Aircraft brokerage has its own vocabulary, and clients, operators and sellers will expect you to speak it. These are the terms that come up most on the charter side and the aircraft sales side, defined in plain English. Where a term is defined by regulation, the definition here is a summary, so read the rule itself before you rely on it.
Key points
- Charter and aircraft sales share some language, but each side has terms the other rarely uses.
- Regulatory terms such as Part 135 and Part 295 have precise legal meanings. The summaries here are a starting point, not legal advice.
- If you can explain every term on this page to a client without jargon, you know more than most beginners.
The people and the roles
Air charter broker
A person or company that arranges charter flights for clients on aircraft operated by someone else. In the United States, charter brokers are covered by the Department of Transportation’s rules in 14 CFR Part 295. A broker does not operate the aircraft. See license and certification.
Aircraft sales broker
A person or company that represents a buyer or a seller in the purchase or sale of an aircraft, usually for a commission or a fee, without taking ownership of the aircraft.
Aircraft dealer
A business that buys aircraft and resells them on its own account. The line between dealer and broker is often blurred in conversation, so ask what a specific role actually involves.
Operator
The company that actually flies the aircraft and holds the authority to do so. For charter flights in the US, that means an air carrier certificate, typically under Part 135.
Direct air carrier
The regulatory term for the operator that is in operational control of the flight. Part 295 requires a charter broker to tell the customer who the direct air carrier is.
Indirect air carrier
A company that sells air transportation in its own name but uses a direct air carrier to perform the flight. A charter broker may act as an indirect air carrier or as an agent, and must say which.
FBO (fixed-base operator)
The private terminal at an airport that handles private aircraft: parking, fuel, passenger lounges and ground services. Much of a charter broker’s trip-day coordination runs through the FBO.
Rules and regulators
Part 91
The section of US aviation regulations covering general operating rules, including private, non-commercial flying. An owner flying their own aircraft for their own purposes usually operates under Part 91.
Part 135
The section of US aviation regulations covering on-demand and commuter operations for hire. A charter operator needs a Part 135 certificate, and a broker should confirm it before recommending the operator.
Part 295
The US Department of Transportation rule for air charter brokers. It requires specific disclosures to customers and prohibits unfair or deceptive practices. It does not create a license. What it obliges a broker to disclose, and when, is in what Part 295 requires you to disclose; the full legal picture is in license and certification.
Operational control
Authority over starting, conducting and ending a flight. It belongs to the operator, never to the broker. Confusing the two is at the heart of most illegal charter problems.
Illegal charter
A flight carried out for payment without the required operating authority, sometimes called gray charter. It exposes passengers to safety and insurance risks, and a broker who arranges one is exposed too. IABI covers this in FAA Part 135 and Part 91: what aircraft brokers must know.
Cabotage
Carrying passengers or cargo for payment between two points inside one country using a foreign-registered aircraft. Most countries restrict it, which matters when you quote international trips with domestic legs.
Dealer’s Aircraft Registration Certificate
An FAA certificate under 14 CFR Part 47 that lets a qualifying manufacturer or dealer operate aircraft it owns for demonstration and sale without registering each one individually. It is not a license to broker.
Charter terms
Charter quote
The price and terms a broker presents to a client for a specific trip, built from the operator’s price plus the broker’s margin, taxes and fees.
Positioning flight
A flight with no passengers that moves the aircraft to where the trip starts, or back to base afterward. Also called a ferry flight. It is usually part of what the client pays for.
Empty leg
A positioning flight that an operator is willing to sell at a reduced price because the aircraft has to fly the route anyway. The dates and route are fixed by the original trip, so flexibility is limited.
Aircraft categories
The size classes used to match an aircraft to a trip: turboprop, light jet, midsize, super-midsize, heavy and ultra-long-range. Category drives range, cabin size and price. IABI has a guide to aircraft sizes and categories.
Tail number
The aircraft’s registration mark, such as an N-number in the United States. Brokers use it to confirm exactly which aircraft is being offered and who operates it.
Avinode
A widely used online marketplace where charter brokers search for available aircraft and request quotes from operators.
