AIRCRAFT UPGRADE Review, Options & Recommendations Mockingbird Flying Club Business Meeting December 5, 2010
Taskforce Mission The committee s task is to act on the member survey, and the board s direction to research the upgrading of the club s high end aircraft 71% of surveyed members voted to explore upgrading the Club s high-end aircraft get the numbers and discuss with the Club membership.
Approach to Task Develop the needs and wants list. Define the benefits to the Club. Select from a wide range of aircraft. Refine the aircraft list. Prepare a detailed cost analysis. Research the For Sale market. Select one aircraft make/model.
Wants and Needs List Faster. Increased load capacity. Family friendly for more people and cargo. Ease of loading. Long range possibilities.
Wants and Needs List Good package of avionics, autopilot, paint, interior and reasonably low airframe time. The current wisdom is that it s more cost effective to find a well equipped plan rather than a fixer-upper. Competitive on a cost per mile basis. Look for lower time airframe. Current aircraft Total Time on airframe: C172 & Archer are 6,000 + hours. Archer are 6,000 + hours. Dakota 4,300 + hours.
Club Benefits Encourage more members to fly. Upgrade current members from simple to complex/high performance. Draw in a new class of member. Compare speed vs. cost per mile to current fleet. Prestige could be seen as the difference between driving a Chevy/Ford/Plymouth to a Cadillac/BMW/Mercedes. Membership enhancement by making available a highperformance complex aircraft. Increase share price by creating demand.
Current Aircraft Values Many ways to value aircraft. Used AOPA VREF Retail Price. Quick Sale 10% less. Comparables - Survey make and model asking prices. Several comps selected. Use comps average price. Quick price 10% less. The actual price is what $$$ we really pay. Data produced using Vref and currently available aircraft sales
Piper Dakota N2970U Vref valuation using current airframe, engine, and avionics. --------------------------------- Comparables Avg. For Sale $80,717 Quick Sale 72,645 VREF Retail $96,478 Quick Sale 86,830
Piper Archer N81977 Vref valuation using current airframe, engine, and avionics. --------------------------------- Comparables Avg. For Sale $70,483 Quick Sale 63,435 VREF Retail $63,377 Quick Sale 57,039
Cessna Skyhawk N80673 Vref valuation using current airframe, engine, and avionics. --------------------------------- Comparables Avg. For Sale $37,000 Quick Sale 33,300 VREF Retail $37,875 Quick Sale 34,088
Current Aircraft Values Piper Dakota N2970U Piper Archer III N81977 Skyhawk N80673 Year: 1979 Year: 1980 Year: 1976 AFTT: 4400 AFTT: 6000 AFTT: 6370 SMOH: 510 SMOH: 125 SMOH: 1430 Prop: 490 Prop: 1750 Prop: Value Value Value V Ref $96,478 V Ref $63,377 V Ref $37,875 Comps $85,000 Comps $72,500 Comps $36,000 $79,900 $69,000 $36,000 $59,000 $69,500 $35,500 $94,500 $84,900 $35,000 $80,000 $66,000 $42,500 $85,900 $61,000 Average $80,717 Average $70,483 Average $37,000 Quick Sale $72,645 Quick Sale $63,435 Quick Sale $33,300 V Ref Quick $86,830 V Ref Quick $57,039 V Ref Quick $34,088 Data produced using Vref and currently available aircraft sales
Aircraft to Consider Beechcraft Bonanza A36 Cessna 210 Cirrus SR22 Columbia 400 Experimental such as Lancair IV Piper Saratoga SP
Ruled Out Most 4 place aircraft. Beechcraft Bonanza V-tails (cg limitations). Cessna 210 (loading). Columbia 400 (insurance & cost). Experimental such as Lancair IV (insurance). Considered legacy aircraft only.
