proposed email to interested parties

[Bob Irving]

Jim - I think my explanation - >The engine has about 400 Hrs remaining
before it must be replaced. The 400 Hrs remaining could come quickly if we
have 15 members flying the plane.  We don't want to lowball monthly dues and
hourly cost only to hit everyone with a surprise special assessment for a
new engine 6 months down the road.  Therefore - with 15 members first year
per member costs for this airplane look like this;

Buy-in (engine reserve/down payment on aircraft) = $1450< was pretty
straightforward. Perhaps I could have used a better word than "buy-in" but I
didn't. The bottom line is there is probably no way to make the idea of
cheap flying work if we must buy either 976 or 081. I think nobody
interested in joining a flying club thought they would have to come up with
some front end money. That probably explains the lack of response.

I don't really understand your comment about >it seems like a high price to
pay for a low value airplane< - it is what it is. 

Finally, since you and Todd have come up with the idea of personal financing
why not survey to see if you can find 2 more people willing to participate?

Bob



-----Original Message-----
From: eefc-core-bounces at workingcode.com
[mailto:eefc-core-bounces at workingcode.com] On Behalf Of James Carlson
Sent: Monday, April 20, 2009 3:35 PM
To: Eagle East Flying Club Core Team
Subject: RE: proposed email to interested parties

Bob Irving writes:
> The "buy-in" is a one time payment by all members that covers the down
> payment EE wants on financing (15%) plus the engine reserve (we will need
> about $20,000 to replace the engine in 400 hrs - maybe sooner). No, it's
not
> credit for anything. I don't see how the club could refund any of this
money
> on leaving.

Part of my point was that this wasn't explained in the message to
eefc-interest.  It's just a "cost" -- and the terms of that cost (is
it something that just initial members have to pay, or would people
joining later pay more or less?) are unknown.  That makes it very hard
for anyone to say what the deal means to them personally.

Since that's the largest number in the message, and the one that many
folks will choke on, I think it probably deserves some explanation.

The other point, though, was that it does in fact seem like a high
price on a low-value airplane.  If we assume that you'd normally pay
around $100/month on something that's completely financed and
requiring no substantial "buy-in" (versus the $60/month here), then
that extra $40/month would take over 36 months to break even with the
original $1450.  Longer if the delta is smaller, and a lot can change
in 3 years.

> If you are interested in doing the financing, that certainly is a
preferred
> approach. That would release us from the need to purchase 976 or 081. We
> could find something everyone is happy to fly.  
> 
> Why don't you provide some details ?

We should probably talk about that.

The rough idea would be to get (say) three or four people willing to
put in around $20K each, and then get paid back at (say) 8% over a 15
year term.

That'd mean the club owes us $191.13 monthly from all the dues
collected, and we'd be able to offset our own club bills.

As for timing and the other bits, I'll have to talk with the real
boss.  ;-}

-- 
James Carlson         42.703N 71.076W         <carlsonj at workingcode.com>
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