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Air charter brokers are persons or companies who
purchase the use of an aircraft operated by
another company and make arrangements to carry
customers.
In today’s marketplace, when arranging
charter flights, most air charter brokers act as
either an agent of the customer or as an agent
of the company operating the aircraft. DOT’s
proposal would establish air charter brokers as
a new class of “indirect” air carriers that
provide air transportation to customers as
principals in their own right.
If made final, the rule would require brokers to
make a number of disclosures to passengers
before selling them a charter flight. They would
have to identify the name of the carrier and the
type of aircraft providing the flight. They also
would be required to disclose any corporate or
business relationship between the broker and the
carrier providing the flight, and whether the
broker was acting on behalf of the consumer, the
carrier or as a middleman.
In addition, the broker would have to disclose
the full price to be paid by the charterer for
the transportation, including all taxes and
fees, just as airlines must do.
The broker also would be required to
disclose whether it had liability insurance
independent from the operator of the aircraft.
The rule would also prohibit brokers from
engaging in certain types of unfair and
deceptive practices, such as advertising in a
way that makes them appear to be the carrier on
which a consumer is flying.
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