How does the club financially plan for the acquisition of new aircraft?
Funds are set aside in advance to replace aircraft as they age. Typically, the club has purchased used aircraft midway through their first engine and replaced them midway through the second engine. This policy avoids the initial depreciation loss associated with the purchase of a new aircraft and results in a sale before the airframe value drops significantly. These replacement revenues are generated from a balance of equity charges and income from hourly flying charges. Generating funds from equity keeps hourly flying charges lower and also returns more money to you if you leave the club. On the other hand, generating replacement funds from hourly charges places the burden on those who use the planes the most. Although it does increase buy-in sticker shock, having a substantial amount of equity invested in the aircraft encourages members to treat the airplanes with loving care. Consequently, we have tried to strike a fair balance between financing future aircraft through each of these
