Such actions are reactionary and are more emotional decisions rather than a rational ones made in good business sense. Businesses which raise rates during tough economic times, when the prices of other goods are declining due to decreased demand, enter what’s known as a “death spiral” — continued price increases matching ever dwindling demand.

The response to such downturns should actually be the opposite. Flight schools need to reduce prices in order to generate a level of demand to bring them back to profitability. Much like an engine failure – you shouldn’t follow your instincts – push on the stick, don’t yank it back!