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FAA data also indicates that for the period 79-84, the number of student pilots and private pilots declined at 'an annual rate of 7% and 3% respectively (1). During the 1960's and 1970'ts, the number of student pilots generally followed changes in economic activity. However, this pattern has not occurred in the 80's. Rapidly rising training costs, increasing complexity of the Air Traffic Control environment, aircraft prices and operating and maintenance costs are partly responsible for this phenomenon. Also, the Federal Aviation Administration has recently made substantial changes to the training regulations governing pilo.ts transitioning from single engine piston type aircraft to more sophisticated turbo-props and jets (13). The basic requirements to maintain proficiency have changed in recent years and require a substantial amount of resources in terms of time and money. An example of some pilot requirements is shown in Attachment 1. The number of military pilots eligible for separation from the Navy or Air Force has been dropping steadily since the end of the Vietnam.War (14). The majority of pilots involved with the build-up of air operations in Vietnam became eligible to leave the service in 1976 and the £ollowing two years. This out-flow coincided with the pilot build-up at many commercial and corporate airlines. Adding to the ~mpact of fewer available military pilots is that during the past four years the military has been able to retain a greater precentage of its pilots eligible for separation. Thus, in the long run, declining pilot trends will contribute to the slowing of activity at FAA facilities and may have a greater impact on aviation than the real growth of aircraft prices and operating costs. FAA predicts that the trends in pilot population will turn around in the next few yers, but at a slower rate (1). 3. Trends in Costs of Ow~in~ Operatin~ and Maintaining an Aircraft 3.1 Cost of Owning: Rapidly rising aircraft prices have significantly reduced the demand for all types of aircrafts in the nation. In the 80's alone, the ave?age price of an aircraft increased by more than 50% (1). An extensive economic analysis performed by'FAA indicates that the aircraft prices for all types of aircraft have been increasing at a faster rate than wage rates (Table 4).