What 14 CFR Part 295 Requires a Charter Broker to Disclose

14 CFR Part 295 is the US Department of Transportation’s rule for air charter brokers. It doesn’t test or license you — it tells you what to say to a charter client, and when, before you can legally arrange their flight. Below is a section-by-section read of the rule text itself (eCFR, retrieved 2026-09-21). It’s a summary, not legal advice: read the rule yourself before relying on it, and talk to an aviation attorney before building a compliance process around it. For whether you need a license at all, see aircraft broker license and certification — this page assumes the answer is already no.

Who Part 295 applies to, and who it doesn’t

Part 295 applies to “any person or entity acting as an air charter broker… with respect to single entity charter air transportation” arranged “as an indirect air carrier, foreign indirect air carrier, or a bona fide agent” (14 CFR 295.3). “Single entity charter” means one charterer pays for the whole aircraft, not individual passengers buying separate seats, with a narrow exception for self-aggregating passengers on a small aircraft (14 CFR 295.5(h)). It doesn’t reach the company that flies the trip — the direct air carrier answers to its own FAA and DOT authority — or an owner flying their own aircraft under 14 CFR Part 91: no charterer, no broker, no rule engaged. For the roles themselves, see the glossary; for how this fits the job day to day, see air charter broker training.

Agent or principal — and why you have to say which

A broker acts in one of two capacities, and Part 295 requires stating which.

As an indirect air carrier, the broker acts “as a principal” — it holds out, sells or arranges the transportation and separately contracts with the direct air carrier (14 CFR 295.5(g)): buying capacity and reselling it to the charterer in its own name.

As a bona fide agent, the broker acts on behalf of the charterer or the direct air carrier, “when such charterer or direct air carrier, as principal, has appointed or authorized such agent to act on the principal’s behalf” (14 CFR 295.5(c)). This isn’t fixed: a broker “may choose to act as a bona fide agent in individual cases where a charterer, direct air carrier, or foreign direct air carrier has expressly authorized such agency relationship” (14 CFR 295.7) — principal on one deal, agent on the next, never both at once, and it must say which applies (14 CFR 295.24(a)(2), below).

What you must disclose — automatically, and only on request

Before entering a contract, a broker must disclose three things automatically:

1. The direct air carrier’s corporate name — “the corporate name of the direct air carrier… in operational control of the aircraft… and any other names in which that direct carrier holds itself out to the public” (14 CFR 295.24(a)(1)).
2. The broker’s own capacity — indirect air carrier or agent, as above (14 CFR 295.24(a)(2)).
3. Its liability insurance status — “the existence or absence of liability insurance held by the air charter broker… and the monetary limits of any such insurance” (14 CFR 295.24(a)(6)).

Three more are owed only if the charterer asks:

1. Any relationship with the carrier — as the charterer’s agent, “any corporate or business relationship, including a preexisting contract” with the carrier that might have influenced which one got picked (14 CFR 295.24(a)(3)).
2. Total cost — the full amount paid “to or through the air charter broker, including any air charter broker or carrier-imposed fees or government-imposed taxes and fees”; line items don’t have to be itemized (14 CFR 295.24(a)(4)).
3. Third-party fees — fuel, landing, and parking or hangar fees the charterer owes directly, “if known (or a good faith estimate if not known)” (14 CFR 295.24(a)(5)).

None of this is one-and-done: changed information must be disclosed “within a reasonable time” (295.24(b)); miss that window and the charterer can cancel for “a full refund of any monies paid” (295.24(c)). Everything owed under (a) is disclosed again before departure (295.24(d)), and the same notice-and-refund cycle covers changes after the trip starts (295.24(e)–(f)).

Every solicitation has to say what you are

This extends into marketing. “All solicitation materials and advertisements, including internet web pages,” must “clearly and conspicuously state that the air charter broker is an air charter broker, and that it is not a direct air carrier… in operational control of aircraft,” with the flight actually flown by “a properly licensed direct air carrier” (14 CFR 295.23(a)). A broker may put its name and logo on the aircraft only if the carrier’s name is “prominently and clearly” displayed and nothing misleads a consumer into thinking the broker is the carrier (14 CFR 295.23(b)).

