Original email to Sky-Vu members:
Sky-Vu recently completed a survey of our membership (conducted by Joe Daniels) and reviewed the data at our March members’ meeting (Joe’s full presentation is available on our website www.sky-vu.org in the members only section). One of the main themes from this survey was that members wanted a more cross-country capable airplane and would be supportive of expanding our membership in response to the increased interest in our club and the long wait list for membership. An Expansion Committee was formed to explore ideas and put together a proposal. At our April members’ meeting, our club Expansion Committee gave a presentation on their work and proposals for expanding the number of club memberships and adding a fifth airplane to the fleet. The committee was chaired by John Holcombe, with Joe Daniel, Jack Morton, Bill Smith, John Oot and Ron Diamond making up the rest of the team. Attached is a copy of the presentation that was made at the meeting on April 10, 2017 (the presentation is also available on our website).
Very simply, the Expansion Committee has proposed expanding club members to an additional 15 members for a total of 75 members in the club. At the same time, the committee has proposed adding a fifth airplane to the fleet. The proposed aircraft is an earlier model (early 2000s) Cirrus SR22 which would be hangared at Indianapolis Regional Airport (MQJ), formerly known as Mt. Comfort Airport. This airport was selected for several reasons, but primarily because of multiple runways (thereby reducing crosswind landings), proximity to current and prospective members, and available and more affordable hangars. In addition, Indianapolis Regional was one of the more popular airports suggested for possible expansion in the survey. Projections are that dues would likely increase by $10 or less per month to cover the added fixed costs of the fifth airplane and that the hourly rate for the SR22 would likely be $180/hr.
Your board of directors is supportive of the proposals, but we’d like give members who were not in attendance at the meeting an opportunity to provide their inputs. This is an exciting time for our club and I’m happy to report that the momentum that has been building the past several years continues! Interest in Sky-Vu has never been higher (as evidenced by the number of inquiries, the number of folks on the waiting list, and the price that club memberships are selling for at present). Also, attendance at monthly meetings has increased as well as overall engagement of our members. Please take time to review the attached presentation and provide your feedback at your earliest convenience. Please let us know your thoughts on the proposed plans or if you have additional questions. Please send your comments/questions to board@sky-vu.org.
Thank you!
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Michael Turik
President, Sky-Vu Flyers
Note: For clarification, the decision on expansion of the membership, pursuing a new airplane (likely an SR-22) and locating the new airplane at MQJ was unanimously supported by the Expansion Committee and the Board.
Comment: It’s good that those club members not in attendance at the April meeting will have a chance to see the presentation, sans the discussion. I have a couple of thoughts I’d like to add after attending the April meeting.
One item that the committee (or John Oot) should plan for is how members can transition to the SR22 once it arrives. I’m sure there will be a number of members who will want to start training ASAP. Jack Vandeventer was mentioned as the only Cirrus certified flight instructor in the club. What will it take for the other club approved instructors to get that certification? Will it be at their own expense or will the club reimburse them for that training?
As far as members getting checked out and the requirements for the Cirrus, that it will depend upon whether it’s glass or not. For me personally, if it’s glass, and based on the insurance requirements, I probably won’t get checked out in it as the 10 hours mandatory check out with flight instructor will be around $2,200 which is a large investment just to be able to fly it solo, not to mention MQJ is almost an hour for me one-way. I hope the committee takes the no glass/glass type into account when deciding on an aircraft. Granted, there are check out hours currently for the 182’s and 21D, but the price of admission is much lower, not to mention the number of hours PIC required. I am concerned that a glass aircraft could scare off current members even though having the Cirrus could attract new members. How fast new members would join is an unknown.
