Originally Posted by
Jack David Institute
Thank you for the message, I will keep it noted. Although I prefer to speak on the forum rather than private message.
[Moderator edit of commercial information]
To answer your question on broker commission, the answer is "it depends." That is a phrase I commonly used in my previous career as a lawyer, but here is the gist of how it works. Anytime a client comes to us with a trip request, [company name removed by mod] will reach out to anywhere from 5 to 10 aircraft operators to get pricing. We then use that information to (1) identify the best price and (2) identify the best plane for the trip. We then do everything we can to make it so that we can get the best plane for you at the best price by leveraging the price down on the best plane. We call this creating a "micro market" for each individual trip, which stimulates price competition among the aircraft operators.
I'd say a "standard" broker markup is in the 10% range, with the standard deviation being about 5% either way. Further, [company name removed by mod] quote is an "All In" quote, meaning in includes everything from flight time to fuel, pilot expenses, landing fees, taxes and fees, etc. The only additional charges we ever pass along are (1) custom catering orders, (2) ground transportation we are asked to arrange and (3) de-icing costs for cold weather climates. We pass all of these charges along at cost. De-icing costs are usually the biggest issue, since it can be from $800 to de-ice a light jet to $2,000 to de-ice a heavy cabin jet (like a Gulfstream G-IV). We try to minimize ever having to pass that along and eat the cost when we can, however, since we tend to operate on a fairly tight margin, sometimes we have to pass off the cost so we don't lose money on the trip. Of the 300 or so flights we charter per year, we've only had to pass off 3 or 4 de-ice bills.
[Moderator edit of commercial information]