~$8,000 insurance rate is close to what I was quoted recently.
Are these AC rates what you know are being charged?? They seem low. I guess the instruction component helps the bottom line, but then you're instructing for ~free.
Some numbers I put together recently - factoring in the $8,000/yr insurance cost - puts you closer to $350 an hour - minimum.
If this is a full time job with say 150 students a year that is one thing. It would not be full time for me. Figure may be 100 hours dual given in RV's a year. which would be 10 to 20 students. Heck I want to go fly for fun.
Say I have 20 students per year. Say hull insurance no instructions is $3000. So extra $5000 insurance for students for that $8000 estimate quote. OK so that is $250/hr insurance only for 20 students. $150 for the plane and $100 for CFI. This is not out of line for what others charge. That is $500 an hour. Typ min transistion is 5 hours or $2500.
Yes I can cut my CFI rate and plane rate.. I can give my plane away for bare cost to account for FUEL, maintenance cost & time, wear & tear, overhaul reserves... tires, brakes, oil, filter. I suppose fix cost like hanger is a wash since I'd have that regardless. However why risk it. My numbers on wet plane and CFI are not out of line, they low.
EAA says they are working with insurance companies to offer something to Experimental Transition pilot/owners. I think the insurance should be pro rate. You have base hull for personal use only hull. Then a premium based on hours of dual given pro rate. if flying 1000 hrs billable $8000 is not too bad. This is not a flight school situation. They need to adjust their Primmum schedule. RISK IS A FUNCTION OF EXPORSURE OR HOURS FLOWN. If I give 20, 50, 100 or 150 hours risk is a function of time. Also we are talking pilots with license, current flight review, medical and tail dragger endorsed already. This training is ONLY for people who bought a flying RV or an RV kit.[/B]
The obvious option is only give dual in owner pilot RV's. That is fine but not for the guy or gal building that wants to get experience before their plane is flying. Also it is questionable if the owners insurance will allow it. I believe the owner if prudent would vet the CFI with the insurance company and get them added on, at extra cost of course.
Flying owners Phase 1 off for them, with owner to give them experience is not allowed. Yes two pilots can fly in Phase 1 but no instruction. They can ride along as observer I suppose. Some insurance I recall even with experienced RV pilot will not insure during Phase 1. So...
BOTTOM LINE... Many pilots rusty as heck, never flew a high performance plane, will jump in their brand new never flown just finished RV and take off, both the planes first flight and theirs in make/model. That is great, and it may work out. Sadly I have read too many times over decades it does not with tragic results. The reason for crashes early on EAB's builder/pilot are varied. In part it is better because the quality of kits and community. Still transition training would go a long way to lower accidents, which is what the FAA says they want. I assume INSURANCE companies want that as well.
I am not totally discouraged. I am thinking, buy a used RV that is basic, crummy paint, basic panel, not pretty but airworthy as a trainer. It would be easier to justify not insuring a $40K RV verses a $150 RV.
The last OPTION is yes give free flights away, BUT only a 30 min demo at no charge. I would enjoy that. Plant the seed of what it feels like, just as a service to RV community. Again for RV builders only. Again ZERO pay for plane or CFI. Could I do a lot of free flights? No, but if I am going to bore holes in sky I could make the right seat open for a discovery or demo flight. Legal, less risk (as I likely will not allow them to do takeoff and landings) and let them do basic air work. Again only for soon to be RV's and must be current, qualified to fly the plane, not for instruction, no LODA needed. They would benefit from experience. Don't write me as I am not doing this presently.