The ban on unfair and deceptive practices

Beyond specific disclosures, Part 295 sets a blanket rule: “an air charter broker shall not engage in any unfair or deceptive practice or unfair method of competition” (14 CFR 295.22); any violation of the part is itself treated as one (14 CFR 295.50(a); 49 U.S.C. 41712). Section 295.50(b) lists examples: misrepresenting itself as a direct air carrier; misrepresenting service quality, aircraft type, timing or routing; misrepresenting safety record or pilot qualifications; implying passengers are directly insured when only the broker or carrier carries coverage; selling a flight it has reason to know “cannot be legally performed”; and misleading use of its own name or logo. DOT enforces the whole part: a compliance proceeding, civil penalties, loss of exemption authority, and — for a willful violation — criminal penalties (14 CFR 295.52, 295.12).

Where operational control sits — and why it’s never the broker’s

“Operational control, with respect to a flight, means the exercise of authority over initiating, conducting or terminating a flight” (14 CFR 1.1). Part 295 is built around that idea: the broker must always name who holds it (295.24(a)(1)) and never let anyone believe the broker holds it (295.23(a)). Structurally, it can’t — a broker “shall not… arrange charter air transportation to be operated by a person or entity that does not hold the requisite form of economic authority from the Department and appropriate safety authority from the [FAA]” (14 CFR 295.20). The broker arranges the flight; the direct air carrier, under its own authority, is the only party allowed to fly it. For the FAA side of that boundary, see IABI’s FAA Part 135 and Part 91 — a related, separate regulation.

What Part 295 does not do

It is not a license: no exam, no application, no number issued before a broker can operate. Subpart B grants a conditional exemption from parts of federal transportation law, “only if and so long as they comply with the provisions and the conditions imposed by this part” (14 CFR 295.10) — the opposite of applying for and being granted a license. It is not a certification and not a registration: nothing in the part requires registering with DOT or the FAA before arranging a charter. See aircraft broker license and certification for the fuller picture. A private training certificate, including IABI’s own, is separate again — evidence of completing a course, a distinction IABI’s own blog covers from another angle.

How this plays out on a booking

Mapped onto an ordinary charter, in the rule’s own order: before quoting, you already know the direct carrier and your capacity (295.5, 295.7). Before signing, you state the carrier’s name, capacity and insurance status unprompted, adding relationship, cost and fees if asked (295.24(a)). Later changes are disclosed in reasonable time or the charterer can cancel for a refund (295.24(b)–(c)), and everything owed is confirmed again before departure (295.24(d)) — while your marketing has already been saying you’re a broker, not the carrier, throughout (295.23).

A checklist to keep by the phone

• State the carrier’s name and your capacity before signing.
• Disclose your insurance status up front — it’s automatic, not on-request.
• Have the carrier relationship, total cost, and third-party fees ready if asked.
• Never quote or book with a carrier lacking current DOT and FAA authority.
• Word every web page so no reader could mistake you for the carrier.
• If a disclosed fact changes, tell the charterer promptly — late disclosure means a refund.

If you broker outside the United States

Part 295 is a US Department of Transportation rule with no force outside US jurisdiction. Other countries regulate charter brokers differently, or not at all. If you arrange charters outside the US, check the rules of the country you operate in and speak with a local aviation attorney rather than assume US practice transfers. This page, like the rest of this site, is a summary for orientation, not a substitute for reading the current rule text or getting qualified legal advice.

Frequently asked questions

Does Part 295 require a charter broker to get a license?

No. It grants a conditional exemption from federal transportation law and sets disclosure and conduct rules, not a license, exam or registration (14 CFR 295.10). See aircraft broker license and certification.

What’s the difference between automatic and on-request disclosures?

Carrier name, capacity and insurance status are disclosed unprompted, before signing. Carrier relationship, total cost and third-party fees are owed only if the charterer asks (14 CFR 295.24(a)).

Can a broker ever be in operational control of the flight?

No. That belongs to the direct air carrier holding the FAA and DOT authority to fly the trip; a broker must name that carrier and never imply it holds that authority itself (14 CFR 1.1; 295.20; 295.23(a)).

What happens if a broker violates Part 295?

DOT can bring a compliance proceeding, impose civil penalties, and revoke the broker’s exemption authority; willful violations can bring criminal penalties (14 CFR 295.52).