By Vincent Wigmans
An aircraft broker is a person or business who assists sellers and buyers in their aircraft transactions. These aircraft brokers can be compared to real estate agents but for airplanes: they support you throughout the process of selling or buying your aircraft. We can distinguish two types of aircraft brokers: one supports you during the sale of your aircraft (seller’s broker), the other during its acquisition (buyer’s broker).
This broker evaluates your aircraft and helps you list it on the market. He or she must also have sufficient expertise to know what buyers are currently looking for: planes on the market, current trends, recent sales, etc… A broker performs all the required and necessary steps to reach a potential buyer and sell your aircraft at the best price. Of course, you retain basically ownership of your aircraft until it is sold.
Here an example of a few task a seller’s broker performs:
- Evaluates the market,
- Sets the price of your aircraft based on market data,
- Develops the promotion of the aircraft worldwide,
- Answers questions from potential buyers,
- Negotiates on behalf of the seller,
- Draws up the official sales contract and open an escrow account,
- Organizes the final closing of the operation and the delivery of the aircraft.
This broker must be attentive to your needs and desires. It should provide you with expert advice to help you make the best decision that suits your needs. Through a market analysis, he or she will be able to identify all the aircraft in the world that are suitable for you.
After having established a shortlist of potential aircraft, this broker will also support you during the process of your purchase. From the negotiation with the seller, to the delivery of the aircraft. Including the inspection of the aircraft before its purchase and the drafting of the official purchase contract.
Here an example of a few task a buyer’s broker performs:
- Analyses and evaluates your current transportation needs,
- Carries out a thorough market study to select all the planes that correspond to your needs,
- Create a shortlist of aircraft by including the review of their initial logbooks, their damage history, their maintenance history…,
- When selecting the aircraft, prepares a strategy with the buyer,
- Negotiates with the seller on your behalf (buyer),
- Sets-up the letter of intent (LOI) and open an escrow account,
- Organizes the thorough pre-purchase inspection (expertise),
- Draws up the official purchase contract for the aircraft and presents it to the seller after your approval,
- Organizes the acceptance flight, the delivery of the aircraft and closes the operation.
It is important to understand what an aircraft broker is and what he or she can do for you. We hope this blog provides you a good basis for selecting the right person or trusted company which will support you on your next aircraft transaction.
If you still want to perform a purchase or sale by yourself , we invite you to read the 5 most common mistakes and red flags during an airplane sale or acquisition.
If you are planning to buy or sell an aircraft with help of a specialist, please contact us at email@example.com. You can also call us on +31 (0)15 820 0999.