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FORMING AND OPERATING

A FLYING CLUB

FEDERA VIATION *

TOMINIS TRANO MAY 1969

DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

PREFACE This Advisory Circular was compiled by the Aviation Education Staff of the Office of General Aviation Affairs, Federal Aviation Administration, Washington, D.C., to provide preliminary information to "flight-minded" men and women who wish to form and operate a flying club. This publication serves to assist anyone or any group of people who are interested in forming and operating a flying club. We recognize there are many other successful approaches for establishing flying clubs.

Permission was obtained from the following organizations to reprint some of their materials as follows:

Flying Clubs International, Inc.

(Main office, Washington, D.C.)

Main The Longhorn Aero Club, Inc. (Main office, Austin, Texas) Sky Roamers Air Travel, Inc.

(Burbank, California) Forms for Estimating Annual Costs" and "Estimating Flying Costs."

Flying Regulations and By-Laws Reservation Sheet, Requests for Reservation, Squawk Record, Expense Report, Operating Rules and By-Laws Further information on this subject may be obtained from the major manufacturers of personal type aircraft who make available excellent materials on flying clubs; a number of them sponsor their own. Also, you can expect to receive valuable information and cooperation from the FAA General Aviation District Offices (GADO) located throughout the country which are listed in Appendix D.

For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 - Price 35 cents

TABLE OF CONTENTS Page Introduction -- Chapter I. WHY A FLYING CLUB? - 1 Lower Cost Ideal Conditions Mutual Interest Chapter II. TYPES OF FLYING CLUBS 3 Business Flying Club Recreation and Fun Clubs Educational-Training Clubs Chapter III. METHODS OF OBTAINING EQUIPMENT 7 Rental or Straight Lease System Lease Purchase Plan Direct Purchase Combination Chapter IV. FIRST STEPS IN ORGANIZING 9 Decide Type of Club to be Organized Investigate Costs Incorporate the Club and Develop a Constitution and By-Laws Chapter V. OTHER IMPORTANT STEPS 13 Establish Flying Regulations Consult the Fixed Base Operator Recruit Members Select the Aircraft Finance the Purchase Purchase Adequate Insurance Chapter VI. THE CLUB IN OPERATION 17 The Cost of Flying Keep the Record Straight The Training Program Community Relations APPENDIXES: A. Flying Regulations and By-Laws of the Longhorn Aero Club, Inc. - 27 B. Operating Rules of Sky Roamers Air Travel, Inc. ---- 37 C. By-Laws of the Sky Roamers Flying Club __- 49 D. List of FAA General Aviation District Offices (GADO's) 57 E. List of FAA Films Suitable for Showing Fly.

ing Club Members 59 ¡ii

INTRODUCTION The aim of the man or woman who wishes to fly for business, pleasure or education is to obtain safe, efficient, lower-cost flying. For most private pilots this objective can be realized by membership in a well-organized, well-operated flying club. Thousands of members across the United States are able to be active participants in the air age by association with a flying club.

There are clubs organized by businessmen to make lower-cost business travel available to members. There are clubs organized by people who simply want to enjoy the experience of flying or to use flight as a means of transportation to recreational activities. And, there are clubs organized as a means of providing aeronautical education to members.

A flying club is precisely what the name implies; an organization of three or more individuals who join together to obtain the benefits of flying, whether their flight aims be for business, pleasure, or for educational purposes.

The purpose of this advisory circular is two-fold:

• To provide a source of authoritative and helpful information to those who are contemplating the formation of a flying club.

•To assist presently organized flying clubs in "tightening" their operation so as to provide safer, lower-cost flying to their members. Existing clubs will find it useful to utilize this advisory circular as a basis for evaluating their operation.

This advisory circular draws on the experience of highly successful clubs, both large and small, across the country. It also benefits from the experience of clubs that have encountered problems by virtue of poor organization and careless operation.

Chapter I WHY A FLYING CLUB?

There are three primary reasons a pilot seeks membership in a flying club:

Lower Cost Flying in a private plane is by no means an inexpensive pursuit as any private or student pilot will testify. In a properly organized and operated flying club lower cost flying is possible primarily because of maximum utilization of equipment.

It may be impractical for the pilot who wishes to fly a limited number of hours during the year to own his own plane. By joining with others like himself he can have access to equipment to a reasonable degree at a lower cost than other means provided him.

Achieving this lower cost, however, requires careful planning, good club organization and administration, and the utmost attention to safety on the part of all members.

