Brokering

[FlyMeSWA]

Does anyone have any insight into the responsibilities/legalities of brokering out charter trips. IE, getting calls for jet charters and setting people up with one of maybe 4 companies, one up north, two in FL, one in CA, and getting the companies the business, and getting the pax, the travel for a percentage from the operator. I know its done on an enormous scale these days with Tag/Sentient/Charter Ops etc...but small middle man brokerage...the good/bad?

 

[Mountain Troll]

Better look into what is and isn't legal in the eyes of the FAA and DOT. I don't think they want a broker contracting to both the operator and the customer like in the old days. I think they are now viewing that as putting out for services without an air carrier certificate. So, I think you must get your commission from the operator. But, I am not an expert, check with the FSDO in your area. By the way, I know a few who got out of the business for this very reason, no money in it anymore. Good luck.

 

[FlyMeSWA]

I know I did read that article in Business aviation about avoiding names like "Airways" and terms like "our fleet". This isnt along those lines I dont think thats why I'm wondering if there are others who have done it, or know how to do it this way.

 

[Avalanche]

Which Issue

I know I did read that article in Business aviation about avoiding names like "Airways" and terms like "our fleet". This isnt along those lines I dont think thats why I'm wondering if there are others who have done it, or know how to do it this way.

Which issue of BA was that?

 

[FlyMeSWA]

I think it was either this months or last months, and if not that, then I think it was Professional Pilot or whatever its called. I read it at SkyService in CYYZ I forgot which issue but it was VERY interesting.

 

[Deskdriver101]

You're okay as long as you don't hold yourself out to be an operator, or have operational control. I was a broker for six years. If you PM me I'll be glad to provide you with "charter broker 101"

 

[100-1/2]

new regs at the first of the year. faa information sessions around US continuing through 2006. Check the Air Carrier section of FAA.GOV. Overall, don't do it. You can't hold out to the public "as an operator" and you can't exercise operational control without an air carrier certificate. Many are doing this and it thankfully is coming to regulatory conclusion in 2007.

Enforcement is a whole nother story.

100-1/2

 

[charter dog]

Furthermore, you may want to check DOT regulations regarding "economic authority". I don't know all the details, but if a person handles the customer's money and contracts for transportation services from an operator, this grant of authority may be required. A surety bond may also be required. According to various articles over the last couple of years, Blue Star, Sentient and some other non operating certificate holding brokers were involved in various dealings with DOT regarding this issue. IIRC, fines were levied in at least one case, possibly more. As the jet charter industry consolidation trend progresses, the big outfits will make it more difficult for small independants to scratch out a living. There will likely still be a small number of well connected independent charter facilitators around though. In the charter business, who you know will always count!

Best,