In a previous article, Andrew Gideon said:
Paul Tomblin wrote:
I think we're aiming at $30,000 a year. That pays for a new engine and a
prop overhaul when we need it, and if we go a year without needing one of
those, we get a stormscope or a paint job or something.
Wouldn't you have a problem if (for example) two planes needed an overhaul
w/in the same year if you're not building up engine overhaul reserves over
multiple years? Or am I missing something?

Well, we're financed by debt - our planes are valued at $500,000 and we've
got a $500,000 line of credit. If we need two engines at the same time,
we just go further into debt and need more time to pay it off. But the
goal is not to get totally out of debt, just to keep the debt at a
managable level - I think right now we're $100,000 right now, because of
the aircraft upgrades and engines we've put in in recent years.

therefore to be taken from the monthly). But, if I've understood correctly
(and as I wrote above) your club is paying for upgrades out of hourly.

No, out of monthly.

The other local club at our field
does an equity thing, and it costs $32,000 to join. And when they
Last time I checked, it was 24 members and 4 planes, including a Lance.
They also have t-hangers for each plane, so their monthly dues are about
double ours.

Hmm. That's almost $200,000 equity per airplane. Unless those are recent
models or very upgraded or all "high end" aircraft, that seems high to me.

I could be wrong about that. 10 years ago when I was first looking, their
share price was only $4,000 (for three planes), and it was out of my reach
then. Sure, looking back it would probably have been a good investment,
but I didn't have $4,000 to spare then and I don't have whatever their
share price is now.


--
Paul Tomblin http://xcski.com/blogs/pt/
Why is there only one Monopolies and Mergers Commission?
-- JNP