The National Aircraft Resale Association (NARA) has launched an aggressive initiative to improve the ethical standards for pre-owned aircraft transactions following its spring board meeting.
“Clearly, thousands of unregulated aircraft brokers create havoc for buyers and sellers of aircraft,” said NARA Chairman Brian Proctor.
With nominal entry barriers, no standardization for transactions and a fragmented industry, establishing standards and an accreditation program is critical for the industry, he noted.
Shaping the Aircraft Transaction Industry
Consequently, NARA has begun to work towards standardization, requirements and certifications. The organization strives to be the collective force influencing and shaping the aircraft transaction industry, according to officials.
“How do we obtain success for our clients?” Proctor asked. “The organizational focus is centered on standardizing transactions, accrediting qualified, experienced and professional brokers who demonstrate proven ethical behaviors, and increasing data integrity.”
“We have embraced the recent call for more ethical behavior from the National Business Aviation Association, and welcome similar initiatives by the National Air Transportation Association, European Business Aviation Association and International Business Aviation Council and others,” Proctor said.
“The industry will be hearing much more from NARA about our ethics initiative in the future as we begin a social media campaign, more public relations and advertising and plan to make important announcements soon on how to achieve our long-term goals,” he said.
Strict Code of Ethics
All NARA members follow a strict NARA Code of Ethics, and broker/dealer members must pass a rigorous certification process to assure the highest standards when buying and selling previously owned aircraft, officials explain.
Ultimately, they are recognized as NARA Certified Aircraft Brokers and Dealers.
NARA Products and Services Members represent a variety of aviation services that operate with the highest professional standards in the industry.
NARA, a professional trade association formed more than 25 years ago, is comprised of selected aircraft sales and brokerage businesses that are NARA certified and aircraft product/services companies that adhere to the highest professional standards. Promoting the growth and public understanding of the aircraft resale industry, NARA’s members abide by a 14-point Code of Ethics that provides standards of business conduct regarding aircraft transactions.
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Right on Mr. Klaus, right on. Brokers don’t and can’t answer just about any questions a potential buyer has, on said aircraft, that is, Brokers don’t have any knowledge or more importantly history on the aircraft a person is looking to buy. You ask questions to the Broker such as,” when was the last time the mags were o/hauled or sent out for repair”, answer, “don’t know”, same with carb. o/haul governor o/haul alternator etc. etc. Bottom line, not to informative and does nothing but escalate price for customer, usually !!! Just my opinion, nothing personal.
If your association wants to establish standards and try to encourage brokers to join, more power to you. If on the other hand you lobby for governmental licensing, regulation, and other barriers to entry, I’m out.
A certificate saying the broker is ethical is silly. A good honest broker will earn a reputation over the decades of satisfied customers. The industry is so small that rumors of a bad deal get around fairly fast.
The best advise given to any buyer is not who brokers the deal but the mechanic that does the pre-buy Annual. The average age of an aircraft today is over four decades old. They need intense tear-down and rebuild not a broker. The mechanic that is chosen before the purchase to do the future maintenance needs to do the pre-buy Annual and give the potential owner a full complete squawk list. I know first hand that most of the aircraft flying today have many old components that are in need of overhaul. Engine overhaul shops are full of “aging aircraft” stories.
Does a broker insure/guarantee their costumers satisfaction?
If a catastrophic event takes place two years after the sale are the brokers liable?