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Phoenix Flyers
News Letter For March 2001
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Aircraft Locations
Arrow 31386 DVT
Archer 47601 CHD
Comanche 9014P CHD
Archer 30749 DVT
The Arrow and Comanche will swap places on Thursday, April 5, after which the Arrow will be at CHD and the Comanche will be at DVT.
Work Parties
The next work party will be held at DVT on Saturday March 17th at 9:00AM. If you are interested in helping clean the airplanes that you help to get dirty, please contact Rick Ridenour.
The Safety Corner
Al Galvi
While safety is the product of many facets of applied knowledge, experience, and proficiency, a major threat to safety is DISTRACTION! This is so much recognized by the FAA that in all checkrides for any rating the FAA Inspector or Designated Examiner intentionally introduces some form of distraction(s) to test the applicants ability to keep matters under control despite the challenge introduced.
There have been cases of commercial airliners with highly professional crews where distraction ended in disaster. The cliché "First, fly the airplane," rides with us on every flight and under all circumstances. We are all challenged to pay heed!
Next Board Meeting
The next regular meeting of the Board of Directors will be held on Thursday, March 8 in the terminal building at CHD. The meeting will start at 7:30PM. Among the topics to be discussed are possible increases to hourly rates and share value. (See the article on the back page for further information.) All interested parties are welcome.
Board Positions Filled
Board member positions were selected at the February board meeting. The positions for this year are as follows:
Maintenance Ed Hirrold
President Rick Ridenour
Operations/Vice President
Gary Christopher
Safety Officer Al Galvi
Secretary Tom Lessor
Treasurer Bob Skalka
Voicing an Opinion
Tom Lessor
There were obviously a lot of issues presented at the February board meeting upon which the members will wish to discuss. The club provides a forum for discussing these issues; the club bulletin board. Second to attending the next board meeting in Chandler on March 8th, the bulletin board provides the best opportunity for the Internet-connected members to express their opinions on the board proposals.
The bulletin board can be used to pose a question, express an opinion, or respond to messages posted by other members. Its use will allow the board and other members the opportunity to communicate prior to the meeting. The bulletin board can be accessed through the Members Area on the club's home page.
Maintenance
30749
There have been a couple of reports of the attitude indicator tumbling during flight. If you have noticed any unusual behavior of the AI, please report it to Ed.
47601
Cracked engine mount replaced.
31386
No known problems.
9014P
Cylinder #4 replaced. (Second replacement cylinder in the last six months.) Exhaust system rebuilt.
Club Considers Hourly Rate Increase and Share Value Increase
Gary Christopher
Hourly Rate Increase
Phoenix Flyers has two primary methods of deriving revenue, monthly dues and an hourly rate for each aircraft. Revenue from monthly dues is earmarked for fixed costs such as hangar and tiedown fees, insurance, reservation expense, accounting, etc. Aircraft revenue should cover the actual cost of operating the aircraft. This includes gas, annual inspection, maintenance, and engine overhaul. These costs vary immensely from month to month because tires, belts, bulbs, bearings, cables, and brakes wear a little each month, but the replacement expense occurs in a single month. These are fairly small expenses and average out over a year or two. Engine overhaul is our biggest expense, and something that we must budget. We fly an engine for several years with very little expense, and then pay $12,000 to $18,000 the month that it wears out. The board, and especially the treasurer, monitors engine reserves to ensure that we will have the money we need to overhaul the engines when required. Naturally all costs trend upward.
The situation we have right now is that flying revenue is covering fuel and maintenance and little else. While our cash flow is adequate, our engine reserve money is emanating from the monthly dues. There are two problems with this. First, that just isnt the way it is supposed to be and second, if flying time doubles next month, the amount of money for engine reserves will not increase at all. To correct this the board discussed raising the hourly rates $5 - $10 at the February meeting.
Share Value Increase
At the annual meeting in January the Board polled the members present and found a willingness to increase our equity for the purpose of upgrading aircraft. The specific upgrades we have in mind are a new interior for 386 and GPS receivers for all of the planes. 601 needs painting too, but that didnt score very high on the applause meter at the annual meeting. Anyone who has an instrument rating, or hopes to get one, will be glad when the day comes that you have to go to a museum to see an ADF. They are a relic from the last century (the early part of the last century), they are unreliable and they are expensive to maintain. They need to be replaced.
GPS will cost us about $12,000 per plane. For that price we get an IFR-certified unit with a color moving-map that replaces a Comm radio, VOR, ILS, ADF, and DME. If youve never owned a plane you will probably be surprised to learn that the GPS costs less than the sum of the things it replaces. It is more accurate and has much lower repair frequency as well. We expect to get four identical units, although technological advances may sway us over the course of the upgrade process.
Upgrading our radios is not just a luxury. We own seven KX-170B Nav/Coms which will be the next generation of radios that will become obsolete due to frequency splitting. If we wait until the radios have to be replaced we will face huge expense of replacing seven radios and the removed radios will be worthless. If we start now we can spread the expense out and sell the old radios for $500 to 700 each.
The Board favors increasing the equity of the stock to $1,750 per share by assessing a monthly charge of $20 per month for fifty months, and applying that amount toward the value of the stock. When a new member joins the club, he or she would purchase their share at the current value and pay the increased dues while they are in effect. The board feels with a definite source of fixed-income, it can consider funding the needed upgrades immediately.
Summary
In summary, here are the types of increases being considered:
1) Hourly rates: Increases on the order of $5 - $10 per hour to cover the fuel, maintenance, and engine reserves.
2) Monthly dues: Currently the monthly dues are covering fixed expenses, so no increase is required.
3) Capital: In order to raise money for updated avionics and other capital improvements, a surcharge of $20 per month for 50 months is being considered. This will result in a $1000 increase in the share value of each member. This increase may appear to be an increase in the monthly dues, but in reality it is not. The increase is only for a limited time and the member will recoup the investment when he/she leaves the club.
If you wish to voice an opinion on any of these issues, feel free to attend the board meeting at Chandler terminal on March 8th at 7:30 P.M., or call or email a board member.
Please send any comments or questions about this report to editor@phoenixflyers.org