(FREE) Lesson 2 of ABA's Certified Aircraft Broker Course
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Free LESSON 2: Anatomy of a Deal (Who’s Involved and Who Pays Who)
Understand the true role and daily realities of an aircraft broker and recognize how aircraft brokerage differs from real estate or auto sales
LESSON 2 Objective
Video - 3:17 mins
LESSON 2.1: Study Scenario #1: Dry Lease - Cessna Caravan 208B
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LESSON 2.2: Study Scenario #2: “The WhatsApp Broker & The Jet Engine Core”
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LESSON 2.3: Study Scenario #2: What You Do - Risk Mitigation Strategy
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LESSON 2.4: Educational Diagram - Flow of Communication & Transaction
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LESSON 2.5: Red Flags Checklist (Specific to The Scenario #2 Deal):
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LESSON 2.6: Key Takeaways
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LESSON 2.7: Professional Conduct Checklist
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LESSON 2.8: Red Flags to Watch For
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LESSON 2.9: Exercise Prompts For You to Think About
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LESSON 2.10: ABA Takeaway
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LESSON 2.11: Study Scenario #3: King Air B100 Purchase Deal (Bahamas Buyer / Puerto Rico Broker)
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Rather than walking away from a potential $4,500 profit, you structure the deal with
controls:
Option A: Escrow Account
- You suggest using a reputable escrow company (e.g., AeroTrust Escrow Services, AeroTitle, IATS, JetEscrow, or a U.S. title firm).
- Buyer wires full funds into escrow, including shipping crate fees.
- Escrow only releases funds once:
- Engine is shipped (with tracking and crate photos)
- Buyer signs an engine receipt
- Optional: A third-party inspection confirms engine receipt and paperwork
match
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Option B: Letter of Credit (LC)
- You recommend a Standby Letter of Credit (SBLC) through their Italian bank.
- Your bank or attorney confirms terms:
- Funds guaranteed after proof of shipment
- You submit airway bill, invoice, and declaration of sale
- Bank-to-bank communication only, minimizing fraud risk
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What You Don’t Do:
- You don’t ship without prepayment or a bank instrument in place.
- You don’t bend protocol for the sake of a sale.
- You don’t chase a risky deal, even if it means losing it.
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