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Learn to Fly Private

Welcome to the 30th edition of "Learn to Fly Private." Last week's issue comparing the CJ3, PC12, and King Air 350 didn't seem to resonate as much as I thought it would, and had the lowest open rate of any newsletter to date. If you liked it, I would love to know. If you hated it, I would love to know why so I can make this more tailored to what you care about (you can hit reply and it will come directly to me.)

Today's newsletter is inspired by a question I have gotten 5 times in the last week, which has to do with charter brokers, jet card/membership and why it is all so incredibly opaque. As always, this is an insiders view to aviation and I hope to make you more informed.

As a reminder! If you are deciding between a turboprop or a jet, you can get a free 15 minute call with me using this link. Totally free, and most people say they find it useful.

Now let's dig in...

Why charter brokers sometimes rub you the wrong way

I had a conversation last week with a subscriber after my appearance on The Fort Podcast with Chris Powers, and he had some questions around jet charters. He is a well educated guy and has flown private a handful of times in the past. He got a quote from a charter broker for a trip that he was taking with his family. I sent him the article I wrote a few months back about The Truth Behind Safety in Flying Private and he was aware of Argus Platinum status.

When he booked through his charter broker, the broker ensured him that the operator was Argus Platinum but he wouldn't disclose who the operator was so that this client could ensure their due diligence. Only after the contract was signed would he disclose that information, causing distress for this client.

But why?

Not All Charter Brokers Created Equal

We've discussed at length why someone would use a charter broker over going direct to an operator. While you will often pay a premium through a charter broker, there is a peace of mind that comes with it. If something goes wrong before the trip, they ensure that you don't feel it on the client side. They can also ensure you're getting market rate for your charter with access to hundreds of aircraft nation wide to ensure your trip works.

Not all brokers understand their value proposition, though. They have acquired you as a customer through marketing expense and relationship expense, and if they're unsure of their value in the transaction, they may do things that are frustrating as a client. At the end of the day, if you and your family are going to get on an aircraft you want to ensure the highest safety standards are being adhered to.

You also don't want to have to tell the operator that you prefer a midsize over a light jet because you like the flat floor and the headroom that comes with a midsize over a light jet, even if the cost is a bit more on an hourly basis.

Here's some signs that a charter broker doesn't know the value they bring to the transaction.

Won't Tell You Who The Operator Is

They're insecure that you are going to go around them and go directly to the operator. While you can do this, and you may (or may not!) save a few dollars, this is the greatest fear of a charter broker. The relationship between a broker and a client is one built on trust, and part of that trust is not going around them. If you do, the next trip that you try to book with that charter broker will be filled with nervousness and caution on the broker's side, and you may not have the best experience. Especially when you are traveling from multiple origination points, the charter broker provides value to ensure you have maximum safety and are only flying with good operators.

Also, according to the FAA, it is illegal to not tell you who the operator is. According to Part 295 Section a Paragraph 1, the charter broker must disclose before entering a contract "The corporate name of the direct air carrier or direct foreign air carrier in operational control of the aircraft on which the air transportation is to be performed and any other names in which that direct carrier holds itself out to the public."

Continued Lack of Transparency

Some brokers don't warn you about the additional fees that may come with chartering. Some of these fees could be de-icing, WiFi, fuel surcharge, and special event fees. Unfortunately, some of these can't be avoided but a good charter broker will anticipate them and let you know what it will cost based on your trip. That way you're not hit with a surprise bill after the fact.

The other time transparency is key is when there is an issue. The reality is, if you charter often enough you will have a mechanical issue with an aircraft. When this happens, a good charter broker has a cool demeanor and explains what your options are. You may have to make compromises on price, aircraft size, or others but a good charter broker will be able to recover the aircraft quickly and in a way that you feel the least amount of turbulence (aviation puns!). Another note on mechanical issues: if you book directly with an operator and have a mechanical issue, you're probably going to just have a cancelled trip and have tough luck.

Don't carry a non-owned insurance policy

Good charter brokers will have an insurance policy above and beyond the policy that the carrier has. While this is not a great topic to talk about, it is important. In the event that something happens on your trip there is a second level of insurance coverage. Some corporates even require it for their executives when traveling.

Which is right for you?

If you're traveling 75 hours a year or less, and have no needs for depreciation in your business, booking through a charter broker is your best bet to have the best experience and the least amount of headaches. No one has mastered the "uber for jet charters," but being able to text with your broker that knows your preferences, safety standards, and typical trips is about as close as you can get. If you're flying more than 150 hours a year, a fractional purchase or sharing a whole aircraft might be your best option. As always, I'm here to help and the free 15 minute call is a great place to ask these questions. I'm not a charter broker, but I know some of the good ones. If you need a recommendation, let me know.

Until next week,

Preston Holland