IBM Flying Club Sample G-ABCD Syndicate Agreement

(Courtesy of The G-ZERO Syndicate)

(date of document)

This Agreement replaces all previous
Agreements for the G-ABCD Syndicate once
it has been signed by all syndicate members.

General

This document describes the agreement under which the G-ABCD Syndicate will operate. The Syndicate will comprise the signatories to this agreement, who are listed in the Membership section of this document.

All references to "The Aircraft" will refer to the "Bloggs Wonderplane" pictured below:

which currently bears the registration G-ABCD and any other equipment described in the Assets appendix to this agreement.

The objective of the syndicate is to operate and maintain the aircraft for the benefit of the syndicate members in a safe and economically sound manner.

The Home Base will be the location agreed by the syndicate members as the place where the aircraft will normally be parked when it is not in use by syndicate members. A syndicate member will take charge of the aircraft at the Home Base unless alternative arrangements have been agreed with the syndicate member who previously flew the aircraft.

A syndicate member will be deemed to have charge of the aircraft on every day indicated in the Flying Rota against his name. Informal arrangements may be made between syndicate members to exchange days or parts of days, under which circumstances the syndicate members must agree between themselves who has charge of the aircraft for the duration of the 'swap'.

A Ferry Flight is a journey undertaken in the aircraft by a syndicate member to move the aircraft to or from an airfield for maintenance, repair or other required inspection or test. Ferry flights will be shared equally between syndicate members.

A Sponsor is a syndicate member who requests that a non-syndicate member be allowed to fly the aircraft. Any legal or financial liabilities that arise from that non-syndicate member's use of the aircraft will be the responsibility of the Sponsor.

The signatories to this agreement accept it in its entirety. Should changes be required they must be approved by all Syndicate Members, after which an amended agreement will be drawn up for signature. In the event of a disagreement over any changes, the existing agreement will remain in force. Consent will not be require from a Syndicate Member being expelled in accordance with the procedure described in the section Expulsion of a Syndicate Member .

Appendix A: Assets will be reviewed and agreed by all syndicate members on the acquisition or disposal of an asset.

Flying Rules

The Pilot in command of the aircraft must abide by all relevant Rules and Laws covering the operation of the aircraft, the privileges of his license, any other restrictions or operating procedures required by the insurance policy and the syndicate's Flying Rules as described below.
If the pilot has not flown a "Bloggs Wonderplane" or similar within the previous 3 months or has not flown any aircraft within the previous 6 weeks, he is required to have a check flight with a syndicate member who is himself current or a Qualified Flying Instructor who is current on type.
The aircraft will always be left in a clean and tidy condition.
Smoking is not allowed in the aircraft at any time.
If the aircraft becomes unserviceable, it is the responsibility of the syndicate member in charge to initiate immediate actions to rectify the situation. If the defect is minor and the repair is allowed, the syndicate member should effect a repair if it is within his capabilities. Under all other circumstances the Maintenance Manager should be informed immediately and a course of action agreed. In all cases the defect must be recorded in the aircraft technical log. If the fault cannot be repaired by the time the next syndicate member is due to take charge of the aircraft, the syndicate member in charge at the time the fault occurred should inform him of the situation.
The syndicate member who has charge of the aircraft must always fly in the front seat.
A member may only fly the aircraft on the days when he has charge of the aircraft. If a syndicate member wishes to fly the aircraft on any other day he must have the consent of the syndicate member who has charge of the aircraft on that day.
Unless agreed otherwise, the aircraft will be handed over to the next syndicate member at the Home Base and the fuel tanks will not be more than half full.
Non-syndicate members may fly the aircraft provided:

they are current on type (i.e. have flown a "Bloggs Wonderplane" within the preceding 3 months);
they are in current practice (i.e. have flown with the previous 6 weeks);
they are accompanied by a syndicate member who is seated in the front seat
no other syndicate member has any objections;
they abide by all of the Rules and agreements in this document and comply with any procedures or restrictions described in the Syndicate Handbook;
the insurance policy allows them to fly the aircraft.

