Prospectus

Investing at the Warsaw Flying Club

Thank you for taking the time to hear how investing in the Warsaw Flying Club can be a mutually beneficial opportunity.

As soon as Katye and I decided to come to the Club full-time in the spring of this year (2013), activity, revenue, and profit have steadily climbed... until we maxed out the capacity of the only aircraft at the Club.

However, as student pilots have graduated into certificated Private Pilots and as the number of existing pilots joining the Club have grown, and as pilots from both those categories have signed up for training for their Instrument Rating (a rating that can not be done in the Cessna 152, our current aircraft), demand for a 4-seat aircraft has steadily increased.

At this point, we must either offer that 4-seat aircraft to our customer-base, or risk losing them altogether.  This is not acceptable or sustainable.  So with that in mind, and considering that Katye and I have not had a chance to save enough money to do this ourselves, we are approaching folks who are interested in an investment opportunity that bears a significant opportunity and is backed by ownership in an asset that is not likely to lose value.

We are looking at a $40,000 aircraft (a 1981 Cessna 172), and have $20,000 toward that aircraft.  We need another $20,000 and are offering what is called a "Guaranteed Performance Lease".  Consider the past six month performance of revenue flight-hours per month at the Warsaw Flying Club:


We are offering $15 guaranteed per revenue flight-hour (Average is 34.9) to be paid monthly.  We are not guaranteeing a minimum number of hours per month.

2013.jpg

This is what your return would look like, based upon the average number of hours per month (currently 34.9, shown rounded to 35 in red below):

2013_ROI.jpg


With that in mind, there are several "intangible" variables that will affect your investment:Again, bear in mind that the average over the past six months has been 34.9 hours per month (almost a 15% annualized return).

  • We exclusively use the Cessna 152 at this time.  Adding another airplane will add 100% more hours available to the pilot population.  This will "flood" the market initially and divide the monthly flight time between the two aircraft.  However, there are pilots who would fly more if there were an aircraft available to them at the time the current aircraft is booked.  The two aircraft, working together, will increase the number of hours flown in a given month simply due to the fact that there will always (or almost always) be another aircraft available.
  • As soon as we have the 172 sale finalized, Katye and I will be sending out a personalized invitation to every pilot in Kosciusko County and the 8 other counties surrounding us, with a special offer to get a "Flight Review", as required by the FAA every two years, an aircraft check-out in our beautiful new aircraft, and a special discount if they choose to begin flight training for their Instrument Rating, if they don't already have it.  This will provide a massive new customer base almost exclusively to the Cessna 172, and significantly increasing the potential customer base for this aircraft.
  • We are currently working on the acquisition of a Flight School in the greater Chicago area.  The acquisition should be complete early next year, and would put an almost overwhelming load on the aircraft in the number of hours per month it will fly.
  • Exit Strategy: We are planning on buying-out each of you on a first-in, first-option-to-leave basis.  That means, if you are the first to offer $5,000, when it is time to start buying out the shares, you will be offered the $5,000 back first.  If your investment is doing well for you, you may not want to leave yet, and pass up the opportunity to the next in line.  If you feel you could get a better return elsewhere, you may choose to take the money.  However, you may give us a 90-day notice that you want out and we will buy you out.  Remember, you are "buying" 1/8th of a Cessna 172 that will be hangared at the Warsaw Municipal Airport; a real, tangible asset you can come touch, if you want.

We are putting the deposit on the aircraft now, and I plan on heading to California on the first or second weekend of October, so I need to hear from you ASAP.

Again, thank you for your time in presenting this opportunity to you.  Please contact me at your earliest convenience with any questions or to commit to join us in this adventure.

 

Best regards,

 

Jon Fussle
President
Warsaw Flying Club

 

 

 

 

 

 

 

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