Flying Club- How does this work?

zx6rrider

Well-Known Member
Been kicking around the idea of starting a flying club with my 152 to make learning to fly more affordable and keep people flying. I've looked over the AOPA website a good bit but still have a few things I'm trying to figure out;

I see a lot of clubs set up with a low buy in ($1-3000), monthly dues and a fixed hourly rate. In this situation, who actually owns the aircraft and where does that buy in money go? Many of them say you get it refunded when you leave so is it just sitting in a escrow account? If the group owns the aircraft, then with a 2000 buy in, thats 15 people to a 152?

With the fixed cost, who foots the bill when something major needs fixed and there is not enough money in the MX reserve account from the hourly rate? (Think new cylinder 3 months after club is started) I know a club can be set up however you want and agree upon but trying to figure out what is normal.

I own the 152 outright and am not looking to make money but also don't want to sell it for 10,000 if I can only find 5 people interested. The engine will be overhauled if I do start a club so it would be nice to use the buy in for that but not sure how that would work if they leave. I have a couple guys at work that would like to fly but are apprehensive with the cost so thought this may be a good way to get them going.

Any other ideas are appreciated.
 
It is really up to you to decide all the bylaws. Many variables to consider as you have already mentioned a few of them. There is no cookie cutter solution on how a flying club should be ran.
 
The club I am a member of is set up as a non-profit corporation. The club itself owns the aircraft, and the members of the club are considered owners. We have a buy-in which is a deposit, and the monthly dues cover the costs of the aircraft. As an "owner" the nice part is that the club's insurance policy covers me, and I don't have to carry renter's insurance. If we leave the club as members in good standing, we get the deposit back.

Most clubs I've seen maintain a ratio of 12-16 members per airplane.

I've spent the bulk of my flying (PPL-IR and now starting CSEL) going through clubs. I find them to be easier to work with, less restrictive than renting from FBOs.

I would check around and talk to some clubs about how they're set up.
 
The club I belong to leases the airplanes from private owners.

Club members pay a sign up fee and monthly dues, plus the club gets a cut of the hourly rental cost of the airplane to cover hangaring, and other costs.

The airplane owners are responsible for insurance (paid through the club's policy) and Mx/overhauls, paid for by their cut of the hourly rental rate.

A 172 rents for $85/hr. dry (club member rate). Additional discounts are available to members who put down large amounts on their account.

The math for the owner only works out of the airplane is rented at least 350 or so hours per year.

Fix
 
Around my way

$795 one time fee that covers application fee, insurance fund, 2 months monthly dues

$35monthly dues

2-152/$69
2-172/$89
1-archer/$100
1-arrow/$120
(All wet prices)

It goes deeper than just flying cheap. More of a commitment and longevity. 1st year probation;attend at least 6 general meeting and 2 group events(plane wash, fundraiser,etc)
also, bi-annual check out for the plane
It's a non-for-profit which the club owns the planes. Maitnence is done externally
 
When there is a need for money at the club @DPApilot and I fly at, some of the members typically make an interest free loan to the club. Usually to facilitate the purchase of aircraft when there is a good deal.

Oftentimes, members will donate money outright as well.
 
There are "owner" clubs and "non-owner" clubs and everything in between. One thing is for certain, clubs and the administration thereof are a giant PITA unless you can find a cadre of like minded individuals to share the load.

From a marketing perspective, to keep people interested, you're going to need more than a two seater. Otherwise you are going to be in constant recruitment mode and you'll have a lot of turnover.

You could find a school to lease it back, but leasebacks are financial quagmires (giggity!) for owners these days, and your airplane will get trashed as a bonus. You might reach out to some pre-existing clubs to see if they're interested. You might do better than with a school setup, and they MIGHT take better care of your airplane, but you need to make sure of the details. I've seen some folks really get their clocks cleaned by leaseback arrangements.

Unless you really need your 152, or just want to keep it, I'd think about selling it. The market seens hot for good 150s/152s right now and even high time examples are pulling some good coin.

Richman
 
Can just provide you with some details from the group I belonged to (twice) ...
  • We had one 172 - our insurance was good for up to 20 pilots. At our peak we had 17 owners, about half of which were current and flew the plane
  • Four or so of the members had their names on the actual loan as guarantors
  • We had a low buy-in ($1,300) and a $150 a month fixed fee (loan payment, insurance, tie down, annual)
  • We did not return the $1,300 when someone left, but instead gave them the option of selling it if they found someone else (I did this twice actually)
  • We always had enough in our reserve to cover general maintenance - and the one engine overhaul I was a part of - in five years I never paid anything additional
  • I would avoid time builders like the plague - club is better when it's guys who fly once or twice a month and take the occasional long trip
If it helps, here's a link to the bylaws and other documents we used. I'd probably speak to an attorney if I were you regarding your personal liability - sounds like you'd want to create an LLC.

http://www.pinellaspilots.org/ppa.htm
 
Thanks for all the thoughts. Only reason I was considering the 152 is because I don't have a lot in it and thought the less money to get going the better. Ideally, I'd like to end up with a club that has one plane that is cheap to fly and maintain for currency and one to travel like a 182 or something. The more I look at this, I'm thinking it is probably more of a hassle then it is worth. I'm in a rural area and the airport is kinda sleepy so I was just trying to figure out a way to get people out flying.

I've looked at a lot of bylaws from other clubs and some of them are 40 plus pages long with it own government sector of 6 or 8 people. Around here I'd be lucky to find enough people to be officers for the club. If it wasn't for the taxes and liability this wouldn't be so difficult...My thoughts were having people pay a little buy in so they can be called owners and covered by the insurance and just pay the operating cost plus a little for MX reserve but guess it can't be that simple in this day.
 
That was my first plan but haven't found anybody willing to spend that much for a buy in so thought if I went with a club format it may be better. I'm not at all stuck on the 152, I'd just assume sell that and get a cherokee 180 or C182 if I found enough interest, but until then the 152 keeps me flying on my own budget. There are a couple partnerships at the airport but one is full and the other is a $225,000 Diamond; nice plane but more then I'm willing to put out for something you cant even fill the seats and tanks.
 
Honestly bro, and this is from another owner. If the 152 makes you happy, and you can afford it, nothing is better that sole ownership.

Clubs, partners, and strangers flying your chariot are all a real hassle.

Richman
 
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