BEFC-STL

BOEING EMPLOYEES FLYING CLUB – ST. LOUIS

BEFC-STL

FORMATION MEETING6 APRIL 2005

BUILDING 33 CAFÉ4:00 - 6:00 PM

www.heilmannpub.com/BEFCSTL

BEFC-STL

AGENDA• Introduction• Purpose of the Flying Club• Why a Flying Club in St. Louis? • Why a Boeing Flying Club?• Benefits of a Flying Club vs. Owning vs. Renting• Status of the Club - BEFC-STL• Membership in Club• Summary of Costs• Club Aircraft• Base Location of BEFC-STL Aircraft• Highlights of By-Laws• Highlights of Rules of Operation• Next Actions for Club Formation

BEFC-STL

Introduction• Welcome and Thank You for your interest

in the Boeing Employees Flying Club – St. Louis!

• Charter organizers:– Alex Baldwin – Club Coordinator– Allen Sebaugh – Coordinator Nudger– Ernie Wattam – Coordinator Nudger– John Heilmann – Web site Provider/Master

BEFC-STL

Purpose of the Flying Club

• A non-profit corporation for charitable education and to foster, promote, engage in and conduct all phases of safe flying related activities.

• Oh, whose kidding…….provide a means of cheap flying and camaraderie between fellow pilots at Boeing!

BEFC-STL

Why a Flying Club in St. Louis?

• Why not! Seattle (Renton), Mesa, Wichita, Philadelphia, and Chicago all have one!

• McDonnell used to have one…..

• Many attempts have been made in the past, but failed.

• Too many benefits for the employees and the company not to have one.

BEFC-STL

Why a Boeing Flying Club• Benefits of being a Boeing Club

– Boeing Recreation insurance covers club except for flying activity. (Club will purchase aircraft hull and liability insurance.)

– Membership potential is large• More available aircraft.• Large costs risks are minimized

• Boeing’s Learning Together Program assists you in obtaining your certificate– Provides financial assistance for Private Certificate: $500.00 for

solo, additional $1000.00 upon receiving certificate.– VIP classes are provided for private and instrument ground

school or can be taken from an accredited institution.

BEFC-STL

Benefits of a Flying Club vs. Owning vs. Renting

• Flying Club is:– Cheaper than owning or renting since costs are shared.– Better on the aircraft since owned airplanes sit on the ground

more than they are in the air.– Better than renting since there is no minimum cost to take

aircraft cross country and overnight.– Better than renting since aircraft are not abused.– Better than owning since it provides access to multiple aircraft

and multiple aircraft types.• Flying Club provides support in obtaining your pilot

certificates– Reduced financial burden– Access to dedicated instructors– Moral support and encouragement from a fellow group of pilots

BEFC-STL

Status of Club - BEFC-STL• Club has been approved to form by Boeing

Legal and Recreation based on the draft By-laws and Rules of Operation.

• Club must comply with Company Policies– Specifically PRO-99 which says….limited e-mail use

between recreation administration and the officers of the club, and between officers of the club. Communication to the club members may be done on the club web site.

– Club has to have its own web site (in accordance with company policy) outside of the Boeing firewall to accommodate other approved members that are not full time employees (ie. dependents and retirees).

BEFC-STL

• Membership includes:

– Participating Member

– Associate Member

– Guest Member

– Service Member

Membership In Club

BEFC-STL

Membership In Club

• Participating Member – Owns an interest in the club’s property

holdings by share purchase and is open to Boeing employees and retirees, Government, Customer, and Vendor personnel assigned full time to The Boeing Company who have a permanent Boeing badge, and CFIs approved by the Board to instruct for the club. The only member that has voting rights in club business.

BEFC-STL

Membership In Club

• Associate Member– Includes immediate family members (spouse,

dependent children that are IRS dependents of the participating member) and former employees. Cannot sponsor an immediate family member for associate membership. Contributes an amount equal to the cost of a share but does not own an interest in the club nor has voting rights. Cannot hold office.

BEFC-STL

• Guest Member– Individuals whose membership would support

and benefit activities of the club. Contributes an amount equal to the cost of a share but does not own an interest in the club nor has voting rights.

