitive. It's the insurances and taxes levied onto the labor that makes us uncompetitive. If you don't own a business you may not know what I'm talking about. If I pay a tech $15 an hour. With SS, WC, Saif, Liability Ins. my net cost per hour for that $15 an hour tech is 30.21 an hour. To add injury to insult.... that $15 that goes to the tech then is taxed and he walks away with $11-12. So out of $30+, a person walks away with 1/3 of that!!!!! So if you thought our $15 an hour to their $1.16 and hour was bad.... well. Try $30 to their $1.16. Then that $11 an hour goes to pay bills that have federal usage taxes, excise taxes, import tarifs, local taxes, bond measures, auto insurance, health insurance, an item that is over priced because of all the above mentioned......... no wonder people can't get ahead. Off the soap box.
My hope is that these private owned planes can be put on a whole new ticket. Owner mantained / experimental. Something that couldn't be used in a commercial enviroment. Maybe that's just not possible, but we can dream.
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