1. SSB Fleet Upgrade Why and How

2. Why Target the Blanik to Upgrade the Fleet ? Our glider fleet is aging. The Blanik is 30 yrs old and although it may have several seasons left of safe flying there will come a time where it has to be retired (the suggested lifetime originally indicated by the manufacturer was 2000 hours of service) We can sell the Blanik,after its spring annual, in good faith and conscience The Blanik has been expensive to maintain. It would be the most profitable glider due to its high usage if not for the maintenance costs.

3. Why Upgrade/Target the Blanik? The Blanik is our poorest performance twin The club is running out of depreciating aircraft. If we do nothing we will begin having to pay income tax!! (Not the best use of club funds) The Blanik is nasty to rig and trailer Upgrading a twin works out better economically, as the flight charges from training and normal club use can support payoff of most of the capital. Whereas a new singleplace will never fly enough to repay capital outlay.

4. What to replace the Blanik with? Something with reasonable (Mtn) performance (LD 30+/1) Something with spin and acro capability Something with easy ground handling, rigging, and trailering Something with good front and rear seat visibility Something easy to fly (responsive,light on controls) Something with low maintenance expectations Something that is fun to fly Something we can afford

5. Desired Flight Characteristics Control pressures -light Roll Rate- responsive Stall Characteristics- well behaved Performance – L/D- 30+ Basic Acro (loop,clover-leaf,HH) Spin Characteristics- +ve, easy-out

6. So what Gliders are out there ?

7. Our best bet ---- the DG 505 a multi-role trainer!

8. A good opportunity Slightly used DG-505

9. G103 – primary training & club use DG-505 – primary, acro, XC training & club use 2-32 – wave flying, science & club use When it is thermic we expect to DG to be used for soaring – pattern training will take place in the G103 If it is flyable expect the DG to be in the air! Roles for Glider Twins

10. Financing Assume a flight_charge of $15 Deposit $15000 on glider/trailer cost of $95000 8 years to pay annual interest rate of 5.5 % then 69 flights per month 828 per yr pays annual loan of $12383 add in annual costs insurance $3600 + tie_down $300 + maintenance $1000 then 96 flights per month 1152 per yr pays total annual of $17283

11. What can we afford? #1 – “Down Payment” SSB FLEET UPGRADE WHAT CAN WE AFFORD "DOWN PAYMENT“ Cash in Bank56500 Engine Fund-23900 Insurance Payment-13650 Operating Reserve-12000 Available6950 Without touching the engine fund

12. What can we afford? #2 – Amount we can finance SSB FLEET UPGRADEWHAT CAN WE AFFORD Assumptions:Membership remains stable Flying activity = past 3 year average LOAN REPAYMENT Blanik + Grob sorties = Grob + Replacement sorties Annual Net Cash Flow$20,433.33 Averaged from past three years operations Increased Flight Income$3,500.00 700 sorties at $15 versus $10 Reduced Maintenance$1,500.00 Blanik Maint avg $4000/yr, Replacement expected to be less than $2500 Less Insurance cost-$2,642.00 Full hull coverage on the Replacement versus liability only Less Engine Reserves-$6,375.00 Pawnee @ 350 hrs/yr ($25K), Cub at 250 hrs/yr ($16K) Available for debt service$16,416.33 Loan Parameters Maximum Amount Financed $103,990.35 Years8 A.P.R.0.055

13. Two Purchase Scenarios Total Cost 96000 Down Payment 7000 Borrow 87000 Sell Blanik 14000 Make loan prepayment Payments for ~7 years Total Cost 96000 Down Payment 30000 Borrow 66000 Sell Blanik 14000 Buy Engine 16000 - Applying 1 year reserve funding Buy Engine 25000 Borrow 7000 - Applying 3.5 years reserve funding Payments for ~7 years