Southwest Flying Club

1. Southwest Flying Club Long Range Planning Committee October 17, 2009

2. Introduction Peter Perez

3. Long Range Planning CommitteeCharter • Evaluate and recommend number and type of aircraft club should own and operate • Consider such things as member to aircraft ratio, club purpose, current and future club composition, insurance implications, etc. • Evaluate and recommend equipment club aircraft should have • Consider such things as club purpose, current and future club composition, insurance implications, etc. • Evaluate and recommend order in which existing aircraft should be replaced or liquidated • Club resolution present a plan

4. Team • Members • Randy Coulson • Chad Degges • Jim Earley • Stephen Havemann • Ralph Coselli – Officer Advisor • Meetings started May 5, 2009 with final meeting October 6, 2009

5. Outline & Agenda • What type of club now • What type of club in the future • Minimum equipment requirements • Type of aircraft in the club • Potential Models evaluated for club ownership • Financing • Recommendation

6. What are we now & future Stephen Havemann

7. What type of club now • Who are we • Club purpose is to provide an opportunity for safe, affordable flying • Ratio of Active Members to aircraft – 15/1 • Average age of membership – 54.4 • How much do we fly • Over the last 10 years the members have averaged 23.9 hours/year per member. • Over the last 10 years • C-172 has flown an average of 334.7 hours/year • C-182 has flown an average of 389.3 hours/year • C-R182 has flown an average of 351.2 hours/year • Fix cost covered via monthly dues

8. What type of club now - continued What We Fly

9. What type of club in the future • Who we will be • Provide an opportunity for safe, affordable flying • Ratio of Active Members to aircraft – 15/1 • Younger members being attracted • Retaining veteran flyers • What members will expect • Fly on average 25 hour/year/member • Technologically advance aircraft … Glass panel, GPS, Auto Pilot • Well maintained safe planes • Sharing & growth through club activities • Fixed cost covered via monthly dues

10. Type of aircraft in the club • To maintain variety of aircraft: • Trainer/time builder • Cross Country • Cross Country (Complex ?)

11. Minimum equipment requirements

12. Evaluation Randy Coulson

13. Models evaluated • Diamond • DA-20 • DA-40 • Cessna • C172S • C182T • C182T – Turbo • C182RG • Cirrus • SR20 • SR22 • SR22 Turbo • Beach • A36 • Piper • Warrior • Archer • Arrow

14. Models evaluated

15. Models evaluated - continued

16. Models evaluated – typical cost

17. Findings on Aircraft • Composite • Difficult to find maintenance data • Training • Glass panel will require additional training to ensure proficiency • Insurance • Newer aircraft will cost more to insure primarily due to higher hull value

19. Final Manufacturers Evaluated • Diamond • Good performance with lower fuel consumption. • Excellent safety record. • “Hanger Rash” is a concern with composite construction. • Fewer authorized service repair centers. • Light wing loading, Lower Vno • Cessna • Average performance with higher fuel consumption. • Models within price range • Aluminum construction – Maintenance cost are predictable. • Good useful loads. • 182R not currently manufactured – low time mid 1980’s could be upgraded to club specs • Cirrus • “Hanger Rash” is a concern with composite construction. • Minor and major repairs have stringent environmental requirements. • Cirrus Certified Instructor would be required for initial training. Pilots with less than 300 hours would likely be difficult to insure. • Expect recurrent training to be an ongoing expense to members. • Beech • Eliminated due to costs. • Piper • Eliminated due to costs, performance, and low availability.

20. Financing & Recommendations Chad Degges

21. Financing – Three Options • Option 1 – Fund purchase through dues only • Option 2 – Fund purchase with a $100/aircraft increase in deposit and dues • Option 3 – Fund purchase with a $500/aircraft increase in deposit and dues

22. Financing – Change in Deposit

23. Financing – Change in Dues

24. Financing – Total Dues after Purchase

25. Financing - Thoughts • Option 1 • Pay as you go • Lowest buy in for new members • Option 2 • Slightly lower monthly dues • Lowers club debt burden • Returns deposit if member resigns and is replaced • Option 3 • Even lower monthly dues • Lowers club debt burden • Returns more deposit if member resigns and is replaced • Aircraft purchase finance options should be reviewed prior to next purchase in 2015

26. Recommended Aircraft Manufacturer – Cessna • Cessna Aircraft meet mission and performance criteria required by the club. • Late model Cessna’s are fuel injected with G1000 and the latest available technology which will bring new members and younger pilots while retaining veteran pilots. • Repair of Cessna aircraft is known, predictable, and readily available. • Large fleet of used Cessna Aircraft available • Club transition to G1000 Cessna’s offers an advantage over a manufacturer change. • Composite aircraft repairs – fewer repair centers, costs are variable and less predictable. • Insurance requirements on Cessna aircraft are known • Many late model available for purchase within the club budget.

27. Recommendation • Only applies to first aircraft purchase and needs to be reconfirmed prior to second aircraft purchase • Fleet should contain 3 aircraft • Trainer/time builder – Cessna 172 • Cross Country – Cessna 182 • Cross Country – Cessna 182 RG or Turbo • Place current 182R & 182 for sale • First to sell is replaced • Replace with 182 Turbo/G1000/WAAS/AP • Finance via: • Raising dues • Increasing deposit $500

28. Summary What type of club now What type of club in the future Minimum equipment requirements Type of aircraft in the club Potential Models evaluated for club ownership Financing Recommendation 28

29. Next Steps • Discuss • Approve Recommendations • Form Committee to execute recommendations

30. Questions ?