A few thoughts based on my experience as a group member in several groups.
I think the loan idea is a non starter. The 190 GBP a month charge is too high. Better to get individual loans and go for an individual capital investment. What happens if a member decides he can't affiod it after 6 months - at such a high cost I don't think you will sell their share easily. And 190 will seem a lot if you don't fly it for a couple of months over winter. It will happen!
Don't charge for dry hours. As someone mentioned, someone will lean the engine to save a few pounds and cost you a fortune in early engine repalcement. This happened to one group I was a member of.
Love the idea as forming it as a limited company. I was preparing to fly one day when some sequestrators arrived to 'collect' our aircraft (as neither had a licence I don't know how they were going to do that!). It turns out that one of our members had been decalred bankrupt. The sequestrators went away disappointed when it was pointed out that the only thing this member owned was one share in the company. And it gives you better protection if something dreadful happens.
Five pounds an hour seems cheap for an engine fund. You need to divide the realistic cost of the replacement by the number of hours left on the engine of the aircraft you buy. And factor in a bit of flex. If the TBO is 2000 hrs, calcualte the cost at 1800 hours. This will prevent a nasty suprise.
Last edited by Dan Winterland; 9th Dec 2006 at 04:15.