Flying clubs are nonprofit entities organized for the express purpose of providing their members with any number of aircraft for their personal use. Aircraft must be vested in the name of the club for the owners on a prorata share. The club may not derive greater revenue from the use of the aircraft than the cost to operate, maintain and replace the aircraft. An aero club qualifies as an individual under federal grant assurances and as such has the right to fuel and maintain the aircraft using the labors of its members. In return, a flying club must provide the airport manager with certificates of insurance in the same rates and amounts as required of the FBOs. The flying club shall maintain a list of current members so that the airport manager may reasonably determine that the club is a nonprofit organization and not an FBO in disguise.
A. FAA Order Requirements: Flying clubs wishing to base operations on the airport shall operate in compliance with FAA order 5190.6 (current) appendix 8. This order requires, in part, that:
1. Clubs will not derive more revenue from flight operations than that amount required to operate, maintain and replace its aircraft.
2. Flying clubs shall be nonprofit partnerships or corporations.
3. All aircraft shall be owned by all the members.
4. No part of the earnings of the club may be used to benefit any member. No salaries, bonuses, or wages shall be paid to any member.
5. No commercial flight operations are permitted, nor shall any member of the club lease or sell any aviation goods or services to any other person or business. This does not preclude the club from selling or trading its capital assets.
6. No person who is not a member of the club will be permitted to operate or use club aircraft. An exception is made for the single case of flight instructors not holding a membership in the club under subsection A8 of this section.
7. Members of the club who hold FAA mechanics' licenses, who perform maintenance on club aircraft, may not be paid. Credit for work performed may be granted for payment of flight time or payment of dues and fees for both mechanics and flight instructors.
8. Members of the club who are FAA certified flight instructors may instruct other members of the club, in club aircraft. They may not charge the club or its members for flight instructor services. If no member of the club holds a current CFI rating (or those who do, do not desire to donate their time to the club), a paid CFI may conduct flight training for club members in club aircraft. Instructors routinely offering services at Deming municipal airport shall obtain appropriate permission and permits to conduct such operations from the city before any instruction is started.
B. Charter Or Bylaws Provided To Airport Manager: The club shall provide the airport manager a current copy of its charter, bylaws and/or articles of association and the names of the directors, officers and members, updated semiannually, number and type of aircraft, evidence that the aircraft are properly certificated, evidence that the aircraft ownership is vested in the club and a copy of the operating rules of the club. Account books will be provided on demand by the airport manager or city administrator.
C. Fuel Storage Facilities: A flying club, exercising its option of providing its own fuel storage facilities, must comply with all federal, state and local laws, regulations and ordinances pertaining to such facilities and site the storage and handling equipment as directed by the airport manager.
D. Violation; Terminate Operations: A club which violates any of the foregoing, or permits one or more of its members to do so, will be required to terminate all operations at the Deming municipal airport. (Ord. 960, 12-8-1997)