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:

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.