sky‐vu flyers expansion committee

Sky-Vu Flyers - CONFIDENTIAL INFORMATION 1

Sky‐Vu Flyers Expansion Committee


Assignments from the March 13th meeting:• To explore expansion to a third airport, and to present our findings and

recommendation• To explore the feasibility of acquiring a fifth airplane, and if feasible,

present the committee’s findings and recommendation

1 Sky‐Vu Secretary2 Sky‐Vu Treasurer3 Sky‐Vu Maintenance Officer


John Holcombe, Chairman Bill Smith1

Ron Diamond2

Eric Martin3

Joe Daniel Jack Morton

Support current members while expanding market area for new members (avoid “outpost” location)

Club survey comments Hangar availability and cost Logistics for maintenance officer Maintenance availability Safety (runways) Fuel prices or surcharges Personal biases aside, what’s best for the Club?

Indianapolis Regional (KMQJ)Indianapolis Executive (KTYQ)Greenwood Municipal (KHFY)Hendricks County-Graham (2R2)

ZIP CODE MQJ SV mbrs

1 46037 86 32 46038 67 43 46040 24 14 46048 2 05 46055 34 16 46064 15 07 46107 9 08 46126 2 09 46130 2 010 46140 65 111 46163 21 012 46201 8 013 46203 14 114 46205 15 015 46216 4 016 46218 4 017 46219 22 118 46220 72 119 46226 7 020 46229 7 021 46235 8 022 46236 54 123 46239 30 024 46240 23 125 46250 20 126 46256 54 227 46259 30 0

699 18

MQJ

8667

24

2

34

15

9

2

2

65

21

8

14

15

4

422

72

7

7

8

54

30

23 20 54

30

Pilots within 11 mile radius of MQJ

ZIP CODE

TYQ SV mbrs

1 46032 143 22 46033 121 13 46034 20 04 46052 28 05 46062 95 66 46069 21 07 46074 87 28 46075 12 09 46077 114 210 46112 100 211 46240 23 112 46260 29 413 46268 17 114 46278 23 0

833 21

TYQ

143 121

20

28

95

21

87

12114

100

23291723

Pilots within 11 mile radius of TYQ

Pilots within and zip codes within 11 miles of 46122 (2R2) and 46143 (KHFY)

Zip Pilots SV46122 46 246123 111 246112 99 246167 13 146168 59 146118 11 046103 1 046121 8 046165 3 046149 6 046158 45 346113 16 046221 17 046183 0 046231 3 046234 31 0Total 469 11

46122 (2R2)Zip Pilots SV46143 115 146259 29 046126 2 046130 2 046163 21 046239 29 046237 60 046107 9 046203 14 146247 1 046227 32 046295 0 046217 36 046106 18 046131 44 046184 16 046162 0 046110 0 0Total 428 3

46143 (KHFY)

Pros• 6,000’x100’ runway 07-25• 3,900’ x 75’ runway 16-34• ILS, LOC, GPS, VOR approaches• Crosswind runways• Potential for new members• 699 pilots within 11 mile radius (18

club)• Easy access from I-70• Hangars available• Competitive fuel prices• No fueling surcharge• Surrounding flat land• 7-8 A&P

Cons• No experience with their

maintenance, so no relationship• Increased distance for some club

members

Pros• ILS, LOC, GPS, VOR approaches• Close to many club members• Potential draw for new members• 833 pilots in 11 mile radius (24 club)• Self-serve fuel available• Competitive fuel prices• No fueling surcharge• Surrounding flat land

Cons• Single 18-36 runway• Common crosswinds• Maintenance now Eagle Creek

Aviation services, but most of the same A&Ps still there from Montgomery

• High hangar cost• No hangars available

Pros• GPS and VOR approaches• Potential draw for new members

Cons• Single 01-19 runway• Common crosswinds• Owned by city, potential budget constraints?• Distance for most members• Taxiways and runway maintenance status?• Maintenance quality, timeliness?• No hangars available

Pros• Potential draw for new members• Self-serve fuel available• Competitive fuel prices ($3.80)• No fueling surcharge

Cons• Single 36-18 runway• Common crosswinds• No hangars available• Distance for most members• GPS only approaches

X‐windrunways

New member draw

Approaches Hangars Available

Close to Club

Members

Self‐serve Fuel

No fueling surcharge

MQJ X X 1 ILS or LOC3 GPS1 VOR

X X X

TYQ X 1 ILS or LOC2 GPS1 VOR/DME

X X

HFY X 2 GPS1 VOR

X

2R2 X 2 GPS X X

• Available crosswind runways • Proximity to existing members (18) while also considering

broader geography for potential new members• Easy access from I‐70• Hangars available!• Surrounding flat land

Expansion Committee’s Airport Recommendation

Indianapolis Regional

Review of responses to the recent Club survey History of the club aircraft Current inventory Affordability, with minimal effect on hourly rate and monthly

dues

Expansion Committee’s Evaluation of Adding a Fifth Airplane

Aircraft HistoryStarting at 1982

N64155 1975 172M 1982 1983

N735VY 1977 182Q 1982 1986

N73042 1976 172M 1982 1997

N9578B 1981 172RG 1983 2004

N2AJ 1981 182Q 1986 2006

N210WP 1977 210M 1988 1989

N4850S ?yr TR182 1990 ?

