In the private aviation industry, structural failures are becoming increasingly apparent. Business models that once thrived on exclusivity and luxury are now collapsing under the weight of poor management, exorbitant pricing, and ineffective customer service. Operators who price-gouge often find themselves alienating the very clients they aim to attract. Meanwhile, shared seat business models, which present an illusion of affordability, rely heavily on government subsidies just to break even, if that. The thin veneer of profitability often masks a deeper problem: without brokers, this industry might not survive another day.
Brokers are the unsung heroes of private aviation. They operate in a landscape dominated by corporate players who believe their titles and positions make them indispensable. In reality, it is the brokers—who wake up at dawn, spend hours commuting, and work well into the night managing last-minute issues like AOG (Aircraft on Ground) situations—that hold this fragile ecosystem together. These professionals work tirelessly to bridge the gap between operational teams and clients, negotiating terms, managing expectations, and trying to make deals that work for all parties.
And yet, the treatment of brokers by some operators and corporate entities is far from fair. Brokers are often dismissed, their role trivialized, and their contributions underappreciated. The corporate structure, which rewards executives with high salaries while brokers take home a fraction of what they earn, is designed to exploit the very people who are keeping the industry afloat. Brokers work on minimal salaries + commission, often earning a paltry 10% of what they book, only to have that income taxed heavily. Meanwhile, the office CEO, The National CEO, The Global CEO and how many directors reap the rewards without understanding the day-to-day pressures brokers face.
The issue is compounded by the inefficiencies in pricing. A broker goes to the market to secure a jet for a client, only to be inundated with offers that vary wildly. Operators might submit quotes so far above the market rate that it’s laughable, while smaller players might find themselves edged out by a few thousand dollars, despite providing competitive offers. The discrepancies in pricing reflect a broader problem: a lack of transparency and consistency. When brokers receive inflated quotes from some operators and unresponsive offers from others, it creates a fractured market where clients are often left to question the fairness of the process. The result is a market that seems disconnected from reality, where the true cost of a service is obscured by inflated quotes and opaque pricing structures.
The strain this places on brokers is laughable. They’re left to manage clients' expectations and negotiate terms, manage the funds, contract terms, and various other requests from the client often working under intense pressure to secure a deal within a narrow window of time. The commitment to their clients means they often put in long hours, sometimes starting their days before sunrise and finishing late into the night. Despite this, brokers are frequently treated as expendable, their efforts undervalued by the very entities that rely on them to sustain their business operations.
In contrast, the corporate executives who oversee these operations often enjoy substantial salaries and bonuses, detached from the everyday challenges faced by brokers. The pyramid structure of the industry channels most of the financial rewards upwards, leaving brokers with minimal compensation that is further diminished by high taxes. This disparity creates a cycle of frustration and disillusionment, as brokers see their hard work contribute disproportionately to the profits of those at the top.
This problematic structure is exacerbated by the inefficiency and inconsistency in the industry’s shared seat business models. These models, which offer the allure of lower costs, often rely on government subsidies to remain viable. The promise of affordable travel is undermined by the reality of financial instability and reliance on external support, creating a facade of profitability that fails to address the underlying issues of management and pricing.
The lack of effective communication between brokers and operators further aggravates these problems. Brokers often find themselves struggling to get meaningful responses from operators, who are sometimes indifferent to the market rates or the needs of their clients. This disconnect makes it even more challenging to negotiate favorable terms and ensure that clients receive fair value for their money.
As part of our efforts to reform the commission structure for agents and brokers who are looking to escape the corporate rat race, we are developing a dedicated portal for industry operators. This platform will serve two main purposes:
Transparency in Pricing: The portal will display all current trip requests from Charter Worldwide and other participating companies or agents. It will showcase the 3-5 best aircraft options and their market rates for each trip, including details of the booked operator and buy price. This feature will help operators understand how their quotes compare to the market. For example, an operator might be $2,500 above the winning bid without knowing why they lost the trip, or they might discover that their price was competitive but their service was not.
Market Insight and Efficiency: The portal will also allow brokers to upload their trip requests and the options they have received from operators. This will enable other brokers to see which operators provide the best quotes for similar routes, while operators can gauge how close they are to winning a trip without sending unanswered emails.
The aviation industry has long been plagued by a lack of transparency and inefficiencies. While platforms like Avinode have made strides in offering a somewhat transparent marketplace, issues persist, such as misleading empty leg postings and deceptive pricing. By creating an online bulletin board for the industry, we hope this provides a clearer understanding of market rates and trends. This will help new operators set competitive prices and give all industry players a better view of rate fluctuations throughout the year, beyond the annual or quarterly analyses of corporate executives.
Charter Worldwide does not seek ownership of this idea; our goal is simply to enhance transparency and support the agents and brokers who work tirelessly in this industry.