What is the margin of "broker" for charter private jets? Ive heard that charter brokers a discount of 5% of the industry they absorb. But what do they usually take over all this? In addition, if the buyer uses a credit card, which is a service fee if any?
Thank you!
Yes, industry standard discounts given to dealers is 5%. This is where the broker makes their money. It is possible, but unlikely, that the broker would be the price up to the mark, no more than that. Why should we pay more for a broker if they can get the flight charter company for less?
The credit card fees vary widely depending on a number of factors. I recommend a search on terms such as merchant account.
Brokerage fees are typically 5-10% of the cost a / c for the charter. Most brokers have a fee for ground handling and transportation costs, and sometimes they make some extra money on the actual cost is less than tariff. But they also lose money on these tariffs too, that some places are more expensive than others. The reason why companies use brokers is that they have access to many carriers, ground handlers, trucking companines. This generally gives the best price for the service, and brokers are well informed and, in some cases legal authoirty to submit documents to their clients such as customs andshippers declaritions inputs for export. This makes it much easier for a company to charter an airplane broker handles all the trucking ground handling and customs clearance for this expedition, but in turn they pay. It would be a lot of work to find and organize everything you own in a small amount of time.
Posted on January 29, 2010.
