Blue Star Jets and the 2/2/05 TEB Accident

[TailDraggerTed]

Does anyone know anything about a company called Blue Star Jets? I was told that 2/2/05 TEB Accident was planned by them as a charter broker. I don't get the connection, but I was told that as a charter broker the DOT/FAA doesn't need to license/approve/certify them. Could this be true?

 

[psysicx]

Does anybody know what outfit that plane belongs to?

 

[El Bucho]

Blue Star is nothing more than a Charter Broker. A middle man. They get requests from clients which are then put out to bid by charter companies. They have no imput whatsoever into the flight planning. All they do is bascially put the customer in touch with the operator and take a percentage of the trip cost.

EB

 

[hawkerjet]

the charter broker is something that the dot found out about when they were looking to streamline part 135 regs. If you're a broker without a 135 certificate you must disclose to your client that you are not the operator. however, many do not and this is where the problem lies. many people have been screwed by unscrupulous brokers because they don't need to be bonded and insured, so a slick broker could take peoples money then shut down and resurface under a new name. there are plenty of good brokers out there, i don't want to sound like i'm bashing.

 

[Ace-of-the-Base]

...i don't want to sound like i'm bashing.

Too late.

I wish I could end every argument with my wife with: "...i don't want to sound like i'm being a prick...", but I think she'd see right through it.

Ace

 

[Otter]

I heard the operator was Platinum something, air or jet.

448 Alliance was the owner, which the local news said was DDH aviation.

 

[400A]

disclosure

The same rule applies when you operate on someone else's certificate.

For Example, all of our quotes say operated by Raytheon Aircraft Charter and Management and must show the certificate #.

Blue Star seems to be a decent operation. Trips go smoothly and they pay fast.

Sentient, on the other hand, seems to always be a nightmare. (another broker house) They think they own your aircraft and are your boss.... NOT

 

[BobbyB623]

The "operator" was Platinum Jet Management out of Ft. Lauderdale, FL. The aircraft was on Alpha Jet International's (Muscle Shoals, AL) certificate.

As far as Blue Star Jets, they (as well as all brokers) operate illegally by acting or portraying themselves as direct air carriers, according to the DOT. As I understand it, in order to be considered to be acting in a legal manner, the broker needs to be a marketing agent of the operator, meaning a contractual agreement has to be in place before the charter broker speaks to the operator about specific trips/customers. If this agreement doesn't exist, then they need economic authority from the DOT which will allow the broker "to offer services directly to the public in their own right, subject to their implementation of necessary consumer safeguards" (from Kent Jackson, Business & Commercial Aviation, Dec. '04, page 114).

The DOT has definitely taken notice of charter brokers and how they operate due to a few sleazy ones that use phrases such as "our fleet of a gazillion jets...", etc. It remains to be seen what the DOT is going to do, if anything. However, it is forseeable that some regulation will come about, either from the DOT or the industry itself (to head off DOT) that will require some sort of bond and trust requirements that protect the customers and the air carriers that operate the flights.

I've heard a lot of complaints from charter operators about Blue Star Jets, specifically how they nickel and dime the operators so their profit margin is next to nothing. Also about the knowledge of their reps. Heard one story from a charter operator that was telling a Blue Star rep about the operator's double-deck Gulfstream VII - pretty funny.

 

[cvsfly]

I too have heard the DOT concerns about brokers. Blue Star calls us alot, taking up our secretaries time, and never scheduling. I guess they are shopping for price. Then they do try negotiate and ask for "net-net". Does this mean we are giving them the price before taxes? I not too familiar with the tax issues, but I assume the operator is still responsible for remitting the sales and other taxes and fees. How does broker accounting actually work. What is the typical mark-up/commission?

 

[TailDraggerTed]

Thanks for the info.

Was told that Blue Star Jets booked the Challenger trip that was flown by the company you mentioned above. Blue Star Jets is lucky the press never caught on and mentioned their name as one of the companies involved. Was told by an ex-employee of Blue Star Jets that most of the claims made in their marketing materials and web-site are "less than true."

I don't personally have any first hand expereince with them, but from what I have been learning, I would be cautious if you do any business with these folks.