1. Aircraft Build Project Proposal to build a Club aircraft.

2. Why? Club membership is falling (slowly) ◦ Currently around 72 Desire to attract new members ◦ Preferably young(er) Club’s primary focus is building Looking for something to attract ◦ Younger people ◦ Interested in building an aircraft ◦ Not yet in position to build their own.

3. It will change the Club If it works, membership will be ◦ Bigger ◦ Younger The Club’s asset structure will change ◦ Liquid assets from $53,000 to $8,000 ◦ Fixed assets from $45,000 to $90,000 ◦ (less during build – saleable value) ◦ (more when complete – flying aircraft)

4. It will change the Club We will own an aircraft. Issues: ◦ Managing it ◦ Hangaring it (and losing commercial rent) ◦ Renting it out ◦ Maintaining it ◦ Insuring it

5. Financial risk We can afford to do it The Club’s assets will end up higher New income flows will be generated However, during the build phase… ◦ Income will be reduced (bank interest) ◦ Building costs will be incurred ◦ Insurance costs will be incurred Existing income flows won’t cover this.

6. Project benefits During the build phase, all working on it will gain experience This is what our Club is about When built, who will fly it? ◦ Existing aircraft owners? Maybe once or twice ◦ A handful of Club members don’t have access to an a/c. They may make more use of it ◦ New members involved in building it. A few? ◦ New members who just want to fly.

7. What could possibly go wrong? It draws no new members. ◦ Old members complete and sell aircraft. Club better off. ◦ If not completed, sell as is. Club loses money but not enough to endanger it. Build completed but not many fly it. ◦ Club bleeds, and finally sells it. Aircraft gets written off ◦ Grab insurance money and bank it. Club OK