Final Approach Committee Researched Costs for: Cirrus SR22 Piper Saratoga Beechcraft Bonanza
Compare to Current Aircraft SPECS Bonanza Saratoga SP Cirrus Dakota Archer III (From multiple sources) 1982 A36 PA32R-301 SR22 PA28-236 PA28-181 Air Speed 75% Cruise 176 163 185 144 126 Wingspan 33.40 36.17 38.50 35.00 35.00 Length 27.40 28.17 26.00 25.00 23.67 Height 8.50 8.17 8.58 7.33 7.25 Empty Wt 2,508 2,407 2,250 1,610 1,414 Gross Wt 3,663 3,600 3,400 3,000 2,550 Usefull Load 1,155 1,193 1,150 1,390 1,136 Payload (full tanks) 681 540 632 929 816 Horsepower 300 300 310 235 180 Max Fuel 74 102 81 72 50 Range 914 740 700 650 600 Stall 59 58 61 56 47 Rec'd TBO 1,700 2,000 2,000 2,000 2,000 Svr Ceiling 18,500 20,000 17,500 17,500 13,650 Rate of Climb 1,210 1,057 1,000 902 740 Takeoff (50ft) 1,913 1,800 1,575 1,216 1,625 Landing (50ft) 1,473 1,520 2,325 1,725 1,390 Takeoff 971 1,200 1,020 886 870 Landing 913 640 1,140 825 925 Adjusted payload (fuel to tabs) 809 668 817 Adjusted range (fuel to tabs) 694 536 402 Tabs reduce vol 20 20 29 22 14 Data researched using both manufacture and flight review publications
Operating Costs Details FUEL Bonanza Saratoga SP Cirrus Dakota Archer III 1982 A36 PA32R-301 SR22 PA28-236 PA28-181 Gallons per hour 16 16 18 14 10 Price Per Gallon $ 5.00 $ 5.00 $ 5.00 $ 5.00 $ 5.00 Cost Per Hour $ 80 $ 80 $ 90 $ 70 $ 50 Air Speed 75% Cruise 176 163 185 144 126 Cost Per Mile $ 0.45 $ 0.49 $ 0.49 $ 0.49 $ 0.40 FIXED COSTS Bonanza Saratoga SP Cirrus Dakota Archer III Insurance $ 7,000 $ 7,000 $ 7,000 $ 5,200 $ 3,500 Hangar $ 1,600 $ 1,600 $ 1,600 $ 1,600 $ 1,600 Annual Inspection Cost $ 3,000 $ 3,000 $ 2,000 $ 2,000 $ 2,000 Total Annual Costs $ 11,600 $ 11,600 $ 10,600 $ 8,800 $ 7,100 Annual Hours Flown 200 200 200 200 200 Cost Per Hour $ 58 $ 58 $ 53 $ 44 $ 36 Air Speed 176 163 185 144 126 Cost Per Mile $ 0.33 $ 0.36 $ 0.29 $ 0.31 $ 0.28 PERIODIC COSTS Bonanza Saratoga SP Cirrus Dakota Archer III Engine Overhaul Cost $ 45,000 $ 45,000 $ 45,000 $ 30,000 $ 25,000 # of Engines 1 1 1 1 1 Total Overhaul Costs $ 45,000 $ 45,000 $ 45,000 $ 30,000 $ 25,000 Interval Hours 1700 2000 2000 2000 2000 Cost Per Hour $ 26 $ 23 $ 23 $ 15 $ 13 Air Speed 176 163 185 144 126 Cost Per Mile $ 0.15 $ 0.14 $ 0.12 $ 0.10 $ 0.10 Data researched using both manufacture and flight review publications
Operating Costs Summary SUMMARY - OPERATING COSTS Bonanza Saratoga SP Cirrus Dakota Archer III Variable Costs 1982 A36 PA32R-301 SR22 PA28-236 PA28-181 Fuel $ 80 $ 80 $ 90 $ 70 $ 50 Maintenance (Misc) $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 Total Variable $ 90 $ 90 $ 100 $ 80 $ 60 Fixed Costs $ 58 $ 58 $ 53 $ 44 $ 36 Total Before Periodic Costs $ 148 $ 148 $ 153 $ 124 $ 96 Periodic Costs $ 26 $ 23 $ 23 $ 15 $ 13 Total Cost Per Hour WET $ 174 $ 171 $ 176 $ 139 $ 109 Total Cost Per Hour DRY $ 94 $ 91 $ 86 $ 69 $ 59 Cost Per Mile $ 0.989 $ 1.049 $ 0.951 $ 0.965 $ 0.861 Cost compared to Dakota $ 0.023 $ 0.084 $ (0.014) Data researched using both manufacture and flight review publications
Cirrus SR22 Seats: 4 place Speed: 185 knots Empty Wt: 2,250# Gross Wt: 3,400# Useful Load: 1,150 Full Fuel Payload: 632# Range: 700 NM Fuel to Tabs Payload-Tabs: 817# Range-Tabs: 402 GEN1 GEN2 GEN3 Cost per Mile: $0.95
Piper Saratoga SP GEN1 GEN2 GEN3 Cost per Mile: $1.05 Seats: 6 place Speed: 163 knots Empty Wt: 2,407# Gross Wt: 3,600# Useful Load: 1,193 Full Fuel Payload: 540# Range: 740 NM Fuel to Tabs Payload-Tabs: 668# Range-Tabs: 536
Selected Aircraft Beechcraft Bonanza A36. 1979 or Newer. Budget Price $150,000 to $175,000. Low Time Airframe, 3,000 hrs Max. The Best Paint, Interior, and Avionics for Budget Price. Needs Dual Yoke and possibly Dual Brakes.