Costs

The costs associated with ownership of the aircraft will be split into two elements as described below. The amount of each element will be agreed by a meeting of all syndicate members.

Standing Costs

Each syndicate member will be responsible for an equal share of the costs associated with the ownership of the aircraft. These include the cost of landing and parking at the Home Base, permit renewal, radio license renewal, aircraft and public liability insurance and inspections and maintenance not based on the number of hours flown.

Usage Costs

Each syndicate member will pay a Usage Cost for the aircraft when it is in his charge, except when on a Ferry Flight. The Usage Cost will cover the cost of fuels and oils, hourly-based checks, a charge for future engine and propeller replacement and servicing and other repair and maintenance costs arising from normal usage of the aircraft. It will be calculated on the time flown, which will be 10 minutes plus the time of landing minus the time of take-off, rounded up to the nearest 5 minutes.

Other Costs

Other costs (such as landing fees and parking fees at locations other than the Home Base, instrument approach charges etc) will be the sole responsibility of the syndicate member in charge of the aircraft at the time the costs were incurred. He will also be responsible for any uninsured costs incurred whilst the aircraft is in his charge, except when the other syndicate members agree this is unreasonable.

Non-Syndicate Member Flying

Any and all additional costs associated with a non-syndicate member flying the aircraft will be the responsibility of the sponsor syndicate member. These will include additional insurance premiums and any other costs directly due to the non-syndicate member flying the aircraft or being allowed to fly it, even if they do not exercise the privilege.

The sponsor will be billed for the non-syndicate member's usage of the aircraft at a rate that reflects the full cost of flying the aircraft. The rate of any such charges must be agreed by all syndicate members before any flights are made by the non-syndicate member.

Payment of Costs

The syndicate Treasurer will issue invoices for Usage Costs as they occur, which must be paid within the time period agreed on the invoice.

Each syndicate member will pay an equal share of the Standing Costs on the same day each month to the Syndicate's Flying Account.

Exceptional Costs

The cost of purchasing additional equipment or other expenditure necessary to ensure the safe operation of the aircraft must be agreed by all syndicate members and will be shared equally amongst them.

The cost of emergency maintenance performed at locations other than the Home Base will be refunded to the syndicate member in charge provided a receipt for the services is obtained and presented to the Treasurer. The Maintenance Manger must be informed of any such maintenance and the appropriate paperwork completed.

The cost of any fuel taken up at a location other than the Home Base will be refunded at the rate charge by the Home Base, provided a receipt is presented to the Treasurer.

In the event that the aircraft becomes un-flyable at a location other than the Home Base, the costs of travelling back to the Home Base and later returning to recover the aircraft when it is flyable will be shared equally between syndicate members up to a limit that is equivalent to the cost of renting a similar aircraft for the round-trip or 6 hours, whichever is less.

Default on Payments

A syndicate member may not take charge of the aircraft if he has not met his financial responsibilities as described above and will remain liable to pay his dues, plus any additional costs incurred as a result of his failure to pay.

Meetings

A meeting of all syndicate members will be held annually to review the workings of the syndicate, set future plans, decide the level of Standing and Usage costs and discuss any other relevant matters. Any member may call a meeting of the syndicate at any time provided all syndicate members are given a reasonable opportunity to attend the meeting.

Liability

Each syndicate member must undertake that he will not knowingly do or cause to be done any act that would invalidate any insurance policies held by the syndicate or contravene any Laws or Regulations that apply to the ownership and operation of the aircraft. He will be fully liable for any action that results from activities he has performed with respect to the aircraft and no other syndicate member will be liable purely by virtue of his membership of the syndicate.

Leaving the Syndicate

Normal Departure

A syndicate member wishing to sell his share in the aircraft must notify the other syndicate members is writing of his intentions. He must first offer it to the remaining syndicate members at a reasonable price. If they decide not to purchase his share he may proceed with finding a purchaser, who must be acceptable to all existing syndicate members.