N4359R 1978 TR182 1991 2004

N8562S 1965 182H 1995 1997

N146K 1982 172P 1998 2011

N9421D 1984 172RG 1999 present

N182SV 2000 182S 2004 present

N721ZA 2004 182S 2006 present

N5168V 2002 172S 2012 present

82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17N-NBR YEAR MODEL BOUFHT SOLD

Equipment Summary

4 ADFs - 3 different models

5 Audio Panels - 4 different models

4 Auto Pilots - 2 different models

4 DMEs - 3 different models

5 Intercoms - 3 different models

2 Lorans - 2 different models

10 ‘Nav/Comms/GPS’ - 6 different models

5 Transponders - 4 different models

2 Storm Scopes - 1 model

1 RNAV

1 Radar Altimeter

Note: 5 are same type, 1 more is somewhat similar

1 GPS (combined with NAV/COMM

Most Used andMost Important

AvionicsOne recommendation that the Equipment Committee could make is to update this equipment on all aircraft to have a common package in all aircraft

or

INITIAL “PROPOSAL”

At that time we had5 airplanes –2 - 182RGs 2 - 172RGs 1 - 172

N4359R1979 T182RG

4770 TT

N9578B1982 172RG

6936 TT

N146K1982 1724710 TT

N9421D1984 172RG

2260

N2AJ1981 182RG

5336 TT

Age Of Current Fleet

19xx 20xx

Oldest25 yrs

2004

Newest20 yrs

78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2425 23 22

AGE AGE AGE

TODAY20AGE

GOAL: Replace Aircraft after 10-15 Years Service

Upgrade each aircraft after about 10-15 years service

N4359R1979 T182RG

N9578B1982 172RG

N146K1982 172

N9421D1984 172RG

N2AJ1981 182RG

19xx 20xx78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Last plane in today’s fleet will be 29+ yrs old

when upgraded

SELL the 1st PlaneUPGRADE selected Avionics

SELL 2nd PlaneBUY New(er) Plane

SELL NEXT PlaneBUY New(er) Plane



AVONICS Upgrade AVONICS Upgrade

AVONICS UpgradeNEWer Airplane

NEWer Airplane

NEWer Airplane

NEWer Airplane

2004

YEAR

N9421D1984 172RG

5406

Age Of Current FleetOldest33 yrs

TODAY

Newest13 yrs

?N182SV

2000 182S2861

N5168V2002 172SP

1697

N721ZA2004 182T III

2781

33 17 15 13

19xx 20xx78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

AGE AGE AGE AGE

AGE

PLANES SOLD

TODAY

2017 Club Expansion CommitteeFinancial Review

March 23, 2017


Elements of Financial Review

• Review Avemco‐mandated minimum pilot requirements• Review of insurance premium increase• Review overall impact on monthly dues• Review projected hourly rates• Cost vs Distance & Time Comparisons


Avemco Minimum Pilot Requirements

Glass Cockpit• Current Medical• Current Flight Review• 200 Hours Total Time• 10 Hours in Make & Model• 3 Hours every 180 days, or

currency checkout within previous 45 days

• Within previous 12 months, Cirrus Transition Training or Currency Training Program


Non‐glass “Steam Gauge” Cockpit• Current Medical• Current Flight Review• 10 Hours in Make & Model if

Less than 100 hrs TT• 5 Hours in Make & Model if

100 or more hours TT

Avemco Insurance Premiums Significantly Higher for SR22 & C‐350

• The insurance rates for the Cirrus SR22 and Cessna 350 are the same; Avemco rates them in the same category

• The rates (premium as a percent of hull value) are more than double those for our current aircraft (7.55%‐8.5% vs 3.5%‐4.1%; 21D is in a class of its own at 7.5%)

• Here are the annual premiums, from Avemco, based on the following hull values:– $225,000 hull value; $17,000/year premium (7.55%)– $200,000 hull value; $15,300/year premium (7.65%)– $175,000 hull value; $14,000/year premium (8.00%)– $150,000 hull value; $12,700/year premium (8.50%)


