Ethical Representation in Aircraft Brokerage

Understanding How Aircraft Brokerage Works

Many buyers and sellers are surprised to learn that the aircraft brokerage industry operates very differently than the real estate industry. Unlike real estate agents, aircraft brokers are generally not required to hold a license, complete standardized training, or follow a universal code of ethics. There is no nationwide governing body that regulates how aircraft brokers represent clients, structure commissions, or conduct transactions.

Because of this, the aircraft brokerage world can vary significantly from one broker to another. Some brokers represent sellers. Some represent buyers. Some attempt to represent both sides of the transaction. Others may purchase aircraft themselves and resell them for a profit. Commission structures and business practices are often very different depending on the brokerage.

At Seitz Aviation, we believe clients should understand these differences before choosing representation.

Our goal is not only to help clients buy or sell aircraft — it is also to educate them on how the process works so they can make informed decisions.

Clear Representation Matters

One of the most important questions in any aircraft transaction is:

Who does the broker actually represent?

At Seitz Aviation, we believe that answer should always be clear. When we represent a seller, our responsibility is to help that seller properly market the aircraft, negotiate professionally, and facilitate the transaction in the seller’s best interests. When we represent a buyer, our responsibility is to help that buyer evaluate the aircraft, understand market value, and navigate the purchasing process.

We use exclusive representation agreements so there is no confusion regarding who our client is and what our responsibilities are during the transaction.

Understanding Back-to-Back Sales

In the aircraft industry, some transactions are structured as “back-to-back” sales. This occurs when a broker purchases an aircraft from a seller and immediately resells it to another buyer at a higher price, often creating a hidden profit between the two parties on top of a commission.

In some cases, the broker may even use a separate shell entity to purchase the aircraft directly from the seller they are representing, then quickly flip it to the buyer during the escrow process. Because these transactions can happen so quickly, the seller may never realize the broker made an additional profit on the resale, in addition to any commission already being paid. While these arrangements may be legal, many buyers and sellers are unaware they are happening.

At Seitz Aviation, we do not structure transactions this way. We do not believe in creating undisclosed profits between buyers and sellers. Our role is to represent our client transparently, not secretly position ourselves between both sides of the deal for additional financial gain.

Understanding Commission Structures

Aircraft brokerage commissions are not standardized across the industry. In some cases, multiple brokers may become involved in a transaction, which can create confusion about who is being compensated and by whom.

At Seitz Aviation, we keep our compensation structure straightforward:

  • If we represent the seller, the seller pays our commission.
  • If we represent the buyer, the buyer pays our commission.

 

This approach helps keep representation transparent and minimizes conflicts of interest. We also believe buyers should never be pressured into paying more for an aircraft simply to increase a commission. If a buyer chooses to offer above asking price, that additional value belongs to the seller — not the brokerage.

Why Transparency Is Important

Aircraft purchases are significant investments, and many transactions today are completed remotely with digital logbooks, online marketing, escrow services, and pre-purchase inspections coordinated across multiple states. Because of this, communication and transparency are critical. At Seitz Aviation, we believe clients should always understand:

  • Who is representing them
  • How the broker is being compensated
  • What role the broker plays in the transaction
  • How negotiations are being handled
  • What potential conflicts of interest may exist

An informed client is a protected client.

Our Approach at Seitz Aviation

Seitz Aviation was built around the idea that aircraft brokerage should be professional, transparent, and client-focused.

We believe in:

Whether you are purchasing your first aircraft or selling a long-time family airplane, our goal is to provide guidance you can trust while helping you understand the transaction every step of the way.