What Does a (Good) Aircraft Broker Do?

After founding this business eight years ago, and being connected to aviation for most of that time, there's something that I want to share with everyone that I think might be of interest: A good aircraft broker does NOT sell aircraft.

That's right, it's not a typo! And that's why you see 'brokers' come and go in the industry, and yet others develop very poor reputations for not doing their job correctly. You engage them to sell (or worst still, you engage with them to buy) and the experience starts with a reminder that old-fashioned 'car sales tactics' can be employed almost everywhere! Often however, it presents the parties various degrees of regret - and sometimes exposure to a complex web of potential legal issues that can be very costly, extremely inconvenient, and entirely unnecessary.

That's because selling aircraft is not about SELLING anything; it's about being both TRUTHFUL and also (and arguably more importantly) PROTECTING the parties to a legally binding contract. I'll get to the second point after the next two paragraphs. Stick with me while we digress slightly in discussing 'truth-telling', because it's the first, foundational step.

AN IMPORTANT ROLE: ACCURATE REPRESENTATION

The habit of wanting a sale at almost any cost is alluring for most Sellers at some point in their lives. Typically, when Sellers just 'need / want the money'. I'm sure we have all been there; trying to 'flog'  a car, or house, a boat - or a household item on Facebook Marketplace that you no longer need. It can be a frustrating, tiresome, tedious process, and riddled with intricate contractual issues that the Seller sometimes wishes would just 'disappear'!

At the risk of letting my professional 'cat' out of its bag for other brokers to copy, any (good) aircraft broker must always resist that temptation, even if it appears to do so would be acting in the Seller's best interest. It's a fatal mistake for the uninitiated, because it sends three very negative messages, to three different entities:

Firstly, to the Buyer, that the broker will say anything (including a lie, or 'untruth', or nothing), to make a sale. This always eventually disrupts trust, even though it may seem like a 'good' idea, at the time. Secondly, it sends a message to the Seller, that a broker will be willing to evade telling the truth (at best) or misrepresent the aircraft (at worst). This either comes back to bit the Seller later (it's a very small industry), or the blame is laid squarely on the broker (or sometimes the Seller) for things like misleading or deceptive conduct (s18 of the Australian Consumer Law (ACL)). Thirdly, it means over time that the broker is reputed to be a salesperson, and not a 'truth teller'. There is a difference. One tells the buyer want they need to hear in order to sell the aircraft. The other tells the Buyer what they know about the aircraft. The first tactic employed erodes trust in the broker - and then over time, towards the industry more generally. Bad news.

THE MOST IMPORTANT ROLE: MITIGATING RISK

I promised to get back to concept of 'protection of the parties'. So here's the truth: a (good) broker (in fact a great broker) doesn't just tell the truth (that's the easier part). They are instead constantly acting in the interests of BOTH parties to mitigate the risk of a contractual conflict that is not resolvable except by legal action. Risk mitigation is the main role of a good broker, and that's mainly why you pay them money to act between the parties. It's not about getting 'the job done'. If it was, I'd be on the Canary Islands, sipping a Martini, calling on the Sat phone to ask the Captain to collect me off the wharf at midday for a bite of steak tartare, caviar and on-deck Raquet Ball. Alas, I much prefer to be here typing this article!

MY SPORTING ANALOGY

To illustrate my point, if the transaction presented as a professional sporting game, the broker should adopt the role of games organiser (to introduce the parties), coach (to assist both sides), spectator in the first row (for a detailed analysis of the negotiations and agreement), spectator in the last row (to gain overall perspective), camera man (observer of all the stuff in the agreement and potential risks), director (decider of what is important and when to act on these points), expert commentator (perspective from a wealth of experience) and sports psychologist (to guide both parties through the sales process).

Importantly, they cannot act as the parties because they are not party to the agreement. They cannot adjudicate final decisions (that's for the courts). They cannot advise as to legal outcomes with certainty (they are not legal practitioners). But they are there to ensure each party understands the terms (express or implied) of any agreement that they are entering into, and to assist the parties to resolve any issues as they arise BEFORE anything goes awry.

SELLING: SIMPLY A NATURAL CONSEQUENCE

Have I mentioned 'sales' yet? Nope. That's because if a (good) broker markets an aircraft effectively, and then does those two things above, they will achieve extraordinary outcomes in most cases, and avert legal consequences that can so easily plague the sale of an aircraft for both parties, all the while protecting reputations and the ultimate 'good intentions' of the parties.

A sale will simply occur as a natural consequence of performing the role of truth teller and risk mitigator. It's that simple.

For those of you who have suffered the detriment, stress, risk and financial upheaval of a civil matter in a court or tribunal, it is usually something to be avoided. If a good broker acts to take that out of the equation (or reduce the chances of it happening), while making the process of buying and selling as smooth and easy as possible to avoid conflict, or settle conflict when it arises, they are good one. Keep them for life and let them work with you - every time. But if they simply 'sell', well... you know what to do.