Another item is aircraft capability, especially since some of them have the TKS system making it a FIKI aircraft. Again, John should evaluate the safety aspect of having that capability. Most of us are not familiar with flight into known icing conditions. It may be best to forgo that option so that a pilot isn’t tempted to push the envelope and end up in a bad situation. I’ve flown my organization’s Piper Lance over 140 hours in the past 2 years. It is definitely a high performance airplane with 300HP and retractable gear. It has a much different flight envelope than the 182. The Cirrus I expect will be the same, minus retractable gear. It might be worth it to offer a group ground school before anyone gets in it. I went through that with the Lance and it was very helpful.
Finally, looking at our last newsletter, there are 13 pilots with suspended privileges. I would like to suggest that we contact them specifically and ask if they will continue as members of Sky-Vu. If they chose to leave, we could end up in a situation where we have 5 aircraft and less than 60 members, at least until new members could come on board. It would also increase the financial burden of the current active membership.
There are a lot of moving parts to this expansion plan. I just want to be sure that the club has and will put itself in the best position for the future.
Reply: Thanks for your thoughtful response. I can definitely tell you we are not looking at a glass cockpit. I don’t think we’re necessarily looking for a TKS system either (i.e., wouldn’t make a selection based on needing to have that). FIKI is a “whole ‘nother level” that I think as a club we should not get into (pardon the pun). We don’t have any plans to reimburse Club instructors to be CSIP certified. Also, we don’t have any plans to contact members with suspended scheduling privileges.
Comment: Overall I think adding 15 members and an SR22 is a great plan. I worry a bit about the continual creep up of our dues and how that impacts some members. For me it still makes sense and is worth the added cost, especially in adding a high performer to the fleet.
One suggestion I have is to base the SR22 at UMP, which is geographically very central to a larger number of current and prospective members, and re-position one of our existing aircraft to MQJ. For example, as to perspective members, there’s not a Cirrus for rent at UMP or MQJ, but there is a Cessna 172RG for rent at UMP but not at MQJ, so maybe move the 172RG to MQJ. BTW, those two airfields are equal travel time for me, so I’m not advocating a personal preference.
A few questions. For Avemco pilot requirements, must the CFIs be Cirrus Standardized Instructor Pilots (rated/signed-off by Cirrus) in order to provide instruction that meets Avemco’s requirements? If so, do we have CFIs planning to go that expense? Ten hours make & model is likely justified for all of us stepping to a slippery glass aircraft with 300HP, but that will likely provide a bit of a log jam in the beginning. Has the committee talked to local SR22 owners to get their thoughts and advice about transition and on-going operations?
I’ll try to make the next meeting, so please don’t feel obligated to answer by email.
Thank you to the members who have worked so hard on this detailed analysis and recommendation.
Reply: Thank you for taking the time to send your comments for the board’s review! I certainly share your concern about keeping dues reasonable and that some members may find another dues increase less than desirable, but like you I think the plan is a good one. I also think now is a good time to make this happen as we have a growing number of people on a waiting list to get into the club. Your suggestion to base the SR22 at Metro is worth some more discussion as you raise some points we haven’t heard yet. I do know that historically, we’ve tried to maintain a balance of “rates” at each airport. For example, at EYE we’ve got N721ZA (highest hourly rate in the fleet) matched up with the lowest hourly rate of N5168V. At Metro, N182SV (second highest hourly rate) is matched up with our 21D, next to lowest rate. Placing the new airplane at Metro could potentially upset the “balance” but probably should be discussed. Other reasons to put the airplane at MQJ include that they have larger, 44’ hangars available (Metro does not), and with two runways, the opportunities for a landing mishap related to cross-wind landings is reduced. Incidentally, in a recent meeting with Avemco, their Senior VP of underwriting stated the biggest areas of loss for their business was landing mishaps, so this is something I think we should take seriously.With respect to CSIPs, we will be discussing this further. Jack Vandeventer, one of our Club-Approved instructors, is already a CSIP and would be qualified on day one. Avemco does not require CSIPs for checkouts in a non-glass version of the aircraft, which is what we’re focused on. Avemco is open to the idea on non-CSIPs instructing for us in a non-glass version of the airplane, based on total instructor time and time in make and model.
