I've been considering various options for representing higher altitudes, and yesterday I hit on one that seems pretty effective (and cheap). I took a coffee stirrer, then stuck a toothpick in the bottom. I snipped off the bottom of the toothpick so it fits in the flight stand (a bit too loosely, but that could be fixed with some sticky tack). The peg on the bottom of the plane fit pretty much perfectly into the top of the coffee stirrer. The stirrers are 7 inches long, so that would cover an altitude of up to 9 (if each step of altitude is represented by a 3/4" peg). Here's what it looks like:
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