How to Avoid Getting Ripped Off
High-ticket items tend to attract a lot of curious actors. If you've ever tried to buy a fancy watch on the internet, you'll know what I'm talking about.
Unfortunately, private jets are no different.
Recently, I received a phone call from a DTC brand founder interested in flying private. He had limited information and was looking to fly his family on a few vacations. He suffered from decision anxiety due to bad information online, and was surprised to realize how little he knew.
Now, I don't share this story as a personal brag. I tell you because that was the sixth conversation with the exact same sentiment.
The Elephant in the Room
The reason so many people get ripped off is that private aviation isn't a topic that is easy to talk about. I can picture a conversation at the golf course, getting paired with a random:
"Hey Joe, love the new Scotty putter. By the way, I was wondering if had a good private jet charter recommendation? I'm looking to fly around 45 hours per year."
It's awkward for you and for Joe.
Even if Joe flies private, discussing pricing and utilization levels reveals something personal—how much you're spending per year on private aviation. So then you do the next best thing, you turn to ol' Google (or ChatGPT which is basically Google in long-text form).
Hopefully, after reading this article, you'll have some tools to avoid getting taken for a ride.
On Demand Charters: Welcome to The Wild West
The on-demand charter world is a prime location to get ripped off. For instance, I recently saw someone in a Facebook group get ripped off for $5,000 on a phantom empty leg. Essentially, a scammer had posted an empty leg that didn't exist, the person wired the money, and it was gone. No flight.
Outside of outright scams, there's a few other ways to avoid being ripped off when chartering jets. This is simply overpaying for flights. I talked to a professional athlete recently who told me he knew for a fact every one of his teammates was getting taken to the cleaners on pricing. Here's how to avoid being like them.
Tip 1: Don't be an A Hole
The best way to get ripped off is by being an asshole. A relationship between a broker and a customer is built on a lot of trust. Now, you're paying a lot of money for a trip so you want things a certain way - but here are some surefire ways to piss off a charter broker (gleaned from broker friends' complain).
- Expecting changes to be immediate and free – If you change your trip, especially at the last minute, you'll likely be charged extra. Don’t become irate because you changed the terms of the deal.
- Blaming them for things out of their control – Your broker cannot control the weather, the FAA, customs openings, or mechanical issues. They’ll move heaven and earth to make your trip smooth despite hiccups, but don’t take your frustrations out on them.
You might not think of this as a way to get ripped off, but brokers have long memories—and notes in their CRM. The next time you call for a trip, they'll make sure they get compensated for your attitude. You'll basically have a "make it worth it" flag on your account when you call. And you'll be charged an extra PITA fee (pain in the ass).
Tip 2: Don't Shop Your Broker Every Trip
It’s good to create competition to keep people honest and get the best price. You might think this applies to brokers, but sometimes it can actually have a negative impact on your pricing without you realizing it.
Let’s say you’re looking for a trip from Dallas to NYC. You call three different brokers for quotes to see who will offer the most competitive pricing on the aircraft type you want to fly. Those three brokers then go to market to find you the trip.
What ends up happening is a scenario like this:
All three brokers call the same operator for the trip. There is likely only one trip that day that matches yours, so the operator will know you're the one flying and will price the trip the same for every broker.
- Scenario 1: Broker A calls first and secures better bulk pricing from the operator. They set the peg low for pricing, and the other brokers receive the same lower rate.
- Scenario 2: Broker B calls first and does not receive better wholesale pricing for whatever reason. Broker A is now stuck with the same higher pricing that Broker B received.
- Scenario 3: Broker C blasts the trip request on a "load board." Now, the operator knows the trip is being widely shopped. When Broker A or Broker B calls, the operator realizes they can set the pricing higher.
Because the operators that match your trip are finite, this scenario is likely when shopping brokers. Some brokers have access to operators that others might not, but a good broker will always secure the most competitive pricing.
But how do you ensure you have Broker A?
Shop your broker lightly every once in a while—but not on every trip. A long-term relationship with your broker will help you ensure you have the right person for the job. There are a lot of brokers out there, but once you develop a feel for pricing on your trips, you’ll be able to hold them accountable.
Avoid Getting Price Gouged on Charter
These two tips will help ensure you have a strong long-term relationship with your broker and get the best pricing.
A personal opinion: Just because a broker is good at SEO and pay-per-click advertising doesn’t necessarily mean they’re a good charter broker. Getting recommendations from friends who fly private is a good start, but combining that with the strategies above will help you find the right broker.
Purchasing an Aircraft: Assemble the Team
I touched on this in the article The Hidden Costs Behind Private Jet Flying, but I think it’s worth re-emphasizing here when you’re buying an aircraft. The right transaction team will ensure you’re protected when making a significant purchase.
Recently, I was part of a transaction where the acquisition team saved the client over $350,000 in maintenance expenses by pushing on an issue and refusing to settle. A client going unrepresented likely would have missed the issue altogether, but the broker wouldn’t relent and ensured the client didn’t have to pay it.
Here's how to vet your team to make sure they are the right ones to save you money.
Key Provider Indicators
Data, Data, Data
With so many aircraft transacting off-market—or what I would call the "soft market," where the listing never has a public price—the key is having a team with good data. Confidently making an offer in whole aircraft transactions is tough. This challenge typically starts with aircraft worth ~$750,000, where the acquisition fee often pays for itself by ensuring you’re not overpaying.
Brokers tend to have market specialties. For instance, one broker friend of mine has dedicated market analysts who focus on five to six aircraft makes and models, knowing everything about them. One analyst covers the G200, G280, G450, G550, and G650 markets. They track every transaction, maintain a proprietary database of pricing, and understand key drivers of value.
Ask your broker what type of data they have on the specific market you’re looking to buy in. They’ll ensure you’re not overpaying for an aircraft.
A Known Entity
When dealing with a provider, you want to ensure they’re a known entity. Referrals are the best way to verify this because there’s a bit of mutually assured destruction in reputation when giving referrals. That said, you should also look for other key indicators that confirm a provider’s credibility.
Several associations in private aviation serve as strong social proof for reputable providers—whether in tax, legal, brokerage, or finance.
The largest is NBAA (National Business Aviation Association), but frankly, almost anyone can become a member. There are also niche-specific organizations that are more exclusive. For instance, my company is a member of NAFA (National Aircraft Finance Association).
Additionally, there are two major associations for transaction providers:
- IADA (International Aircraft Dealers Association)
- GLADA (Global Licensed Aircraft Dealers Association)
However, being part of an association doesn’t necessarily mean a provider always operates with the highest integrity or ethics. These memberships are a good starting point, but unfortunately, they’re not a foolproof way to avoid getting ripped off.
Trusting Providers
At the end of the day, it’s the opacity of private aviation that makes it such a daunting task. There are bad actors. There are intermediaries who will try to make outsized margins on charters or aircraft transactions.
I don’t say this to scare you away from flying private. I say this to remind you to check your providers and ensure you’re not walking into a trap.
This newsletter was created to help you do exactly that.
Until next week,
Preston Holland
P.s. Forward this to a friend who has needed a suggestion on private aviation providers, and tell them to avoid the pitfalls of getting ripped off by subscribing to this newsletter!