Impact to Fixed Costs & Dues

The following fixed costs will be impacted by adding an airplane• Aircraft Insurance• Loan Payments• Hangar Fees• Officer Compensation• Scheduling System Fees• State Registration Fees• Annuals• Jeppesen NavData subscriptions• Misc. Other Expenses


The “Real Cost” of a Purchase*


A B C DAircraft Purchase Price 150,000$ 175,000$ 200,000$ 225,000$ 15% Update/Improvement 22,500$ 26,250$ 30,000$ 33,750$ Subtotal 172,500$ 201,250$ 230,000$ 258,750$ Sales Tax @ 7% 12,075$ 14,088$ 16,100$ 18,113$ Total Investment 184,575$ 215,338$ 246,100$ 276,863$

Downpayment 125,000$ 125,000$ 125,000$ 125,000$ % Downpayment 68% 58% 51% 45%% Loan To Value 32% 42% 49% 55%Loan Amount 59,575$ 90,338$ 121,100$ 151,863$

Interest Rate 5.50% 5.50% 5.50% 5.50%15-Year Amortization 180 180 180 180 20-Year Amortization 240 240 240 240

Monthly Payment - 15YR 486.78$ 738.13$ 989.49$ 1,240.84$ Annual Impact on Dues 5,841$ 8,858$ 11,874$ 14,890$

Monthly Payment - 20YR 410$ 621$ 833$ 1,045$ Annual Impact on Dues 4,918$ 7,457$ 9,996$ 12,536$

*Purchase price is not dependent on airplane make and model, these numbers are the same for any aircraft

Fixed Cost/Dues Analysis ‐ $225K Purchase Price (SR22 or C‐350)


Fixed Costs Current Expanded ΔAircraft Insurance 25059 42059 17000Officer Compensation 13200 15600 2400Hangar Fees 12080 15648 3568Other Expenses 6000 6000 0Advertising & Promotion 2048 2048 0Directors Insurance 800 800 0Misc. Parts & Supplies 1233 1233 0Social Events 1500 1750 250Tax Preparation Fee 695 695 0Member Flying Credits 750 750 0Scheduling System 568 710 142Bonding Insurance 359 359 0State Aircraft Registration Fees 400 500 100Website Subscription 180 180 0Billpay Service Fee 192 192 0Sky‐Vu.org Domain Name Subscription 10 10 0State Corporation Registration Fee 8 8 0Loan Payments 0 14890 14890Aircraft Annuals 16800 21000 4200Jeppesen NavData Subscriptions 1920 2400 480XMWX Aviator Subscriptions 1808 2260 452XM Music Subscription 150 150 0Future Fleet Funding 4500 4500 0Total 90,260$ 133,742$ 43482

Members 60 75Annual Cost/Member 1,504.33$ 1,783.23$ Monthly Cost/Member 125.36$ 148.60$

Review/Analysis of Dues Impact

• All analyses assume “full” recruitment of new members at 15 beginning immediately – reality will not be that good, but may be worth the risk with the right airplane

• Dues will increase from a minimum of $?/mo to as high as $?, depending on purchase cost – need to keep as low as possible

• Need to keep searching for ways to reduce fixed costs– Reduced Jeppesen subscriptions to “Full USA” vs “Americas” saving

$500/yr– Eliminate Sirius XMWX subscriptions with implementation of new

ADS‐B transponders saving ~$1,700/yr


Hourly Rate Analysis


SR22 C-350Fuel Flow gl/hr 18 17Fuel Cost @$5.00/gl 90.00$ 85.00$ Engine/Prop Reserves at 200 hrs/yr 32.06$ 32.06$ Parachute Repack Reserve/Hr 8.06$ Line Cutter Reserve/Hr 1.19$ Maintenance/Hr 34.00$ 34.00$ Revenue Target/Hr 14.69$ 14.94$

Total 180.00$ 166.00$

Cost vs Distance & Time Comparisons


N5168V N9421D N182SV N721ZA SR22Hourly Rate 99$ 119$ 134$ 139$ 180$

Cruise Speed (kts) 115 130 135 140 180Cost/Nautical Mile 0.86$ 0.92$ 0.99$ 0.99$ 1.00$