Beechcraft Bonanza A36 Seats: 6 place Speed: 176 knots Empty Wt: 2,508# Gross Wt: 3,663# Useful Load: 1,155 Full Fuel Payload: 681# Range: 914 NM Fuel to Tabs Payload-Tabs: 809# Range-Tabs: 694 GEN1 GEN2 GEN3 Cost per Mile: $0.99
Average VREF Values A36 Bonanza 1979 $128,000 1980 $135,000 1981 $140,000 1982 $145,000 1983 $150,000 1984 $170,000 1985 $175,000 1986 $180,000 1987 $185,000 1988 $190,000 1989 $195,000
A36 Panel Single yoke & no co-pilot brakes
A36 Panel Dual yoke & co-pilot brakes
A36 Club Seating
A36 Club Seating
A36 Optional Seating
A36 Aft Cargo post 1979
A36 Aft Cargo Storage post 1979
A36 for Sale N72BR 1983 3,495 TAFT 1,128 Factory Reman 181 STOH Garmin 430 Storm Scope Dual Controls New Interior in 2000 Asking Call 10,000-12,000 Ft Static Test
A36 for Sale N6XZ 1982 1,982 TAFT 460 SMOH Garmin 530 Storm Scope Dual Controls Asking $182,000 Par value sold 10,000-12,000 Ft Static Test
A36 for Sale N420JB 1980 4,920 TT 1,200 SMOH Tip Tanks Storm Scope Paint 1999 Asking $150,000 Par value $163,000 10,000-12,000 Ft Static Test
A36 for Sale N6132X 1982 3,800 TT 440 SMOH G530 Storm Scope Paint 2005 Asking $169,900 Par value $163,000 10,000-12,000 Ft Static Test
A36 for Sale N67230 1983 2,885 TT 210 SMOH G496 Dual Controls/Brakes Paint 1996 Asking $169,900 Par value $158,000 10,000-12,000 Ft Static Test
Insurance Information For A36 Bonanza Consider Independent Agent vs Direct Sellers. Policy cost is between $5,000 and $7,000 Covers 10 or more pilots. High underwriting requirements for CFI and training. Required Experience Private Pilot with Complex & HP ratings. 250-350 Total Flying Hours. 50 hours of Retractable time. Retract time can be lowered with a 10-12 hour checkout. Ground school and approved club instructors. Instrument Rating, in some cases.
