Selling a Chapter Airplane

[Trailbossbob]

EAA Chapter 44 in Rochester NY is restoring a 1956 Corben Baby Ace built by our Founder Everett "Squeek" Hepler. At the point that the plane become "Airworthy" we need to sell it because Chapters can't own airworthy aircraft as per EAA Policy for liability protection. The questions we have of Chapters who have built or restored aircraft for sale is, "How did you work through the sale of an aircraft that is not yet airworthy. How did you advertise it? What do we need to know that we don't know now?"

Thanks for your help.

Bob Nelligan-Barrett, EAA #164778
Baby Ace Restoration Team Leader
EAA Chapter 44
Rochester NY
trailbossbob@icloud.com
585-754-7263

[CarlOrton]

I knew that a Chapter could not *fly* an airplane, but I am ignorant of not even being able to OWN one. Not arguing - I just don't know. You might clarify the position with National legal staff.

One quick way could be to form a flying club (legally) that could then purchase the plane from the club for a nominal fee. It can be limited to current Chapter members, it just can't be affiliated in any other way with the EAA. The club could then sell the airplane, donate the money back to the Chapter, and dissolve the club. No harm in keeping it for awhile to see if anyone wants to have a flying club.

[martymayes]

Bob, I too thought it was "no operate" but nothing about "no own"

What happens when someone donates an airworthy airplane to a chapter? I know this has happened so there has to be a protocol to follow?

[Airmutt]

Chapters can build or accept donated aircraft which they can own but can not operate. Chapters can own for purposes of resale to raise funds. The chapter can form an independent flying club and operate it as a separate entity. EAA has info available on that subject. There is also an archived webinar on how one chapter built an aircraft and then transitioned it to the flying club. Hope this helps

[Trailbossbob]

Chapters can build or accept donated aircraft which they can own but can not operate. Chapters can own for purposes of resale to raise funds. The chapter can form an independent flying club and operate it as a separate entity. EAA has info available on that subject. There is also an archived webinar on how one chapter built an aircraft and then transitioned it to the flying club. Hope this helps

Thank you for the suggestions of a flying club. EAA Chapter 44 is establishing a Chapter-affiliated club now, so transferring to them may be a possibility after they acquire a 2-4 seater for the club. As others have pointed out to me, a hand-propped, single-seat, taildragger is not an ideal plane for a club. As a second in its stable of planes, OK.

Since the plane would be not-yet-airworthy upon transfer, it would be the clubs' responsibility to make it so with a Condition Inspection. Is this any different if we sell it to a private individual? Would airworthiness be a critical factor in determining asking and selling prices? This is the grey area where I'd appreciate some clarification.

[Airmutt]

They is no difference if the plane is sold to an individual or sold to the club. EAA is hyper sensitive to liability exposure by the chapters. That is a long story that goes back to the 80’s. Chapter operation of an aircraft was one of the victims. Hence the flying club is technically affiliated with EAA.