IADA buy a Jet
Photo courtesy of Amtec
The International Aircraft Dealers’ Association (IADA) – the Organization formerly known as NARA (National Aircraft Resale Association) – is going for world domination. This week, it launched a new site called AircraftExchange.Com targeting aircraft buyers.
The name Aircraft Exchange is significant. IADA wants to emulate early stock and future exchanges where members bought seats to trade. Only IADA dealers can list aircraft on the site and the Association hopes that this will be one of the key benefits of membership. The name was mooted on a table of brokers at The Dealmakers Dinner at Corporate Jet Investor Miami 2017. IADA aims to keep developing the site, including adding new features for members.
“IADA’s international clout gives it the unique ability to reinvent the way decision makers and influencers find world-class aircraft,” says Brian Proctor, chairman of IADA, and founder and president of MENTE Group. “We lead by clearly providing the best value proposition for both buyers and sellers of aircraft through knowledge, professionalism and a strict code of ethics. AircraftExchange.com exemplifies the dominant role we perform on behalf of our clients.”
The Association changed its name last year to attract international brokerages and has been working on encouraging new members. It launched in 1991 with eight dealers and had grown to 37 by the end of 2018. IADA says that although just 3% of all aircraft dealers are members, they are responsible for over 60% of all pre-owned aircraft sales globally.
Today is the closing date for new dealers looking to join in 2019. The Association had received 13 applications at the start of the day – beating the previous record of seven applications in one year – with more expected. Members who are approved will be formerly welcomed at its April meeting in Florida.
Not all aircraft brokers are rushing to join. Some smaller boutique firms see IADA as an attempt, by larger brokers, to corner the market.
To join IADA, firms have to have at least three active brokers, been in business for five years and sell an average of 10 aircraft year.
“You just have to look at the self-serving criteria for joining,” says one broker. “They are clearly driven more by commercial reasons than customer-driven ones. It is anti very-small businesses (all brokers are small businesses) and something completely outdated in this age of solopreneurs.”
Proctor stresses that this is not the plan. “We are definitely not trying to muscle-out smaller brokers. But we do want to recognise the significant resources that larger brokers invest. The initial cut-line is a minimum of three brokers but that may change.”
IADA is now working on a more formal way of accrediting brokers – something non-members are watching closely. “My question with accreditation is –‘what sort of organization only allows applicants from certain organisations?’ This is completely discriminatory,” says another broker.
The broker adds: “I would also say that I have never been asked if I am member of IADA or NARA.”
Proctor is hoping that AircraftExchange.com, new members and accreditation will change this.