Prior to the sale of his share of the aircraft the syndicate member must ensure that all his financial responsibilities to the syndicate have been settled in full. Once the sale of his share has been completed, he will cease to be a member of the syndicate and will have no claim on monies already paid into the Flying Account. This includes monies set aside for future purchases, replacement of 'lifed' parts and Standing costs.

The new buyer will be required to join the syndicate and sign this agreement. He/she will assume responsibility for any unpaid debts held by the out-going syndicate member which were incurred as a result of flying the aircraft or being a member of the syndicate.

If the syndicate member wishing to sell his share cannot find a buyer within 6 months of notifying the syndicate of his intention, a price will be agreed by the syndicate for the whole aircraft and it will be offered for sale.

A syndicate member will remain responsible for his share of the Standing costs plus any Usage costs incurred until he has completed the sale of his share of the aircraft. Completion is defined as the moment at which all members of the syndicate sign a new G-ABCD Syndicate Agreement document.

The death of a syndicate member will be treated as if he wished to sell his share of the aircraft.

Expulsion of a Syndicate Member

In the event of one syndicate member repeatedly endangering the aircraft or defaulting on this agreement, he may be asked to sell his share (in accordance with the procedure described above) and leave the syndicate. If necessary the remaining syndicate members will sell the share on his behalf and he will be paid the sale price less any outstanding debts he has to the syndicate. Expulsion under this rule will require the agreement of all other syndicate members.

Termination of the Syndicate

In the event of the termination of the syndicate, all syndicate assets will be sold, all debts paid and any remaining monies divided equally between the syndicate members.

Responsibilities

Treasurer

The treasurer will manage the Flying Account, which will be one or more Bank or Building Society accounts from which all costs associated with the aircraft will be met. The Flying Account must be identified as such and should include the identifier G-ABCD in any account names.

The treasurer will be responsible for managing the Flying Account, issuing invoices to syndicate members, paying bills which the syndicate have incurred and producing and distributing a quarterly summary of the financial state of the syndicate. He will ensure that at all times the aircraft is covered by sufficient insurance, with a public liability cover of not less than £1,000,000.

Operations Manager

The Operations Manager will create and manage the Flying Rota, ensuring equitable flying opportunities for all syndicate members. He will hold all aircraft documentation and paperwork not required by the Maintenance Manager. He will be responsible for ensuring the correct registration of the aircraft with the appropriate authorities. He will manage the agreement with the authorities at the Home Base for take-off/landing and parking privileges and matters relating to access to the aircraft. He will be the primary contact with the authorities at the Home Base.

Maintenance Manager

The Maintenance Manager will keep track of engine and airframe hours, arrange internal or external maintenance and checks as required, keep engine and airframe Log Books up-to-date, arrange spares when required and act as the interface with the CAA on all matters related to aircraft safety and airworthiness. Where appropriate he will arrange for other syndicate members to help with cleaning the aircraft and perform allowable maintenance activities.

Technical Log Manager

The Tech-Log Manager will be responsible for creating and validating the Aircraft Technical Log, which should contain information on engine hours, times to next inspection and any other information required by the Maintenance Manager to ensure the correct maintenance of the aircraft. The Technical Log will also contain the information required by the Treasurer to allow him to correctly invoice syndicate members for their flying hours and it is the Tech Log Manager's responsibility to extract the required information and pass it to the Treasurer and Maintenance Manager in a timely manner.

Syndicate Handbook Editor

This role will initially involve the creation of a Handbook which covers any matters relevant to the syndicate and the aircraft it operates which are not covered in this Agreement. The Handbook may contain such items as operational procedures, check lists, warnings, advice and other matters as appropriate. Once created, the Editor will be responsible for ensuring that the information contained within the Handbook is current and relevant.

Membership

The following people comprise the G-ABCD Syndicate and agree to abide by all the terms, conditions and rules contained within this agreement: (name, address and signature of each syndicate member)

Appendix A: Assets

(list of assets, including the airframe, engine, cover, headsets etc.)

page last updated 28 Oct 1998