Ideal Conditions Through proper scheduling techniques members know that they will be able to have the use of the aircraft when they desire it. Through proper maintenance, club members know that the equipment they use is in good mechanical condition at all times. A well-organized, efficiently operated club provides ideal conditions for the private pilot or would-be pilot to fly.

Mutual Interest Flying clubs offer an organization in which members can join others with a mutual interest in flying so that together they can increase their knowledge and skills and keep current on new developments in aviation.

Flying is a continuing process of learning and improving skills. A good club sets up adequate machinery for this process and increases the interest and dedication of the men and women who are members.

The flying clubs to be discussed in this publication are those operated by and for the members on a non-profit basis.

Those interested in flying will undoubtedly have heard the term flying club" used to describe the activities of commercial flying schools. These clubs are commercial ventures which usually offer price inducements to customers who wish to learn how to fly. By signing up for such a "club" the 'members" are provided planes on a discount rental basis, usually in conjunction with flight instruction.' 1

There are many fine flying schools, a number of them designating themselves as "flying clubs." They provide an excellent avenue to learning how to fly. Some also provide discount flying to licensed pilots when the pilots contract to use the equipment a specified number of hours in a given period of time.

These operations, however, are not to be confused with flying clubs formed by a group of individuals on a non-profit basis with the specific purpose of providing flying facilities for their members.

Fundamental to the concept of an effective flying club is SAFETY. None of the promises of the organization can be fulfilled without the complete dedication of all members to this factor. Clubs that insist upon strong safety regulations and enforce them will be successful. Those that permit carelessness in control or operation of equipment are doomed to failure.

Flying clubs promote good fellowship and provide a means for low-cost flying. Senator Jennings Randolph and Congressman Don Clausen are among the members of the Congressional Flying Club of Washington, D.C.

Chapter I|

TYPES OF FLYING CLUBS The first step in the organization of a flying club is determining the type of club desired. The primary function of the organization will be to satisfy the needs and desires of the membership. Hence, the character of the club will be determined by what the members want the club to do for them.

If the club is to answer the transportation needs of businessmen, the club will have characteristics to answer this need.

Should recreation and enjoyment be the objective of the club, it will be organized and implemented in quite another manner.

If the objective of the club is educational and occupational in nature the needs of the organization will be quite different from the above.

Basically, there are threc types of clubs-BUSINESS, RECREATIONAL, and EDUCATIONAL. What are the characteristics of these three types of clubs?

Business Flying Club This type of club is organized by a group of businessmen who desire air transportation at their disposal to travel to business meetings. This type of club, properly operated, can succeed in providing lower cost private business transportation for members.

Usually in this type of club there will be less members per plane than in other types in order to provide maximum availability of equipment.

The aircraft selected will generally be of the good cross-country type rather than the trainer type. Members will usually be, or intent on becoming, experienced pilots capable of flying to and from business appointments.

Because business clubs strive for perfect balance of availability of aircraft and utilization of the equipment the membership per plane usually varies from 5 to 15 members. Because of this and the type of plane best suited to businessmen the initial investment and the per-hour costs for the club aircraft will tend to be higher than large membership training, educational and recreational clubs.

Costs of using an airplane under a business club plan will, however, generally be less than prevailing charter rates or the cost of individual ownership.

Of vital importance is the selection of members who are compatible both in business and as individuals.

Particular care should be exercised in the mechanics of organizing a business club with respect to incorporation papers, the constitution and the by-laws. In order that business deductions can be made, competent legal and tax assistance should be obtained in drawing up the official papers of the organization.

348-208 0 - 69 - 2

Recreation and Fun Clubs Members of this type of club should have as their objective the establishment of an organization dedicated primarily to recreational and pleasure flying. Any business use of equipment should be secondary. Prospective members who seriously consider use of the club's airplanes for business would be better advised to join or organize a purely business club.

Recreational clubs attempt to provide flight instruction and activities for a large group of members who share a common interest in fiying.

Family participation is generally stressed and weekend activities form a heavy part of the club's program.

Initially members of a recreational club are usually new to flying. Thus, the initial airplane will be one suitable for flight training. Clubs are usually located at airports where flight instruction is available for the training of members.

The number of members per plane will tend to be more than that which is ideal for a business club. The amount of flying desired by the members will, of course, dictate this figure. The ideal would seem to be about 12 members per plane with perhaps a maximum of 25 members.

