On August 10, 1995, at 0900 central daylight time, a Champion 7ECA, N5147T, was substantially damaged during a landing at Monroe Regional Airport, Monroe, Louisiana. The certificated flight instructor and pilot rated student were not injured. The airplane was being operated as a local instructional flight by McMahan Aviation under Title 14 CFR Part 91. Visual meteorological conditions prevailed and a flight plan was not filed. According to the Pilot/Operator Report, during the first landing, the flight instructor intentionally "ballooned" the airplane with the intention that the recovery from the maneuver would be made by the student. The student took the controls and added power and "returned to a stall landing." The airplane "stalled" approximately 12 to 18 inches above the ground, the right wing "dropped," and the right main landing gear contacted the ground. The owner and operator reported the following information during a telephone conversation with a NTSB investigator. The commercial pilot was enrolled as a student in the tailwheel training course. The hard landing resulted in structural damage to the right main landing gear support tube, and longerons and stringers in the fuselage area were twisted.