At the 2023 Corporate Jet Investor Dubai conference, ArcosJet’s Sales and Marketing Director Ivan Veretennikov shared his thoughts on the development of the preowned business jet market and the prospects of building relationships among clients and professional market players. The event was held May 3-4, 2023, in Dubai, UAE.

In his speech at the conference, Ivan criticized today’s common practice when only the seller of an aircraft pays for the work of the broker who executes the deal. It fails to meet the actual needs of the preowned business jet market, slows down its development, and affects brokers’ performance, he said.

“Believe it or not, brokers worldwide struggle to sign mandates or commission agreements with prospective buyers. So, they’re expected to do unique, highly demanding work without their client committing to anything. We hear it from colleagues in the industry every day. Buyers say, “Isn’t the seller going to pay you?” as if that’s the perfect solution. This has created a bad industry standard where clients don’t expect to pay for services and brokers are shy or scared to push for an agreement, which would guarantee payment for their work. There’s a broker involved on either side in a majority of deals, so this creates tension and lack of transparency in deals around the world,” Ivan Veretennikov noted.

ArcosJet believes that expanding the practice of signing contracts between buyers and brokers with a set agency commission will make the interaction and the progress of the deals more transparent, clear, and structured. That, in turn, will have a positive impact on the interaction of all players in the preowned business jet market, giving new incentives for its development.

ArcosJet, a Dubai-based global aircraft brokerage firm, works with buyers and sellers of business aircraft around the globe. The skills and knowledge the company has accumulated allow its team to maintain professional ties across many markets, actively contributing to a transparent and comfortable business environment in the industry.