We’ve lost several members who bought into Cirrus aircraft with a few other partners. I know Bill Smith talked with a former member who left the club to get into an SR22 with some other guys. My understanding from Bill is that he reinforced the idea that 10 hours is needed to make a good transition from the Cessnas we have to the SR22. I think the other board members and I agree this airplane will need more than the typical 1-hour checkride. According to the Avemco VP, appropriate time is needed to learn how to fly the Cirrus “airframe” in comparison to a Cessna – flatter approaches and takeoffs, greater attention to precision on approach airspeeds, handling with the side stick, etc. With this in mind, I expect the board will be discussing not only the minimum pilot requirements that Avemco mandates, but likely some additional requirements to help increase the level of proficiency of members who want to fly this airplane. Basically, I don’t think any of us like the idea of someone climbing into this airplane and taking off if they haven’t flown for a year or more.
Thanks again for sending your thoughtful comments. Hope to see you at our next meeting, Monday, May 8 at Tom Wood Aviation.
Comment: 100% agree with everything. Great work. Appreciate the detailed analyses of location and aircraft type. I’d bet demand on the cirrus could be quite high first few years, with everyone working to get hours and certified. Could likely review logs for when the G1000 came in to guesstimate the demand. I vote yea.
Reply: Thank you for taking time to response to our request for input! Thanks also for your supporting comments. Yes, the committee did a great job of pulling all the data together and hashing it out amongst themselves to come up with their proposals. I talked briefly with Diamond and he said N721ZA was a source of anxiety when the club first bought it. I wasn’t a member then, but he said it was the most money the club had ever spent on an airplane, it would have (and still has) the highest hourly rate in the fleet, insurance required specialized training for the G1000, and there was less flying going on at the time. Everybody held their breath, but members ended up flying the wheel pants off the thing since day one. I anticipate we’ll see something similar when we add our fifth airplane to the fleet!
Comment: TYQ has self-service fuel and Cirrus Authorized Service center becoming a Platinum service center and a Platinum CSIP instructor and a second CSIP instructor on the field. The entire TYQ maintenance staff has changed (with major improvement in skills and communication skills) over the past 18 months. Come visit and interview the staff.
MQJ is not a Cirrus maintenance facility or have CSIP instructors on the field.
Get WAAS equipped aircraft as 80% will be going to better approaches in next 5 years or factor in upgrade costs.
Reply: Thank you for taking time to send your comments! The committee did take into consideration that TYQ is a Cirrus Service center and has CSIP instructors, including you. Both TYQ and MQJ were at the top of the list, but MQJ became the leader because they have available 44′ hangars whereas TYQ is currently has no hangars available. Also, the hangars are less costly at MQJ when compared to TYQ. While it’s nice to know we have a Cirrus Service Center close by, our expectation is most any shop like the one at MQJ should be able to service with little or no problem. Then, there are the multiple runways which should reduce some of the risk on those days when the wind isn’t blowing the right way. Finally, the committee did an analysis on current and prospective membership and ease of accessibility and determined that MQJ was the better choice. Admittedly, not everyone will find MQJ as close as TYQ, but being 2 miles from I-70 is a major plus from an accessibility standpoint. Again, thank you for providing your inputs!
Comment: Thanks for the update – sounds like there was good discussion.
I would like to know more about the insurance currency requirements for a glass SR22?
What is the Cirrus currency training program consist of and what would it take to get an initial check out.
Personally – I am a little concerned that this would require 3 hours / 180 days for 21d and the new sr22. I sometimes struggle to keep up with 21d and may have trouble keeping current for both.