Financing Overview NEW CLUB CASH & DAKOTA FINANCE & DAKOTA KEEP DAKOTA & INCREASE DUES KEEP DAKOTA & ADD MEMBERS & INCREASE DUES Finance Summary Hours Flown Annually 192 192 192 120 192 Purchase Price $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 Loan Amount (7%/240 mths) $ 120,000 $ - $ 56,000 $ 120,000 $ 70,500 Cash Required (Down Payment + First Months Expenses) $ 38,555 $ 78,405 $ 22,405 $ 38,405 $ 87,905 Proceeds from share sales $ 38,555 $ - $ - $ - $ 75,000 Club Cash required $ - $ 78,405 $ 22,405 $ 38,405 $ 12,905 Dues/new member/month $ 100.00 $ - $ - $ 40.00 $ 100.00 Members # Increase 10.00 - - - 15.00 Share price for new members $ 3,856 $ - $ - $ - $ 7,500 Dakota Sale Price $ - $ 80,000 $ 80,000 $ - $ - SUMMARY OF OPERATING COSTS Variable Costs Fuel $ 80 $ 80 $ 80 $ 80 $ 80 Bank Balance Adjustment $ - $ 39.00 $ 38.00 $ - $ (12.00) Total Variable $ 80 $ 119 $ 118 $ 80 $ 68 Fixed Costs $ 109 $ 45 $ 71 $ 109 $ 86 Total Before Periodic Costs $ 189 $ 164 $ 189 $ 189 $ 154 Periodic Costs $ 26 $ 26 $ 26 $ 26 $ 26 Total Cost Per Hour WET $ 215 $ 190 $ 215 $ 215 $ 180 Total Cost Per Hour DRY $ 135 $ 110 $ 135 $ 135 $ 100 Cost Per Mile $ 1.222 $ 1.080 $ 1.222 $ 1.222 $ 1.022 Cost compared to Dakota $ 0.256 $ 0.114 $ 0.256 $ 0.256 $ 0.056
Financing Overview NEW CLUB CASH & DAKOTA FINANCE & DAKOTA KEEP DAKOTA & INCREASE DUES KEEP DAKOTA & ADD MEMBERS & INCREASE DUES FUEL Gallons per hour 16 16 16 16 16 Price Per Gallon $ 5.00 $ 5.00 $ 5.00 $ 5.00 $ 5.00 Cost Per Hour $ 80 $ 80 $ 80 $ 80 $ 80 Air Speed 75% Cruise 176 176 176 176 176 Cost Per Mile $ 0.45 $ 0.45 $ 0.45 $ 0.45 $ 0.45 FIXED COSTS Financing $ 11,164 $ - $ 5,210 $ 11,164 $ 6,559 Insurance $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 Hangar $ 1,600 $ - $ - $ 1,600 $ 1,600 Annual Inspection Cost $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 Total Annual Costs $ 21,764 $ 9,000 $ 14,210 $ 21,764 $ 17,159 Annual Hours Flown 200 200 200 200 200 Cost Per Hour $ 109 $ 45 $ 71 $ 109 $ 86 Air Speed 176 176 176 176 176 Cost Per Mile $ 0.62 $ 0.26 $ 0.40 $ 0.62 $ 0.49 PERIODIC COSTS Engine Overhaul Cost $ 45,000 $ 45,000 $ 45,000 $ 45,000 $ 45,000 # of Engines 1 1 1 1 1 Total Overhaul Costs $ 45,000 $ 45,000 $ 45,000 $ 45,000 $ 45,000 Interval Hours 1700 1700 1700 1700 1700 Cost Per Hour $ 26 $ 26 $ 26 $ 26 $ 26 Air Speed 176 176 176 176 176 Cost Per Mile $ 0.15 $ 0.15 $ 0.15 $ 0.15 $ 0.15
Structuring the Options Basic Assumptions Hours Flown Annually 192 Purchase Price $150,000 Fuel Cost @ $5.00 per gal $80 hr Periodic costs (overhaul) $26 hr
Structuring the Options New Club Club$ Fin Dues Mem Dry Wet 0 $120k $100 +10 $139 $219 Sell Dakota $78k 0 0 0 $112 $192 Sell Dakota $22k $56k 0 0 $138 $218 Keep Dakota $38k $120k $40 0 $207 $287 Keep Dakota $13k $70k $100 +15 $100 $180 $ 40 incr. for current members
Committee Recommendation For A36 Bonanza Buy the best Bonanza we can for $160,000 + or -5%. Hourly rate $100 dry. Increase membership by 15 members. Membership shares at $7,500. Pre sell 10 membership before Spring 2011. $1,500 down, balance due on aircraft acquisition Money back if unsuccessful.
Committee Recommendation For A36 Bonanza Acquire aircraft in 6 months, and sell the remaining 5 shares. Finance balance internally at 6% rate, 5 year term. Freeze the current member share sale until 2012.
The Future of Mockingbird It s all about Membership Increase active pilots. Increase flight time. Reduce costs by flying more. Increase share value. Increase membership demand. New and exciting offering. Nothing like this is available!
Special Thanks to Committee Members Bob Holm Doug Nelson Paul Zweifel Mark Satnan Scott Christensen Neil Schmid, Chairman
THANK YOU for your consideration Q & A