Ed Dartford
Well-Known Member
I observe that most flying clubs are funded by each member buying a part ownership of the plane(s). The one that I belonged to for decades was different, and had some advantages.
The club was founded long before I came along. A group of pilots put up money to buy a plane. They incorporated as a non-profit educational company (teaching people to become pilots). This legal status got us exemption from state taxes. The company bought a plane (owned it) and secured insurance and hangaring. The founding members had no ownership of the plane: they owned a membership. The value of a membership was agreed to. If a new pilot wanted to join he would buy a membership. If a member wanted to leave, and if he could recruit a replacement, he got his membership value refunded. It happened that sometimes he could not find a replacement, and just quit. But there were no hard feelings... It was only a few hundred bucks. That was the rule.
From time to time we improved the plane, usually avionics. This was funded by a one-time assessment of each member typically less than $200.. We did not accumulate an engine reserve. When the time came we just got a bank loan (at a favorable rate because one member was a bank president.)
Our credit rating was excellent.
Fixed expenses, (everything unaffected by flight hours) were covered by monthly dues. This would be Insurance, Engine loan, Hangar, Annual, Mass state registration, Jeps subscription, etc. Fuel and oil and routine maintenance (by A&P) was covered by hourly charge. When I was "Maintenance Officer" I did what maintenance the regs allowed: oil change, tires,etc , and interface with A&Ps. As the IFR pilot I also did the Jeps updates.. what a chore!
The club survived the loss of a plane (with no injuries). Good insurance. We replaced the PA28-180 (that was recycled into beer cans) with a PA28-235. Great plane until you bought gas.
The club was founded long before I came along. A group of pilots put up money to buy a plane. They incorporated as a non-profit educational company (teaching people to become pilots). This legal status got us exemption from state taxes. The company bought a plane (owned it) and secured insurance and hangaring. The founding members had no ownership of the plane: they owned a membership. The value of a membership was agreed to. If a new pilot wanted to join he would buy a membership. If a member wanted to leave, and if he could recruit a replacement, he got his membership value refunded. It happened that sometimes he could not find a replacement, and just quit. But there were no hard feelings... It was only a few hundred bucks. That was the rule.
From time to time we improved the plane, usually avionics. This was funded by a one-time assessment of each member typically less than $200.. We did not accumulate an engine reserve. When the time came we just got a bank loan (at a favorable rate because one member was a bank president.)
Our credit rating was excellent.Fixed expenses, (everything unaffected by flight hours) were covered by monthly dues. This would be Insurance, Engine loan, Hangar, Annual, Mass state registration, Jeps subscription, etc. Fuel and oil and routine maintenance (by A&P) was covered by hourly charge. When I was "Maintenance Officer" I did what maintenance the regs allowed: oil change, tires,etc , and interface with A&Ps. As the IFR pilot I also did the Jeps updates.. what a chore!
The club survived the loss of a plane (with no injuries). Good insurance. We replaced the PA28-180 (that was recycled into beer cans) with a PA28-235. Great plane until you bought gas.