Reply: Thank you for providing your feedback to the board! With respect to the insurance requirements, please see slide #25 in the Expansion Committee presentation (found on our website) regarding minimum pilot requirements that Avemco will require for glass and non-glass cockpits. I can tell you that we are focusing on a non-glass version of the airplane because of overall cost and minimum pilot requirement considerations. With everything that we’ve heard though, an SR22 is not an airplane like our current Cessna fleet, where you can get checked out in 1-1/2 hours and you’re ready to go. We’ve checked with former members who now fly their own Cirrus aircraft and they have said it took them a number of flights and hours to get comfortable in the plane. For this reason, in addition to the minimum pilot requirements mandated by Avemco, we will discuss potential additional requirements to fly as PIC in a club SR-22 (e.g., a club rule to require 3 hours within the previous 180 days to fly as a PIC) just like 21D as you mention. I can certainly appreciate and understand your concern about staying current in both airplanes. Each member will need to review his own strategy for maintaining currency for a particular airplane.
Thank you again for taking time to comment!
Michael,
Thanks for sharing all of this here. I’d like to share my personal views on the club expansion and on the potential purchase of a 5th aircraft.
With 8 people on the waiting list, and with a growing economy, my guess is that filling 15 new memberships won’t take very long…maybe a year or so? Again, just a guess. More on that below. I think that some of the things we are doing for promotion will help; the new web site, the promo video that’s in the works, word-of-mouth (by both members and non-members). Club members should probably be aware that we’ve talked to most of the guys on the waiting list to get their “read” on the proposed expansion plans, and they are generally in favor of them. None of them have indicated that it would be a deal breaker.
As for the aircraft choice, I wasn’t crazy about a Cirrus at first. I was concerned that it might be too much airplane for a club our size with such a wide range of flying experience (many members under 300 hours TT). After studying up on the Cirrus, I am convinced that if we are careful about the initial training requirements, we can safely integrate it into the club. I was also concerned about purchase price and hourly rates, but now that I’ve seen what can be obtained inside our “budget”, and now that we’ve set a target hourly rate, I am excited about the prospects. Adding a Cirrus gives the club a longer-range, higher speed option for cross-country flights. The club will have a great variety of aircraft, and I believe it will make us more attractive to prospective members.
With 60 members, we expected a wide range of responses. I’m pleased that most of the ones received so far are in favor of the plan. I understand why folks may not be excited about it, either because MQJ is too far away from them, or they never intend to fly a Cirrus. On the other hand, we know of at least one (and there are probably more) that has left Sky-Vu to join a Cirrus partnership because he felt he had “outgrown” the 172/182s. Looking in at our club from the outside, I wonder how many local pilots who aspire to fly a Cirrus SR22-class aircraft would never consider joining us now because all we have are 172s and 182s? That’s obviously a rhetorical question, but I expect to see a spike in interest if and when we bring a Cirrus on line. Our target hourly rate for the Cirrus is far lower than any rental rate for that class of aircraft in our region. For the members who choose not to fly a Cirrus, they will benefit from the fact that scheduling pressure will be transferred to the Cirrus, making the rest of the fleet more accessible.
As for the monthly club dues, even with a $10 per month increase, I still believe that Sky-Vu is the best value available in this region for flying quality, well-maintained, up-to-date aircraft. The club management truly cares about the club, responsibly handles the club finances, and is proactive enough to survey the membership and act on the results.
In a club this size, there will always be dissenters, regardless of the subject. You can’t please everyone all of the time. Hopefully, even those who won’t fly a Cirrus themselves will understand that many of us will, and that it has the potential to attract new members who wouldn’t have looked at us before.
Jim David
Vice President
Sky-Vu Flyers
http://www.sky-vu.org
Another comment with replies from a member:
Comment:
Gentlemen,
Here are a couple of thoughts regarding adding a Cirrus airplane. OK, more then a couple……
Why is this different then what happened with the 210?
Only 10 members (17% of club members) fly 21D.
How many will fly the Cirrus?
13 club members are not current to fly (22%). How long will they subsidize the new plane?
How many members will maintain currency in the new plane? See 21D.
How many cross country flights of club planes are there each month or in a year?
How many members fly cross country each year?
19 of the clubs members are private pilots without an instrument ticket (32%). Only 2 fly 21D.
Will they fly the new plane?
Will it be necessary to increase the monthly dues to pay the fixed expenses?
