Afternoon chaps,
I would like your opinion on a proposal for a flying group that I have been looking at: The flying group is set up as a private limited company with six shareholders (members) and based around a basic inexpensive but good condition SEP aircraft (thinking perhaps a Robin HR200, or maybe a PFA type). The primary purpose of this venture would be to help low hour pilots who do not have the capital to invest in a share scheme build hours cheaply. The company will have purchased the aircraft via an aircraft loan such as the type that Lombard offer. This group would be no-capital investment.
Based on the breakdown of costs below, the group would charge £190 per member per month (£13,680 raised in total) and all the member pays for is the fuel that he uses and £5 per hour towards an engine fund.
£190 seems like a lot, but if a member does say 6 hours a month thats £190 + the cost of 6 hours fuel (say 25l/h, so £30 per hour fuel) and the £5 per hour engine fund, so it works out at £67 per hour wet, which is a good price considering that the members havn't had to buy a share! If a member does 10 hours a month, this is reduced further still to £54 per hour wet.
To keep good availability, the group would initially be limited to 6 members/shareholders, but there could also be the option of renting the aircraft out to suitably qualified non-member pilots for around £85 per hour wet to help contribute towards costs.
Cost Breakdown (based on 250 hours a year and worst case costs):
Aircraft Mortgage Repayment(£30,000 over 12 years and 5%APR) - £2,625
Annual - £3,000
50 hr Checks - £2,500 (£500 each)
Hangarage - £2,000
Insurance - £2,000
Company admin costs - £250
Oil, cleaning equipment - £100
Total Costs = £12,475 per year
Total Spare = £13,680 - £12,475 = £1,205 (+ the engine fund of £5 per hour, so £1,250 total engine fund per year on top)
These cost estimates are worst case, so there should be much more capital left over at the end of the year to act as a slush fund.
Ok, so that's my idea. I would welcome any comments/criticism, and would like to know the levels of interest for a venture such as this.
Many thanks,
Ox
