Flight School Business Start-Up in Detroit Research Paper

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An aviation school in Detroit is a splendid undertaking in the city for teaching students how to fly airplanes. Parts 61 and 141 are the regulations for operating flight schools. The departments of the federal government that control the teaching in the two schools in Detroit have different regulations as they permit any FAA (Federal Aviation Administration) approved teacher to teach a student in a flight school even if the flight instructor is not associated with the school. However, part 141 is also part of the regulations that have to be followed in flight schools. According to this, only instructors associated with a flight school are allowed to give flight lessons to students. (Federal Aviation Administration, 2013).

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Some policies have been created by the Federal Aviation Administration which must be followed. The standards for obtaining a certified pilot’s certificate are the same for all students except for small differences between the schools that are concerned with qualifications and strict adherence to regulations (Federal Avaition Administration, 2013).

Detroit is amid economic difficulties. The emergency city manager has pointed towards the fact that the city is facing a severe shortage of funds which might cause economic crises in Detroit. In such a situation, any funds that can be offered will help the city face the crises to a great extent. Establishing a flight school will improve the economic position of the city through the proceeds from local students both and also those coming from other states or countries. However, it would be better to start a FAR Part 61 and 141 flight school because it will need large amounts as starting capital and strictness in terms of hiring of instructors. Apart from this, insurance is a very major expense and every flight school must have adequate insurance coverage to avoid the possibility of large losses in case of financial problems losses or for some reason the school does not attract students. Insurance premiums for an aviation school are ten times higher than that of owning a personal airplane. Because of this, not every insurance company can afford to offer insurance to a flight school. Insurance regulations for flight schools are part of FAA policies part 61 and 91 (Federal Avaition Administration, 2013).

Establishing a flying school for teaching students to fly requires a tremendous amount of capital. The best thing would be to start school with the first plane that is bought. This will take the edge off its liabilities in case the school fails to pay off financial dues which it acquired for funding the purchase of the plane. The school must hire only those instructors which have the approval of the FAA. A good instructor will ensure the safety of the students and the planes. Instructors are highly paid professionals, and it will cost a lot of money for their salaries and other expenses. Looking at the current economic situation of Detroit, it would be wise to curtail initial costs such as insurance coverage and the payments to be made to instructors (Rocknell, 2013).

In the United States, small businesses face many difficulties during the initial establishment period. The biggest challenge for starting a flying school in Detroit will be in obtaining financing from financial institutions such as banks or other lending institutions. Due to the economic uncertainty in the country, small businesses find it difficult to obtain funds as they might not have a previous history of financial dealing with any of these banks or other lending institutions. Persuading these institutions to lend money for starting up a flying school will be one of the greatest challenges faced by the new entrepreneur. Besides the purchase of at least one plane and other necessary expenses, the new entrepreneur will need money for advertising to catch the attention of students and induce them to take flying lessons. Other expenses will include the making of a website and the acquisition of an airport which will take a large amount of money that might have to be borrowed from financial institutions or lenders and investors (Rocknell, 2013)

One of the first requirements for starting a flying school is to apply for pilot school certification. For this FAA form, 8420 must be completed in duplicate by adhering to the instructions that are given at the back of the form. This certificate is only valid for two years, and the school must renew the certificate upon expiry if they want to keep the school operational. The application and papers for renewal must be submitted at least 30 days before the expiry of the previous certificate. Renewal of the certificate envisages inspection of the premises and facilities, satellite bases, its ground training staff, and equipment for carrying out the training because it is an essential prerequisite of the FAA. FAR no. 141 explicitly states the kind of plane that a flying school is permitted to use. Apart from its technical requirement, the airplane must be FAA certified and carry the registration of a civil airplane in the United States. FAR Part 91 specifically states that every plane must undergo inspection and adhere to very rigid maintenance standards as per specified regulations (Rocknell, 2013).

Employment rules and regulations for the state of Michigan specify that all organizations must thoroughly investigate applicants for any previous criminal record and/ or health problems. Besides the financial challenges, establishing a new flight school in Detroit will also require the entrepreneur to complete all aviation laws and regulations. These laws include having adequate insurance coverage for the ground facilities of the school and the aircraft. Legal formalities cost money and are not good for the financial stability of a flying school. However, the thing is that a flight school must be following the necessary intricate airplane regulations for commercial pilot certifications. The aircraft must be fit to fly, have a 180 horsepower engine, be equipped with retractable landing gear, and also have a controllable pitch propeller. The state of Michigan is reviewing many bills to reduce taxes on aviation petroleum. One bill has proposed a reduction by four percent of the current tax per gallon on fuel. Such tax incentives are very encouraging for starting a flight school in Detroit.

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Establishing a FAR Part 61entails certain rewards and also has certain drawbacks and liabilities. The most important advantage in establishing a flying school in Detroit is because it has adjustable and accommodating regulations. Because the instructor does not have to be associated with any specific flight school, he can adjust his programs to fit the objectives and wishes of his students. This also favors part-time students who do not have a fixed timetable and who have the freedom of choosing their flight instructors whom they feel are most suited for the job (Detroit Lakes Online and Forum Communications Company, 2013)

There are also some inherent drawbacks such as poorly planned training situations. This will invariably increase the number of flight hours necessary to earn a commercial pilot license. Since most flight instructors prefer job security, they will be associated with some flight schools. This will restrict the student’s option of having a choice of flight instructors. The easiest way to hire an instructor is by having references and this is not possible for most students (Federal Avaition Administration, 2013)

Starting a FAR Part 141 has its good and bad points. The plus point of establishing a flight school in Detroit is that it has a better-planned environment for training because it offers new careers for full-time students. This enables students to complete their studies in less time as compared to Part 61. The bad points include strict rules for students who have no intention of becoming professional commercial pilots. Such a flight school does not always benefit students since they do not have the option of choosing an instructor that they will be content with (Federal Avaition Administration, 2013).

Detroit and its citizens are in desperate need of financial infusions to progress and prosper economically. The establishment of a flight school in the city will help its troubled economy and contribute positively to reduce its bad economic condition. Revisions in tax laws are advantageous for the establishment of a flight school. FAR Part 61 will help reduce startup costs and will also minimize many other legal and economic circumstances of the city.

Reference List

Detroit Lakes Online and Forum Communications Company. (2013). Flight school helps dreams come true. Web.

Federal Avaition Administration. (2013). Types of Pilot Schools & Choosing a Pilot School. Web.

Rocknell, P. (2013). How to Start a Flight School Business. Web.

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IvyPanda. 2022. "Flight School Business Start-Up in Detroit." December 4, 2022. https://ivypanda.com/essays/flight-school-business-start-up-in-detroit/.

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