Buying a private jet? Do you need a private jet acquisition broker?
Why Hire a Private Jet Acquisition Broker
A private jet acquisition broker who represents your best interests can save you time and money. A broker can help with difficult negotiations. Do you have time to research why there are significant price differences between two manufacturing years for the same make/model of aircraft? Do you know how to compare the maintenance history of two jets to help identify potential pitfalls? Do you need a professional who knows how to value different aircraft options to represent your company’s interest?
How to Locate a Broker for your Private Jet Acquisition
Identify your Needs
First, identify your needs. Where will you fly? How frequently will you fly? How many passengers and how much baggage will be on a standard trip? Will you want to add the aircraft to a charter certificate?
Interview Potential Brokers
After you have identified basic information about your needs, you can benefit from interviewing a few aircraft brokers before selecting the best broker for you.
Ask for Recommendations
You may have received mail, emails, texts or calls from brokers. Ask friends and business acquaintances who brokered their jet acquisition.
Your Broker May Not Be Local
You don’t necessarily need to hire a local broker. Your opportunity to find the best broker for your needs increases as you expand your geographic search.
Questions to ask Potential Private Jet Acquisition Brokers
Once you have identified a few brokers, interview them. Some questions to consider asking:
- What make/model of plane they initially recommend after hearing your initial needs. They may ask additional questions in order to provide even an initial recommendation.
- Once the broker provides initial options of make/model, ask for the current market for that aircraft. How many are for sale now? How long do these aircraft typically remain on the market? The broker may need to do some research and call you back. You want to know that they are paying attention to your needs and not trying to sell you today’s new listing.
- What is their experience?
- Do they focus on a few make/models of aircraft?
- Consider whether you prefer to work with a large organization or a smaller brokerage.
- Do they have a technical advisor who can assist with evaluating the physical condition of an aircraft?
- Do they represent only buyers or will they also represent you when it is time to sell your aircraft?
- Listen to the broker talk. Do they want to sell you a plane they have for sale or do they want to help you buy the best plane for you, even if it takes a multi-month search?
- What does the broker do to avoid conflicts of interest?
- Ask about their brokerage fees. Ask what is included and what is excluded. Ideally you will receive proposals from a few brokers that you can compare based on your initial impressions as well as their fees. The lowest commission may not be the best broker for you.
Hiring an aircraft broker involves working closely with your broker. They need a great deal of information about you and your needs so that they can locate and help you acquire the best plane for your needs. They also need to know or research the market to identify the price range, how fast you need to respond when a new plane comes on the market and what deficiencies are most common with your make/model. Hire a broker you will enjoy working with to help you acquire your private jet.
Michelle M. Wade is a partner with the law firm of Jetstream Aviation Law and counsels clients on the acquisition, financing and operation of corporate jets operated under Part 91 and Part 135 of the Federal Aviation Regulations. Jetstream Aviation Law can be found at www.JetstreamLaw.com.
The information provided here is not legal advice and does not purport to be a substitute for advice of counsel on any specific matter. For legal advice, you should consult with an attorney concerning your specific situation.