With an additional 15 members @$125/month annual income will increase $22500.00.
The club has almost $40000.00 more in it’s coffers then it did last year at this time.
Increase dues again?
Sell 182SV or 721ZA and add the Cirrus.
Can we increase the membership without adding an airplane?
Add 10 members to offset the 13 not flying.
How long will it take to add 15 new members? A 25% increase…..
Reply:
Thank you for taking time to respond to my request for members’ input. Here is my perspective on your questions.
Comment: Why is this different then what happened with the 210? (Note: Sky-Vu purchased a Cessna 210 many years ago, however very few members flew it and we sold it shortly thereafter.)
Reply: While none of the current board members were in the club at that time, my sense is that this expansion includes much more involvement from our membership, including feedback collected from the recent members’ survey, advance notice of our membership meeting at which our expansion plans were laid out before any decisions were made, and an additional request for inputs from all of our members, including the ones who did not make the last meeting. In addition to more feedback from our membership, we also have a waiting list of 8 prospective members. So, while we don’t know the exact reasons why the 210 failed, I do think we’re taking prudent steps as we move forward on our current expansion plans and it seems like an appropriate time to expand. I also think, in relative terms, the hourly rate for the SR22 will be more reasonable compared to the rest of the fleet than the hourly rate was for the 210 when it was purchased.
Comment: Only 10 members (17% of club members) fly 21D.
Reply: Actually, looking at the most recent 12 months of history, 30 (50.0%) members have logged time in 21D. So, while a recent “currency” sheet may show only 10 members who are current to fly that airplane, keep in mind that we’re just now coming out of the winter months and a period of time where the plane was down for avionics upgrades, all of which may have contributed to members falling out of currency. This will pick up with warmer weather. Additionally, in 2016, this airplane had the most hours flown in the fleet at 350. In April, this past month, this plane had the most hours flown at 39.
Comment: How many will fly the Cirrus?
Reply: Judging from the survey, and from the conversations within the past week with those on the prospective member waiting list, several.
Comment: 13 club members are not current to fly (22%). How long will they subsidize the new plane?
Reply: That is an interesting question that I don’t think I can answer. The fact is we have some members who have been in the club for decades and have not flown the airplanes. Some members have only recently stopped flying, some for medical reasons and some because of changes in priorities and some for other reasons altogether. Only those individuals can decide how long they’re willing to remain in the club without flying. I’d like to think they’re all thinking about a time when they will start flying again. Maybe a new airplane at a different airport is the spark they need. Also, hopefully now that BasicMed is in force, we will see some of our “Rusty Pilots” get back in the left seat.
Comment: How many members will maintain currency in the new plane? See 21D.
Reply: See the presentation from the expansion committee regarding the minimum pilot requirements from Avemco for currency in a non-glass SR-22. They do not require ongoing currency beyond the initial checkout. Having said that, the Board will likely consider whether we need to institute additional club rules for currency in an SR-22. Regarding currency in general, looking at the last 12 months of our flying history, the number of members logging time in any of our airplanes ranges from 28 (46.7%) to 30 (50.0%). There is no reason to think that within some period of time, we won’t see the same level activity by about half of our membership in a new plane. Part of the reasoning for buying an airplane like the Cirrus is to provide variety. Not everyone is completely satisfied with 172/182 performance. We’ve lost members who have moved up to Cirrus partnerships because they’ve “outgrown” the Cessnas.
Comment: How many cross country flights of club planes are there each month or in a year? How many members fly cross country each year?
Reply: It’s hard to say what percent of our members’ flights are cross-country, since we don’t track that information and we’ve not done any analysis on this. If you look at the Schedule Master history, there are usually several long reservations with moderately long cross-country trips involved.
Comment: 19 of the clubs members are private pilots without an instrument ticket (32%). Only 2 fly 21D.
Reply: I don’t think I understand what you are asking, but again, 21D is one of the most popular airplanes in our fleet.
