FAA Advisory Circular AC 00-25

While the fundamental principles of forming and operating a flying club — shared ownership, safety culture, sound financial management, good bylaws, and mutual cooperation — remain as valid today as they were in 1969, the aviation environment has changed enormously.

The aim of the man or woman who wishes to fly for business, pleasure, or education is to obtain safe, efficient, lower-cost flying. For most private pilots this objective can be realized by membership in a well-organized, well-operated flying club.

A flying club is precisely what the name implies: an organization of three or more individuals who join together to obtain the benefits of flying, whether their aims be for business, pleasure, or education.

The purpose of this advisory circular is two-fold: to provide authoritative information to those contemplating formation of a flying club, and to assist existing clubs in improving their operations. This circular draws on the experience of highly successful clubs — large and small — across the country.

The flying clubs discussed in this publication are those operated by and for the members on a non-profit basis. These are not to be confused with commercial "flying clubs" that are simply flying schools offering block-time discounts.

Fundamental to the concept of an effective flying club is SAFETY. Clubs that insist upon strong safety regulations and enforce them will be successful. Those that permit carelessness are doomed to failure.

Lower Cost

Flying in a private plane is by no means an inexpensive pursuit. In a properly organized and operated flying club, lower-cost flying is possible primarily because of maximum utilization of equipment. Members share the fixed costs that would otherwise fall entirely on a single owner.

Achieving this lower cost requires careful planning, good organization and administration, and the utmost attention to safety on the part of all members.

Ideal Conditions

Through proper scheduling, members know they will have access to the aircraft when they need it. Through proper maintenance, members know the equipment is in good mechanical condition at all times.

Mutual Interest

Flying clubs offer an organization in which members can join others with a mutual interest in flying — increasing knowledge, improving skills, and keeping current on new developments in aviation.

The first step in organizing a flying club is determining the type of club desired. The character of the club will be determined by what the members want it to do for them. Basically, there are three types: BUSINESS, RECREATIONAL, and EDUCATIONAL.

Business Flying Club

Organized by a group who desire air transportation for business travel. The membership per plane usually varies from 5 to 15 members. Aircraft selected will generally be cross-country capable rather than trainer types.

Recreation and Fun Clubs

Dedicated primarily to recreational and pleasure flying. Family participation is generally stressed. The ideal membership would seem to be about 12 members per plane with a maximum of 25.

Educational-Training Clubs

Members are usually people working toward FAA certificates who want lower-cost access to aircraft and instruction. High turnover is typical — a constant source of new members is essential.

One of the major pitfalls: the temptation to use poor, less-expensive equipment. Such aircraft are over-flown and under-maintained, resulting in excessive down time and loss of member interest.

Rental or Straight Lease

The club guarantees to use the leased equipment a minimum number of hours each month. Maintenance is the responsibility of the lessor. Helps avoid large initial investment — good for a club getting started.

Lease Purchase Plan

The club leases with a provision for long-term purchase. Attractive for a club that wants to evaluate operations before committing to ownership. Management and maintenance may be shared with an FBO.

Direct Purchase

The club purchases an aircraft and assumes direct responsibility for management, operations, and maintenance. The key to success is maximum utilization. When a plane isn't flown enough, costs spiral.

A small, dedicated group is ideal for organizing. Ten starting members is a good, workable number. Large groups tend to be unwieldy while small groups reach agreement more efficiently.

Decide Type of Club

An efficient chairman should assign specific duties to each member and get reports back to the group. It helps to have one member with previous flying club experience, and an attorney involved from the start.

Investigate Costs

No financial commitment of any kind should be made until a complete cost picture has been developed. The best source of cost information is existing clubs in the area. The FBO is also an excellent resource.

Incorporate and Develop By-Laws

For the individual protection of club members and for efficient operation it is essential that the club be incorporated. Articles of incorporation should be drawn and executed by a qualified attorney.

It is vital that duties and responsibilities of officers be clearly defined. Even in a small club, a General Manager should be appointed who exercises control over all scheduling, maintenance, and operating areas.

Establish Flying Regulations

No single document is more important than the flying regulations governing use of club aircraft. Once carefully determined, the success of club operations will be in direct proportion to enforcement of those regulations. Absolutely no infringement should be permitted.

Consult the Fixed Base Operator

The FBO is an important ally — consult him early. He can provide realistic advice on aircraft, operating costs, and what assistance he can provide. Good relations with the FBO are highly beneficial to day-to-day operations.

Recruit Members

Three primary considerations: (1) members should be compatible with existing members and the club's aims; (2) maintain a waiting list of approved applicants; (3) recruiting is the job of every member.

Select the Aircraft

No decision will be more important to the club's success than aircraft selection. A committee of two or three should do the shopping and report back to the full membership before any commitment is made.

Finance the Purchase

Aircraft are financed by banks, specialized aviation lenders, and manufacturer finance companies. Down payment requirements are generally 20–30% with the balance in monthly installments over 2–5 years. In clubs where members can raise the full purchase price, financing costs — up to 30% of principal over five years — are eliminated.

Purchase Adequate Insurance

Adequate insurance coverage is of vital importance. Coverage is required for aircraft bodily injury liability, property damage liability, passenger liability, hull insurance (physical damage), and medical payment coverage.

