Aircraft Build Project

1. Aircraft Build Project Proposal to build a Club aircraft.

2. Why? • Club membership is falling (slowly) • Currently around 72 • Desire to attract new members • Preferably young(er) • Club’s primary focus is building • Looking for something to attract • Younger people • Interested in building an aircraft • Not yet in position to build their own.

3. It will change the Club • If it works, membership will be • Bigger • Younger • The Club’s asset structure will change • Liquid assets from $53,000 to $8,000 • Fixed assets from $45,000 to $90,000 • (less during build – saleable value) • (more when complete – flying aircraft)

4. It will change the Club • We will own an aircraft. Issues: • Managing it • Hangaring it (and losing commercial rent) • Renting it out • Maintaining it • Insuring it

5. Financial risk • We can afford to do it • The Club’s assets will end up higher • New income flows will be generated • However, during the build phase… • Income will be reduced (bank interest) • Building costs will be incurred • Insurance costs will be incurred • Existing income flows won’t cover this.

6. Project benefits • During the build phase, all working on it will gain experience • This is what our Club is about • When built, who will fly it? • Existing aircraft owners? Maybe once or twice • A handful of Club members don’t have access to an a/c. They may make more use of it • New members involved in building it. A few? • New members who just want to fly.

7. What could possibly go wrong? • It draws no new members. • Old members complete and sell aircraft. Club better off. • If not completed, sell as is. Club loses money but not enough to endanger it. • Build completed but not many fly it. • Club bleeds, and finally sells it. • Aircraft gets written off • Grab insurance money and bank it. Club OK