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returns, promising both a fulfilling journey and potential profit.
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How to start Airplane brokerage and consulting in Nigeria
The job of an aircraft broker is to bring together aircraft
buyers and sellers. In addition to facilitating sales, an
aircraft broker provides industry guidance, improves pricing,
and offers peace of mind. Frankly, we must acknowledge that the
aircraft sales industry is completely unregulated. Indeed, the
industry:
Is not subject to any federal aviation regulations.
Has no internationally recognized standards.
Has virtually no barriers to entry.
Does not require brokers to have much aeronautical knowledge,
formal training, or college degree.
Provides for voluntary certification programs, such as dealer
accreditation by the International Aircraft Dealers Association.
Operating an aircraft brokerage and consulting firm could
provide niche services to a specialized market. As an aircraft
broker, pre-owned planes are marketed and sold to interested
buyers for commission fees. Understanding aviation markets
enables properly pricing and showcasing aircraft. Additionally,
consulting services help aircraft owners enhance the value of
their assets. Advising on inspection, repairs, detailing and
paperwork helps optimize planes prior to transactions.
There is also growing demand for aircraft acquisition
consultation from buyers seeking guidance navigating the complex
process. With profit potential from brokerage fees plus billable
advisory hours, this specialty business aligns aviation sector
expertise with need for specialized knowledge.
How much you can make: $100,000 – $1,000,000+ annually
How much does it cost to start: $10,000 – $50,000
How long does it take to build: 6-12 month
Clearly, aircraft brokers must be good at one thing–closing
deals. This creates some tension for sellers because the broker
only makes money if the aircraft sells. In other words, you must
ask whether you can trust the broker. The answer is yes if you
work with a respected brokerage.
The aircraft brokerage industry encompasses a few specialties:
Private Jet Brokers
Commercial Jet Brokers
Helicopter Brokers
Each one offers brokerage services to a slice of the aviation
industry. Despite confining themselves to a class or type of
aircraft, specialized brokers share the same basic job
description.
In short, the term “broker” can have multiple meanings within
the private aviation industry. Therefore, it’s important to
understand the distinction between these different types of
brokers to ensure that you identify a candidate with the
experience, reputation and specialized skills you need.
The best place to start is by defining your travel requirements.
For example, do you intend to use private aircraft for business
purposes, personal use or a combination of the two? How often do
you anticipate flying — a few hours each month, or several hours
each week? Do you intend to fly with large groups of people on a
regular basis? These questions will help you determine what your
needs are, which can help you zero in on the type of aircraft
you require — and even which broker is right for the job.
Let’s review what qualities, capabilities and expertise to look
for in a charter broker, an aircraft broker and a buyer broker.
Charter Brokers
The private aircraft charter business has evolved from one in
which clients had a direct relationship with their charter
broker to one in which clients are able to arrange their charter
online — with or without the assistance of a broker.
Though less common these days, you still have the option to work
with a charter broker directly and have them arrange travel on
your behalf. In fact, if you need to charter aircraft on a
frequent basis, regularly fly to international destinations or
your travel requirements are complex, having a close
relationship with your charter broker — particularly one that’s
associated with a large aircraft charter supplier — can be
beneficial.
In general, larger aircraft brokerage firms are a smart choice
for international travel because they can offer contingency
planning, 24/7 service and the ability to source a replacement
aircraft in a timely manner should you encounter any issues.
They also typically have access to a larger selection of
available aircraft makes and models and should have established
relationships with international providers.
If, however, you have infrequent charter needs or tend to fly
within a specific geographical region, you might prefer to work
directly with a local Part 135 operator. A qualified operator
can typically provide greater crew and aircraft consistency
within a specific region than a larger charter broker in a
different region.
Even if you choose to work with a charter broker, it may be to
your benefit to confer with a private aviation consultant to
ensure that the operator your broker sources aircraft from meets
or exceeds FAA standards and meets all necessary qualifications.
Additionally, a private aviation consultant can offer
independent analysis and advice to help you determine whether
chartering is, in fact, your best option based on your stated
requirements.
Aircraft Brokers
As noted, the traditional role of an aircraft broker is to sell
an aircraft on behalf of a client. As such, aircraft brokers are
responsible for:
Supplying maintenance data in an electronic format
If a prospective buyer expresses interest in their client’s
aircraft, the broker would then meet with the buyer’s team and
conduct a preliminary visual review of the aircraft and its
records. If all goes according to plan, the broker should be
able to secure a Letter of Intent and, subsequently, an Aircraft
Purchase Agreement. Although all aircraft brokers are
responsible for representing their clients’ best interests,
truly experienced brokers are able to keep the sales process
moving at a steady pace while navigating the various obstacles
that can arise when selling pre-owned aircraft.
Closing Recommendations
Before partnering with any private jet broker, it’s always in
your best interest to check their references, even if everything
else meets your requirements. The private aviation industry is
relatively small, so it’s easy to confirm a broker’s reputation
in a short amount of time.
Be sure to take as much time as you need and to talk to as many
people as possible to develop an informed opinion. It’s always a
positive sign if a broker is willing to meet with you to discuss
their qualifications and answer any questions you might have —
and certainly a red flag if they can’t make themselves
available.
Get our Practical Guide on how to start Airplane brokerage and
consulting in Nigeria. In this practical guide, we’ll offer
insight into the various types of private jet brokers, how to
identify which type of broker you might need and what skillset
to look for when choosing a broker. We’ll also explain when and
why it might make sense to retain the services of a professional
private aviation consultant rather than — or perhaps in addition
to — a traditional broker.
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