Insurance costs are inclined to be high, and many companies are reluctant to insure flying clubs with poor safety records. Favorable rates are obtained when the club demonstrates it is a responsible operation that meets criteria established by underwriters.

Operating a club after all the plans are in place is hard work. The very best efforts in planning can be lost if capable, dependable people are not assigned to making those plans work.

Key Leadership Roles

The Operations Manager is responsible for the operating condition of the aircraft, scheduling, and keeping complete cost records. He must see that aircraft are inspected and serviced and that ground time is kept to a minimum.

The Safety Officer ensures flying rules are strictly adhered to. Safety is the responsibility of every member of the club. One member who violates safety rules can ground a club for weeks — or for good.

The Treasurer maintains complete financial records. Inefficient financial management can ground a club as easily as badly maintained aircraft.

The Cost of Flying

Only by assembling accurate cost estimates can a proper budget be built. A pay-as-you-go plan is the only one that works — dues and flying fees must be paid promptly. Provide a contingency reserve per member per month for unexpected expenses.

Keep the Record Straight

Essential records include: aircraft reservations, squawk sheets (discrepancies and resolutions), individual member flight records (certificate data, ratings, experience, last check date), and expense reports with supporting invoices.

The Training Program

A training program in a well-run club is not reserved for new pilots — it is a continuing program for all members. If possible, a Chief Flight Instructor should be a member of the board of directors.

• Organize club ground school instruction
• Schedule guest speakers — FAA officials, weather specialists, avionics experts
• Plan weekend training flights progressing to cross-country
• Devote time at every club meeting to some aspect of training
• Build a club library — books, digital resources, shared training platform subscriptions

Community Relations

The best community relations program a club can have is a superb safety record. Appoint a publicity chairman to keep the community informed. Infractions and accidents can damage community relations to a point where they are irreparable.

Flying Regulations

Article I — Reservations

• Reservations may be made up to 8 days in advance, except for cross-country flights or FAA flight tests.
• Members must cancel as soon as they know they cannot keep a reservation.
• No member shall keep the aircraft beyond their scheduled time.
• Members more than 20 minutes late forfeit the balance of their period.

Article II — Restrictions of Use

• No flight shall be made without approval of the club's flight office.
• Student pilots may not fly cross-country beyond 25 miles without an instructor.
• No member may use club aircraft for hire or lend aircraft to non-members.
• All flight instructors used in club aircraft must be approved by the Board of Directors.
• No member shall fly while under the influence of alcohol — violation results in expulsion.
• Medical and pilot certificates must be current and carried on every flight.
• Each member must complete a check flight with an instructor every 12 months. Members who have not flown in the preceding 90 days must also have a check flight.

Article III — Logging Time

• Flying time shall be computed by Hobbs Meter — never by estimation or tachometer.
• Duration is computed from engine start to engine stop after parking.

Article IV — Inspection and Maintenance

• Every pilot shall conduct a thorough preflight inspection before each flight.
• Discrepancies shall be reported to the flight desk immediately.
• A 100-hour inspection shall be performed by a licensed FAA mechanic.

Article V — Prohibited Flying

• All flying must comply with FAA regulations, state, local, and club rules.
• No aerobatic maneuvers.
• No formation flying.
• No night flight unless in the traffic pattern with an instructor or approved by the Board.
• Landings only at approved airports. Damage incurred from unauthorized landing areas is the member's responsibility.

These operating rules governed one of the most successful business flying clubs of the 1960s. Key sections:

• Pilot qualifications: Current FAA certificate and medical required. Club checkout with approved instructor required before solo operations.
• Reservations: Cancellations required at least 2 hours in advance.
• Preflight: Thorough preflight per POH required before every flight. All discrepancies reported on squawk sheet — aircraft shall not be flown until discrepancies are cleared.
• Fuel: Pilot in command responsible for adequate fuel plus reserves. Aircraft returned with no less than club-specified minimum fuel quantity.
• Aircraft care: Aircraft properly secured upon return, all switches off, squawk sheet updated.

• Organization: Non-profit corporation organized to provide aircraft to members at the lowest possible cost consistent with safe operations.
• Membership classes: Regular (full voting rights, full aircraft access) and Associate (limited access).
• Aircraft Committee: Responsible for selection, acquisition, and disposition of aircraft. All aircraft transactions require two-thirds Board approval.
• Safety Committee: Chaired by the Safety Officer. Reviews all accidents and incidents and makes recommendations to the Board.
• Finances: Calendar year fiscal year. Expenditures over Board-set threshold require prior Board approval. Annual audit by three non-officer members.
• Dissolution: Remaining assets distributed to a qualified non-profit aviation organization.
• Amendments: Two-thirds vote of Regular members present at any regular meeting, with written notice given at the previous meeting.

To find your local FSDO, visit: faa.gov/about/office_org/field_offices/fsdo

FSDOs can assist with:

• Questions about pilot certification and medical certificates
• Flying club regulatory questions (commercial vs. non-commercial)
• Aircraft registration and airworthiness concerns
• Safety program information and FAASTeam resources