PSI Fee Change Goes Into Effect on January 1

Third-party testing centers, such as flight schools and FBOs, lose two-thirds of revenue from pilot knowledge exams.

Wednesday, December 28, 2022 at 07:34 AM ET

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Requirements for delivering FAA knowledge exams can add up to provider costs that exceed the amount PSI will reimburse the centers, starting in January. [Credit: Pixabay/StartupStockPhotos]

Key Takeaways:

Flight schools and FBOs administering FAA aviation knowledge tests will experience a 70% revenue cut (from $65 to $22 per test) starting January 1, prompting many to cease offering the tests as the new fee won't cover their operational costs.
PSI Services LLC, the sole contractor for these tests, implemented the cut citing the need for improved security; however, aviation stakeholders warn this will significantly harm general aviation flight training by reducing accessibility, especially at small, rural facilities.
The FAA states it cannot dictate how PSI compensates its third-party partners, while PSI assures that its larger network of alternative test centers can accommodate demand even if current providers withdraw their services.

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Starting January 1, flight schools and FBOs that administer the online aviation knowledge tests will see their cut of the $175 fee drop from $65 to $22 per test. That’s roughly a 70 percent drop in revenue for the businesses in question.

At the present time PSI Services LLC, owned by Lifelong Learner Holdings (LLH), is under contract with the FAA to provide the tests. In years past, there were two other companies, CATS and LaserGrade, but they have gone out of business, giving PSI the monopoly.