request for vote: new numbers and plan

[Bob McAloon]

Hi everyone,

    Sorry for the late response... I just got back from a golfing trip this 
morning. I'm very interested and just need today to think about a couple 
things before I give you a definate answer. Mike if you go to the link Jim 
sent and click on where the picture should be a new window opens with 
pictures. It's a very nice looking plane. You'll be hearing from me later 
today with definate answer.

Thanks, Bob



----- Original Message ----- 
From: "James Carlson" <carlsonj at workingcode.com>
To: "Eagle East Flying Club Core Team" <eefc-core at workingcode.com>
Sent: Thursday, May 21, 2009 9:16 AM
Subject: request for vote: new numbers and plan


> Todd and I have been discussing financing issues off-list.  Attached
> is a spreadsheet based on Steve's, but with a number of modifications
> based on that discussion.
>
> We would like to request opinions from each of the core team members
> (even those who are presently planning to go another direction).  The
> proposal looks like this:
>
> No buy-in cost
> $175/month with 12 members
> $70/hour wet
> Cessna Cardinal 177B, brand new engine and interior
>
> Please provide a "yes" or "no" answer, indicating whether this is the
> sort of club you'd be willing to join.  If you'd like, you might also
> offer commentary on the plan itself or on any of the details, but the
> important part is the reality check, and a straight up/down vote will
> provide that.
>
> The plane is the same one that Bob previously mentioned.  A current
> link (as it has expired off of controller.com):
>
>  http://www.primoairplanes.com/media/specs/N991MP.htm
>
> Here are some details on the numbers and what we'd expect for the
> club:
>
>  - The long pole in the tent is the fixed annual cost.  Even if we
>    could get a free airplane to run (and thus have zero note
>    payment), it'd still be $125/month with 12 members and $215/month
>    with 7.  To get anywhere, we need to address that cost, and not
>    fixate on the plane or the bank.
>
>  - The other really serious issue is the number of club members.  Ten
>    members per plane seems to be the breakpoint for several things;
>    below that level, the monthly dues are too much, and above that
>    level, insurance suddenly becomes too high.
>
>  - As the club pays down the debts, it'll accumulate capital.  We
>    need a fair way to apportion equity so that if someone wants to
>    leave, we can pay that back to the departing member and still have
>    a functioning club.  The mechanics of how that would operate are
>    to be determined later.  (And in theory you could have non-note-
>    paying / non-equity members in the future; I'd leave that out of
>    the charter for now.)
>
>  - The numbers are intentionally high.  We may well be able to lower
>    costs later.  But that's a good position to be in.
>
>  - The spreadsheet updates include putting everything on one page,
>    gathering together all the input variables, adding membership
>    sensitivity details, adding next-$5 round-up on dues and rates,
>    computing break-even versus rental, derating for tach versus Hobbs
>    hours, parameterizing oil and other costs, allowing for both
>    SMOH-to-TBO overhaul capture as well as an initial reserve fund
>    (to offset for a plane with high SMOH), and allowing private plus
>    bank financing.  If anything's confusing, let me know, and I'll
>    explain.
>
> -- 
> James Carlson         42.703N 71.076W         <carlsonj at workingcode.com>
>
>


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