The air charter industry is very diverse. Charter operator and broker organizations of various sizes, quality and competencies are vying for your flight and dollars. New broker names appear on the scene continuously, offering to arrange charters on your behalf as your agent. It is important to understand there are no real barriers to entry and literally anyone can advertise and call themselves a charter broker.
The DOT and FAA government departments do their best in reviewing and enforcing practices, however there is no government quality rating or broker seal of approval, and private charter fliers assume their own risk in choosing and using a private jet charter service.
Air charter service providers fall into one of two categories, broker or operator:
Brokers do not own, operate, manage or have control over aircraft. They serve to arrange flights for passengers (“clients”) or charter operators. Brokers represent either the client, or the aircraft operator, in arranging a charter flight. Brokers typically will have an industry-wide reach, and connect with a variety of charter aircraft options, or jet charter listing for any one flight.
Operators operate aircraft under applicable FAA regulations for charter, personal, or other type flights. Charter operators must earn and hold an FAA Air Carrier Certificate and are held under specific Operations Specifications designated by the FAA for their specific flight operations. They work with, and are periodically inspected by, their local FAA Flight Standards District Office (FSDO). An operator may own or lease their aircraft, or they may manage aircraft for private owners and then operate personal and charter flights with the aircraft.
Charter aircraft owner, broker, and buyer's agent New Flight Charters, presents five important areas and questions to help manage your financial, legal and safety risk in using air charter service providers:
Five Key Components and Questions for Your Air Charter Broker
- Who are the organization personnel and what is their specific aviation experience? How long has the company name been in business?
New brokers have surfaced in recent months and years. There is very little required to call yourself an air charter broker, and no checks, registrations or certifications. Some have been ejected from reputable brokerages for risk or performance issues, or were part of prior failed or bankrupt brokerages.
Many of these broker “companies” are one or two people with a website and phone number, but they list friends or loosely related names in their materials so they appear more substantial. Check the history and aviation experience of those involved.
- Request their Professional Liability Insurance certificate, commonly called “errors & omissions” insurance.
This is not the aircraft's insurance. Professional Liability protects you from basic processing errors in booking, scheduling and financial transactions. Without it, you could be liable for any mistakes your broker/agent makes in arranging your flight with the aircraft operator. If the broker is acting as your agent on your behalf ast most are, you could be liable for thousands of dollars or more if a booking mistake is made.
- Request copies of their IRS Form 720, Federal Excise Tax deposits and filings.
If they are not paying their excise taxes, you could be liable for their unpaid taxes. The IRS has pursued the passengers when the brokerage has not remitted their flight excise taxes, even though passengers may have already paid the tax amount to the brokerage. If the broker is your “agent” or acting on your behalf as most are, you could be liable.
- Run a simple online background check on the broker, related names and the organization. Have any personnel associated with the organization filed for bankruptcy, been convicted of a felony, or had tax liens or foreclosures?
It’s not uncommon for felons or delinquents to be in key positions since there is little required and no registrations to call yourself an air charter broker. Background checks can be run online for very low cost, especially compared to your flight cost, are a very worthwhile quality check, and are often enlightening.
- Request their D-U-N-S number, Dun & Bradstreet rating, or other registered credit history verification.
Broker credit history and ratings are important. There have been brokers who did not (or could not) pay the bills for charters. The passengers then became liable for the payment, even though they may have already paid the broker for the charter. If the broker is your “agent” or acting on your behalf as most are, you could be liable.
Five Key Components and Questions For Your Air Charter Operator
- Do they hold their own FAA Air Carrier Certificate? Request copies of their Certificate, their FAA DO-85(authorized aircraft) document, and current hull and liability insurance certificate for those tail numbers.
Other pertinent documents you may wish to verify are FAA Operations Specifications documents; A001 (Operating authorization), A006 (Management personnel) and B050 (Areas of operation).
- Do they have any accidents or recordable incidents in their history?
An Accident is defined by the FAA as an occurrence associated with the operation of an aircraft in which any person suffers death or serious injury, or in which the aircraft receives substantial damage.
An Incident is defined as “an occurrence involving one or more aircraft in which a hazard or a potential hazard to safety is involved but not classified as an accident due to the degree of injury and/or extent of damage.” An incident could affect the safety of operations. This definition covers a broad range of events and may include runway incursions, pilot deviations and near midair collisions.
Consideration should be given to operator’s fleet size number years in business.
- Have they ever received FAA Enforcement Actions or Letters of Correction?
These may come from FAA visits and inspections, or result from accidents/incidents. Consider operator size, fleet size and years in business.
- Do they ever broker out other aircraft for their/your flights? If so, what quality standards do they employ and how are you made aware of who has operational control of your flight?
Some operators routinely broker other aircraft to fly charters for them, while others never do. Many fractional ownership (Part 91(K)) and “jet card” program operators contract jet charter operators to fly for them especially during peak seasons.
- Do they have an SMS, and what standards of maintenance and pilot qualifications to they adhere to?
Please see the page on air charter safety ratings and standards. Several organizations are in the business of evaluating operators and rating them, usually for a fee, and then selling that information to charter brokers, buyers and others. IS-BAO Registration, which incorporates an SMS (Safety Management System) is the newest comprehensive safety program being adopted by the industry.
These key components and questions for your jet charter broker and operator will help you evaluate the quality and competency of your organization, and manage your risk. This is not a complete list nor should be your only consideration in choosing a charter service. It is meant to make you aware of critical risk management areas that are not commonly considered by the chartering public.
Since 2003 the aviation experts at Jackson Hole-based New Flight Charters have provided the leading values in Jackson Hole private jet charter and nationwide, using arguably the largest selection of quality operator aircraft with a best price guarantee for every flight. The company has experienced record growth and for 3 consecutive years has been named to the Inc.500|5000, as the fastest growing U.S. air charter service since 2005. For more information on New Flight Charters, call (307) 734-7751 or (800) 732-1653.
More air charter company information is available at Jet Charter Company News, for private jet and aircraft charter flights.
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