Safety audit ratings
Third-party assessments of charter operators, such as those issued by ARGUS and Wyvern. They are not legally required, but checking them is standard due diligence.
Charter agreement
The contract for the flight. It sets out who operates the aircraft, the price, payment and cancellation terms, and liability.
Federal excise tax and segment fees
US taxes that apply to most domestic charter flights and are added to the quote. The fixed amounts change each year, so check the current figures with the IRS.
Overflight and landing permits
Permissions some countries require before a private aircraft may cross their airspace or land. Lead times vary and can decide whether a trip is possible.
Slot
A reserved time to land or depart at a busy or restricted airport.
De-icing
Removing ice or snow from the aircraft before departure. It is charged at cost and can add meaningfully to a winter trip.
Jet card
A prepaid program that gives a client a set number of flight hours or a deposit to fly against, usually at fixed hourly rates.
Fractional ownership
Buying a share of an aircraft in a managed program in exchange for a number of flight hours each year.
Aircraft sales terms
Exclusive listing agreement
A contract that gives one broker the sole right to market and sell an aircraft for a set period, usually with an agreed commission.
Acquisition agreement
A contract under which a broker represents a buyer in finding and purchasing an aircraft.
Off-market aircraft
An aircraft that is available for sale but not publicly advertised.
Market data services
Subscription databases of aircraft ownership, listings and transactions that brokers use for research and pricing. JetNet and AMSTAT are two examples.
Valuation guides
Published references for aircraft values, such as VREF and Aircraft Bluebook, used as one input when pricing an aircraft.
Letter of intent (LOI)
A short document in which a buyer sets out the price and main terms they propose. It is usually non-binding on most points and leads to the purchase agreement.
Aircraft purchase agreement (APA)
The binding contract for the sale. It covers price, deposit, inspection rights, delivery condition and closing conditions, and should be drafted or reviewed by an aviation attorney.
Escrow
A neutral third party, usually a title and escrow company, that holds the deposit and the purchase funds and releases them at closing. Money should not pass directly between buyer and seller.
Pre-purchase inspection
An independent inspection of the aircraft and its records, carried out at a maintenance facility before the buyer commits. Often shortened to pre-buy or PPI.
Title search
A check of the aircraft’s registration and recorded documents for ownership history and liens before closing.
Lien
A legal claim against the aircraft, for example by a lender or an unpaid maintenance provider. Liens must be cleared or dealt with before a clean sale.
FAA Civil Aviation Registry
The US registry that records aircraft registrations, bills of sale and security interests.
International Registry
The electronic registry created under the Cape Town Convention, where international interests in aircraft, such as a lender’s security, are recorded.
Logbooks
The aircraft’s maintenance records for the airframe, engines and propellers. Missing or incomplete logbooks reduce an aircraft’s value.
Total time and cycles
The hours the aircraft has flown and the number of takeoff and landing cycles. Both drive maintenance schedules and value.
Airworthiness directive (AD)
A mandatory instruction from the regulator to inspect or fix a safety problem on a type of aircraft, engine or part.
Engine program
A prepaid maintenance plan that covers the cost of engine overhauls and repairs at an hourly rate. Enrollment usually supports the aircraft’s value.
Closing
The point at which funds and title change hands and the sale completes, normally coordinated by the escrow company.
Business terms
Commission
The broker’s payment, usually a margin on a charter or a percentage or fixed fee on an aircraft sale. See aircraft broker salary.
Errors and omissions insurance (E&O)
Professional liability insurance that covers claims arising from a broker’s mistakes or advice.
Due diligence
The checks a broker makes before recommending an operator or an aircraft: certificates, insurance, safety record, title and records.
Free from IABI · IABI publishes this guide
Want to talk it through before you spend anything?
IABI runs a free webinar on how to become an aircraft broker, and offers a free one-to-one consultation. Both are a way to ask questions and judge the teaching for yourself before paying for any course.
Keep learning
These terms make more sense in context. Start with how to become an aircraft broker, then read what good charter training and sales training should cover, and compare aircraft broker courses when you are ready.