In the multi-million dollar world of private aviation, the financial structure of a deal can often seem opaque to the uninitiated. One of the most frequent questions from owners and prospective buyers alike is: How exactly do commissions work?

Whether you are selling a long-range business jet or acquiring your first turboprop, understanding the compensation of an aircraft broker is essential for a transparent and professional transaction.

HOW AIRCRAFT BROKER COMMISSIONS ARE STRUCTURED

In the aviation industry, commission structures generally fall into two categories. The “right” structure often depends on the complexity of the deal and the market value of the aircraft.

1. THE PERCENTAGE-BASED COMMISSION

This is the most common model. 

• Higher-value assets (such as a late-model Global or Gulfstream) often lean toward the lower percentage points.

• Lower-value or specialized assets may lean toward the higher end to account for the work required relative to the sale price.The Flat-Fee Arrangement

2. THE FLAT-FEE ARRANGEMENT

For very high-value transactions or specific consulting-heavy acquisitions, some prefer a flat-fee model. This provides the client with a fixed cost regardless of the final negotiation outcome, which can sometimes remove any perceived “incentive” for the broker to push for a higher price just to increase their own payout.

WHO PAYS THE COMMISSION?

In a standard “Exclusive Listing” scenario, the seller typically pays the commission to their aircraft broker. The buyer pays a professional fee to have an expert represent their interests during the search, evaluation, and pre-buy inspection phases of the aircraft acquisition process. So each party pays their own broker representative.

WHAT ARE YOU ACTUALLY PAYING FOR?

It is a common misconception that a commission is simply a “finder’s fee.” In reality, a professional aircraft broker earns their commission through a massive amount of “behind the curtain” labor:

• Market Intelligence: Access to off-market inventory and “real-time” sold prices that aren’t available on public listing sites, developed through formed special relationships within the aviation industry.

• Technical Oversight: Managing the pre-buy inspection at a service center, which can save a buyer hundreds of thousands of dollars in undisclosed maintenance issues.

• Contract Negotiation: Navigating the complex legal language of a Purchase Agreement to protect the client’s deposit and liability, ensuring a swift transaction.

• Global Marketing: Utilizing a network of international contacts to find buyers in different time zones and jurisdictions and executing strategic sales.

THE RISK OF THE “NET PRICE” DEAL

One practice to be wary of is the “Net Price” agreement, where a broker tells a seller, “I’ll give you $5M for the plane, and I keep everything above that.” This often creates a conflict of interest, as the broker may be incentivized to undersell the aircraft’s true value or hide the actual market demand from the owner. 

EXPERIENCE THE DIFFERENCE WITH HOLSTEIN AVIATION

At Holstein Aviation, we believe that transparency is the bedrock of every successful transaction. Our IADA-certified professionals operate with a commitment to integrity, ensuring that our fees are clearly defined and our value is demonstrable at every stage of the process, solidifying our reputation for stellar customer service.

When you partner with us, you aren’t just hiring an aircraft broker; you are gaining a strategic consultant dedicated to protecting your capital and streamlining your transition. Whether you are listing an asset or seeking a new one, our aircraft acquisition services provide the expert oversight you deserve.

Contact Holstein Aviation today to discuss your goals and receive a clear, professional assessment of how we can facilitate your next move in the sky.