How you charge students affects your cash flow, how much time you spend chasing payments, and how students feel about training with you. Most schools use some mix of the models below.
The main billing models
Pay after each flight
The student flies, the school calculates aircraft and instructor time, and the student pays at the desk or by card on file.
- Simple for students to understand.
- Risky for cash flow: unpaid balances build up, and the school has already paid for the fuel and the instructor.
- Works best with a card on file and automatic charging at check-in.
Prepaid account
Students deposit money in advance; each flight is deducted from the balance.
- Protects cash flow and removes collection work.
- Students can see what they have left, which helps them plan.
- Needs clear rules: what happens when the balance hits zero, whether students can go negative (and how far), and refund terms for unused funds.
Block time
A prepaid package of aircraft hours (or a dollar amount) sold at a discount, for example paying for 10 hours up front at a lower hourly rate.
- Rewards commitment and brings cash in early.
- Decide whether blocks expire, whether they're transferable, and whether the discount applies to instruction as well as aircraft time.
- Account for the bonus or discount clearly, so the student's balance always makes sense.
Membership or subscription
A monthly fee for lower hourly rates or priority booking, common in flying clubs.
- Predictable recurring revenue.
- Members who fly little may feel they're overpaying, so it suits clubs with active members.
Wet vs dry rates
- Wet rate: fuel is included in the hourly aircraft rate. Simple for students; the school carries the fuel price risk. Many schools add a fuel surcharge when fuel prices rise.
- Dry rate: fuel is paid separately. More common for rentals to experienced pilots and in clubs.
Hobbs or tach
Most schools bill aircraft time on the Hobbs meter. If you bill on tach, set a higher hourly rate so the economics come out the same. Whatever you choose, record both meters on every flight to prevent disputes.
Instructor time
Instruction is usually billed separately from aircraft time, per hour of instructor time including ground briefings. Decide whether pre- and post-flight briefings are billed in full, rounded, or included.
Policies to put in writing
- Cancellations: a window (often 24 hours) after which a late-cancel fee applies, and exceptions for weather, maintenance or school-initiated cancellations.
- No-shows: a fee when a student doesn't turn up for a booking.
- Minimum balance: whether students must have funds on account to book or fly.
- Damage and deductibles: what a student or renter pays if the airplane is damaged.
- Refunds: how and when unused prepaid funds are returned.
Publish these where students see them when they sign up, and apply them consistently. Most billing disputes come from policies that were never written down.
What good billing looks like for students
- They know the rates before they fly.
- They see each charge, with the meter readings it was based on.
- They can check their balance and pay by card without calling the office.
- They get a statement or receipt they can use for their own records.
Frequently asked questions
What is block time at a flight school?
A prepaid package of flight hours or account credit sold at a discount, for example paying for ten hours up front at a reduced hourly rate. It brings cash in early and rewards students who commit to training.
Should a flight school use prepaid accounts?
Prepaid accounts protect cash flow and remove most collection work, which is why many schools use them. Set clear rules for low balances, how far (if at all) students may go negative, and refunds.
What is the difference between a wet and dry aircraft rate?
A wet rate includes fuel in the hourly price; a dry rate doesn't, and the pilot pays for fuel separately.
How much do flight schools charge for late cancellations?
It varies by school. Most set a cancellation window, often 24 hours, and charge a fee for later cancellations and no-shows, with exceptions for weather and maintenance.