Is trying to open a homebuilt aircraft business a bad idea?

Question

I should be starting college in the next few months and I am still trying to figure out what to major in. I have it narrowed down to Mechanical Engineering or Aerospace engineering. My ultimate goal would be to own my own shop building either motorcycles or airplanes. If I go with airplanes I would probably just start out with ultra lights and light sport airplanes and work up to 4 or 6 person planes. Has anyone ever though of doing this? Would it be at all possible? I know it won't be cheap or easy. I am more worried about being able to efficiently follow all of the FAA rules as far production built aircraft, and liabilities, and everything else that goes along with owning an aircraft business.

Thanks for any comments

Answer 1

I'll have to agree with aviophage on this one.  If you build airplanes for retail sale to the public, you become an aircraft manufacturer, just like Cessna or Piper or Boeing, with all the legal and regulatory requirements and restrictions (not to mention liability problems) that come with that designation.  Not a good idea for a small business that wants to stay in business.

If you want to work with experimental aircraft, here's something you may want to consider... Open a home-builder's assistance shop.  FAA rules state that the owner of the experimental or kit plane must complete 51% of the build...  That rule is somewhat flexible, and it has become accepted that the owner can get assistance from professionals to help complete the aircraft as long as he is actively involved in the building process.  

I have seen several completion shops where the owner/builder rents space in the hangar to build his kit airplane, and the shop provides special tools and trained A&P mechanics to assist as necessary in the completion of the project.  This kind of shop not only helps the owner/builder in finishing the project, it makes for a safer home-built aircraft because of the assistance of experienced aircraft mechanics to make sure the job is done right!

Then again... motorcycles are cool too!

Good luck with whatever you decide.

Answer 2

Opening a homebuilt aircraft business could be a good idea.  Make sure you do good research before jumping in.  First, the FAA is currently reviewing the 51% rule and the shops that assist builders someone mentioned above.  They are specifically reviewing what assistance a builder can receive and still certify their airplane as experimental-amateur built.

Ultralights would be a good start.  But you need to get a copy of the FAR (CFR) part 103 so you understand what the FAA defines as an ultralight.  You should join an ultralight organization  so you get an understanding of what ultralight pilots need/want.  The link below (Hart Aero) is an ultralight manufacturer that is doing things right.  You should check them out.

If you start building light sport airplanes you need a copy of the applicable ASTMs so you know the regulations.  Check our sportpilot.org to see what LSAs are currently offered.

If you go the homebuilt route, you need to join the EAA.  You can't build airplanes (for sale, personal use ok), but can sell kits/parts/plans.   I have listed some of my favorite homebuilt kit/plans suppliers (Zenith, Vans).  Get a copy of Kit Planes annual kit guide.  It has almost every kit offered for sale so you get an idea of what is currently available.

I wouldn't even consider manufacturing a type certified airplane.  Aside from the liability, it cost's between 1 and 10 million dollars to complete type certification.  If you change so much as one bolt, you have to retest all affected parts.  What a PITA!  That's the reason there has been only a few (less than 5) new light GA airplanes certified in the last 20-30 years.

Good Luck.  Hope this helps.

Answer 3

Check into the insurance required.

Answer 4

If you built it in your shop, it would not be a homebuilt, and it would be subject to a whole different set of rules.  You would have to buy a design with a Type Certificate, or design and prototype one, yourself.

In my opinion, if someone could buy the Type Certificate and the tooling for the Ercoupe and get into production with them, they would have a successful enterprise.  Assuming they have the management skill to keep it profitable.

But that Type Certificate is antique, and would need some updating.  In any case, if you build more than one or two of any experimental ("homebuilt") design, you have to go into production, which means balancing the cost of volume production with the original goal of having a small shop.

So it's going to be tricky.  There are shops that specialize in restoring antique airplanes, and that can be fun if you love the feel of old gadgets.  That might be a route to go.  Or doing STOL and taildragger conversions on popular light planes.

Any of it can be done, but the business and financial parts of it will be tricky and costly.  Try a visit to the small business development center at your local community college, or look up the Small Business Administration (sba.gov) for more advice.

Good luck.

Answer 5

Just buy ultralights off of craigslist.com and mess ROUND WITH THEM.  Make them your own and add your own touch.  Sell them.  Your future may look like this:

College: 4 years

Ultra Lights: 1-4 years from graduation

Two seaters 4-6 years from graduation

4-6 seaters: 6 years from graduation.

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Answer 6

To answer the aircraft side of your question, make a trip this July to the EAA AirVenture.  I believe you would find this to be a most valuable and enjoyable time and will answer many questions regarding aircraft building.  

I for one would pursue the Mechanical engineering degree. Or, I would pursue a degree in aircraft maintenance (A & P mechanic).  I say this because it would give you all the necessary skills required for motorcycle building.  On the side I would take business courses.  To own a motorcycle shop is to own a business.  And I emphasize the word business.  

Also if you wish to pursue building motorcycles, take machining courses.  Or, find out if you can get hired into a shop that offers a machinist apprenticeship program.  This way you will earn while you learn.  But, the Airframe & Powerplant degree will give you many skills needed for building bikes.  Sheet metal work, welding, electrical, fuel systems including carburetors.  

Best of Luck