– Examples: Employees of BEFC-STL Suppliers, FAA Employees, Aviation Experts, or Aviation Meteorologists, and those with professional skills of value to the club.

Membership In Club

BEFC-STL

• Service Member– Individuals engaged by the club to provide

services to BEFC-STL. They may or may not be compensated. Flying privileges are granted for task which they are engaged. Shall not own an interest in the club. Shall not have voting rights, and shall not pay fees, dues, nor insurance.

Membership In Club

BEFC-STL

Summary of Costs• BEFC-STL will be financially self supporting.

– Possibility of small funds from Boeing Recreation

• Membership Shares - $500.00• Membership Monthly Dues - $70.00• Aircraft Hourly Cost (Hobbs Meter, wet and includes

maintenance, engine, and avionics fund)– $45 for C172– $66 for C182Note: Aircraft Hourly Cost will be set once the aircraft is procured and all costs are identified.

• Assessments as deemed necessary by the Board

BEFC-STL

Cost and Fee SpreadsheetCESSNA 172 CESSNA 182

FIXED COSTS (12 Months)AIRCRAFT FINANCE $4,200.00 $6,500.0012 MONTHS STORAGE (Shade Port $110) $1,320.00 $1,320.00ANNUAL TAXES (Personal Property?) $1,000.00 $1,600.00ANNUAL STATE REGISTRATION $100.00 $100.00INSURANCE PREMIUM (12 MON) $3,200.00 $3,800.00ANNUAL INSPECTION $850.00 $1,200.00

TOTAL $10,670.00 $14,520.00

OPERATING COSTS (Hourly)FUEL COST PER GALLON x GPH $29.20 $43.80ENGINE RESERVE PER HOUR $5.00 $7.00AVIONICS RESERVE $5.00 $7.00GENERAL MAINTENANCE PER HOUR $5.00 $7.00

TOTAL (PER HOUR) $44.20 $64.80

CLUB MEMBERSHIP 15 15EST YEARLY HOURS FLOWN/MEMBER 24 24ESTIMATED YEARLY HOURS FLOWN 360.00 360.00

Monthly Dues (based on fixed costs) $59.28 $80.67 $69.97Hourly Rate (wet) $44.20 $64.80

CLUB CHARGESAPPLICATION PROCESSING FEE $25.00MEMBERSHIP SHARE $500.00CLUB MONTHLY DUES $70.00

Cessna 172 Cessna 182HOURLY COST $45.00 $66.00

Cost of Club per hour $80.00 $101.00Cost to rent at an FBO $85.00 $155.00

BEFC-STL

• Cost of Private Certificate– 60 hours for average pilot certificate

• 40 hours dual• 20 hours solo

– Cost through FBO• $6800 – $1500 = $5300

– Cost with BEFC-STL • $5240 - $1500 = $3740

THAT’S A 30% SAVINGS!!!!!!!!

Summary of Costs

BEFC-STL

Summary of Costs• Termination of club membership,

voluntarily or not, entitles the member to their membership share price minus all debt owed the flying club.

• Refunds will be disbursed in order received when the treasury has enough funds to cover the disbursement.

BEFC-STL

Club Aircraft

• Maintain 1 airplane for every 15 members.

• Maximum 1 airplane for 30 members.

• Club expects to start with IFR equipped– Cessna 172– Cessna 182

BEFC-STL

Base Location of BEFC-STL Aircraft• The charter organizers feel that Creve

Coeur provides the best accessibility to serve the general membership.

• SMARTT and SPIRIT are also under consideration.

• The club members will vote on where the club aircraft will be based.

BEFC-STL

Highlights of By-Laws• Only Participating Members shall own an

interest in the Club’s property and have the right to vote on club business.

• Prior to being accepted into membership, individuals will sign a release from liability and indemnity agreement for the benefit of The Boeing Company.

• There shall be a Board of Directors and a Safety Board. Terms are for two (2) years.

• Conflict of interest. No member with COI with respect to the management of, or operation of, BEFC-STL shall serve as a BEFC-STL officer.

BEFC-STL

• Club shall procure and own property holdings as approved by 2/3 majority of whole board.

