How to Become an Aircraft Broker and Start Your Business?
As you may know, an aircraft broker has the responsibility of functioning as a mediator between an aircraft seller and a buyer. Most times, when the word “broker” is used, there is the tendency for people to think it’s just about stocks, bonds, or real estate, however, it is not so, as there are brokers in the aviation business too. Aircraft brokers negotiate deals involving the sale and purchase of aircraft and find the best buyers and sellers for each other. It may interest you to know that the job is lucrative, and aircraft brokers can get commissions of about 15% of the cost of the aircraft. Interestingly, becoming an aircraft broker is not as difficult as you may think.
Breaking it down
In transactions that involve buying and selling, most times the transactions happen without the help or interference of a third party to mediate or broker the sales. For instance, when you go to the superstore to buy an item, you just add the item to your cart and then make your payment, without having a broker in between to help you negotiate the deal. However, aircraft purchase is not as simple and straightforward as going to the store, picking up an item, paying for it, and leaving. You need someone with extensive knowledge about the industry including economic conditions, factors affecting the aircraft’s sale, and the legalities involved in the sale and purchase of aircraft. A competitive aircraft broker is trained to know what to look out for when negotiating between the seller and buyer, and also knows about the technical details of an aircraft, in order to help the buyer get the aircraft that best fits their purpose.
Certification
If you get certified as an aircraft broker, it will boost your marketability and help you break into the business well. A lot of companies offer aircraft broker courses that span topics like aircraft valuation and analysis, basic acquisition, aviation sales, documentation, understanding client needs, offer write-ups, etc. Some companies have designed their curriculum to cater to individuals who have prior experience from working in the industry either as pilots, engineers, technicians, etc. It is imperative that you check the curriculum and module that best suits you and your purpose.
Getting into the Business
One way that a lot of aircraft brokers begin their careers is through partnerships with firms. These firms have their operations designed such that they offer training to hone the skills of the aircraft brokers, and they also offer them regions and support to startups. It is important to note that there are variations to the startup costs, but there are companies that are ready to assist in financing your aircraft brokering business. Some companies offer to finance half the investment without interest.
It may interest you to note that you do not need prior experience in the industry, and you also do not need a college degree to become one, however, having the experiences and degrees will put you in an advantageous position to help you understand and communicate better with your clients. You need to know how to communicate in order to seal deals where the seller and buyer are happy with the whole process and outcomes.
As mentioned earlier, aircraft brokering is a lucrative business, and as long as aircraft continue to fly from point A to B, there will always be people looking to purchase aircraft, and there will always be companies looking to sell aircraft, and in both cases, an aircraft broker will be needed to facilitate the purchase and the sale. Aircraft business is a serious business, and aircraft brokering is both interesting and insightful, and you may want to seriously consider it as a career.