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In addition to the more than 2,500 air charter operators licensed by the Federal Aviation Administration (FAA), there are also entities known as air charter brokers that link prospective charter customers with air charter operators. An air charter broker plays an important role by matching a customer’s travel needs with the capabilities of an air carrier licensed under Part 135 of the Federal Aviation Regulations. While Part 135 charter operators are closely regulated by the FAA, air charter brokers are not plainly and comprehensively regulated. In the course of their business, brokers encounter a number of federal and state agencies that may have jurisdiction over their business.
To assist air charter brokers in navigating regulatory requirements and developing business best practices to benefit charter consumers, NBAA has published a guide that outlines best practices. The purpose of this guide is to discuss regulatory guidance that must be followed and foster the use of best practices throughout the air charter brokering industry. In addition, the guide provides information that will help to protect air charter brokers in the course of their business.
Air Charter Broker News
- NBAA Comments on DOT Air Charter Broker NPRM
- Nov. 27, 2013
NBAA submitted comments today to the U.S. Department of Transportation (DOT) to improve the proposed regulations impacting air charter brokers. "The Association has been advocating for improved regulations and guidance that appropriately governs the way respected air charter brokers do business while enhancing consumer protections," said NBAA's Mike Nichols, vice president of operational excellence & professional development. While NBAA generally supports DOT's proposed regulations, there were twelve primary areas that must be strengthened in order for these new rules to add significant value. In part, NBAA urged that DOT implement a simple registration requirement, clarify that consumer protection requirements apply to all charter brokers, not just those acting as indirect air carriers, and enhance disclosure requirements and unfair and deceptive practice prohibitions. Read NBAA's comments on this NPRM.
- DOT Issues Air Charter Broker NPRM
- Sept. 27, 2013
The U.S. Department of Transportation (DOT) is issuing a notice of proposed rulemaking (NPRM) to improve the air travel environment for consumers of single entity charter air Transportation. DOT is taking this action to protect consumers. The NPRM proposes creating a new class of indirect air carriers called air charter brokers and establishing required disclosures and enumerating certain prohibited unfair and deceptive practices for this class. NBAA is reviewing this proposed rulemaking and preparing comments for submission. This NPRM and its potential impact will be discussed in detail at the NBAA2013 education session, Six Shades of Grey – FAA and DOT Regulatory Compliance, on Wednesday, October 23 from 9:00 a.m. – 10:00 a.m. in the Las Vegas Convention Center. Review an advance copy of the NPRM.