Comment: Will they [members] fly the new plane?
Reply: I believe so based on the information that we’ve received and a majority of the other board members do as well. We believe that enough members will fly to make the numbers work.
Comment: Will it be necessary to increase the monthly dues to pay the fixed expenses?
Reply: Yes, as indicated in the presentation, we’re probably looking at a dues increase of around $10 per month, perhaps a little more or a little less. An overwhelming percentage of those who’ve responded say that isn’t an issue, given the access to an SR22.
Comment: With an additional 15 members @$125/month annual income will increase $22500.00.
Reply: I can’t argue with your math, but keep in mind our fixed costs will increase by approximately $28,600 annually with the addition of a fifth airplane. Actually, if dues go up by $10 per month, the additional dues income would be $31.5K annually, including new members and the fact existing members will also be paying somewhat higher dues. But this assumes we will immediately increase membership by 15, which we know will not be the case. Our expectation is that it may take 24-36 months to build membership to this higher level. Please also understand that we do not intend to run this club or fly the planes at cost. If we did, we’d never buy another airplane or upgrade anything. The revenue we generate that exceeds our expenses is the money that funds things like avionics upgrades and new airplane purchases/replacements. Most members seem to understand and be fine with this.
Comment: The club has almost $40000.00 more in it’s coffers then it did last year at this time. Increase dues again?
Reply: Yes, and keep in mind we just finished a $43,000 avionics upgrade across our fleet in the first quarter of this year. We are clearly reinvesting our funds in our club. And yes, most members seem to be fine with the change in dues given that the club is providing access to an SR22-class aircraft.
Comment: Sell 182SV or 721ZA and add the Cirrus.
Reply: I don’t think your suggestion makes sense, since 1ZA and 2SV are flown a lot, and are the higher performance step-up aircraft from the 172s. There will be members who choose not to fly the Cirrus. Those members will benefit by the easing of scheduling pressure from the Cessnas as more and more members fly the Cirrus.
Comment: Can we increase the membership without adding an airplane? Add 10 members to offset the 13 not flying.
Reply: We are experiencing some of the highest scheduling pressures that we’ve seen in many years, even with consideration of the members who are not flying. It does not seem appropriate to exacerbate that problem by adding more members without adding more planes. Also, adding membership without increasing assets will dilute the value of all existing members’ shares.
Comment: How long will it take to add 15 new members? A 25% increase…..
Reply: We cannot know the answer for this one, however, there are 8 prospective members currently on the waiting list. Given the value of adding a Cirrus SR22 aircraft to the club, and because we are expanding to an area where we currently don’t have a lot of members, we are hoping to add the 15 memberships within 24-36 months.
Appreciate all of the comments and hard work that’s gone into this. I must admit I have reservations about growing the club as well as the choice of airplane, mainly because I’m not sure what problem we are trying to fix with this expansion. We are currently profitable, our planes fly often and we don’t have any problems gaining new members.
Is there not enough time available with the current fleet? If so I can see the desire for adding another plane, however, if we expand at the same time this may net out to zero gain. In fact I would worry that it would actually increase pressure on the current fleet since we would be adding a high cost airplane. I went back and looked through our newsletters from when I joined the club and gathered the flying hours into a spreadsheet back to 2004, here’s the link https://drive.google.com/open?id=0BzkcIfzLpPBGWWpkd0RvdHB6Vms and it looks like we go through cycles of increased use, likely because of new members joining, and we are at one of those peak times. Looking at the percentage use of each airplane shows that 46K and 21D are the most popular planes. If their popularity is due to cost, then that would not bode well for bringing in a high cost airplane.
Another worry is that the Cirrus, although I’d love to fly it, seems out of character for what we have been trying to do over the last few years, namely, standardizing the fleet. For the most part you can get in any of our planes and feel comfortable because the avionics are similar and so are the flight characteristics. I think this adds to the safety of the club, and since it is easy to transition between them it is a driver for high utilization of all our current planes.
Thanks for listening.