Charter brokers add a margin to the operator's price, aircraft brokers are usually paid a percentage of the sale price, management companies can mark up fuel, crew and maintenance, and maintenance shops are paid for the work they find. None of this is wrong, but you should know who is paid by whom, ask for costs in writing, and have someone independent check the big numbers.
Charter: the price passes through several hands
When you book a charter, you may be talking to a broker who sources the airplane from an operator, sometimes through another broker. Each adds a margin. Then come the 7.5% federal excise tax, fuel surcharges, segment fees and repositioning. Ask: who is the operator, is this the all-in price, and are repositioning legs included?
Aircraft brokers: paid more when you pay more
Aircraft sales are commonly paid as a percentage of the sale price, often by the seller. A broker paid by the seller has every reason to want a higher price and a quick close. That doesn't make them dishonest, but it isn't the same as working for you. Ask: do you represent me or the seller, how are you paid, and will you be paid by anyone else on this deal?
Management companies: convenience with a margin
A management company hires crew, schedules maintenance and handles the paperwork. Many charge a monthly fee, and some also add margins to fuel, crew costs and maintenance invoices. Ask: can I see original invoices at cost, what is your fee, and which charges carry a markup?
Maintenance shops: paid for what they find
Most shops are excellent. But a shop doing the inspection and the repairs is paid for both, and an owner who can't read a work order is easy to over-service. Ask: which items are airworthiness requirements, which are recommendations, and can I get a second opinion on the large ones?
Pre-buy inspections: whose shop is it?
If the seller or the seller's broker picks the inspection shop, the inspection may not be as thorough as you need. Choose the shop yourself and have someone who works for you there during the inspection.
The five questions that protect you
- Who pays you, and how much?
- Is this price all-in, in writing?
- Can I see the original invoice?
- Is this required, or recommended?
- Would you buy this airplane at this price?
How DAJETS works
We're pilots and maintenance engineers. We agree our fee up front and in writing, we represent one side of a deal, and we'll tell you when the honest answer is "don't buy it" or "keep chartering". We check shop quotes and invoices line by line, because we know what the work actually involves. See sales and acquisition and maintenance consulting.
Questions people ask
How do aircraft brokers get paid?
Aircraft brokers are usually paid a commission based on a percentage of the sale price, most often by the seller. Some buyer representatives charge the buyer a fixed or agreed fee instead. Always ask who pays the broker and how much.
Why is private jet charter so expensive?
You pay for the whole aircraft, including empty repositioning legs, plus federal excise tax, fuel surcharges, fees and often one or more broker margins. The aircraft's fixed costs (crew, insurance, maintenance) are also built into every hour.
Do aircraft management companies mark up costs?
Some do. Many management agreements allow margins on fuel, crew or maintenance on top of a monthly fee. Ask for invoices at cost and a clear list of which charges carry a markup before signing.
How do I know if a maintenance quote is fair?
Ask the shop to separate required airworthiness items from recommendations, compare against the aircraft's inspection program, and have an independent engineer review large quotes before approving them.