• Property holdings purchased by the Club with Club funds shall be considered Club property and not the property of any individual member nor group of members.

• In the event of damage to club property:– When damage occurs that is not caused by an aircraft,

equipment, or engine malfunction, cost of the repairs up to the maximum deductible amount shall be borne by the member at fault. The balance shall be assessed equally upon all members or taken from the treasury.

– When damage is a result of aircraft, equipment, or engine malfunction, repair costs shall be borne entirely by assessment or taken from the treasury.

Highlights of By-Laws

BEFC-STL

Highlights of Rules of Operation• The Rules are intended to ensure safe and fair

use of Club resources. These rules protect and serve the interest of the majority, satisfy insurance requirements, and keep the club financially sound.

• Members will indemnify BEFC-STL for any legal costs, fines, etc. that arise due to a member’s action or failure to act. BEFC-STL will not be responsible for defending or indemnifying members for any actions they take or fail to take while operating BEFC-STL aircraft or equipment.

BEFC-STL

• Member flying privileges are dependent on:– Members fulfilling all financial obligations, – Meet all requirements prescribed by the FAA

Regulations with respect to ratings held– Medical certificates are current

• Payment for flight instruction is the personal responsibility of the member and not billed through the club. The club does not set instructor fees. Instructor must be Club approved.

• Commercial operations are prohibited.

Highlights of Rules of Operation

BEFC-STL

• All members must meet requirements of applicable Club and FAA check rides.

• Club check rides may be conducted only by Club authorized instructors.

• All members who are rated pilots must have a make and model check-ride in each model with a Club CFI.

Highlights of Rules of Operation

BEFC-STL

• Must make scheduled reservations prior to operating Club aircraft. (Up to 14 days in advance)

• Member must complete flight time record upon return for billing purposes

• Cross Country Flying– Reservations can be made up to 60 days in advance.– A trip itinerary must be submitted to the Safety Officer

for approval for all reservations greater that 24 hours.– A member shall not have scheduled more than 2

reservations greater that 24 hours on the books any one time

Highlights of Rules of Operation

BEFC-STL

• Only Club Officers shall contact maintenance personnel to effect repairs on the Club aircraft for repairs in excess of $50.

Highlights of Rules of Operation

BEFC-STL

ATTACHMENT A

INITIATION FEE $25 (Non-refundable upon application approval) MEMBERSHIP SHARE Participating Member $500 Associate Member $500 Guest Member $500 MONTHLY DUES $70 per month.

The first month’s dues for a new member will be prorated at $2.31 per day. Dues will be charged thirty days after application approval or the first flight date, whichever is earlier.

AIRCRAFT RATES (All rates are wet) Cessna 172: $45 per hour Cessna 182: $66 per hour AIRCRAFT MINIMUMS Cessna 182: 125 hours total PIC time and 15 hours PIC time in make and

model. AIRCRAFT INSURANCE Insurance deductibles: $500 in motion, $500 not in motion. Insurance coverage

for all aircraft includes $1,000,000 of liability. AIRCRAFT DEFROST AND ENGINE PRE-HEAT The total pre-heat and defrost charges exceeding $25 per member per calendar

day are the member’s responsibility. Reimbursable charges should be submitted per Section 8.4.4

AIRCRAFT FUEL Any aircraft fuel purchased will be reimbursed at the club rate that is established

with the Club FBO. RESERVATION CHARGES $25 per calendar day up to a maximum $175.00 must be submitted with the trip

itinerary. FAILURE TO RETURN AIRCRAFT $20 per occurrence. FAILURE TO CANCEL RESERVATION $20 per occurrence.

BEFC-STL

Next Actions for Club Formation• Nominate and Vote on Board Members

– President, Vice President, Secretary, Treasurer, Operations Officer, and Safety Officer

– Wednesday, 20 April 2005, B33 Cafe

• Incorporate In the State of Missouri• Open an account at a financial institution• Collect money for membership application fee, shares,

and monthly dues• Locate and purchase aircraft

– Secure financing– Secure insurance

• START FLYING AND ENJOY CLUB BENEFITS!!!!!