Successful clubs make an effort to attract both husband and wife to participate in flight training and other activities. One large club runs special ground schools and flight classes for its members.

Some clubs have found it advantageous to make provisions for non-flying recreational facilities for members of the family. These should be located at or near the airport and might include a club house, swimming pool, tennis courts, or similar facilities.

Here are some specific examples of how a club airplane can be used for fun and recreation:

• Participate in group breakfast flights.

• Shuttle members and their families to state parks or other recreational facilities for a week-end of golfing, swimming, etc.

• Attend "fly-ins" and other group social events where aviation-minded people congregate.

Educational-Training Clubs For those who wish to learn to fly for occupational reasons or for training only, a training-educational club is one of the most effective and efficient means of pursuing this interest. Members are usually comprised of young men and women in college or professional schools who feel that learning to fly will be a worthwhile skill for them to have in their future career.

their skills. Young businessmen also find this type of club advantageous in expanding in later life. Many will, of course, use their flying ability for recreation Low initial cost and low rental and instruction rates are fundamental to the success of such a club. Large memberships make attractive costs possible and this kind of organization must have a constant source of new members to compensate for the high turnover. Members in school must, *The educational-training club affords the faculty member the opportunity to better advise his students in the ways aviation will affect his career in the business world.

of necessity, leave the club upon graduation and must be replaced by new blood.

The sheer size and complexity of such an organization places a premium on excellent management. Flight-minded faculty members can be extremely helpful in guiding the affairs of the club and the more talented members will be required to help in administration and day-to-day operation. A close affiliation with the fixed base operator at the airport can pay dividends for the club.

One of the major pitfalls in this type of club, experience has indicated, is the temptation to try to operate with poor, less-expensive equipment.

Such aircraft are over-fown and under-maintained, resulting in excessive "down" time for repairs. The result is that members are unable to fly as often as they would like with a resultant loss of interest and loss of membership.

With a sufficient membership and careful attention to maintenance, adequate utilization, and good management, clubs of this type have found it possible to use new equipment and to turn the equipment over before maintenance costs mount. One well run university club boasts a fleet of over 25 planes and finds it is able to replace equipment on an average of every three years.

Clubs of this type concentrate on trainer type equipment, although larger clubs do invest in more sophisticated equipment for qualified members.

Businessmen benefit by sharing an airplane with others.

Recreation and fun are the objectives of some clubs..

... while education and training are the objectives of others.

Selecting the most suitable airplane depends upon the objectives of the club.

Whether to rent, purchase or lease should be thoroughly investigated before this important step is taken.

Chapter III

METHODS OF OBTAINING EQUIPMENT The method selected for obtaining equipment for a club depends on the special requirements of the group and their circumstances. The amount of flying anticipated and the number of members will be factors as will the financial situation of the members.

Safe, efficient, economical flight operations can be realized in several ways:

Rental Or Straight Lease System The club guarantees to use the leased equipment a minimum number of hours each month. Under this method the hourly cost of rental or leasing is less than it an individual rented a plane when he desired to use it.

Under this plan the club does not have responsibility for direct management or operations and maintenance is the responsibility of the lessor.

The rental or straight lease system helps avoid a large initial investment and often is a good approach for a club trying to "get its feet wet."

Lease Purchase Plan The club leases an aircraft for its own exclusive use. In the lease there is a provision for the club to have long-term purchase benefits. This is an attractive approach for the club that says to itself, Let's see how it goes before we purchase our own equipment."

Management and operations of the aircraft may be the responsibility of the club or of a fixed base operator.

Direct Purchase The club purchases an aircraft of its own choosing and assumes direct responsibility for the management, operations and maintenance.

Combination Multi-plane clubs may use any combination of the above. For example, it might prove wise to lease or rent a trainer type airplane because the number of untrained pilots is comparatively small. In addition, the club might purchase another aircraft more suitable for cross-country flying.

When all members have been trained the lease of the trainer might be terminated and additional aircraft purchased.

Maximum benefits will accrue to club members when the plan to suit the specific situation of the club is selected. The key to success is maximum utilization of the aircraft. When a plane isn't flown enough the costs of operation spiral. Sound operations and efficient management are required to avoid excessive on-the-ground time.

A small dedicated group is ideal for the task of organizing a flying club.

Investigate costs. interview members of other clubs.

Your local fixed base operator can provide information concerning equipment, maintenance operating costs and operations.