Distance (nm) N5168V N9421D N182SV N721ZA SR22 N5168V N9421D N182SV N721ZA SR22Atlanta, GA (ATL) 385 331$ 352$ 382$ 382$ 385$ 3.3 3.0 2.9 2.8 2.1Austin, TX (AUS) 846 728$ 774$ 840$ 840$ 846$ 7.4 6.5 6.3 6.0 4.7Billings, MT (BIL) 1052 906$ 963$ 1,044$ 1,044$ 1,052$ 9.1 8.1 7.8 7.5 5.8Biloxi, MS (GPT) 590 508$ 540$ 586$ 586$ 590$ 5.1 4.5 4.4 4.2 3.3Bridgeport, CN (BDR) 595 512$ 545$ 591$ 591$ 595$ 5.2 4.6 4.4 4.3 3.3Charleston, WV (CRW) 228 196$ 209$ 226$ 226$ 228$ 2.0 1.8 1.7 1.6 1.3Cleveland, OH (CLE) 211 182$ 193$ 209$ 209$ 211$ 1.8 1.6 1.6 1.5 1.2Dallas, TX (DAL) 673 579$ 616$ 668$ 668$ 673$ 5.9 5.2 5.0 4.8 3.7Davenport, IA (DVN) 230 198$ 211$ 228$ 228$ 230$ 2.0 1.8 1.7 1.6 1.3Denver, CO (DEN) 859 739$ 786$ 853$ 853$ 859$ 7.5 6.6 6.4 6.1 4.8Des Moines, IA (DSM) 358 308$ 328$ 355$ 355$ 358$ 3.1 2.8 2.7 2.6 2.0Dover, DE (33N) 486 418$ 445$ 482$ 483$ 486$ 4.2 3.7 3.6 3.5 2.7Frederick, MD (FDK) 403 347$ 369$ 400$ 400$ 403$ 3.5 3.1 3.0 2.9 2.2Ft. Lauderdale, FL (FLL) 881 758$ 806$ 874$ 875$ 881$ 7.7 6.8 6.5 6.3 4.9Ft. Myers, FL (RSW) 831 715$ 761$ 825$ 825$ 831$ 7.2 6.4 6.2 5.9 4.6Kansas City, KS (MCI) 404 348$ 370$ 401$ 401$ 404$ 3.5 3.1 3.0 2.9 2.2Kitty Hawk, NC (FFA) 545 469$ 499$ 541$ 541$ 545$ 4.7 4.2 4.0 3.9 3.0Lakeland, FL (LAL) 743 640$ 680$ 737$ 738$ 743$ 6.5 5.7 5.5 5.3 4.1Lexington, KY (LEX) 132 114$ 121$ 131$ 131$ 132$ 1.1 1.0 1.0 0.9 0.7Madison, WI (MSN) 243 209$ 222$ 241$ 241$ 243$ 2.1 1.9 1.8 1.7 1.4Minneapolis, MN (MSP) 435 374$ 398$ 432$ 432$ 435$ 3.8 3.3 3.2 3.1 2.4Naples, FL (APF) 853 734$ 781$ 847$ 847$ 853$ 7.4 6.6 6.3 6.1 4.7Nashville, TN (BNA) 230 198$ 211$ 228$ 228$ 230$ 2.0 1.8 1.7 1.6 1.3Oamaha, NE (OMA) 457 393$ 418$ 454$ 454$ 457$ 4.0 3.5 3.4 3.3 2.5Orlando, FL (ORL) 721 621$ 660$ 716$ 716$ 721$ 6.3 5.5 5.3 5.2 4.0Pensacola, FL (PNS) 570 491$ 522$ 566$ 566$ 570$ 5.0 4.4 4.2 4.1 3.2Pittsburg, PA (PIT) 269 232$ 246$ 267$ 267$ 269$ 2.3 2.1 2.0 1.9 1.5Rochester, NY (ROC) 423 364$ 387$ 420$ 420$ 423$ 3.7 3.3 3.1 3.0 2.4Savannah, GA (SAV) 524 451$ 480$ 520$ 520$ 524$ 4.6 4.0 3.9 3.7 2.9Shreveport, LA (SHV) 586 504$ 536$ 582$ 582$ 586$ 5.1 4.5 4.3 4.2 3.3St. Louis, MO (SUS) 228 196$ 209$ 226$ 226$ 228$ 2.0 1.8 1.7 1.6 1.3

*Flight time and costs shown non-stop, one-way only, "No wind" conditions, no adjustments for climb and descent, and rounded to nearest tenth/dollar.

Flight Hours*Flight Cost*

Possible Next Steps

• Confirm insurance requirements• Nail down best possible financing

– Goal of 20‐year amortization, 15‐year most likely– Goal of interest rate at or below 5.5%

• Complete review of current financials (without a new airplane) to see impact on dues, if any, before adding a fifth airplane to the fleet

• Keep searching for best deals on fifth and cost‐cutting initiatives to save on monthly dues and hourly rates


WHAT DO YOU THINK?


sky‐vu flyers expansion committee

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