Charter Broker fees
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Gentleman/Ladies
Could I just let you all have my views on Charter Broker Fees.
I have not been in the business for 2 Years so my views/comments may be a little archaic .
I worked as I am sure some of you will know for Northern Executive Aviation at Manchester (UP NORTH).
When the company was sold to Ocean Sky in 2008 it had become the Oldest remaining Charter Company in the UK having been formed by David Antrobus in 1962.
I worked for them from 1972 to 2008 so I reckon I know something about what I say .
We had dealing with brokers from the start of my employment and I Can say there are some very reputable brokers out there who have been around since I started (Probably only 6-7) That I would class as reputable.
When we were asked for a Quote we always gave the brokers the same price there were no favourites we worked with them all.
If a Gross Price was £10 000 this price was quoted to all the brokers and always included 7,5 % Commision.
If the client rang direct for the same Quote they were quoted the same price i e £10 000. NO DISCOUNT
This then gave the brokers the chance to deal with the client direct and still be able to get 7,5 % comision from ourselves.
If they choose to cut there commision to 5 % in order to give there client a lower price and get the business so be it but our final bill to the Broker would be £10 000 less 7.5% commison
In the latter years there were many Front Room Brokers started operated from there Front Room(They were virtually all ex People who had work for a Large broker and thought they could run off and take some of the Clients)
We know who they were/are .
These are the people who ruin the Large brokers reputation by Ducking and diving and in the end upset both the clients and the Operators and they normally end in tears or selling Ice Cream on a Beach or in Re-Hab somewhere
On the other side of the coin some operators offer net prices No commision to brokers to everbody who rings up for the price.
These really Piss the Brokers off because they have no or little chance of getting the job if the Customer rings the operator direct.
I Could name you all the Brokers I would trust/have Trusted over the years but I wont but they know me and I know them some lovely people work for these Brokers and I have had the privalidge to work with them over the years.
We have all had our Tears and Tantrums with each other but a decent operator /Broker can work things out amicably with each other.
I did enjoy my years in the business but when I see whats giong on at the moment I would not let some of the current operators Ride my Bike.
The good brokers will always remain the Front room Brokers will come and go Regretfully its who they upset on the way.
Anyhow I have had my rant and look forward to the good Brokers buying me a pint next Time I see them
Regards to all the good people out there
Gerry O Neill
Could I just let you all have my views on Charter Broker Fees.
I have not been in the business for 2 Years so my views/comments may be a little archaic .
I worked as I am sure some of you will know for Northern Executive Aviation at Manchester (UP NORTH).
When the company was sold to Ocean Sky in 2008 it had become the Oldest remaining Charter Company in the UK having been formed by David Antrobus in 1962.
I worked for them from 1972 to 2008 so I reckon I know something about what I say .
We had dealing with brokers from the start of my employment and I Can say there are some very reputable brokers out there who have been around since I started (Probably only 6-7) That I would class as reputable.
When we were asked for a Quote we always gave the brokers the same price there were no favourites we worked with them all.
If a Gross Price was £10 000 this price was quoted to all the brokers and always included 7,5 % Commision.
If the client rang direct for the same Quote they were quoted the same price i e £10 000. NO DISCOUNT
This then gave the brokers the chance to deal with the client direct and still be able to get 7,5 % comision from ourselves.
If they choose to cut there commision to 5 % in order to give there client a lower price and get the business so be it but our final bill to the Broker would be £10 000 less 7.5% commison
In the latter years there were many Front Room Brokers started operated from there Front Room(They were virtually all ex People who had work for a Large broker and thought they could run off and take some of the Clients)
We know who they were/are .
These are the people who ruin the Large brokers reputation by Ducking and diving and in the end upset both the clients and the Operators and they normally end in tears or selling Ice Cream on a Beach or in Re-Hab somewhere
On the other side of the coin some operators offer net prices No commision to brokers to everbody who rings up for the price.
These really Piss the Brokers off because they have no or little chance of getting the job if the Customer rings the operator direct.
I Could name you all the Brokers I would trust/have Trusted over the years but I wont but they know me and I know them some lovely people work for these Brokers and I have had the privalidge to work with them over the years.
We have all had our Tears and Tantrums with each other but a decent operator /Broker can work things out amicably with each other.
I did enjoy my years in the business but when I see whats giong on at the moment I would not let some of the current operators Ride my Bike.
The good brokers will always remain the Front room Brokers will come and go Regretfully its who they upset on the way.
Anyhow I have had my rant and look forward to the good Brokers buying me a pint next Time I see them
Regards to all the good people out there
Gerry O Neill
Join Date: Jan 2008
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Air Partner are selling block hours at a rate of circa £4700 p/h for a light jet. Even with positioning back the same day this is greatly overpriced.
Certainly more than the 5-10% quoted here!!!!
Certainly more than the 5-10% quoted here!!!!
Join Date: Jun 2008
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Handflown - the price you are quoting there is a Jet card rate, which is completely different to ad-hoc charter. They are different products which in turn attract different costs.
Sometimes a company will make more than 10% on a Jet card trip and sometimes they will lose money on a Jet card trip so to look at the hourly rate alone is not a clear idea of the margin.
Sometimes a company will make more than 10% on a Jet card trip and sometimes they will lose money on a Jet card trip so to look at the hourly rate alone is not a clear idea of the margin.
Join Date: Jan 2008
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Smukke......I Know this is the Jet Card rate.
This is a thread about broker fee's, why not talk about a different "product" as you put it.
Its still a broker purchasing the charter of an aircraft for a client. It is just sold differently with a fixed fee.
I am not knocking it. If a customer wants a fixed rate and the broker has to charge a designated hourly fee to cover all costs then great.
Don't be so quick to judge I understand the industry as well. Brokers can charge what they want and I don't have a problem with it.
This is a thread about broker fee's, why not talk about a different "product" as you put it.
Its still a broker purchasing the charter of an aircraft for a client. It is just sold differently with a fixed fee.
I am not knocking it. If a customer wants a fixed rate and the broker has to charge a designated hourly fee to cover all costs then great.
Don't be so quick to judge I understand the industry as well. Brokers can charge what they want and I don't have a problem with it.
Join Date: Sep 2009
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