Many schools do what Frank described and use planes that are leased back from owners. My old school is part of the state university system and is funded partially that way. They do support themselves, by and large, however. For the most part, the planes are not remotely new, excepting some six year old 172s. The 150s (six, and a 152) are M models, for example, and were bought and paid for long ago. They have three R182s, and a 310R. Maintenance is in-house, and they are salaried. So, frankly, there is no incentive to be dishonest and go slowly (anyhow, the chief mechanic wouldn't stand for it). The school has lost a plane due to damage every ten years or so, and that has not been a dire issue thus far in over roughly thirty-five years (I believe...they might be older). Finally, the volume of the beginning students, frankly, helps things along. Anywhere from 40-80 students start in the fall. They do start out with $1000 in their flight account, so there isn't a great commitment, but they can get it all back if they quit the program. The school stays afloat, I believe, based on good results from the instruction it provides (and therefore, good word of mouth). The school has no "flow-though" program or anything offering a job after graduation, and being an instructor there is not guaranteed at the end of the program. Usually about 1-4 people of that starting class make it through to the end. How do they make money? They don't make much. They do it because, like everyone here, they love aviation(although many students think they do it to torture them
). That's my school, at least.
