Exploring the role that charter brokers play in the business aviation sector

Charter brokers remain one of the core parts of the aviation industry. “They are the vital glue that binds the client and the operator,” explains Julie Ellis, training manager, The Air Charter Association. “A professional broker will bring value to both sides and represent both fairly. Not only will they be able to advise clients of the best route, operator, and aircraft for each mission – commercially and operationally – but a broker will also be an asset to the operator saving them valuable time, helping to ensure a successful flight, and enhancing all parties’ experience wherever possible.”

According to Paul Travis, senior charter broker, Skyllence, the industry has grown over the last 35 years. “Traditionally this was a UK phenomenon, but it has now translated globally,” he says. “So clearly brokers are seen to be adding worth and as a valued resource.”

Travis believes that an operator’s fleet will have capability limitations, whereas a charter broker offers an almost unlimited ability to perform a variety of operations. “The broker will hold the hand of the customer through the entire process, something not all operators provide,” he says.

A professional broker should work proactively to foresee problems before they arise and be commercially neutral in terms of considering the whole market and not just their own fleet as an operator might.

“A broker can serve you anywhere in the world, no matter what your need is – helicopters, business jets, commercial airliners, freighters. A good broker will check all options and recommend a range of solutions, and having a single point of purchase gives you buying power.

“You can benefit from a broker’s good standing, experience, and their buying power. Wholesale will beat retail almost every time,” says Ellis.

Breaking in a broker

“It can be hard to find a ready-made broker,” says Julie Black, manager of executive aviation at Hunt and Palmer, an aviation consultant in England. “A lot of what we do is about understanding the client.”
Adam H. Steiger, president at Air Charter Advisors says, “Being a good broker requires qualities such as product knowledge, being transparent with clients, being available and responsive, and sincerely caring for a clients’ needs.”

“This industry is all about building and sustaining relationships with the client, and with the vendors,” says Black. “You have to match the right person client-side with the right person in the team because not everyone rubs along with everyone.”

Technical knowledge is an essential element of becoming a broker, but Black doesn’t believe it’s the most important aspect: “You can teach the knowledge by taking brokers out, showing them aircraft and FBOs. However, you can have all the aviation knowledge in the world, but if you can’t manage an interpersonal relationship, you are not going to succeed in this line of work.

“I’ve hired people who have no aviation background whatsoever. Some of the best people in my team are those with a strong hospitality background, which is all about relationship building. If they’ve got enthusiasm for aviation and people skills, they can be trained,” says Black.

“There is something very rewarding about home-grown talent,” agrees Ellis.

“Many young people who study for aviation management degrees barely cover the subject of charter. This is something the ACA is working to overcome with our NextGen Group outreach program, which is working with schools, colleges, and universities to raise awareness of the opportunities in the industry for young people starting their careers.”

Training

Initial training is vital for any industry, but according to Steiger this is particularly true for being a broker within private aviation. “There are new variables at play constantly,” he says. “The state of our economy, new and future aircraft models being offered, changes in regulations, business models in the industry, and customer trends.
“The length of time you are in the business and how dedicated and immersed you are in product and service knowledge is likely to be the most significant factor in the client experience you are able to supply.”

The Air Charter Association courses and its Broker Qualification are one of the few that cover brokerage. The course and qualification started life as a one-day overview of some of the regulatory and legal aspects of being a broker.

“The Association and its members recognized that it is an unregulated part of the sector and training our members would support the adoption of best practice and standards,” explains Ellis.

“It has now evolved into a three-level professional qualification that covers not only important financial and legal and regulatory topics but also the more service-driven and operational considerations. It is attended by operators and brokers alike as all seek to understand the challenges faced on both sides of the deal.”

The training course is designed to be comprehensive, equipping attendees with the knowledge and understanding of the full process.

“It is intended as a basis from which they can build further knowledge and experience within their companies,” says Ellis.

The course covers the full broking process from pre-qualifying an enquiry, including aircraft and operator selection, airports, services required, how to ensure the charter is fully compliant with all regulatory aspects in terms of AOC coverage, insurance, legality of the charter and how to avoid fraud, as well as how to enhance customer experience.

“The Level 2 training session is held at an airport or FBO to give our students the opportunity to really see the full 360 degrees of a charter in action,” says Ellis. The students visit FBOs, get on board aircraft and learn about handling equipment and airport processes.

“This is crucial given that many brokers will arrange a charter for a client remotely without being at the airport or meeting the crew or airport staff. It can be a highly abstract and disconnected process unless the broker actively manages every part of the flight.

“The Level 3 session develops an understanding of more complex operations, legal and contractual understanding.”

Challenges

Steiger believes the greatest challenge brokers face currently is the high number of new technologies being introduced to the market. “As technologies progress there will be some clients that want the hand-holding and human experience, while others may prefer the AI or technology experience,” he says.
Technology has such a great appeal and is very exciting, but there will always need to be human interaction with such high-level transactions in the service industry.”

Travis says brokers are facing an even more competitive environment as the broking community grows and margins go down.

He says, “There is an ever more complex world security situation and a constant quest for compliance to fall foul of any sanctions and establishing.”

The constant changing of aviation regulations can be a difficult aspect of the job. Regulations are regularly reviewed and updated which can complicate the process of arranging flights. “An example of this was the UK leaving the EU which meant more regulations to work with and more hurdles for all involved, be they commercial or operational,” says Ellis.

Another challenge is the number of fraudulent attempts targeting brokers. “This is not a new phenomenon, but it is sadly persistent,” she says. “Fraudsters’ creativity and technological capabilities are making prevention ever more challenging. Brokers can play a major role in carrying out due diligence and closely managing financial transactions.”

Working with a broker has other benefits. “There may be some stigmas about not owning or operating a plane or being charged more by using a broker. However, many operators only offer flights on aircraft within their fleet,” says Steiger. “Some operators only offer their services in a particular region and answer to the owners of the aircraft. As a broker and agent of the customer specifically, the broker answers to the client directly. The goal is to get them the best deal, the right fit aircraft, and vendor, within their budget, and having safety at the forefront.”
Ellis agrees, “There will always be a need for brokers as they provide a valuable advisory service. Operators are too busy to do everything themselves and the broker is a very efficient funnel for communications and brings an already qualified requirement.”

Changing times

Experts believe that the job has not really changed over the years, especially when it comes to daily tasks and the sale aspect of the role. However, Steiger says that the consolidation of brokerages and operators has impacted the business. “Operators did not have retail brokerage sides in the past. They may have targeted retail clients, but generally on their own fleets. Now the operators are setting up in-house brokerages and trying to obtain the same clients – effectively becoming competitors.”

“I think the future looks quite promising for the traditional low-risk brokerage, but an increasingly competitive marketplace may mean you face a situation where the market does not grow as fast as the increasing number of brokers,” says Travis.

“We firmly believe that there is a long and bright future for brokers,” says Ellis. “Although technology and consolidations look to move users and providers further away from the process, the need for the personal service, knowledge and understanding will continue to be hugely important.”